12

Africa Energy Yearbook 2012

Embed Size (px)

DESCRIPTION

A preview of the official publication of the Africa Energy Forum 2012 featuring articles, directories and project lists from industry experts and senior officials active in the African power sector.

Citation preview

Hydropower for AfricaRenewable and sustainable energy for the future

www.andritz.com

ANDRITZ HYDRO GmbHPenzinger Strasse 76, 1141 Vienna, AustriaPhone: +43 (1) 89100, Fax: +43 (1) 8946046 [email protected]

ANDRITZ HYDRO is a global supplier

of electromechanical equipment and

services (“From water to wire”) for

hydropower plants. With over 170 years

of experience and more than 30,000

turbines installed, we are a world

market leader for hydraulic power

generation, from small hydro applica-

tions up to more than 800 MW output.

We have been active in Africa for more

than 100 years, today covering all African

hydropower markets with an installed

capacity of more than 100 MW. We

have manufactured and supplied the

largest Kaplan, Pelton and Bulb turbines

in Africa. For the growing market of small

hydro we have delivered about 200 units.

From water to wire.

AlgeriaMansouriahDarguinah Tunisia

Sidi SalemEgyptNew Naga HammadiAswan

EthiopiaBelesGilgel Gibe

KenyaKindaruma Masinga-Dam

RwandaMukungwaRuzizi

TanzaniaLower KihansiPangani Falls II

MalawiTedzani 1-3Wovwe

MadagascarMandrakaAndekaleka

MozambiqueMawusi

ZambiaVictoria FallsKariba North

South AfricaSteenbrasDrakensbergVanderkloof

NamibiaRuacana

Democratic Republic of CongoZongo Inga II

CongoBukavuSebeya

GabonKinguele

CameroonEdéa I-IIISong Loulou

NigeriaKainji 11/12, 5/6ShiroroJebba

Burkina FasoBagre

TogoNangbeto

GhanaAkosomboKpong

GuineaGarafi ri

MaliManantali

MoroccoMatmataDchar el Oued

Cote d’IvoireAyame Taabo San Pedro

AngolaCambambeMatala

UgandaNalubaaleKirra

Africa

EnergyYearbook

2012Volum

e 6, June 2012w

ww

.energynet.co.uk

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

welCome letter

Africa EnergyYearbook 2012welCome letter

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 2 2012/06/08 02:19:46 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

Africa Energy Yearbook 2012 3

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

ContentS

ContentSaCKnowleDgement

Foreword From EnergyNet

Welcome letter

energy For growth

Reconciling Renewable Energy and the Need for Affordable Energy In AfricaNeside Tas AnvaripourMarc MandabaSofien LarbiFernando BalderramaKader HassanRichard ClaudetPrivate Sector Operations Team, African Development Bank

A Journey of a Thousand Miles Begins with a Single StepBill Waite, Group CEO, Risk Advisory Group

Tanzania: Enhancing the Electricity Sector’s Sustainability Chris Ford, Managing Director, Songas

LP Gas: Exceptional Energy for AfricaMichael Kelly, Director, WLPGA

The Landfill Gas OptionsHuub van Haelen, Managing Director, GGNI René Eijsbouts, Senior Advisor, Risk Based Land Management, Witteveen + Bos.

‘’Changing the Game’’: Will Hydrocarbon Discoveries Transform East Africa’s Power Sector?Paul Eardley-Taylor, Head of Energy, Utilities & Infrastructure Coverage, South Africa & Africa, Standard BankNicholas Green, Analyst: Energy, Utilities and Infrastructure, Standard Bank

FaCilitating growth

Management Contracts: Which Role can They Play in Granting Access to Power and Reforming Non-Performing Utilities?Isabel Marques de Sa, Chief Investment Officer, International Finance Corporation John Leber, Investment Officer, International Finance Corporation

Regulatory Governance and Improving Access to Affordable Power Vinod Shrivastava, Director, CORE International Inc.

