Africa-EU Renewable Energy Cooperation Programme (RECP) Promoting Private Sector Investments in Africa’s Renewable Energy Markets

Joint Stakeholders Conference I 5 - 6 July 2016 – Brussels, Belgium

Niklas Hayek

History The Africa-EU Renewable Energy Cooperation Programme (RECP) was announced by then EU Commissioner Andres Piebalgs at the 2010 Vienna meeting of the Africa-EU Energy Partnership

Funding Initial funding by the European Commission. In 2013 the RECP received substantial funding from Austria, Finland, Germany and the Netherlands. The EC has added a further contribution in 2015.

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What is the RECP? – Donors and History

Africa-EU Renewable Energy Cooperation Programme (RECP)

The RECP is the African-European platform for promoting renewable energy market development and investment in Africa

It thereby contributes to growth and development in both continents, and it contributes to addressing global energy access & climate change objectives

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African Business Partners

African researchers Innovators

African Renewable Energy Markets

African Policy-makers

EU Support Facilities

EU innovators

EU Investors

EU Business Partners

TA Support

Building Linkages,

Business & research Cooperation

The Africa-EU Renewable Energy Cooperation Programme

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Status & Needs: Energy Access & Efficiency

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Energy Status, Outlook and Needs

Africa: Rich in energy resources…

In the last 5 years, almost 30% of global oil & discoveries were in sub-Saharan Africa;

Hydro

Wind

Oil

Oil

Oil

Oil Gas

Gas

Oil

Coal

Gas

Fossil fuels

Solar

the region has vast untapped renewables potential, notably hydropower & solar

Source: World Energy Outlook 2014

In sub-Saharan Africa, 620 million people – two-thirds of the population – live without electricity. Only a handful of countries have electrification rates above 50%

Less than 50%

More than 50%

Share of population with access to electricity:

…poor energy supply

Source: World Energy Outlook 2014

Energy demand by sub-region

Sub-Saharan Africa primary energy mix by sub-region

Nigeria & South Africa are sub-Saharan Africa’s largest energy demand centres, together accounting for half of total demand

20%

40%

60%

80%

100%

Nigeria Other West

Central East Other Southern

South Africa

Other renewables

Bioenergy

Hydro

Nuclear

Gas

Oil

Coal

141 Mtoe 56 Mtoe 37 Mtoe 112 Mtoe 83 Mtoe 141 Mtoe

Source: World Energy Outlook 2014

Back-up power generators supplement unreliable, insufficient grid-based supply

Electricity demand met by back-up generators in sub-Saharan Africa by sub-region

Back-up generators met almost 16 TWh of electricity demand in 2012; around 90 kb/d of oil was used at an estimated cost of over $5 billion

2 4 6 8 10 12

Southern

East

Central

Other West

Nigeria

TWh

Industry

Services

Residential

Source: World Energy Outlook 2014

Energy efficiency and use: policies drive implementation

Source: AfDB (2016) World Economic Outlook

Prevalence of strategies for sustainable energy use in Africa, 2015

Energy access: New policies scenario

Access to electricity in sub-Saharan Africa

Nearly one billion people gain access to electricity, but this still leaves 530 million, primarily in rural communities, without power in 2040

2012 2020 2025 2030 2035 2040

300

600

900

1 200

1 500

1 800 Million

Population with electricity access

Population without electricity access

Source: World Energy Outlook 2014

Beyond the power grid

Technology mix for mini-grids & off-grids in sub-Saharan Africa, 2040

Renewables account for around two-thirds of electricity supply in more remote areas, not connected to the main grid

35%

47%

12%

4% 2%

Off-grid: 12 TWh

32%

37%

20%

8% 3%

Oil

Solar PV

Hydro

Wind

Bioenergy

Mini-grid: 26 TWh

Source: World Energy Outlook 2014

Solid biomass remains at the centre of the sub-Saharan energy mix

Total primary energy demand in sub-Saharan Africa

Reliance on fuelwood & charcoal remains high, even as incomes grow; 650 million people still cook with biomass in an inefficient & hazardous way in 2040

300 400 500

Mtoe

100 200

Nuclear

Gas

Modern renewables

Coal

Oil

Bioenergy

2012

Additional demand in 2040

Source: World Energy Outlook 2014

Current

situation

New Policies

Scenarios (2040)

African Century

Case (2040)

Universal Access to

All (2030)(million) (million) (million) (million)

633 530 350 0

100% in urban, 63% in rural 100% in urban & rural

728 650 590 0

85% in urban, 55% in rural 100% in urban & rural

People without access

to Electric Energy

People without access

to Modern Fuel

55% mini hybrid grid

The Universal Access Case (2030)

• Additional investment (40-60 billion/year)

• Diversification of strategies:

Clean cooking facility: Biogas systems, LPG, improved cook stoves

Electrification: national grid - distributed generation

• Additional Investment in the power sector (15-18 billion/year)

• Deeper regional co-operation and integration

• Better management of resources and (oil & gas) revenues

The African Century Case (2040)

Energy can build a shorter path to prosperity

Source: World Energy Outlook / Prof. Emanuela Colombo, PoliMi

Decentralized RE energy solutions as the key for development

“Only 30% of the world’s rural populations currently without access to electricity are best served by extending the main grid. The remaining 70% are better suited either to mini-grids (in total 52.5%) or stand-alone systems (in total 17.5%).”

International Energy Agency (2011)

Use of locally available resources Promotion of local economic development Creation of local training and job opportunities Increased energy security and efficiency Contributes to mitigation of climate change

Academia’s role in leading the way to sustainable energy

Science can lead the development of new and people-centered technologies, mechanisms as well as policies and strategies.

Identified research fields of common Africa-EU interest (non-exhaustive)

• Optimization of solar PV & Concentrated Solar Power (CSP)

• Socio-economic aspects of improved cook stoves

• Improved charcoal production

• Biogas from Agro-industries

• Solar Heating and Cooling

• Urban Waste-To-Energy

• …

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Ecorys, RAL, IED (2015): Renewable Energy and Research and Innovation Capacity of Sub-Saharan Africa: http://www.ecorys.com/news/study-renewable-energy-and-research-and-innovation-capacity-sub-saharan-africa

Africa-EU Renewable Energy Research & Innovation Symposium

Tlemcen, Algeria I 8-10 March 2016 In cooperation with the Pan African University Institute of Water and Energy Sciences (PAUWES) and University of Tlemcen • 130+ scientists and experts • Status quo of RE research • Strengthen Africa-EU cooperation • Build capacities to access research funds and networks

Energy Procedia publication Research proposals underway Key findings on RE research

Key findings of the research symposium

• Science has to go beyond academic research to the roll-out of

innovative solutions - translating science into people-centered, practical and bankable solutions.

• Universities must train a new generation of energy professionals - contributing to a sustainable transition of the energy sector.

• Close science-business partnerships and international cooperation are a prerequisite to meet the demands of a transforming market.

Technical & Vocational Training Higher Education

RECP – Innovation & Skills Development

Africa-EU Research Cooperation Science to business promotion

…because knowledge is power.

Thank you for your attention! www.africa-eu-renewables.org Contact: Niklas Hayek, niklas.hayek@euei-pdf.org