AFRICA S DEVELOPMENTAL ASPIRATIONS, the ENERGY CHALLENGE and MAXIMISING OPPORTUNITIES

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1 AFRICA S DEVELOPMENTAL ASPIRATIONS, the ENERGY CHALLENGE and MAXIMISING OPPORTUNITIES (CONCENTRATING ON THE ELECTRICITY INDUSTRY) MANDY RAMBHAROS ESKOM, SOUTH AFRICA

2 SUSTAINABLE DEVELOPMENT IN AFRICA In practical terms, the primary objectives of sustainable development in Africa remain: DEVELOPMENT! Eradication of poverty; Fulfilment of basic human needs; Sustained economic development

3 SUSTAINABLE DEVELOPMENT IN AFRICA Delhi Ministerial Declaration Decision 1/CP.8 outlined the importance of linking climate change and sustainable development in both directions: mitigation measures should be integrated with national development programmes, taking into account that economic development is essential for adopting measures to address climate change Innovative thinking around development. Meeting need for increased access to basic needs Meeting aspirations for development beyond a mud hut with a solar panel Meeting these practically, pragmatically and in a manner that has the co benefit of lowered emissions. Energy Access plays a key role

4 Share of Global Energy Consumption North America 30% Western Europe Former Soviet Union 19% 17% South and Central America 5% 2% Africa 3% Middle East 25% Asia Pacific million people 66% rural - no energy infrastructure

5 Electricity Deprivation In 2030 there could still be 1.4 billion people without electricity (Source: IEA World Energy Outlook 2004)

6 Africa Challenge: Access to Affordable Energy Services 12% of the global population but consumes only 2% of all electricity produced

7 DEVELOPMENTAL CHALLENGES - Adaptation & Mitigation Africa s challenge is one of development. Using Africa s abundant energy to develop Africa as opposed to exporting the continent s wealth. Develop infrastructure in a robust manner whilst embedding the elements of sustainable development. Generation - Vulnerability of hydro and coal infrastructure, Droughts, floods, silting Transmission Vulnerability of lines and substations floods, wind, snow and ice Distribution and end use droughts, floods, land use change

8 Technological Options Gas Efficiency Renewables Coal Nuclear Transmission

9 Renewable hydro resources in Southern Africa - potential to energise the continent GABON Matala Click to add title CONGO Inga Inga Ipupa NAMIBIA Ruacana Windhoek Capanda Capanda 600 ANGOLA Ruacana 240 ZAIRE Kolwezi Batoka 600 ZAMBIA BOTSWANA Gaborone RWANDA Kafua 450 UGANDA TANZANIA MALAWI Cahora Bassa ZIMBABWE Apolo Subs BURUNDI 350 Kariba C Basa 1400 SWAZILAND MOZAMBIQUE KENYA 2500 Mepanda Nkua 9 REPUBLIC OF SOUTH AFRICA LESOTHO Total Potential ~ 52,000 MW

10 The Hydro Option MW to energise Africa?? DEM. REP. OF CONGO INGA KINSHAZA ENE HYDRO S KUANZA 6000 MW ANGOLA Auas NAMIBIA BOTSWANA GABORONE SOUTH AFRICA PEGASUS INGA site OMEGA

11 Morocco Tunisia Western Sahara Algeria Libya Egypt Senegal The Gambia Guinea- Bissau Sierra Leone Liberia Mauritania Guinea Côte D Ivoire they can Existing tie up Networks a lion Planned Expansion Under Construction Mali Burkina Faso Ghana Togo Potential Future Grid Potential Future Grid Alternative Routes Equatorial Guinea Republic of the Congo When the spider webs unite, Ethiopian Proverb Benin Cabinda Nigeria Niger Cameroon Gabon Chad Central African Republic Angola Namibia Rwanda Democratic Republic of the Congo Botswana Zambia Sudan Zimbabwe Uganda Burundi Tanzania Ethiopia Kenya Malawi Mozambique Eritrea Djibouti Somalia Madagascar Republic of South Africa Swaziland Lesotho

12 Technological Gaps Advanced clean coal technology Supercritical and ultrasupercritical with gas cleaning and dry cooling Carbon Capture and Storage Gasification Nuclear Technology base Licensing Regulatory environment Proliferation Hydro Large scale run of river systems

13 Technological Gaps Cont.. Renewables Cost Resource modeling and assessment Distributed systems High Voltage DC infrastructure Power system dynamics and management Energy efficient end use technologies Monitoring and observation systems The physical environment including weather and climate Resources Demographics Land use Infrastructure integrity Condition monitoring Modeling of impacts and analysis of trends

14 SO. TELL ME AGAIN THAT THERE ARE LIMITED OPPORTUNITIES IN AFRICA? THERE IS LIMITED SCOPE FOR MARKET MECHANISMS? THERE IS LIMITED DEMAND FOR ENERGY? ETC? ETC?

15 MARKET OPPORTUNITIES Market opportunities - motivation is to increase capital and technology flows into sectors that enhance developmental priorities. Enablers investment incentives and/or guidelines to direct financial flows to projects that align with national sustainable development priorities and by inference towards CDM, and such markets Solutions Public sector finance to catalyse projects, particularly for those countries with poor institutional capacity or high risk ratings. Combination of capacity building and mechanisms for supporting CDM project funding on a basis other than private capital market financing, including sources such as mutilateral financing,soft financing Such financing however must address the question of ODA

16 MARKET OPPORTUNITIES Solutions Engagement between Governments and Business to find ways to promote enabling frameworks, cooperation and create opportunities for investments nationally and through bilateral / multilateral frameworks. Innovation in thinking - long term strategy and vision: Avoid upfront exclusions of technologies i.e. assess potential of all technologies without exclusions before doing the research. Avoid mistrusting efforts to promote market mechanisms before doing the research. Listen

17 Conclusion Although posing many challenges - technological, social and economic - there is theoretically nothing that cannot be achieved through using Africa s energy for Africa s development. Key to this is the development of African power grids as this will promote many benefits in the long term and will allow collaborating nations to share in the benefits of energy diversification and access. To successfully achieve such goals, the gaps need to be identified and quantified so that they can be systematically tackled on a prioritised basis. This will need firm long term commitment and collaboration among African nations and from financial institutions and development agencies alike. Innovation around market mechanisms Strengthening current mechanisms for now and for the future Thinking long term investment in energy for sustainable development Increase capital and technology flows into sectors that enhance developmental priorities Business cannot succeed in a society that fails WBCSD publication