Does Africa have the Power to Attract Private Investment?Moritz Breickmann, Executive, African Infrastructure Investment Managers (Pty) Ltd

Mitesh Pema, Associate Director, Transactions, African Infrastructure Investment Managers (Pty) Ltd

aFriCa energy yearBooK

Volume 6, June 2012

published by

energynet limitedFulham greenBedford house69-79 Fulham high StreetlondonSw6 3Jw

editor: articles & Directories

amy [email protected]+44 (0) 20 7384 8068

editor: power projects

Bruno [email protected]+44 (0) 20 7384 8072

artwork & Design:

Catherine van DykClear impressionsFreelance graphic Design [email protected]+27 79 344 1649

Copyright c 2012energynet limited

iSBn 978-0-9551943-1-3

all righs reserved. no part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of energynet limited.

www.energynet.co.uk

page

1

2

page

7

13

17

23

27

33

page

39

45

51

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 3 2012/06/08 02:19:48 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

4 Africa Energy Yearbook 2012

Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

ContentS

African Energy: The Road to Access, Security, Development, and Sustainability Maria van der Hoeven, Executive Director, International Energy Agency (IEA)

Obstacles Faced When Building a Power PlantDavid Horsey, Director, Civicon Kenya

Private Sector’s Participation in the Rural Electrification of MozambiqueIsaque Chande, Commissioner, National Electricity Council, Mozambique (CNELEC)

Towards Security of Supply in Namibia: The First Generation Projects ConcludedMargaret Mutschler, Power Systems Development: Generation Projects, Nampower

FUnDing power

Local Currency Financing of Energy Projects and the Requirement Therefore to have in Place Local TariffsDouglas Bennet, Director, Frontier Fund Managers

Crisis? What Crisis?Bernard van Meeteren, Senior Investment Officer, Structured Finance Energy, FMO

The Growing Importance of Power UtilitiesOmar Vajeth, Principal: Head of Power and Energy, ABSA Capital

The Future of Climate Finance – The Green Climate Fund, NAMAS and Opportunities for AfricaAlexander Sarac, Legal Director, DLA Piper UK LLP

Libya – What Next for Investors?Renad Younes, Senior Associate, AshurstAlex Bartho, Associate, AshurstNadia Haghegh, Trainee, Ashurst

Climate ConSiDerationS: (initiating poSitiVe Change)

Ghana: Access to Light for Remote Rural AreasDr. Richard Hosier, Senior Climate Change Specialist, Global Environmental Coordination Unit, World Bank Wisdom Ahiataku-Togobo, Director of Renewable Energy, Ministry of Energy GhanaFrancis Yeboah-Dadzie, Project Manager, World Bank

Leveraging Africa’s Growing Solid Waste Management Challenge to Bridge its Power Generation Gap: Can Waste-to-Energy (WTE) be the Answer?Neside Tas AnvaripourMarc MandabaSofien LarbiPrivate Sector Operations Team, African Development Bank

The Experience of International Private Investors with the Renewable Energy IPP Procurement Programme in South Africa Jason Van der Poel, Partner, Webber Wenzel Jarred Benater, Associate: Africa Mining and Energy Projects, Webber Wenzel

Solar Energy: Chance for Rural Electrification in AfricaVolker Wachenfeld, Executive Vice President, Off-Grid Solutions Sales & Technology SMA Solar Technology AG

Towards a Sustainable Growth Model and Clean Energy for AllConnie Hedegaard, European Commissioner for Climate Action, EC Europa

55

59

63

65

page

67

71

73

77

85

page

91

97

99

105

107

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 4 2012/06/08 02:19:50 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

5Africa Energy Yearbook 2012

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

ContentS

proJeCtS For progreSS

Renewable Energy Master Plan for EgyptDr. Tim Hoffmann, Senior Advisor of Energy Economics and Planning Department, Lahmeyer InternationalDr. Alexis Bonneschky, Head of Energy Economics and Planning Department, Lahmeyer International

Safe Energy for Remote VillagesRicardo Schuller, juwi Holding AG

Meeting The Urgent Need for Household Solar in UgandaRobert Borzychowski, Mechanical Engineer, SolarNow Uganda

