1 commitment of the african development in the renewable energy sector the role of the private...
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Commitment of the African Development In the renewable Energy Sector
The Role of the Private Sector Department of the AfDB
Youssef ArfaouiRenewable Energy Expert
Promoting the utilisation of Small size Hydropower in Africa
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. Renewable Energy – Development World Wide
. Rationale for interest in Renewable Energy
. Small size Hydropower (SSHP) Potential in Africa
. Development of SSHP and The role and intervention
of the AfDB
. Conclusion
The presentation will Cover:
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‘In 2004, investment in the RE sector reached US$30 billion, and pushed RE capacity to 160 GW – 4% of global power’
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 Small Size Hydropower (SSHP) was 61 GW.
Small Size Hydropower
Developing Countries
In 2004 the installed capacity of SSHP in developing countries has toped 40MW, which is 67% of the world total installed capacity.
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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
The reasons the AfDB has chosen to focus on Renewable energy:
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RE can address the problem of electricity shortage in Africa
RE is an untapped natural resource in Africa
RE is Suitable for the Rural Areas
RE is Environmentally friendly
RE is affordable compared to other fossil fuel
resources (the recent increase of oil prices)
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The Private Sector Department of the AfDB focuses mainly to develop (a) the wind energy area and (b) the small size hydropower
The Middelground wind farm – Copenhagen - Denmark
30 MW hydropower - Tunisia
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The Private sector of the AFDB (OPSM) is committed to
develop and promote the Application of wind energy in
Africa. Therefore OPSM has (a) initiated the wind energy
study for Africa, (b) identified the main barriers, such as:
Legal and regulatory Economic and Financial Technical Lack of local capacity
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In Addition the PSD of the AFDB has chosen to focus on the SSHP, where the utilisation will be appropriate for remote areas far from the national grid and having reliable running water source.
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From 2000 to 2004, the Average Annual Growth of Hydropower World Wide is 7% for SSHP and around 2,8% for Large Hydro.
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Small hydro Large hydro
Average annual Growth of Hydropower
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Africa has a huge potential in Small size-Hydro power, such as Madagascar
Site Name River Project Area/Year of Study Stage Estimated capacity
Faritany de ANTSIRANANA
Analalava Antsahatopy Vohemar 1988 Reconnaissance
Bevory-A/manjavona Ramena Ambanja 1988 Préliminaire 6.5 MW
Irodo Irodo Antseranana1981 Reconnaissance
Lokoho Lokoho Andapa 1999 Faisabilité 4 MW
Tsiafampiana Ramena Ambanja 1983 Reconnaissance 6.75 MW
Dangoro Maintinandry Ambositra 1982 Reconnaissance 14 MW
-Namorona II Namorona 2000 Reconnaissance 16 MW
Dangoro Maintinandry Ambositra 1980 Reconnaissance 33 MW
Faritany de MAHAJANGA
Ambodiroka Betsiboka Maevatanana Marovoay 1988 Faisabilité 19.5 MW
Ambato/boeny, Mahajanga
Ambodiroka Betsiboka Maevatanana Marovoay1982 APD 40 MW
Faritany de ANTANANARIVO
Manankazo Manankazo Ankazobe 1988 Reconnaissance 1.530 MW
Sahofika Onive RI Tana 1981 Préliminaire 105 MW
-Tsinjoarivo Onive RI. Tana 1976 Préliminaire 20 MW
Lohavanana Mangoro RI Tana 2000 Préliminaire 93 MW
Antafofo Ikopa RI Tana 2000 Préliminaire 105 MW
Ranomafana Ikopa RI Tana 2000 Préliminaire 70 MW
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Potential of Small size-Hydro power in Africa (for Tea factories)
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The Current ADB Interventions in promoting the use of Renewable Energy
Capacity building and small hydropower projects 10 Countries
(Institutional Strengthening, Feasibility & Pilot projects - EUR 40 million)
Madagascar Small size Hydro Power: Rural Electrification Project
(6 and 15 MW – total cost of Euro 30 m)
Renewable Energy Studies for Uganda, Tanzania, Kenya, Gambia
Gambia Solar PV Project (EUR 15 million)
Morocco: Solar/Gas Thermal Power Station (250 MW, 30 MW Solar)
(EUR 200 Mio)
Egypt: Solar/Gas Thermal Power Station (120 to 150 MW)
Kenya: 30 MW Wind farm (US$60m) to be financed this year,
Kenya :[ 250 MW, 300MW – under preparation]
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The Objectives – and the Strategic Plan 2005 - 2010 for the
PSD of the AfDB for the Development and Application of
Small size Hydro power are:
• Design and implementation of adequate
institutional and regulatory framework, specifically
to favour development by private sector
• Study of electrical grid integration
• National capacity building in all aspects relating to
hydropower development
• Development of demonstration projects (of viable
commercial small size Hydropower projects)
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• Raising the interest of private sponsors and other
potential investors in small size hydro power
opportunities in Africa
• Mobilizing required funds for project preparation
• Performing feasibility studies and developing
most promising Small Size Hydropower projects
The Objectives – and the Strategic Plan 2005 - 2010 of the
PSD of the AfDB for the Development and Application of
Small size Hydro power are: (cont’d)
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• Therefore The PSD of the AfDB objective is to Assist the
sponsor to prepare all necessary documentation to qualify
hydropower projects to benefit from the Carbon trade
facility (CDM – Kyoto protocol)
Small SSHP projects can benefit from the CDM- Carbon Trade facility. The present cost of tCO2 is
around Euro 12. (Emission Reduction)
As guidelines to investors planning investment in SSHP projects, the
Power Generation Costs in 2002 and the projected for 2010 are as follows:
Capital costs($/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
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Conclusion
• Renewable energy is an appropriate response to the needs of the poor / grassroots in Africa.
• The three major areas of focus are:• Wind energy• Hydro power
The Bank (OPSM) offers:
• Flexible and tailor made instruments
• Support to sustainable projects, through financial and
technical assistance and institutional capacity building
programs
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In order to allow the PSD of the AfDB to support and participate in the financing of SSHP 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
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For further information:
Youssef ArfaouiRenewable Energy ExpertPrivate sector Department
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Thank you