1. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 1 19 th – 23 rd June 2006 Nairobi, Kenya

2. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 2 Module 3: Background to Africa‘s Energy Sector Introduction to RE and EE Stephen Karekezi

3. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 3 Overview Energy supply in Africa Sub-regional energy consumption in Africa (North Africa, sub- Saharan Africa and Southern Africa) Modern energy access and consumption Overview of renewable energy in Africa Potential benefits of renewables to Africa’s energy sector Contribution of renewable energy  Small-scale renewables (poverty alleviation and food production)  Medium-scale renewables e.g. geothermal & cogeneration (electricity generation, poverty alleviation)

4. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 4 Energy Supply in Africa TypeAmount (Mtoe)Percentage Solar/wind/tide0.0580.01 Geothermal0.6800.06 Nuclear3.3000.30 Hydro7.3000.66 Petroleum Products128.56011.69 Gas129.89011.81 Coal139.01012.64 Biomass *272.10024.74 Crude Oil418.78038.08 Total1,099.678100.00 * Biomass refers to combustible renewables (mainly fuelwood, charcoal and agro-residues) and waste Source: IEA, 2005 Africa produces less than 10% of the world’s energy supply

5. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 5 Energy Consumption in Africa * Biomass refers to combustible renewables (mainly fuelwood, charcoal and agro-residues) and waste Source: IEA, 2005

6. 6 African Energy Sector – 3 distinct regions North Africa – oil and gas sub-region South Africa – coal sub-region Sub-Saharan Africa – biomass region

7. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 7 Sub-regional Energy Consumption Africa best understood as three regions  North Africa (heavily reliant on oil and gas)  South Africa (heavily reliant on coal)  Sub-Saharan Africa (largely reliant on traditional biomass) Energy Consumption by Type in Africa (%), 2001 Region Combustible Renewables and Waste (CRW) (%) Petroleum Products (%) Electricity (%) Gas (%) Coal (%) Crude oil (%) North Africa4.0661.5115.0818.011.310.03 Sub-Saharan Africa 81.1814.512.870.990.450.00 South Africa16.4629.2825.901.5726.7 9 0.00 Source: Adapted from IEA, 2003; EIU, 2003

8. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 8 Modern Energy Consumption Per Capita Declining in sub-Saharan Africa A few successes – Botswana, Senegal, Mauritius, Ghana, Namibia & S. Africa

9. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 9 Population With No Electricity (Millions) A few successes (Ghana, Mauritius, S. Africa, Zimbabwe)

10. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 10 After 15 Years of Power Sector Reform: Access to Electricity – Top 20% Source: Estache, 2005

11. 11 After 15 Years of Power Sector Reform Access to Electricity – Bottom 40% Source: Estache, 2005

12. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 12 MDGs and PRSPs & CSPs Bottom 40% is target of Millennium Development Goals (MDGs) – central mission of development community Trouble with MDGs = trouble with PRSPs (Poverty Reduction Strategy Papers) and CSPs (Country Strategy Papers) Trouble with PRSPs & CSPs = less $ from Treasury & development partners

13. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 13 Emphasis on Conventional Energy Options Higher proportion of funding allocated to conventional energy sector - large- scale hydro and petroleum Ethiopia: Virtually entire energy budget allocated to conventional large scale investments Smaller scale renewables largely left out (even dominant biomass is ignored) Results – contributes to low levels of access to modern energy which, in turn, contribute to increased poverty Note: Not that conventional energy is bad, it just takes long to reach the poor

14. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 14

15. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 15 Energy Pyramid Need for Better Balance

16. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 16 Drought Years of Significant Rain Shortages in Agriculturally Productive Areas in Eastern and Horn of Africa Country1998199920002001200220032004 BurundiDDD DjiboutiDD EritreaDDDDDD Ethiopia DDDDD D Kenya DDDDDD D Rwanda DDD SudanDDDDD Tanzania DDDDD D Uganda DDDDD D = Year in which there was a significant rain shortage in agriculturally productive areas Source: World Bank, 2005

17. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 17 Drought Frequency

18. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 18 Renewables in Africa – An Overview Renewable energy = energy forms that occur naturally and cannot be depleted Africa is endowed with substantial renewable energy resources  More than 1.1 GW of exploitable technical small hydropower potential  More than 9,000 MW of geothermal potential  Abundant biomass potential  Substantial solar potential (the daily average solar radiation ranges between 5 and 6 kWh/m 2 )

19. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 19 Renewables in Africa – An Overview Substantial solar potential (the daily average solar radiation ranges between 5 and 6 kWh/m 2 ) Source: Karekezi et al, 2006 CountrySolar Radiation (kWh/m 2 ) CountrySolar Radiation (kWh/m 2 ) Botswana6.1Mozambique5.0 Burundi4.0Namibia8.0 Cote d’Ivoire4.0-5.6Rwanda5.6 Djibouti5.9South Africa5.5 Eritrea5.5Sudan6.1 Ethiopia5.3Tanzania8.0 Kenya6.0Tunisia4.5-5.2 Lesotho3.7-7.0Uganda4.7 Mali4.0-7.0Zambia4.0 Mauritius3.0-6.0Zimbabwe5.7

20. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 20 Renewables in Africa – An Overview Significant wind potential (speeds as high as 9.7m/s have been recorded in South African coastal areas). CountryAverage Wind Speed (m/s) CountryAverage Wind Speed (m/s) Botswana3.0Mozambique2.6 Burundi6.0Namibia8.0 Djibouti4.0South Africa8.5 Eritrea5.5Sudan3.0 Ethiopia3.5-5.5Tanzania3.0 Guinea2.0-4.0Uganda3.0 Kenya3.0Zambia2.5 Mauritius8.0Zimbabwe3.5 Morocco10.0 Source: Karekezi et al, 2006

21. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 21 Renewed Interest in Renewables Unsatisfactory performance of conventional energy sector (high cost and unreliable due to drought)  Unreliability of power supply (11,000 interruptions in Kenya every month) & high system losses (over 20%)  Recent 3-4 hour/day power cuts in Ethiopia Increasing oil prices compounded by lower export earnings Climate Change Convention Johannesburg WSSD Summit 2002 - 10% renewable energy target G8 Initiative, Renewables 2004 Bonn Conference & CSD Link of poverty alleviation and sustainable development CEDIF

22. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 22 Benefits of Renewables Response option for drought related power deficits Reduced fossil fuel imports Opportunities for income generation and poverty alleviation Opportunities for independent technology development Environment friendly For technical and financial reasons, renewables are best option for rural areas

23. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 23 Contribution of Renewable in East and Horn of Africa Small Scale Renewables - Directly contribute to poverty alleviation  Solar  Small scale biomass  Wind  Small hydro  Mechanical applications Medium Scale Renewables - Important for electricity sector, indirect impact on poverty alleviation  Geothermal and Cogeneration

24. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 24 Small Scale Renewables for Poverty Alleviation Low cost but more efficient biomass-based combustion technologies (e.g. improved cookstoves for both household and institutional applications, efficient charcoal kilns, brick making kilns, fish smokers, tea dryers and wood dryers). Pico and micro hydro for shaft power that can be used to process agricultural produce, increase its value and pump water.

25. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 25 Small Scale Renewables for Poverty Alleviation  Ram pumps for irrigation, which increase agricultural outputs thus generating additional income for poor rural farmers  Solar dryers that can lower post-harvest losses and enable the rural farmers market their produce when prices are higher  Solar water pasteurizers that provide clean potable water and reduce water borne diseases, which translates to increased availability of labour and thus increases agricultural output  Solar PV for remote rural dispensaries

26. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 26 Small Scale Renewables - Impact on food production Water pumping/lifting /Irrigation  wind technology  mechanical technologies - treadle pumps, ram pumps Agro-processing  pico/micro and small hydro  solar dryers Affordable to small scale farmers Lead to higher agricultural yields Significant impact on reduced incidence of food shortages

27. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 27 Case Study: Money Maker Water Pump Simple, low-cost pumping technologies for irrigation and water supply Use in irrigation increases productivity and incomes of rural farmers by over ten- fold Farmers able to grow a wider range of crops, including high value vegetables and fruits 24,000 in use by poor farmers 16, 000 new jobs created 70% of pumps managed by women 4 manufacturers in the region

28. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 28 Robust Self Sustaining Small Scale Renewable Industry: <1% of Electricity Bill

29. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 29 Co-generation in Mauritius Substantial potential in agro-based industries, e.g. sugar, paper and pulp, wood and rice industries Promising developments in Uganda, Kenya and Tanzania UNEP/GEF Regional co-generation initiative Long-term, focused & specialized Successful in Mauritius (40% of power supply of which 25% bagasse) Equitable sharing of revenue from cogeneration ensures even smallest low-income farmer gets a portion of revenue

30. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 30 Cogeneration in Sugar Industries Attractive Medium-Sized Option Could be replicated across all agro-industries  Wood/timber, pulp and paper  Coffee, tea, cocoa, tobacco, etc Important option as agriculture and agro-industries account for close to 50% of sub-Saharan Africa’s GDP and over 70% of employment

31. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 31 Benefits of Co-generation  Cost-competitive  Local resource (security of supply) and strengthens system balance  Attractive job generation (at the sugar cane plantation level) and enterprise creation potential (local technology development)  Strengthens sugar sector (applicable to most agro-industrial and forestry sectors)  Revenue can trickle down to low income small holder farmers - Mauritus example of revenue sharing  Incremental and modular - can start small (1 or 2MW investment and then grow incrementally to 50-70MW installations) which lowers initial risks and facilitates local participation

32. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 32 Geothermal - Medium Scale Option Significant potential along the great Rift Valley (9,000MW - for steam/hot water only) About 1% harnessed in Africa, largely in Kenya Potential for grid-connected electricity generation from geothermal also in Ethiopia, Tanzania and Uganda Significant potential for thermal use of geothermal energy

33. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 33 Geothermal - Medium Scale Option

34. ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 34 Benefits of Geothermal Energy Security of supply 100% availability - not affected by climatic changes e.g. drought Cost competitive - least cost power development option for Kenya Attractive heat applications potential Job and enterprise creation  Est. 10 jobs/MW - Kenya’s 2,000MW potential could equal 20,000 jobs Technology development - Kenya offering technical support to neighbouring countries (& in some cases, industrialized countries !)