Powering African Development through Renewable Energy DeploymentDavin Chown, Management Committee member, SAPVIA

german proJeCtS ShowCaSe

DireCtorieS

Conventional Thermal GeneratorsTemporary PowerWind PowerHydropowerSolar Power

SoUth aFriCa proJeCtS

power proJeCtS

Conventional Power ProjectsTemporary Power ProjectsSolar and Wind Projects

inDeX oF aDVertiSerS

Africa Finance Corporation African EnergyAfrican Development BankAfrican Development BankAfrican Energy Forum 2013Africa Infrastructure Forum Aggreko Andritz Hydro Caterpillar Cummins Kenya Electricity Generating Company (KenGen)Powering Africa: Captive Power, Co-generation and IPP OptionsPowering Africa: Hydropower Options

page

111

115

119

123

page 128

page

131136138139141

page 142

page

147169171

page

16146

Inside Front CoverInside Back Cover

1044828

Outside Back Cover44

1401729058

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 5 2012/06/08 02:19:50 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

Africa Energy Yearbook 2012 7

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

energy For growth

nergy access is one of the most

critical issues for Africa. Lack of

access to energy and modern

energy services is one of the biggest

factors limiting economic growth and

reducing the quality of life of the majority

of Africans. Currently, energy access above

the 90% threshold has only been achieved

in a few countries in North Africa. Even

South Africa, a country with an important

natural endowment and relatively advanced

industrial development, lags behind – over

15 million South Africans are not connected

to the grid. In Sub-Saharan Africa (SSA),

the energy access situation is direr yet.

Insufficient generating capacity, limited

transmission networks, and technically and

financially weak utilities characterize these

countries. Thus, finding energy solutions

in Africa is an important objective that

requires informed and coordinated efforts.

Africa’s vast fossil fuel reserves have

historically dominated the energy mix of

African countries. However, increasing

and widely fluctuating oil prices, and

environmental concerns, amongst other

factors, are forcing renewables into an

ever expanding role in Africa’s energy

mix. In this paper, we provide an overview

of the current energy mix in Africa. We

then explore the potential for Renewable

Energy (RE) in the African context, while

discussing the necessary conditions for a

smooth transition to greener alternatives.

Throughout the paper, we attempt to provide

illustrations from our own experience and

include key aspects on financial structure.

the BaCKBone oF the energy miX

oil – Since the Industrial Revolution, world

economic development has been largely

based on fossil fuels. In 2010, about

three-quarters1 of global energy consumption

was derived from oil, gas, and coal. Fossil

fuels provide the energy backbone for

developed and developing countries alike.

Currently, oil accounts for some two-fifths of

world energy consumption. The relative ease

of extraction and comparatively low price

make oil, gas, and coal relatively attractive

energy sources. However, increasing

demand and increasingly lower supply will

inevitably bid up prices. For emerging oil

importing countries, the oil bill impact on

the balance of payment exceeds 10% of

neSiDe taS anVaripoUrmarC manDaBaSoFien larBiFernanDo BalDerramaKaDer haSSanriCharD ClaUDet

private Sector operations team african Development Bank

the african Development Bank (afDB) group’s mission is to help reduce poverty, improve living conditions for africans and mobilize resources for the continent’s economic and social development. with this objective in mind, the institution aims at assisting african countries – individually and collectively – in their efforts to achieve sustainable economic development and social progress. Combating poverty is at the heart of the continent’s efforts to attain sustainable economic growth. to this end, the Bank seeks to stimulate and mobilize internal and external resources to promote investments as well as provide its regional member countries with technical and financial assistance.

the institution’s greatest assets are its human resources which come from a wide geographic area. the Bank is an equal opportunity employer and firmly believes that recruitment from a wide geographical and cultural spectrum enriches the institution with varied talents, experiences and skills that will enhance the quality of human resources management and ultimately the realization of the Bank’s mission of reducing poverty across the continent.

in accordance with its policy of decentralization aimed at taking its operations closer to its beneficiaries, the Bank has, over the past few years, established about 23 field and country offices across the continent.

reConCiling renewaBle energy anD the neeD For

aFForDaBle energy in aFriCa

E

1 International Energy Agency, Key World Energy Statistics

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 7 2012/06/08 02:19:53 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

39Africa Energy Yearbook 2012

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

FaCilitating growth

management ContraCtS:

xpanding access to affordable

and reliable energy should be one

of the primary areas for further

international cooperation as it is central to

the issues of development, global security,

environmental protection and achieving the

Millennium Development Goals (MDGs). It

is widely recognized that a lack of access

to reliable energy services hampers

healthcare, gender equality, education,

and poverty alleviation. It is in this context

that the UN Secretary-General established

the Advisory Group on Energy and Climate

Change (AGECC)1 in June 2009, as a

prime example of a multi-stakeholder

partnership.

