West Africa’s Sustainable Energy Market WWW.ECREEE.ORG Mahama Kappiah Executive Director ECREEE ECOWAS SUSTAINABLE ENERGY WEEK “Towards a Viable and Robust Energy Market in the ECOWAS region” 17 - 19 October 2016, Accra, Ghana
West Africa’s Sustainable Energy Market
WWW.ECREEE.ORG
Mahama Kappiah Executive Director
ECREEE
ECOWAS SUSTAINABLE ENERGY WEEK
“Towards a Viable and Robust Energy Market in the ECOWAS region”
17 - 19 October 2016, Accra, Ghana
ECOWAS Overview and Energy Situation
ECOWAS Overview
Area: 5,115,000 km2
Population: 339 million (2014)
GDP per capita: US$ 2,122 (2014)
Electricity production: 59 TWh 32% from renewables
Installed capacity: 16.1 GW of which 4,5 GW renewable energy (28%)
Access to electricity: ~ 34% (2012)
Access to modern energy for cooking: ~ 25% (2012)
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ENERGY SITUATION IN WEST AFRICA
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Interrelated challenges of energy poverty, energy security and climate change mitigation and adaptation
• Low Access to Modern Energy Services One of the lowest energy consumption rates in the world; The poor spend more of their income on low quality energy services; Rural areas rely mainly on traditional biomass to meet their energy requirements; Household access to electricity services is only around 20% (40% in urban and 6-8% in rural areas)
• Energy Security Concerns High vulnerability to fossil fuel price volatility (60 % of electricity generation from oil) Gap between rising urban energy demand, available generation capacities and limited investment capital; High losses in the energy systems (e.g. high energy intensity and low demand and supply side efficiency);
• Climate Change Concerns
Increasing energy related GHG emissions (new investments determine GHGs for the next 20 - 30 years) Climate change impacts vulnerable West African energy systems (e.g. water flows, extreme weather events)
Total Primary Energy Supply in ECOWAS
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• In 2013, total primary energy supply was 189 million toe
biomass 78%
Fossil 21%
Renewable 1%
Elec Import
0%
Power Sector in ECOWAS
Electricity source
• In 2013, total electricity generated was 59.5 TWh
Coal 0%
Petroleum 18%
Gas 52%
biofuel 0%
Hydro 30%
Solar PV 0%
Wind 0%
Other source 0%
Coal
Petroleum
Gas
biofuel
Hydro
Solar PV
Wind
Other source
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Significant RE Resources
Biomass
Solar
Hydro
Wind
ECREEE – the ECOWAS Centre for Renewable Energy and Energy Efficiency
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Established by the ECOWAS Council of Ministers on November 23, 2008 to promote development of sustainable energy markets
Secretariat is based in Praia, Cape Verde with National Focal Institutions (NFIs) across all 15 ECOWAS countries
Officially inaugurated on the 6th July 2010
Appointed by the ECOWAS Energy Ministers as the SE4ALL Focal Point for West Africa
Established with support of core partners:
ECREEE RESULT AREAS
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RESULT AREA 3: Capacities are strengthened and applied RESULT AREA 2:
Tailored policy, legal and
regulatory frameworks created and
implemented
RESULT AREA 1: Effective regional
RE&EE promotion
agency created and efficiently
managed
RESULT AREA 4: Knowledge
management, awareness
raising, networks and advocacy strengthened
RESULT AREA 5: Business and Investment Promotion
ECREEE – 6 Years of operation – 12 regional Programs under implementation – Towards Sustainable Energy
Sustainable Energy Policy
Program SE4ALL Program
Capacity Building and Knowledge Management
RURAL ELECTRIFICATION
Program
Energy Efficiency Program
Project Development and Finance Program
Bioenergy Program
Solar Thermal Program
Clean Cooking Program (WACCA)
Program on Gender
Mainstreaming in Energy Access
Climate Change Program
Small Hydro Power Program
REGIONAL SUSTAINABLE ENERGY POLICIES
Adopted by the ECOWAS Authority of Heads of State and Government in 2013
ECREEE is coordinating the implementation of the RE and EE Policies
Similar process to development, implementation and monitoring of the EU Directive 2009/28/EC on Renewable Energy
Regional policies represent a voluntary contribution of ECOWAS to the SE4ALL Initiative
ECREEE is the SE4ALL Focal Institution for ECOWAS
Sustainable Energy Country Action Plans developed across the 15 Member States
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Developed in Partnership with European Union, RECP, EUEI-PDF UNIDO, Austria, Spain & GEF
First ECOWAS RE and EE Status Report
Launched in November 2014
Collaboration with REN21 and UNIDO
