CONCEPT NOTE. Renewable Energy for Sustainable Development: From Potential to Infrastructure and Services

Transcription

1 African Unin AUCnference f Energy Ministers f Africa (CEMA) All-Africa Energy Week 2012 (AAEW) Pan-African Investment Frum (PAIF) CONCEPT NOTE Renewable Energy fr Sustainable Develpment: Frm Ptential t Infrastructure and Services Nvember 2012 Addis Ababa, Ethipia

2 The African Unin Cmmissin, the African Develpment Bank, and the Ecnmic Cmmissin fr Africa are c-rganizing, frm Nvember 12 th t Nvember 16 th, 2012 in Addis Ababa, Ethipia, the secnd regular sessin f the AU Cnference f Energy Ministers f Africa (CEMA) jintly with the secnd All- Africa Energy Week (AAEW) which cmprises the African Investment Frum and the energy Exhibitin. I. Backgrund The Energy Ministers f Africa adpted during a meeting in Maput, Mzambique in Nvember 2010,a Declaratin creating the Cnference f Energy Ministers f Africa(CEMA) as sle cntinental hlistic Energy Ministerial rgan under the auspices f the African Unin. In additin the Ministers adpted a reslutin establishing the All Africa Energy Week, as a framewrk t evaluate the prgress made in infrastructure develpment and Reginal energy services, cnsensus building n emerging issues, high level crdinatin f all the actins and stakehlders in the energy sectr. These reslutins were further endrsed by African Heads f States and Gvernment during the January 2011 AU Summit. Bth CEMA cnference and All Africa Energy Week are scheduled t take place every tw years. Given that 2012 is declared as the Internatinal Year f Sustainable Energy Access fr All (SE4ALL) by the United Natins Secretary General and the UN system, the AAEW will be an imprtant pprtunity t reiterate the crucial rle f Renewable energy in achieving sustainable develpment in Africa by cntributing t thethree fllwing gals f the SE4ALL initiative: Ensuring universal access t mdem frms f energy fr all by 2030, imprving significantly energy efficiency, and dubling the glbal share f renewable energy by In January 2012, African Heads f State and Gvernment (HSG) adpted a Declaratin apprving the Prgramme fr Infrastructure Develpment in Africa (PIDA) and the institutinal architecture fr its implementatin (Dec. EX.CL/702 (XX)). It establishes the highest level plitical cmmitments n the cntinent in recgnitin f the vital and facilitatr rle that infrastructure and its related services play in the plitical and sci-ecnmic develpment and physical integratin f the cntinent as well as in the attainment f the Millennium Develpment Gals. With the cmpletin f the study f the Prgramme fr Infrastructure Develpment in Africa (PIDA), and its adptin by African HSG as Africa s cntinental pririty prgramme, the AAEW-CEMA platfrm ffers a unique pprtunity t address urgent cncerns abut the cntinental wnership and cnsultatins arund the rll ut f majr prjects in the energy sectr with key partners. 2 Page

3 Finally, Africa hsted imprtant events in energy sectr such as the COP17 meeting (Nvember December 2011) and the African EU Energy Partnership Frum (9-10 May, 2012). These meetings are strngly tied t renewable energy issues and their utcmes will be taken in accunt in the framewrk f the discussins. II. Overall Objectives and Issues f the All-Africa Energy Week (AAEW) and CEMA The main theme f the 2012 All Africa Energy Week/CEMA is: Renewable Energy fr Sustainable Develpment: Frm Ptential t Infrastructure and Services. The verall bjectives f the AAEW Thematic Frum are: T achieve mre efficient, cherent and crdinated actins twards increasing energy access and ensuring energy security fr develpment in Africa; T accelerate prgress thrugh dialgue and partnerships tward the scaling up f investments in the African energy sectr; T infrm decisin-makers and influence sectr plicies fr scaling up energy infrastructure and services fr increased prductivity n the cntinent. The specific bjectives will be: T take stck f and mnitr prgress achieved in the African energy sectr by majr natinal, reginal and internatinal institutins; T imprve strategic and peratinal tls used by the main energy actrs fr supprting the implementatin f the African energy agenda; T share updated knwledge and disseminate it amng energy plicy-makers, develpment partners, private sectr and ther energy stakehlders; T increase the building f strategic partnerships amng key players, and particularly with the private sectr fr the develpment, implementatin and clsing knwledge and financial gaps in energy prjects; T build capacity in innvative knwledge and attain early understanding twards a cnsensus n emerging key issues in the sectr. T that end, it is prpsed t fcus the 2012 AAEW/CEMA n the fllwing tpics: III. All Africa Energy Week (AAEW) The AAEW is divided in three cmpnents: 1) the Thematic Sessins; 2) the Investment Frum and 3) the Technlgy Exhibitin. A. AAEW Thematic Sessins a. Rlling Out the Prgramme fr Infrastructure Develpment in Africa (PIDA) 3 Page