In 2009 AGECC produced a report that

made clear that a third of humanity has

limited or no access to modern energy

services and half of humanity has to

iSaBel marQUeS De Sa

Chief investment officer

international Finance Corporation

isabel marques de Sa, Chief investment officer at the iFC has over 30 years of experience developing projects for companies, governments and multilateral institutions in the natural resources and infrastructure sectors. at iFC, she has worked extensively in latin america, africa, middle east and Central asia in the power, water, mining and real estate sectors. among projects she led can be mentioned privatization of Coelce (Brazil), moatize Coal mine (mozambique), panama pacifico Special economic Zone (panama), and monrovia performance Based management Contract (liberia)

John leBer

investment officer

international Finance Corporation

John leber is an investment officer for iFC’s advisory Services in public-private partnerships. he joined iFC in 1998 and is based in washington, D.C.

whiCh role Can they play in granting aCCeSS to power anD reForming non-perForming UtilitieS?

E

1For universal access to modern energy services to meet basic needs in 2030, AGECC estimates that $35-40 billion of capital will be required on average per year, of which $15 billion should consist of grants mainly to cover the capital investment and capacity building.

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 39 2012/06/08 02:20:50 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

55Africa Energy Yearbook 2012

the roaD to aCCeSS, SeCUrity, DeVelopment, anD SUStainaBility

maria Van Der hoeVen

executive Director

international energy agency

maria van der hoeven took over as executive Director of the iea on 1 September 2011. previously, ms. Van der hoeven served as minister of economic affairs of the netherlands from February 2007 to october 2010, during which time she demonstrated leadership on energy policy at the national, regional and global levels.

aFriCan energy:

he IEA holds a strong interest in the

development of energy markets in

Africa, especially as the continent’s

economic growth has underscored issues of

energy access, sustainability, and the role of

energy technology and policy in development.

How the energy sector develops, within

emerging and developing economies, is

particularly important, because energy

security and sustainability are global issues.

This is increasingly the case in a global

economy, which is more interconnected and

interdependent than in the past.

At the founding of the IEA in 1974, OECD

countries accounted for about 75% of global

oil demand. They now account for less than

half, as emerging economies grow in wealth

and stature. Both in recent years and looking

forward, the increase in non-OECD energy

consumption will be led by brisk growth in

those economies. The need for closer co-

operation among all energy market players

in the area of energy security (that is,

reliable, affordable energy) is therefore clear.

However, when talking about energy

security in the future, electricity security

will be increasingly central. On the supply

side, energy access, sustainable power

generation, secure supplies of generating

fuels, and grid technology and integration,

will all be key to achieving secure power

provision, while still striving toward climate

change targets. On the demand side, energy

efficiency will be equally important. But

with such growing demand across both oil

and electricity generation, and the need to

employ new technologies to meet our goals,

we can say with confidence that the age of

cheap energy is simply over.

The IEA is concerned about energy access

issues in Africa, particularly within a

sustainability framework after the 2011

Conference of Parties meeting (COP

17) in Durban. Indeed, we have recently

conducted focused work to analyse and

promote best practices in the area of

financing for energy access.

Our flagship publication, the World Energy

Outlook (WEO), has been looking at

issues of development and energy policy

for over 10 years. In 2010, universal

access to modern energy services was a

key focus, and reflected a joint project by

the IEA, the United Nations Development

Programme, and the United Nations

International Development Organisation. It

sought to examine two outstanding issues

of energy poverty: access to electricity and

clean cooking facilities. As a follow up to

this work, the agency, last year, explored in

detail the issue of financing energy access.

