AREI Transforming Africa to a renewable energy powered future with - - PowerPoint PPT Presentation

AFRICA RENEWABLE ENERGY INITIATIVE

AREI

Transforming Africa to a renewable energy powered future with access for all

Feb$2016

CONTEXT

THE ENERGY ACCESS GAP

Sh Share of population without el elec ectricity ac access Fu Future access situation: BAU sc scenario

• Huge implications on

human well-being and prospects for sustainable development

IMPORTANCE OF ENERGY FOR AGRICULTURE

Land Preparation Fertilizing Crop protection Harvesting/ threshing Drying Milling Packing Pressing Storing Infrastructure and transport ICTs Training Selling

Energy supply mix:

Electricity Mechanical power Fuels/thermal

ACTIVITIES AGRICULTURAL VALUE CHAIN (Simplified)

Production Distribution and retail (domestic and export markets) Processing, post-harvest and storage

IMPORTANCE OF ENERGY FOR SMEs

A HUGE ENERGY ACCESS GAP

700 600 500 400 300 200 100

2000 2005 2010 2015 2020 2015 2030

GIGAWATTS (GW) ACCESS GAP YEAR

Current growth based on historic trends Pathway to 100% access PIDA projektions at 6% growth/year

A LOW TO ZERO CARBON FUTURE NECESSARY – ALSO FOR AFRICA

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

AR5,WGI,SPM

AREI

GOALS AND PRINCIPES

GOALS OF THE AREI

ENERGY ACCE CCESS… …CL CLIMATE help achieve the Sustainable Development Goals, enhanced well- being, and sound economic development by ensuring universal access to sufficient amounts of clean, appropriate and affordable energy help African countries leapfrog towards renewable energy systems that support their low-carbon development strategies while enhancing economic and energy security

EXPECTED RESULTS

ACR CROSS THE CO CONTINENT… MORE SPECI CIFICA CALLY

At least 300 GW of new and additional installed capacity with an initial 10 GW by 2020

• Increase number of users

connected to the national grids

• r new mini-grids
• Increase share of RE of energy

consumption in productive sectors: agriculture, industry, and services

• Increase in the share of

local/African firms providing RE equipment & supply on the continent

CLOSING THE GAP

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

GUIDING PRINCIPLES

Should contribute to achieving SD in Africa Must address the entire African continent and benefit all African countries. Should boost intra-regional cooperation Can promote all kinds of renewable energy technologies Can promote the full range of renewable electricity applications, as well as non-electrical forms of energy

KEY FEATURES

Country Ownership Enhanced private and public sector engagement Smart, modern distributed renewable energy systems of the future Transformative and programmatic Multi-stakeholder participation and social and environmental safeguards

DISTRIBUTED, DECENTRALISED, PEOPLE-CENTERED ENERGY SYSTEMS OF THE FUTURE

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

DISTRIBUTED, DECENTRALISED, PEOPLE-CENTERED ENERGY SYSTEMS OF THE FUTURE

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

Customer) demand Customer) demand Customer) demand Customer) demand Customer) demand

Low)and)medium)voltage

DISTRIBUTED, DECENTRALISED, PEOPLE-CENTERED ENERGY SYSTEMS OF THE FUTURE

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

Customer) demand Customer) demand Customer) demand Customer) demand Customer) demand

Island'grid'1 Island'grid'2 Island'grid'5 Island'grid'4 Island'grid'3

DISTRIBUTED, DECENTRALISED, PEOPLE- CENTERED ENERGY SYSTEMS OF THE FUTURE

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

50

8 000 Electricity)use)in) kWh)per)person) per)year Actuals)today Range)of) African) countries (excl.)RSA) Long>term)target:) Typical)demand)for)an) economically)prospering,)yet) energy>efficient)country

“Old(electricity(world”

1(500

“New(electricity(world”

Central,(big

• Coal
• Nuclear
• Natural)gas

Traditional(way( to(fill(the(gap New(alternatives to(fill(the(gap

Distributed,(smaller

• Wind
• PV)(some)CSP)
• Biomass/>gas
• Natural)gas
• Hydro

Opportunity(for(the(African(continent(to(“leapfrog”(largeDscale,( central(power(system(directly(to(distributed(generation

Sources:)gapminder;)CSIR)analysis

AREI

WORK AREAS

ACTION PLAN DOCUMENT:

CONTINOUSLY UPDATED AND REFINED

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

CLOSING THE GAP

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

CORE ACTIVITIES

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

CORE ACTIVITIES

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

Mapping and coordinating (1/5)

• Thorough ma

mapping of existing and proposed RE policies, regulations, and experiences.

