Africa Clean Energy Corridor. Yong Chen Programme Officer for Asia and the Pacific Suzhou, 8 November 2015
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1 Africa Clean Energy Corridor Yong Chen Programme Officer for Asia and the Pacific Suzhou, 8 November 2015
2 Africa: Power needed to fuel economic growth GDP growth in 2012: 4.3 % Current electricity mix: Sub-Saharan Africa 2.4 % World average By 2035 x4 By 2035 x3
3 ACEC Objective Develop RE resources and integrate renewable power into grid Promote cross-border trade of renewable power Build on SAPP and EAPP work and PIDA
4 Africa Clean Energy Corridor (ACEC) ACTION PILLARS: Zoning and Resource Assessment Identification of high resource zones for RE development. Country and Regional Planning Consideration of cost-effective RE options for power generation in national and regional plans. Jan 2014 Ministerial Communique signed to endorse ACEC Action Agenda. Enabling Frameworks for Investment Opening markets to IPPs, reducing the costs of RE financing and facilitating power trade. Capacity Building Development of skills to build, plan, operate, power grids with higher RE shares. Public Information Awareness raising and promotion of the ACEC and its benefit. 4
5 1. RE Resource Assessment and Zoning Developing cost-effective renewable power plants in areas of high resource potential and routes for the efficient transmission of electricity to load centres.
6 Renewable Energy Zoning A multi-criteria spatial analysis of renewable energy resources for the identification of cost effective, realistically achievable RE resource development zones/ project opportunity areas. Objectives Provide countries with RE resource assessments, identifying realistically achievable RE zones for future ground validation by the countries and information for investors. Facilitate coordinated planning for development of RE resources. Inform long-term transmission planning and leverage existing and planned electricity infrastructure to promote more rapid development of RE plants. Scope of the Study Resource assessment and zoning for Wind, solar PV, and solar CSP in the Eastern and Southern African Power Pool countries.
7 Overview of RE Zoning process 7
8 Outputs of the study Report with methodology, assumptions and results Interactive PDF RE zones maps RE zones ranking and supply curve tool Maps on Global Atlas, and mapre.lbl.gov Input and output geospatial datasets to be open source and downloadable (if not proprietary) 8
9 2.Enabling Frameworks for Investment RRA: Impact in ACEC countries Swaziland: Grid Code adopted, and RE IPP policy under finalization RE being integrated into national energy policy and legislation Integrated resource planning under development Mozambique: RE resources mapping for the whole country done RE feed-in-tariffs adopted Rural Electrification Strategy with RE focus revised for private sector involvement Measures for promoting small hydro under consideration Zambia: Mapping of RE resources and development of feed-in-tariffs Integrated resource planning under development Djibouti: RRA used as basis for a geothermal intervention of USAID Inclusion of RE in the electricity Master Plan and Electricity Law Tax exemption for all RE equipment
10 2.Enabling Frameworks for Investment Enabling frameworks will reduce investment risks, attract private investments and ensure the transition towards a reliable power system, based-upon renewables. Regulatory Empowerment Project Needs-based advisory service facility Supporting effective governance frameworks Transferring global good practices Empowering relevant decision makers Regulatory work on Planning Governance Project initiated in Namibia and Zimbabwe as well as in the SAPP region Supporting good governance for the development, maintenance and implementation of long-term power system plans with RE.
11 3. National and Regional Planning SPLAT Planning Model Least-cost optimization tool for African power sector Investment needs 2015 to 2030: USD 20-25Bn/yr in generation USD 15 Billion/yr for T&D
12 4. Capacity Building Develop skills and strengthen institutions to build, plan, operate, maintain and govern power grids and markets with higher shares of renewable electricity. - Training workshops held for RE Zoning, SPLAT planning, governance frameworks, rid integration of RE. - Practitioner s Guide for grid integration of variable RE developed.
13 ACEC Implementation Framework Sustainable Energy Market Place Project Owner A Project Owner B Project Owner C Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project N Service providers Projects Governments Technical Financing Legal EPC, O&M Other Expertise Market Place Financing Enabling environment, facilitation Enabling frameworks Investment opportunities Country level facilitation Equity Mezzanine Loan Guarantee Grant Utilities Industrials / IPP Private Equity Commercial Banks ECAs Public Finance 13
14 ACEC Implementation Framework Policy Consultative Forum: facilitating strategic policy dia logue between decision ma kers. Ministries Regional Institutions Key Regional Fora: AMCEN, AU STC, AELG, AU Summit Key Financing Institutions and Development Banks PCF Development Partners Regulatory Bodies Power Pools Civil Society and key stakeholder groups 14
15 Thank you for your attention! 15
16 IRENA s engagement in West Africa: RRA Senegal Adoption of the Decree No providing conditions of power purchase and remuneration for electricity generated by RE plants and the conditions of their connection to the grid; Adoption of the Decree No provides the conditions of power purchase of surplus RE-based electricity from self-producers Development of FiT for RE with the support of EU WB- strategy and action plan on RE deployment in Senegal Niger New rural electrification agency created Reallocation of part of the tax on electricity for rural electrification as part of the internal resource mobilization mechanism for RE promotion 16
17 IRENA s engagement in West Africa: RRA The Gambia Enactment of Re law and establishment of RE fund GREC revived, capacity building activities for key stakeholders of the RE sector Development of standards and labels for RE equipment Mauritania The Government is taking concrete steps for various fronts to promote RE based off-grid electrification options 17
18 IRENA s engagement in West Africa IRENA Abu Dhabi Fund for Development (ADFD) funded projects: Mali (USD 9m, 4MW hybrid solar-diesel for 30 villages) Loan agreements signed, under implementation, Government co-funding. Mauritania (USD 5m, 1MW wind) Loan agreements signed, under implementation, UNDP GEF co-funding. Mauritania (USD 6m, 1MW hybrid wind-solar PV-hydro) Site appraisals scheduled. Sierra Leone (USD 9m, 4MW grid connected solar PV) loan agreements signed, under implementation, IsDB and ECREEE co-funding. System Planning Test (SPLAT) Least-cost energy supply options are explored under different policy assumptions for West African Power Pool countries. Trainings on the use of this tool planned in October/ November. Next steps: Technical stakeholder meeting in September/ October in West Africa for identifying elements for a West ACEC action agenda Endorsement of the Action Agenda by Ministers/the Region. 18
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