According to the World Energy Outlook

2011, 1.3 billion people around the world

T

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

FaCilitating growth

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 55 2012/06/08 02:21:12 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

73

• Environment • • • Environment • • • Environment • • • Environment •Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

Africa Energy Yearbook 2012

omar VaJeth

principalhead of power and energy

aBSa Capital

omar Vajeth is currently the head of power and energy for absa Capital. he has been at absa Capital since 2006 and has worked on various power projects across Sub-Saharan africa. these include projects such as the Bujagali hydro project in Uganda, rabai power in Kenya, various renewable power projects and working with utilities such as KplC, CeC, eDm and eskom.

previously he worked in the South african electricity industry across the generation, transmission and Distribution sectors. whilst at the national electricity regulator, omar worked on regulation of the electricity industry pertaining specifically to pricing applications, licensing, development of the national integrated resource plan, and development of legislation impacting the electricity industry.

he African continent remains

one of the key growth markets

with respect to the Power sector.

The World Energy Outlook for 2011

predicts that more than USD 250bn

will be invested up to the year 2030.

Though this is less than other regions, it

is nevertheless a significant investment

into the region.

Africa has a large amount of untapped

reserves of fossil and hydro resources that

can be used to generate electricity. Despite

these large amounts of resources, the

electrification levels are low - particularly

in the rural areas.

To improve Africa’s power sector, a number

of African countries have introduced

reforms, such as the restructuring of

power utilities, privatizing the vertically

integrated monopolies and the introduction

of Independent Power Producers (IPP).

Referencing a small sample of countries,

utilities and a few projects currently being

developed (as per Table 1 on next page),

the funding need is substantial. If it is to

be considered that all utilities in sub-

Saharan Africa are in a similar position,

the combined requirement including IPP

for funding is considerably higher. Utilities

and IPP’s will need to ensure that all

funding options are explored in order to

meet this need.

Limited resource structures are expected

to play a large role for this investment, with

the hope of attracting greater foreign private

investments into the sector within the region.

The interest in programmes being run in

countries like South Africa, Kenya, Nigeria,

and Ghana have indicated that the funding

for these projects, in the form of both equity

and debt, is equally available.

The challenge, however, is the lack of

experience amongst stakeholders, which

generally leads to lengthy development

periods and negotiations in order to reach

closure on a project. In addition, the

awarding of concessions, and associated

bureaucracy, have also taken its toll on

the time it takes to close projects.

Although these challenges have not proven to

be insurmountable, there is still a significant

project gestation period. In 2010 alone, only

four projects, in the energy sector, were

reported to have reached financial close in

the World Banks PPI Database.

Recognising that limited resource financing

continues to be the dominant funding

product available to projects in the region,

the question becomes – what is the capacity

of the relevant offtakers (typically utilities) to

sign up to all of these IPP projects.

As much as the IPP market takes away

the need for utilities to fund power project

the growing importanCeoF power UtilitieS

T

FUnDing power

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 73 2012/06/08 02:21:39 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

107

towarDS a

SUStainaBle growth moDel anD Clean energy For allCONNIE HEDEGAARD

european Commissioner for Climate action

eC europa

Connie hedegaard, european Commissioner for Climate action

Connie hedegaard started her political career in 1984 as a member of parliament in Denmark for the Conservative peoples party. Before joining the european Commission, she has been minister for environment (2004-2007), minister for nordic Cooperation (2005-2007), and minister for Climate & energy (2007-2009).

From 1990 to 2004, ms hedegaard worked as a journalist for several Danish media. From 1998 to 2004, she anchored the evening news magazine “Deadline”, part of the Danish Broadcasting Cooperation, Dr. From 1994-98 she was head of Dr’s radio newsroom. ms hedegaard has been a member and chairman of several Boards and associations within fields like democratisation, journalism and international affairs. She received her master’s degree in literature and history from University of Copenhagen.

ver the last twenty years, the

world has undergone some

dramatic changes – the

population surged by 1.5 billion and the

economy grew by 70%. GDP per capita

increased every year, apart from 2009,

with an average annual growth rate of

2.7%. Many African countries also set

records in terms of economic growth.

