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“How can WEC contribute to alleviate Energy Poverty towards the future?”

“How can WEC contribute to alleviate Energy Poverty towards the future?”. Developing Countries Plenary Session Sheraton Centro Historico Hotel, Don Julian Room Mexico City, Mexico. WEC – WEF Partnership on Energy Poverty Action Dr. Latsoucabé Fall, WEC Regional Manager for Africa.

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“How can WEC contribute to alleviate Energy Poverty towards the future?”

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  1. “How can WEC contribute to alleviate Energy Poverty towards the future?” Developing Countries Plenary SessionSheraton Centro Historico Hotel, Don Julian RoomMexico City, Mexico

  2. WEC – WEF Partnership on Energy Poverty Action • Dr. Latsoucabé Fall, WEC Regional Manager for Africa

  3. What is Energy Poverty Action (EPA)? • Description • Private sector initiative initiated by WEF • Established by group of leading energy companies during WEF 2005 • In the context of WEF Industry Partnership Programme for Energy. • Objectives of EPA • Address energy poverty in the developing world by implementing sustainable, replicable and scalable electrification schemes – (concept extended to include Energification projects thanks to WEC) • Offer platform to collaborate with various stakeholders to provide access to modern energy and to reduce energy poverty • Deliver business expertise and best practices for energy projects • Offer a global network for technology transfer and capacity building.

  4. Why is WEC involved? • Poor access to modern energy • Entrenches poverty & constraints delivery of social services; • Limits economic opportunities; • Erodes environmental sustainability at all levels • The current situation is unacceptable! • More than 2 billion worldwide with no access to modern energy; • Nearly 1.6 billion without access to electricity; • Africa has lowest electrification rate in the world (~ 36%); • SSA situation particularly worrying: 3 out of 4 people with no access.

  5. Who is involved in EPA? • Alliance partners • Initial alliance between 3 companies under WEF umbrella in 2005: BCH, Eskom and Vattenfall – Then extended to DBSA (2006), WEC (2007), WBCSD and SASOL (2008) • MoU signed between WEC and WEF in Rome 2007 • Pool resources to promote sustainable energy supply and use to Africans with little or no energy access • WEC to develop Niger Energisation Project under EPA umbrella • SASOL to use IECs and their satellites for wider Energification in SA rural areas, and to expand the concept later on to other parts of Africa.

  6. How is EPA working? • EPAMU • Energy Poverty Action Management Unit • Launched during WEF Africa in June 2007 • Centralized organization hosted by DBSA in Joburg • To act as match-maker between stakeholders (Figure) • Centre of Excellence for skills development and financing • Facilitator to improve national investment climate • Develop projects based on community needs (bottom-up approach) and capabilities.

  7. Development & Implementation of selected projects • Projects in the pipeline • Lesotho project: • Implementation of rural off-grid system using combined hydropower/ solar power systems to supply 1150 households • Estimated cost: $2.5 Million • Funding mobilized through AfDB & GoL • Kinshasa project: • Implementation of a peri-urban grid-extension pilot model to supply 10,000 households • Estimated capital cost: $13.5 million • Project not yet started.

  8. Potential customers • With mandate or interest to develop & implement rural electrification/energification projects, and • With means to pay for necessary investments • Governments • Utilities • Commercial companies • Communities, donors, NGOs

  9. Financing EPA projects • Work currently undertaken by a UK firm, OliverWyman, to explore innovative financing schemes • Envisage to establish a “Rural Electrification Fund” and to identify financing organizations • Key questions yet to study : governance, incorporation of entity, administrating the Fund, etc.

  10. Thank you for your attention.

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