AFRICA RENEWABLE ENERGY INITIATIVE AREI Transitioning Africa to a renewable energy powered future with access for all
AFRICA RENEWABLE ENERGY INITIATIVE
AREI
Transitioning Africa to a renewable energy powered
future with access for all
AREI is…
• Africa-led & sustainable development oriented
• Explicitly addresses needs of major productive sectors
• Development focused/climate compatible
• Open to wide participation and collaboration
• A multi-stakeholder mobilization effort to accelerate transition of Africa’s energy-economies
• A framework that cultivates partnerships and synergies among existing and future RE efforts
CONTEXT
GOALS AND PRINCIPLES
WORK AREAS
GOVERNANCE
TIMELINE
AFRICAN COUNTRIES AMONG THE FASTEST-GROWING
FOR THE MAJORITY OF AFRICAN COUNTRIES…• Growth is not inclusive – economic
growth has been accompanied by growth in joblessness.
• Access to energy and other growth-enabling infrastructure remains low and uneven
• Demand for resources and services rising rapidly in tandem with population growth.
• Demand for energy is of particular concern: if not met, growth may stall, then fall
THE ENERGY ACCESS GAP
Future access situation: BAU scenario
• Huge implications on human well-being, employment and prospects for sustainable development
Share of population without electricity access
IMPORTANCE OF ENERGY FOR AGRICULTURE AND FOOD
Agricultural sector …energy-related limitations
• Minimal mechanization
• Low productivity
• 60% employment
• 19% value added
• 40% hard currency earnings
Designation Africa LatinAmerica
Europe World
Tractors 523,917 1,765,242 10,737,469 25,530,184
Agricultural workers/tractor 394 24 3 51
Hectares/tractor 2,113 67 45 187
IMPORTANCE OF ENERGY FOR AGRICULTURE
LandPreparationFertilizingCrop protectionHarvesting/threshing
DryingMilling
PackingPressing
Storing
Infrastructureand transportICTsTrainingSelling
Energy supply mix:Electricity
Mechanical powerFuels/thermal
ACTIVITIES
AGRICULTURAL VALUE CHAIN (Simplified)
Production
Distributionand retail(domestic andexport markets)
Processing,post-harvestand storage
THE IMPORTANCE OF ENERGY FOR MSMES
SME sector potential …energy-related limitations
A HUGE ENERGY ACCESS GAP
700
600
500
400
300
200
100
2000 2005 2010 2015 2020 2015 20300
GIGAWATTS (GW)
ACCESS GAP
YEAR
Current growth based on historic trends
Pathway to 100% access
PIDA projektions at 6% growth/year
AREIGOALS AND PRINCIPES
GOALS
ENERGY ACCESS… …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 systemsthat support their low-carbon development
strategies while enhancing economic and
energy security
EXPECTED TRANSITIONACROSS THE CONTINENT… MORE SPECIFICALLY
At least 300 GW by 2030 of new and
additional installed capacity with an initial 10 GW by
2020
• Increase absolute number of users connected to the national grids or new mini-grids
• Increase absolute 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
GUIDING PRINCIPLES
Contributing to achieving SD in Africa
Addressing the entire
African continent
and benefit all African countries.
Boosting intra-regional
cooperation
Promoting all kinds of renewable
energy technologies
Promoting the full range of renewable
electricity applications, as well as non-electrical
forms of energy
KEY PRECEPTS
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
RESOURCES, TECHNOLOGY, EXPERIENCE
Amount Used1870-2011:
515GtC
Amount Remaining:
275GtC
Total Carbon Budget:
790GtC
The African continent has:
Immense RE resources: solar,
geothermal, wind, small hydro
Access to lower cost, more mature RE
technologies
Growing experience in
RE deployment
A renewable energy “rich” energy development path for Africa is entirely
feasible!
PEOPLE-CENTERED CENTRALISED, DECENTRALISED,
ENERGY SYSTEMS OF THE FUTURE
Amount Used1870-2011:
515GtC
Amount Remaining:
275GtC
Total Carbon Budget:
790GtC
KEY DRIVERS FORTRANSFORMATION
TRANSFORMATIVE CORE WORK AREAS
Mapping for coordination
Strengthen policy,
regulatory, organization,
and incentives frameworks
Capacity mobilization, building, and partnerships
Financing and funding
Project development and support
Mapping and coordinating (1/5)
• Thorough mapping of existing and proposed RE policies, regulations, and experiences.
• Determine the level of effort, gaps and priorities of the different RE initiatives.
• Facilitate exchange of best-practice policies
Building synergies between existing
and future RE
Initiatives
Strengthening Policy, Regulatory, Organization, 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
(2/5)
Capacity mobilization/building (3/5)
• Elevate capacity building as a top priority and support an African regional strategic plan.
• Build partnerships with knowledge institutions outside of Africa, including South-South collaboration.
• Develop regional collaboration among African institutions. Support renewable energy education and training at universities.
• Mobilize the African diasporacommunity to deliver targeted expertise as needed.
Concerted capacity building
across stakeholde
rs at all levels
Finance (4/5)• Operating costs for African RE Initiative
• Funding from GCF and other sources for comprehensive country programs and investment incentives according to this framework.
• Financial commitments from international donors to fund the pre-2020 requirements with at least USD 5 billion.
• Establishment, through continued African leadership, of a global program for renewable energy support with sufficient, long-term funding commitments.
• New public sources of favorable, concessional finance for upfront investments.
Finance
To cover operating costs, enabling activities and
incentives
By facilitating access to credit
for investors and developers
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
TRANSFORMATIVE CROSS-CUTTINGWORK AREAS
Amount Used1870-2011:
515GtC
Amount Remaining:
275GtC
Total Carbon Budget:
790GtC
GOVERNANCE
• Board of Directors
• At the level of Heads of State and Government (9 members with 7 African)
• Technical Committee
• Composed of high-level experts with proven experience in relevant issues
• Independent Delivery Unit
• Housed at AfDB but independent
• African Development Bank as Trustee
TIMELINEThe Action Plan envisages a three-phase implementation process:
• The immediate establishment phase (2016-17): Formal implementation of the AREI, including establishment of the Independent Delivery Unit (IDU).
• Phase I (2017-2020): Assessments, preparations and critical enabling activities at the continental African level as well as in a number of pioneering countries, setting the basis for enhanced acceleration in phase II. Enabling of appropriate RE projects already in the pipeline. Achievement of at least 10 GW new and additional generation capacity.
• Phase II (2020-2030): Ambitious ,full-scale roll-out of nationally determined policies, programs and incentives as initiated under Phase I. Continuous assessments and revisions for further scaling up. Achievement of at least 300 GW new and additional generation capacity.
SUCCESS FACTOR OF AREI
• Country commitment is fundamental
• Bottom-up thinking solves real challenges
• Active engagement of multiple stakeholders for embedding energy in society and productive sectors
• Pipeline projects from the countries based on their assessment of needs and conditions
• Phase 1 success will depend on how well the establishment phase is developed; and phase 2 is dependent on the quality of earlier phases as building blocks for transformational pathways.
AREI STRENGTHS
• Strong Political Will with Clear Vision
• Required Institutional Innovation to Deliver the Vision
• Linkage of Short Term and Long Term Goals and Imperatives
• AREI development has gone through a consultativeprocess and it seeks to work collaboratively with partners
THANK YOU!
Download brochure, summary, framework, action plan, criteria, at
www.arei.org