4 The meeting is t take stck f prgress in the develpment f energy infrastructure, services and knwledge in Africa. The utcmes f the Prgramme fr Infrastructure Develpment in Africa (PIDA) study and its implicatins will be discussed. Deliberatins will be cnducted n the draft Rll-Out Plan (ROP) fr the energy sectr and cnsensual appraches will be determined b. Stepping up hydrpwer develpment fr reginal integratin Africa is, amng all develping areas f the wrld, the cntinent where needs are the mst urgent. In Africa, less than 7% f hydrpwer ptential has been develped while mre than 60% f its ppulatin des nt have access t electricity. This highlights the cntrast f a cntinent well-endwed with energy resurces and the deprivatin f its ppulatin, industries and businesses f the minimum energy services and prducts that they require t face the challenges f mdern lives, and ecnmic grwth. Given the lw energy cnsumptin in mst f African cuntries and the huge needs in capital t develp hydrpwer energy resurces, ensuring the whle energy security is nly pssible by scalingup reginal pwer supply and transmissin netwrks. This is the main mandate f the Reginal Pwer Pls t facilitate reginal energy planning and develpment f large energy prjects n a reginal basis. c. Slar energy viability in Africa The African Energy Ministers adpted in Maput a Reslutin n Slar Energy calling fr harnessing the immense ptential f slar energy radiatin f the Sahara Desert and ther semi-arid areas in the African regins fr electric pwer generatin. T this regard, a study was cnducted by AFREC t assess the ptential f energy in the Sahara and Sahel regins as first phase. The utcmes f the study will be cmmunicated and discussed. 4 Page d. Harnessing wind and gethermal ptentials Wind and gethermal energy ptential are significant in several regins f the cntinent. The East African Rift System (EARS) is ne f the majr tectnic structures f the earth which extends fr abut 6,500 km frm the Middle East (Dead Sea-Jrdan Valley) in the nrth t Mzambique in the suth. The EARS appears t pssess a remarkable gethermal energy ptential. Using tday's technlgies, the EARS has the ptential t generate mre than 15,000 MW f pwer frm gethermal energy. The Reginal Gethermal Prgram led by the African Unin has been established and a Gethermal Risk Mitigatin Facility (GRMF) amunting 50 M Eurs is in place with the cntributin f the German Gvernment thrugh the KfW fr 20 M Eurs and f the Eurpean Unin Infrastructure Trust Fund fr 30 M Eurs. The main bjective f the GRMF is t

