Renewables Initiatives in Africa - Selected Case Studies of Mitigation by Stephen Karekezi African Energy Policy Research Network (AFREPREN) UNFCCC Workshop on Climate Change Mitigation

Renewed Interest in Renewables in Africa <Increasing oil prices & pressure on convertible currency reserves ($40/barrel) $ <Attractive job generation (unemployment/under employment rates 50-60%), technological development & enterprise creation potential of renewables

Renewed Interest in Renewables in Africa <Rio Conference/Climate Change Convention <Johannesburg WSSD Conference <Bonn 2004 Renewables Conference <Decision makers rarely want to be 1st, prefer to be 2nd or even better, 3rd <Growing importance of renewables in industrialized countries such as Austria, Germany (renewable energy industry has over 100,000 employees), Iceland and Denmark <Success stories in selected African countries (Kenya & Mauritius)

Geothermal - Kenya <Large potential along the great Rift Valley (9,000MW - hot water/steam option only) <Significant exploitation, largely in Kenya <Large potential for grid-connected electricity generation from geothermal in Ethiopia, Tanzania and Uganda

Geothermal Energy Use

Limitations of Geothermal Region-specific: Not available in all regions but non-hot water/steam option available throughout the world High up-front drilling costs - equivalent to that of oil wells but lower risk Cost competitive - least cost power development option for Kenya and cost even lower if heat application included

Benefits of Geothermal Security of supply - Close to 100% availability: Not affected by climatic changes such as drought & strengthens system balance Recent drought in Kenya, Tanzania and Ethiopia led to 8 hour power cuts resulting in close to 1% drop in GDP Attractive heat applications potential - Reduces poverty through rural jobs and enterprise creation Technology development - Kenya offering technical support to neighboring countries & in a few cases participated in technical missions to industrialized countries Equitable negotiation - Geothermal industry composed of small to medium sized companies which allows developing Governments to negotiate equitable arrangements

Co-generation: Mauritius Combined Heat and Power (CHP) <Substantial potential in agro & forest-based industries, e.g. sugar, paper and pulp, wood and rice industries <Most sugar industries currently practicing co-generation for own use <Grid-connected co-generation not widespread in the region <Successful in Mauritius (40% of power supply of which 25% bagasse) <Promising developments in Uganda, Kenya and Tanzania Power Generation - Mauritius Sugar Industry Others

Limitations of Co-generation Intermittent biomass feedstock - Can be addressed through dual-fuel boilers Fixing price of co-generated power - Need pro-active and balanced Government or regulatory intervention to fix price agreeable to key stakeholders Need a robust agro or forest industry: However, co- generation can improve viability of agro or forest industry

Benefits of Co-generation <Cost-competitive - combined cost of heat & electricity very low <Local resource and strengthens system balance- security of supply and enhances rural energy service <Reduces in poverty - attractive job generation (at the sugar cane plantation level) and enterprise creation potential (local technology development) <Can lead to equitable sharing of benefits: Mauritius case <Incremental and modular - can start small (1 or 2MW investment to 50-70MW installations) which lowers initial risks and facilitates local participation

Potential (Low Case): Bagasse-Based Cogeneration (% of current installed power generation capacity)

Self Sustaining Small Scale Renewable Industry: <1% of Electricity Bill

Abundant Renewable Energy Resources in Africa

Key Challenge Articulate a convincing policy case for renewables aimed at Ministries of Finance, Ministries of Energy & Utilities <Focus on technological and economically proven renewables with near-term tangible benefits <Energy security vis a vis fluctuating oil prices and drought related hydro shortages <Enterprise creation <Jobs <Local technological development Exploit existing and planned climate-related financing opportunities