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UNFCCC Workshop on Climate Change Mitigation

Renewables Initiatives in Africa - Selected Case Studies of Mitigation by Stephen Karekezi African Energy Policy Research Network (AFREPREN) afrepren@africaonline.co.ke www.afrepren.org. UNFCCC Workshop on Climate Change Mitigation. Renewed Interest in Renewables in Africa. $.

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UNFCCC Workshop on Climate Change Mitigation

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  1. Renewables Initiatives in Africa - Selected Case Studies of Mitigationby Stephen Karekezi African Energy Policy Research Network (AFREPREN)afrepren@africaonline.co.kewww.afrepren.org UNFCCC Workshop on Climate Change Mitigation

  2. 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

  3. 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)

  4. 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

  5. Geothermal Energy Use

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

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

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

  13. Abundant Renewable Energy Resources in Africa

  14. 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

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