• Determine the level of

ef effort, gaps and d priorities

• f the different RE

initiatives.

• Facilitate ex

exchange e of be best-pr practic ice po polic icie ies Building synergies between existing and future RE Initiatives

SDG 17

Strengthening Policy, Regulatory and Support frameworks

…to provide long- term investment security …to drive upgrades of existing grids and accelerated mini-grid rollouts …to expand use of non- electrical energy in productive applications …to improve energy efficiency across all energy applications …to enhance domestic capacity for RE component manufacturing

SDG$7

(2/5)

• Ev

Evaluate different kinds of po policy tools and incentives, including fe feed-in in tarif iffs

• Evaluate particularly

promising options or models for support of of

• ff-gr

grid and mi mini-gr grids

• Support countries in

determining int interna natio iona nal fi financial support ne needs.

• Support countries in

formulating bold funding pr propo posals to GC GCF

…to provide long-term investment security

Strengthening Policy, Regulatory and Support frameworks (2/5)

• Many renewables competitive with fossil fuels on life-

time basis.

• No fuel costs for renewables – almost all costs in initial

construction (hi high h capital costs = risky investments)

• Developers/investors need security for both off-take

and tariffs to dare make the investment.

• Payment guarantees are therefore a key to unleash

transformative change where huge numbers of households, communities, cooperatives, public institutions, SMEs and larger companies can invest

Strengthening Policy, Regulatory and Support frameworks…to provide long-term investment security

MODELS OF TRANSFORMATIVE

NATIONAL PAYMENT GUARANTEE PROGRAMMES TOWARDS 300 GW BEING DEVELOPED

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

Country(A National(grid

National(RE(Agency TG TG TG

Newly(established island(grid

Island(Grid(Operator CP Supra9National( RE(Fund 1)(Backing(of(national( tariff(and(off8take(guarantee 2)(Top8up(payment On8grid:((TG(8 value)( Island(grid:((TG(+(CP(8 value) National Grid(Operator Value(of(RE TG(=(Tariff(Guarantee [USD/MWh] CP(=(Connection(payment( [USD/customer(connection/month] TG TG TG((sliding) Value

• f(island(grid

1 2 3 2 1

• Support co

country assessment of existing grid-infrastructure, with id ident ntif ific icatio ion, n, prio iorit itiz izatio ion n and nd co cost es estimations.

• Enable African vi

visionary lo longer- te term planning of new smart grid systems

• Enable int

interna natio iona nal fina inanc ncia ial su support for ambitious grid extension and upgrades.

• Evaluate existing and emerging

bu business models and support schemes for mi minigrid development and enable funding for such incentives.

…to drive upgrades of existing grids and accelerated mini-grid rollout

Strengthening Policy, Regulatory and Support frameworks (2/5)

• Provide se

seed capital and cr credit to meet demands for productive applications of non-electrical energy products and services.

• Promote cooperation (including

South-South) for scale-up of the mo most promi mising non-el elec ectrical en ener ergy tec echnologies es

• Engage African countries in lo

long- te term planning of their renewable energy systems and the ph phasing in/ in/out of renewable energy technologies over time

…to expand use

• f non-electrical

energy in productive applications

Strengthening Policy, Regulatory and Support frameworks (2/5)

• Assess and highlight be

best pr practices and particularly successful approaches.

• Explore EE incentives measures as

complementary and co conditional requirements for other results- based RE investment incentives.