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ECOWAS – Energy Access
ECOWAS Regional Objectives ENERGY ACCESS
• Provide access to clean cooking energy to 100% (60%) of the population by 2030 (2020), including 26% (20%) of LPG users
• Promoting 60,000 mini-grids and 2.6 million stand-alone systems across the region by 2020
RENEWABLE ENERGY
• By 2020(2030), 6.8% (5%) of generation capacity worth 634 MW (2000 MW) from biomass residues or dedicated plantations
• The share of renewable energy (incl. large hydro) of the overall electricity mix will increase to 35% (48%) in 2020 (2030)
• The share of new renewable energy such as wind, solar, small scale hydro and bioelectricity (excl. large hydro) will increase to 10% (19%) in 2020 (2030)
• The share of ethanol/biodiesel in transport fuels will increase to 5% (15%) in 2020 (2030)
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ECOWAS Targets on electricity access
• The Electrification rate should increase from 34% (2012) to 88% (2030)
• Over 60 million households will gain access to electricity over the period 2015-2030
34% 39%
67%
77%
88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2012 2015 2020 2025 2030
ele
ctri
fica
tio
n r
ate
tho
usa
nd
ho
use
ho
lds
ECOWAS targets on electricity access
Urban HH Rural HH Electrification rate
ECOWAS Planned Increase in Electrification
• Increase the number of households electrified (on grid and off grid) from 1.7 million per year to 4.7 million per year
0
1000
2000
3000
4000
5000
2015 2016-20 2021-25 2026-30 Th
ou
san
d H
ou
seh
old
s p
er
year
Annual number of connected Households
Urban HH Rural HH
ECOWAS Targets on modern & efficient fuel access
• The access to modern and efficient cooking fuel should increase from 25% (2012) to 83% (2030)
• Over 60 million households will gain access to modern and efficient cooking fuel over the period 2015-2030
25% 31%
57%
72%
83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
10000
20000
30000
40000
50000
60000
70000
80000
2012 2015 2020 2025 2030
Acc
ess
rat
e
Tho
usa
nd
ho
use
ho
lds
ECOWAS targets for access to modern & efficient cooking fuel
HH w modern energy (Butane, Biogas) HH w improved cookstoves Access rate
Planned Increase in Butane Consumption
• LPG consumption for cooking will increase from 0.5 to 3.5 million tonne per year
• The number of households gaining access to LPG will increase from 0.6 to 1.5 million per year
-
20
40
60
80
100
120
140
-
1,000,000
2,000,000
3,000,000
4,000,000
2012 2015 2020 2025 2030
kg b
uta
ne
/ H
H /
ye
ar
Ton
ne
Bu
tan
e
ECOWAS targets for butane supply to Households
Butane (tonne) kg butane/ HH / year
Planned Increase in Use of Improved Cook Stoves
• The number of households gaining access to improved cook stoves (ICS) will increase from 1.1 million to 2.7 million per year
• After 2020, the number of HH gaining access to ICS will decrease because of saturation of the urban market and penetration of butane
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
2013-2015 2016-2020 2021-2025 2016-2030
Tho
usa
nd
ho
use
ho
lds
pe
r ye
ar
Annual number of households gaining access to improved cook stoves ICS
Rural HH
Urban HH
ECOWAS National Energy Efficiency Action Plans (NEEAP)
ECOWAS Regional Objectives
ENERGY EFFICIENCY
• Elimination of incandescent lamps by 2020
• Reduce losses in electricity distribution from currently 15% - 40% to less than 10% by 2020
• Achieve universal access to safe, clean, affordable, efficient and sustainable cooking for the entire population of ECOWAS by 2030
• Create an ECOWAS technical committee for energy efficiency standards and labels, and adopt the first standards and labels on a regional scale for major energy-using equipment by the end of 2014
• Create instruments to finance sustainable energy, including carbon financing, by the end of 2013
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ECOWAS Planned Evolution of Biomass Consumption
• The promotion of LPG and improved cook stoves will permit to curb the firewood demand below sustainable supply capacity: • Less than 200
million ton per year in 2030,
• Instead of currently around 250 million ton per year
0.1%
7.2%
33.4%
48.8%
58.9%
0%
10%
20%
30%
40%
50%
60%
70%
0
50000000
100000000
150000000
200000000
250000000
300000000
350000000
400000000
450000000
500000000
2012 2015 2020 2025 2030
Savi
ngs
ove
r b
ase
line
sce
nar
io
Fire
wo
od
de
man
d (
ton
ne
/an
)
Primary Firewood demand in ECOWAS region
Firewood baseline Firewood SE4ALL Savings (%)
ECOWAS– National Renewable Energy Action Plan
(NREAP)
ECOWAS Regional Objectives
RENEWABLE ENERGY