Large parts of the world’s population,

however, are still being confronted with

hunger, poverty and environmental

degradation; and global greenhouse gas

emissions reached an all-time high of

more than 30 Gigatonnes in 2010.

Increasingly, the world is witnessing the

impacts of climate change, especially in

the poorest countries. Africa has not been

spared either. The current drought in the

Horn of Africa – the worst in 60 years - has

pushed over 13 million people into crisis

and led to soaring food prices. In Ethiopia,

the FAO estimates that 60% of cattle and

40% of sheep have died due to the drought;

and in some areas in Kenya, there has been

a near total crop failure. Coffee growers on

the equator are seeing their yields diminish

over the years due to climate change. Last

December, as climate envoys from all over

the world were gathering for the UN climate

negotiations, one of South Africa’s biggest

cities Durban was hit by fatal floods.

Acting on climate change is more urgent

than ever. By 2050, global greenhouse gas

emissions must be cut by at least half, if

we want to keep global warming below the

agreed ceiling of 2°C above pre-industrial

levels and avoid the most damaging and

costly consequences of climate change.

About two-thirds of global emissions come

from burning fossil fuels. So we will need to

change our use of fossil fuels drastically in

the coming years, if we want to avoid runaway

global warming.

At the same time, the world’s need for energy

keeps increasing, as the population and the

economy are steadily growing. Currently,

1.4 billion people on this planet are still

without access to electricity, of which

O

Africa Energy Yearbook 2012

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

Climate ConSiDerationS: (initiating poSitiVe Change)

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 107 2012/06/08 02:24:05 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

131Africa Energy Yearbook 2012

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

Company: a.e.Z S r.l.head office (city & country): Crespellano, Italytype of generator: Low/medium voltage power solutions’Fuel: Diesel/GasSize: up to 2000kVAlist 5 top countries of operation: Contact: Beatrice Tassiposition:telephone: 39051739099email: [email protected] website: www.aezitaly.com

aksaJenerator Sanayi A.S Istanbul, Turkey Portable, marine auxiliary and Onan marine gensetsDiesel/Gasup to 2,500kVAAlgeria, Nigeria 090212 [email protected]

ascot international Gela, ItalySingle/ dual-use gensetsDiesel 10-1500kVA 0390933 913003www.ascot-italia.it

atlas Copco ghana ltdAccra, GhanaPortable gensetsDiesel12-1250kVAGhana

atlas Copco portable air ltd Aartselaar, BelgiumPortable compressors and generators Diesel 12-1250kVA Angola, Botswana, Congo. D.R, Egypt, Kenya Elsie [email protected] www.atlascopco.com

autogen technologies incorporatedCounty Tyrone, Northern Ireland Open-set, sound attenuated, standard or be-spoke generatorsDiesel10kVA-4MW 00442 887747500 [email protected] www.autogen-technologies.com

Balton Cp ltdWatford, UKHigh speed reciprocating enginesDiesel5kVA- 2,000kVAGhana, Kenya, Nigeria, Rwanda, Senegal 00441923 228999 [email protected] www.baltoncp.com

Barloworld powerBoksburg, South AfricaDiesel and GasDiesel/Gas4kW - 16MWSouth Africa, Angola, Namibia, Mozambique, Botswana, Zambia, Malawui Nicola Morgan-EvensKey Account Manager(011) [email protected] www.barloworldpower.com

Bredenoord handelsmyApeldoorn, The NetherlandsDiesel5-2000kVA31553018501hm.schimmel@bredenoord.comwww.bredenoord.com

Briggs & Stratton CorperationDubai, U.A.EPortable, home and standby generatorsDiesel7-45kWAlgeria, Angola, Botswana, Egypt, Ethiopia97142994944bascodxb@emirates.net.aewww.briggsandstratton.com

Broadcrown ltdStafford, UKHigh and medium speed reciprocating enginesDiesel/Gas6kVA-30MVAAngola, Cote d’Ivoire, Ethiopia, Ghana, Kenya

0044188 [email protected]

Bruno S.r.l.Grottaminarda, Italy Perkins, Cummins, John Deere, Volvo, HondaDiesel2-2000kVA0390825 [email protected]