• Enable and channel int

interna natio iona nal fi financial support to improve and finance bold energy efficiency measures

…to improve energy efficiency across all energy applications

Strengthening Policy, Regulatory and Support frameworks (2/5)

• Support planning for lo

long-te term, st step-wi wise enhancement of RE technology manufacturing capacity through ta targete ted fi financial inc incent ntiv ives mechanis nisms.

• Initiate collaborative long-term

programmes, including so south-so south co collaboration.

• Support government efforts to

maximize jo job-cr creation through effective coordination with other policies.

• Expand opportunities for wo

women’s ’s participation in the renewable energy sector.

…to enhance domestic capacity for RE component manufacturing

Strengthening Policy, Regulatory and Support frameworks (2/5)

Capacity mobilization/building (3/5)

• Elevate ca

capaci city building as a top pr priority and support an African regional st strategic plan.

• Build pa

partnerships ps with knowledge institutions outside of Africa, including South-South collaboration.

• Develop re

regional collabora ration among African institutions. Support renewable energy education and training at un universities.

• Mobilize the African di

diaspora community to deliver targeted expertise as needed.

Concerted capacity building across stakeholde rs at all levels

SDG$7,$8

Finance (4/5)

• Op

Operating costs for African RE Initiative

• Funding from GC

GCF and other sources for comprehensive co country y pr programmes and investment in ince centiv ives according to this framework.

• Financial commitments from

in internatio ional do donors to fund the pre- 2020 requirements with at least US USD 5 bi billion.

• Establishment, through continued

African leadership, of a gl global al pr programme for renewable energy support with sufficient, long-term funding commitments.

• New public sources of favorable,

co conce cessio ional fi finance for upfront investments.

Finance

To cover operating costs, enabling activities and incentives

By facilitating access to credit for investors and developers SDG$17

Project development and support (5/5)

• Complementary effort: Enable

good projects in the pipeline

• Invite countries for proposals
• Review and select proposals
• Ensure adherence to all AREI

guidelines and principles

• Ensure new and additional
• Release funds through AREI

trustee or through existing channels with full transparency

• Project development capacity

building at continental and country level

More and higher quality renewable energy projects

CROSS-CUTTING ACTIVITIES

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

• Ensuring environmental and

social safeguards, and local social and environmental impact assessments

• Procedures/systems for

systematic assessment of RE technologies

• Renewable energy technologies

deployed in ways that benefit local communities and do not harm the environment, while promoting technology innovation and precautionary needs assessments

…inclusion of safeguards, participation, and equity principles from the outset.

Socio-economic and environmental technology assessment

• Genuine community/civil

society participation integral parts of AREI

• Participation also by the

private sector, academia and

• ther stakeholders
• African civil society, private

sector and other relevant stakeholders actively engaged in the governance through the AREI Steering Committee Broad set of stakeholders actively involved in shaping the AREI, ensuring broad

• wnership and

sustainability

Multi-stakeholder engagement

TYPES OF ACTIVITIES

Amount'Used 187002011:

51 515

GtC

Amount' Remaining:

275 275

GtC

Total'Carbon' Budget:

790 790

GtC

ENABLING ACTIVITIES LEVERAGING INVESTMENT FLOWS

AREI

TIMELINE

TIMELINE

ESTABLISHMENT PHASE (2016)

• Operationalization of governance and

management structure

• International alliance building and support
• Initial resource mobilization
• Operations procedures for and establishment
• f Delivery Unit
• Safeguards and participation procedures

established as immediate priority

• Begin work on activities in association with

strategic partners, including civil society

• 1. Operationalisation of AREI governance

and management structures

a) Establishment of governance structures (Bo Board and Steering Co Committee) b) Establishment of an autonomous dedicated Tr Trust Fund with AfDB as trustee, under direct command of AREI Board and Steering Committee c) Development of Terms of Reference for De Delivery Unit and the se secretariat to support AMCEN and CAHOSCC. d) Initial re recru ruitment of Delivery Unit personnel and establishment of strategic partnership(s) e) Detailed bu budgeting for establishment phase operations.