• By 2020(2030), 6.8% (5%) of generation capacity worth 634 MW (2000 MW) from biomass residues or dedicated plantations
• The share of renewable energy (incl. large hydro) of the overall electricity mix will increase to 35% (48%) in 2020 (2030)
• The share of new renewable energy such as wind, solar, small scale hydro and bioelectricity (excl. large hydro) will increase to 10% (19%) in 2020 (2030)
• The share of ethanol/biodiesel in transport fuels will increase to 5% (15%) in 2020 (2030)
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ECOWAS Planned Increase in RE Generation Capacity
• The share of renewable generation capacity will stay around 20%
0%
5%
10%
15%
20%
25%
30%
35%
0
5000
10000
15000
20000
25000
30000
35000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rat
io R
E ca
pac
ity
to t
ota
l in
stal
led
cap
aict
y
Inst
alle
d R
E ca
pac
ity
MW
Renewable Energy Generation Capacity Forecast
Hydro Solar Biomass Wind Ocean Storage RE/Installed capacity
Implementing the Action Plans
The success of these action plans will require that they are based on national potentials and socio-economic assessments; underpinned by concrete laws, incentives and measures as well as a clear financing strategy and technically well designed interventions.
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Regional initiatives and strategies
Public Private Partnerships in ECOWAS
• Cabo Verde: Cabeolica 26 MW Wind power project is the result of a PPP between the Gov. of Cabo Verde, Electra (Utility) and InfraCo Africa.
• The Gambia: The Tanji 900 kW Wind power project resulted from a PPP between the Gov. of Gambia through a GEF-UNIDO fund and Gamwind Ltd.
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Policy Instruments for Promoting Grid-Connected
1. Feed-in tariffs (FIT)
Three countries in the region (Gambia, Ghana, Nigeria), introduced or are planning to introduce FITs for RE incl. solar PV, but limited results so far (20 MW in GHA).
2. Net metering (NM)
Four countries in the region introduced NM (Cabo Verde, Gambia, Ghana and Senegal), but limited uptake so far.
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Overview of IPP tenders in the Region
Currently supported by ECREEE
ECREEE Support under discussion
In preparation
EOI launched in 2014, shortlist completed, on-hold
1st process completed in 2014, 2nd in preparation
On-going On-going
On-going
On-going
In preparation
Competitive Tendering & Bidding in the ECOWAS
IPP tenders
Several countries in the region have conducted, are conducting or planning to conduct IPP tenders (for 2016 - Nigeria, Mali, Sierra Leone)
Process driven by MoE, regulator, utility or PPP unit
Some are site-specific, some are open
With and without support from international organizations
With and without credit enhancement
In some countries, the process was started but not followed through
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The Regional Dimension
• Joint initiative with IRENA on West Africa Clean Energy Corridors incl. corridors for solar energy, hydropower and wind
• The European Union pledged support for the Corridors Initiative
• So far no cross-border trade of electricity from RE, but this is expected to increase as more and larger projects come online
Will be reflected during the revision of the Regional ECOWAS Electricity Transmission and Generation Master Plan
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ECREEE wants to move ahead with a strategic approach based on the corridors: 2 GW solar, hydro, wind and biomass
Way Forward
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Identification of high resource potential and environmentally sustainable zones for development of cost effective renewable energy power plants
National and regional planning and support mechanisms for integration of cost effective RE power options into national and regional master plans for power generation and transmission
Enabling policy, regulatory and institutional frameworks to promote investments
Facilitate project pipeline development and access to finance and risk mitigation mechanisms
Capacity building to plan, operate, maintain and govern power systems with higher shares of renewable electricity generation and reduce technical and commercial losses
Public awareness and incentives regarding benefits and uptake of energy efficiency measures
CORE
NEW
INVESTMENT
TECHNICAL
OTHER
Strong Partnerships are KEY
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Thank You
Mahama Kappiah Executive Director
ECREEE
ECREEE Secretariat Achada Santo Antonio
ECREEE Building, 2nd floor C.P. 288, Praia, Cabo Verde
Tel: +238 2604630, +238 2624608 Email: [email protected]
www.ecreee.org
10/24/2016