Poverty Alleviation through Cleaner Energy from Agro-industries In Africa - PACEAA - Introduction to the project

1. Poverty Alleviation through Cleaner Energy from Agro-industries In Africa - PACEAA - Introduction to the project

2. Objectives of PACEAA • identify policy, commercial and regulatory barriers that restrict the use of cleaner energy from agro-industries; for rural electrification, in selected countries, and propose ways of overcoming these barriers; • develop detailed policy and regulatory guidelines and incentives for adoption of cleaner energy from agro-industries into rural electrification programmes as well as incorporate the packages into local rural electrification plans. • enhance local and regional capacity of public institutions, private sector (financial institutions, agro-industries, rural stakeholders) for the effective utilisation of cogeneration and other cleaner energy systems from agro-industries in the rural electrification process;

3. Context • The PACEAA initiative is providing support to the Rural Electrification Components of the two UNEP/GEF projects: “Greening the Tea Industry in East Africa (GTIEA)” implemented by the East Africa Tea Trade Association (EATTA) and “Cogen for Africa” implemented by AFREPREN/FWD • PACEAA has been approved by the European Commission as part of the COOPENER programme, for a 3 year period, and runs from 1 September 2007 until 31 August 2010. • The support is in the form of technical expertise provided by UNEP Risoe Centre (Denmark) and IED (France).

4. Work Programme

5. Key tasks (1/2) • Review of institutional frameworks, rural electrification targets and poverty reduction strategies in the 11 countries and world-wide experience ; needs assessment to improve regulatory frameworks • Selection of most mature 4 projects (out of the project with detailed FS carried out by GTIEA and COGEN) for detailed study of the rural electrification component: • Elaboration of business models, addressing financing and regulatory issues (ESCOs, Utility, Estate electrification,…) • Elaboration of local rural electrification plan, including data collection, load forecast, local grid development plan, costing, financial analysis, organisational set-up, discussion of the plan with stakeholders • Presentation / promotion of the rural electrification packages to potential donors, stimulation formation of user groups in beneficiary communities.

6. Key tasks (2/2) • Training and capacity building activities • Least-cost options for rural electrification • Local rural electrification planning • Model contracts for rural electrification from excess energy generated by agro-industries • Communication and Dissemination • Web site, including a GIS/Internet presentation of the local rural electrification plans • Case study brochure • Articles and publication • Final workshop open to the Agro-industry and other stakeholders from the Continent

7. Status: May 2009 • Web site established atwww.paceaa.org • First Newsletter published and distributed • Deliverable 1 completed: Review of policy and regulatory option that encourage the involvement of agro-industries in rural electrification • Pilot sites selected in Kenya, Malawi, Rwanda and Tanzania, for rural electrification case studies at teafactoriesassociatedwith small hydrodevelopment • Workpackages 3 and 4 under way and nearingcompletion: • 4 Business models for Rural Electrification from Agro-Industries • 4 rural electrification local plans

8. Pilot sites