5 prmte private and public investment fr the develpment f gethermal energy ptential in prviding grants fr five cuntries in EARS as first phase. 5 Page e. Grid cnnectin, Tariff and financing issues, Regulatins and Plicies Given the scale f investments needed, innvative appraches fr planning and financing are critical. These appraches shuld pay great attentin t prmte mixed technlgies apprpriately targeted fr grid extensin in urban and rural areas with high ppulatin density and n mini grid as well as ff-grid systems based n renewable energy technlgies fr remte areas. Addressing tariffs issues is crucial fr sustainability f the sectr and fr fund mbilizatin needed fr refurbishment and expansin f energy infrastructure. It is generally agreed that f the 70 GW f installed capacity, 40 GW need t be refurbished and 7 GW f new capacity need t be built yearly t meet suppressed demand and t face prjected ecnmic grwth. The ttal amunt per year is estimated t $ 41 billin. In rder t ensure the viability f the system which need brad participatin f private sectr it is critical (i) t avid under pricing; (ii) t ensure adequate cst recvery (iii) t have gd gvernance f the utilities and (iv) t invest in energy efficiency as driver fr affrdability. Participatin f private sectr in the develpment f energy infrastructure in varius frms such as PPP r IPP is essential fr achieving supply/demand balance. As energy sectr invlves lng term agreements, a predictable regulatry framewrk especially n tariff matters is crucial t attract and maintain private actrs. Energy plicy in Africa culd drive ecnmic grwth when it is established with a minimum f reginal cnsensus. Cuntries shuld agree n Pwer Trade with clear mechanisms fr crss-brder sale f electricity that brings benefits fr all. Indeed, expended reginal energy trade based n large hydrpwer facilities lead t lwer generatin csts and encurage investments, ecnmic grwth and jb creatins. B. African Investment Frum The underdevelpment f energy infrastructure in Africa, particularly in sub- Saharan Africa is the cnsequence f delayed and lw investments in the sectr while the ppulatin has mre than dubled in many cuntries. Experts estimate that, in rder t prvide energy t half f the ppulatin in the next 20 years, the current level f investment must quadruple; a daunting challenge fr mst natinal gvernments n the cntinent. Thus, develping key partnership

6 between the public and the private sectr (thrugh PPP arrangements) and attracting new private investments are required. The secnd African Energy Investment Frum is t take stck n the achievements f the first ne and t prvide a Pan-Africa platfrm fr interface and partnership between the African plicy makers, the private sectr and financial institutins. The Frum will als act as a vehicle fr empwering the African Private Sectr thrugh advcacy, sharing business and market infrmatin and skills. The Frum will underscre the frmatin f a partnership s and netwrk structure fr the implementatin f plicy recmmendatins and will als link these measures with n-ging private sectr effrts twards strengthening Africa s investment climate and business cmmunity. C. Exhibitin Alngside the meetings, Industries, technlgy develpers, R&D practitiners, and develpment actrs are invited t shwcase their cmpanies and rganizatins, display equipments, materials, services, innvative findings, new knwledge and ther practices relevant t addressing energy pverty. Tgether with the utcmes f the deliberatins f the meetings, the exhibitin will cntribute t enlighten develpers and plicy-makers n the varius pprtunities fr shifting energy investments. IV. AU Cnference f Energy Ministers f Africa(CEMA), African Ministers respnsible fr energy will cnvene under the auspice f the African Unin, t discuss n the prgress in sectr in the light f the Maput Declaratin Maput adpted n 5 Nvember 2010 and the main events since the first Cnference. The meeting will cmprise a ministerial rund-table and a statutry ministerial meeting, preceded by a senir Experts meeting. It is expected that Ministers will decide n new mdalities f functining f CEMA and a Declaratin with imprtant decisins related t cntinental plicies in the energy sectr, including way frward recmmendatins n PIDA, issues related t renewable energy in Africa (slar, wind, gethermal), issues related t the Africa-EU Energy Partnership, and thers. In particular imprtant utcmes are: Establishing the new Bureau f CEMA; Endrsement f Rll ut Plan f Pririty Actin Plan f PIDA in energy as well as the Institutinal Architecture fr PIDA implementatin; Sustainable Energy Fr All cmmitments; The Gethermal Reginal Prgram; COP17; Africa-EU Energy Partnership; Hydrpwer 2020 Initiative; Way frward decisins and Declaratin. 6 Page

7 V. Participatin and Beneficiaries The main beneficiaries are participants and their related rganizatins/cuntries: African Ministers respnsible fr energy; investrs, private sectr and develpment partners; cuntry-specific experts, stakehlders and partners; partners frm the AfDB, EU, WB, and UN rganizatins; Investment prmtin agencies in Africa; Reginal Ecnmic Cmmunities (RECs), Reginal Pwer Pls, African specialized institutins, and Sub-Reginal Develpment Banks; Energy NGO, selected academia and research institutins. The prceedings f the cnference (n electrnic supprt) will directly benefit the participants, and als ther decisin-makers in varius gvernmental and nngvernmental rganizatins, including investrs, private sectr and civil scieties. VI. Venue and date The dates fr the Meetings are frm Nvember 12 th t Nvember 16 th, 2012, in Addis Ababa, Ethipia 7 Page