C woermann gmbh & Co.KgHamburg, GermanyPrime and Standby Deutz enginesWater and air-cooled10-2000kVAGhana, Nigeria, Angola 04940 [email protected]

Calsion power System Co. ltdDangguan City, ChinaMTU, Cummins, Volvo, Leroy SomerDiesel20kw-3,000kw086769 [email protected]

Caterpillar electric powerIllinois, USAAnyDiesel, gas, FHOAnyAcross AfricaRobert RankinTertiary Manager AME, Electric Power Projects41 22 849 [email protected]

Caterpillar power generation Systems13105 NW Freeway, Suite 910 Houston, Texas USAMedium speed diesel engines and equipment, turnkey diesel power plants up to 150MWHeavy fuel oil, diesel oil, liquid bio fuels, natural gasDiesel engines from 2 to 14MW, gas engines upto 6.5MWCape Verde, Guinea Conakry, Mali, Mauritania, Sierra LeoneMikko BergqvistSales [email protected]

Coelmo S.r.lAcerra, ItalyIndustrial, Marine and Building Site gensetsDiesel/Gas3-3,000kVA 039081 [email protected]

Compagnia technica motori S.p.aCesano Boscone, ItalyGensets powered by Mitsubishi and Volta Penta Diesel EnginesDiesel85-3,800kVA 03902 [email protected]

ConVentional thermal generatorS

DireCtory

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 131 2012/06/08 02:24:48 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no

171Africa Energy Yearbook 2012

Energy Environment • Development • Energy Environment • Development • Energy Environment • Development Energy Environment • Development

power proJeCtS

proJeCt DetailS proJeCt DeSCription DeVelopment FinanCe anD legal

algeria

hassi r’mel hybrid power plant project 160MW (2x40MW gas and 1x80MW steam) and a 25MW solar field [tender launched 1st Sept 2004, construction started in 2007, completed 2010]

New Energy Algeria Ltd (NEAL). Contract:Abener [Spain] interested companies were: General Electric, CME International [USA], Cobra ACS Group [Spain], Siemens, Solar Milennium [Germany], SNC Lavalin [Canada], Black & Veatch, Mitsui, Alstom, Brown & Root Condor

equity: Successful bidder (51%), NEAL and Banque Exterieure d’Algerie (BEA) (34% European Investment Bank (15%); KfW 40-50 million Euro loan, BEA, EIB

BUrKina FaSo

Zina solar plant 20MW PV plant Developer: SEMAFO Energy

Cape VerDe

Cabeólica 25.5MW wind (30 units of the V52-850 kW); located on the islands of Santiago, Sal, S‹o Vicente and Boavista

Client: Cabeólica (government of Cape Verde, Electra InfraCo, Africa Finance Corporation). Contract: Vestas

Finnfund, Investment Bank (EIB) and the African Development Bank (AfDB)

egypt

gebel el Zeit 120MW wind farm Sponsor: Ministry of Electricity and Energy. Developer: Italgen

Japan USD 430m loan; KfW Bank and European Investment Bank are also contributing

gulf of Suez Boo wind power project 250MW wind farm Client: Egyptian Electricity Transmission Company (EETC); Contract: GL Garrad Hassan (technical assistance)

Kureimat iSCC 150MW power project, two 40MW gas and one steam turbine and 200GWh/yr solar trough collector

Contracts: 5 year EPC and O&M bids from Iberdrola and Mitsui and Orascom [Egypt]. EPC for 120MW combined cycle island. Consultants:Fichtner and Egyptian Systems Engineering. Client EEA

JBIC ($91m loan), GEF ($49.8m guarantee)

Kureimat Solar/gas Boot 30MW solar + up to 120MW gas-fired; [pre-qualification completed].

EEA & New and Renewable Energy Authority (NREA). Contracts: Fichtner - replaces Lahmeyer International (consultant).

GEF (Global Environment Facility)- up to $50m guarantee.