• 2. Engagement with countries and

African institutions

a) Distribution and discussion of all relevant AREI do documents b) Country and relevant organization vi visits and di dialogues c) c) Wo Workshops d) d) Co Consultations e) e) Te Technical as assistan ance to countries in identifying country needs and developing proposals for the Green Climate Fund and other international funding sources

• 3. Strengthening of international support

and strategic partnerships

a) Formulation of en engagem emen ent proced edures es with existing institutional entities b) Continued and intensified interaction with key st strategic in internatio ional partners

i. Developed countries ii. Sub-continental and continental African institutions iii. Developing countries iv. International institutions v. Civil society and research networks/organisations vi. Private sector

• 4. Initial resource mobilization

a) Securing of resources for the im immedia iate Establis ishment Ph Phase (12 months). ). Continued and intensified interaction with key strategic international partners b) Engaging with the partners on the details of the US USD 10 bi billion pl pledge for AREI made during the COP21. c) Formulation of ad additional al resource mobilizat ation plan an to secure the necessary funds for Phase I (2016-2020) involving developed countries, developing countries and multilateral sources such as GCF.

• 5. Establishment of
• perations procedures

a) Further detailing of the AREI Ac Action Plan and budget for Phase I. b) Initiation of participatory processes to formulate be best pr practic ice socia ial and envir ironmental safeguards. c) Development of procedures and cr criteria for determining AREI el eligibility and project/program assessments/prioritisation. d) d) Mo Monitoring and evaluation/reporting procedures: e) e) Fi Fiduciary arrangements (Trustee).

• 6. Multi-stakeholder participation

processes for broad engagement and structuring of the initiative:

a) Initiate mu multi-st stakeholder consu sultations s at local, national, sub-continental and continental levels. b) b) Co Conferences and meetings. c) Assessments and implementation of be best pr practic ices

• 7. Communications and outreach

a) a) We Web/multimedia tools to make information on AREI widely accessible and enable interaction by stakeholders b) Enhancing visibility of AREI at different ev even ents as appropriate, such as AMCEN, New York sign-on ceremony, AfDB General Assembly, COP22 etc. c) c) Li Liaising with communications departments at

• ther relevant institutions, [including AfDB and

AMCEN]

• 8. Initiate concrete activities under AREI

Action Plan work areas (particularly Work area 1)

a) a) Ma Mapping of

• f experiences (successes and bottlenecks) and

activities for enhanced coordination of existing and future RE initiatives (including engaging with existing mapping exercises). b) Commissioning an anal alytical al studies on key issues and priority areas, taking into account emerging issues, challenges,

• pportunities and risks, to substantiate and further concretize

the AREI Action Plan across its Work Areas. c) Assessing tr transformati tive programmati tic as well as pr project

• p
• ppor
• rtunities to achieve the goal of 10

10 GW new and additional renewable energy by 2020 and set the ground for 30 300 GW by 2030 in line with AREI principles and guidelines. d) Specifying and implementing fu further activities as needed.

Paris 2015 2020 Establishment, Phase, Phase,I, Phase,II, Launch Africa 
 Renewable Energy
 initiative Develop ambitious 
 Workstream II
 draft decision Major initial phase to 
 accelerate RE deployment
 in Africa Elaborate strategic framework
 for transformation and global
 programme Full-scale deployment
 in Africa Agree Paris global 
 RE initiative/programme Full-scale deployment
 globally Africa, Global,

TIMELINE

AREI

SUPPORT

SUPPORT FOR AREI

• AMCEN endorses and calls for support (March 2015)
• G7 welcomes and pledge political support (June

2015)

• African Union endorses and welcomes G7 support

(Sept 2015)

• CAHOSCC endorses framework
• G20 and UNSG welcomes and supports (Sept 2015)
• French and Chinese Presidential declaration
• COP 21: Launch and USD 10 bn pledged
• African Union Summit (Jan 2016)

SUPPORT FOR AREI

THANK YOU!

Download brochure, summary and framework at

www.arei.org