1 commitment of the african development bank in the renewable energy sector the role of the private...
TRANSCRIPT
1
Commitment of the African Development Bank in the Renewable Energy Sector
The Role of the Private Sector Department of the AfDB
Youssef ArfaouiRenewable Energy Expert
Sustainable Biofuel Development in Africa – Opportunities and ChallengesJuly 30 - 1st August 2007 –Addis Ababa
2
. Introduction - Bio-Fuel Development
. Focus Areas of OPSM - Renewable Energy
. Rationale for interest in Renewable Energy
. AfDB Commitment, Role and Intervention
. Conclusion
Outline:
Existing capacity end-2004 Power generationSmall hydropower 61 GWWind power turbines 48 GWBiomass power 39 GWGeothermal power 8.9 GWSolar PV, off-grid 2.2 GWSolar PV, grid-connected 1.8 GWSolar thermal power 0.4 GWOcean (tidal) power 0.3 GWTotal renewable power capacity 160 GWHot water/space heating Biomass heating 220 GWthSolar collectors for hot water / heating (glazed) 77 GWthGeothermal direct heating 13 GWthGeothermal heat pumps 15 GWthHouseholds with solar hot water 40 millionBuildings with geothermal heat pumps 2 millionTransport fuels Ethanol production 31 billion litres/yearBiodiesel production 2.2 billion litres/year
In 2004, the power generated by RE was around 160 GW.
4
Ethanol and Bio-Diesel Production - Top12 Countries, 2004 (Billion liters)
Country Ethanol (Billion liters) Bio-diesel (Billion Liters)
Brazil 15 ----
United State 13 0.1
China 2 ----
Germany 0.02 1.1
France 0.1 0.4
Italy --- 0.35
Canda 0.2 -----
Thailand 0.2 -----
Spain 0.2 -----
Denmark --- 0.08
Czech Republic --- 0.07
Australia 0.07 -----
World Total 31 2.2
5
Estimated Job creation by developing RE-projects
6
OPSM Focus area: The Private Sector Department of the AfDB focuses mainly to develop (a) the wind energy area and (b) the small size hydropower – And (c) the bio-fuel, (d) Geothermal, (e) Co-generation
The Middelgrund wind farm – Copenhagen - Denmark
30 MW hydropower - Tunisia
7
RE addresses the needs and contributes to improve living
standards of the rural poor
RE is in line with the Strategic Plan of the ADB for Infrastructure,
that considers RE as one of the pillars of sustainable development
RE is an untapped natural resource in Africa
RE is Suitable for the Rural Areas and decentralised power supply
RE is Environmentally friendly
RE is affordable compared to other fossil fuel resources
Significant increase in employment opportunities, mainly in rural areas.
The reasons, the AfDB has chosen to focus on RE:
8
Commitment of the OPSM of the AFDB is to: “Develop and
promote the Application of RE”
Example:
The wind energy application in Africa.
OPSM has initiated the wind energy study for Africa, with the
objectives to identify the main barriers, such as:
Legal and regulatory Economic and Financial Technical Limited local capacity
9
If the biofuel market is to be developed as Bankable projects and
exploited efficiently, the following has to be developed:
• The legal frame / policy has to be prepared and approved
• Off-taker agreements has to be negotiated (probably standard version)
• Concession has to be clarified• Feed-stock agreements and security has to be
negotiated • Environment policy related to the bio-fuel production
and application has to be prepared / developed
10
The Current ADB Interventions in promoting the use of Renewable Energy
Morocco: Solar/Gas Thermal Power Station (250 MW, 30 MW Solar)
(EUR 200 Mio)
Egypt: Solar/Gas Thermal Power Station (120 to 150 MW)
11
The Current ADB Investments in Renewable Energy (OPSM)
Madagascar: Small Hydro 15 MW – Euro14 M
Uganda: Bujagali Hydro 250 MW – Euro120 M
12
Identified RE - Capacity Applied Technology and Capacity (MW)
Country Wind Hydro Cogen Bio-Fuel Waste to Energy Geothermal Total
Djibouti 45 45
Eritrea 15 15
Ethiopia 64 50 114
Kenya 600 30 77 280 987
Madagascar 20 220 NA 240
Malawi 8 8
Mali 1,2 1,2
Namibia 40 40
Rwanda 5 5
Senegal 20 20
South Africa 140 NA 140
Sudan 86 86
Swaziland 135 135
Tanzania 5 23 31 59
Tunisia 100 100
Uganda 35 25 60 100
Total 921,2 283 346 0 0 371 1921
13
• Raising the interest of private sponsors and other
potential investors of the potential of RE and
existing opportunities in Africa
• Mobilizing required funds for project preparation
• Performing feasibility studies and developing
most promising RE projects
Development and deployment of RET:
Objectives – and Strategic Plan 2005 - 2010 of the OPSM:
14
• Therefore The OPSM’s objective is to Assist the
investors to prepare all necessary documentation
to qualify RE projects to benefit from the Carbon
Trade Facility
RET projects can benefit from the CDM- Carbon Trade facility. The present cost of tCO2 is around Euro
12. (Emission Reduction)
As guidelines to investors planning investment in RET projects, the
Power Generation Costs in 2002 and the projected for 2010 are as follows:
Capital costs(US$/kW)
Low-side generationcosts(Cents/kWh)
High-side generationcosts(Cents/kWh)
Low-side generationcosts by 2010 (Cents/kWh)
Small hydro power
1,000 - 5,000
2 - 3 9 - 15 2
Solar PV power 4,500 -7,000
18 - 20 25 - 80 10 - 15
Concentrating solar power
3,000-6,000
10 - 15 20 - 25 6 - 8
Bio- power 500 -4,000
2 - 3 10 - 15 2
Geothermal power 1,200 -5,000
2 - 5 6 - 12 2 - 3
Wind power 850 -1,700
3 - 5 10 - 12 2 - 4
Source: IEA 2003
16
In order to allow the OPSM of the AfDB to support and participate in financing RE projects, the following conditions have to be fulfilled:
The contractual arrangements are in place
The project has to be developmental oriented
The project is technically feasible
The sponsors have the required financial and
technical capacity to run the project
The project is financially and economically viable
The regulatory framework is favourable for Renewable Energy projects The project has a reasonable size
17
Conclusions
• Renewable energy is an appropriate response to the needs of the poor / grassroots in Africa
• The major areas of focus are:• Cogeneration• Geothermal• Hydro power• Wind energy
• The New area of consideration is:• The Bio-fuel development/investment
The Bank (OPSM) offers:
• Flexible and tailor made instruments
• Support to sustainable projects, through financial and technical
assistance and institutional capacity building programs
18
For further information:
Youssef ArfaouiRenewable Energy ExpertPrivate sector Department
19
Thank you