Zafarana wind Farm phase 1 & 2 phase 1: 63MW installed; 50 x Danish funded 600KW turbines (30MW), and 55 German funded 600kW turbines (33MW). $34m ($24.7m Danish/ $9.3m Egypt) + German section ($22.5m KfW loan / Egypt 13.2m) . phase 2: Danish capacity to increase by 60MW, to be funded by $3.6m grant and $17.9m interest free loan. [phase 1operational 01; phase 2 end 04].

New & Renewable Energy Authority. Contracts:Nordex Energy GmbH[Germany] (phase 1 & 2). Vestas [Denmark] bidding for phase 3. adviser:COWI [Denmark]

phase 1: Danida [Denmark]. phase 1 & 2: KfW (Germany). phase 3: Danish soft loan. German Government using KfW as intermediary committed DM145 million in the conventional part, allowing for the erection of approx. 85-87MW. Danida committed finance for about 60MW. Japanese funding for phase three.

Zafarana wind Farm phase 3 160MW wind; EgyptÕs New & Renewable Energy Authority tendered 120MW at Zafarana in 2004 [completed in 2008]

New & Renewable Energy Authority. Contract:Gamesa Eolica [Spain] (supply towers-made in Egypt) Egyptian suppliers (civil and electrical works) Nordex (wind turbines) Vestas (generators)

Possible Yen 13.5bn to finance 120MW project from Japan Bank for International Cooperation (JBIC) if it helps Japan reach itÕs Kyoto target

ethiopia

adama & mesobo harena 51MW wind farms EEPCo. Contract: Hydrochina China ExIm Bank

ashegoda 120MW wind farm [completion due 2011] EEPCo. Contract: Vergnet arranger: BNP Parisbas. Financier: AFD EUR 45m loan. guarantee: Coface EUR 130m. Allen & Overy (Vergnet)

ghana

accra 20MW waste to energy plant Contract: Cinergex Solutions

tema wind Farm 50-60MW NEK Umwelttechnik [Switzerland]. Contract:Bonus Energy [Denmark] (windmills).

Commitments from bank consortium and power companies.

wind power to small businesses pilot project One year $179,000 pilot project to develop sustainable market for locally built wind power systems in areas off national electricity grid

Enterprise Works Worldwide [USA] (won World BankÕs annual Development Marketplace competition); Contracts: Rural Energy and Environment Systems [Ghana]; Scoraig Wind Electric [Scotland]

World Bank

Kenya

Bubisa wind power 300MW [completion due 2012] Gitson Energy. Contract: GE Energy (turbines) Standard Bank (mandated lead arranger & financial advisor)

Exim Bank of the United States of America and Overseas Private Investment Corporation

lake turkana wind power 300MW wind farm - 353 wind turbines each with 850KW capacity; EURO 617m [start production in 2011 and full production in 2012]

Lake Turkana Wind Power (LTWP) consortium includes Aldwych International (51%) [UK], Industrial Development Corporation (19%) [South Africa] and Dutch/Kenyan investors (30%). Contracts: Vestas V52 turbines; KPMG (lead financial adviser) Standard Bank (joint lead arranger)

70% debt and 30% equity. Equity: 25% Aldwych International, 25% IDC, 18.75% KP&P; African Development Bank (USD 100m) loan. Anjarwalla & Khanna

Solar anD winD proJeCtS

ENERGYNET_2012_LAYOUT_BOOK_FINAL.indd 171 2012/06/08 02:25:26 PM

Prinect Printready Trapper
Page is trapped with Prinect Printready Trapper 6.0.106 Copyright 2010 Heidelberger Druckmaschinen AG http://www.heidelberg.com You can view actual document traps, with the free Trap Editor (Viewer), a Plug-In from the Prinect PDF Toolbox. Please request a PDF Toolbox CD from your local Heidelberg office in order to install it on your computer. Settings: Width: 0.051 mm = 0.144 pt Printorder: Black / Cyan / Magenta / Yellow / Step Limit: 25.0% Common Density Limit: 0.50 Centerline Trap Limit: 100% Trap Color Scaling: 100.0% Image to Object Trapping: no Image to Image Trapping: no Black Width Scaling: 100.0% Black Color Limit: 95.0% Overprint Black Text: 10.0 pt Overprint Black Strokes: yes Limit: 0.71 mm = 2.00 pt Overprint Black Graphics: no