Hélimax Energie inc. 20-10- 2004 Strategic Studyon Wind Energy Development in Africa Strategic Study on Wind Energy Development in Africa

Hélimax Energie inc. www.helimax.com 20-10-2004

Strategic StudyStrategic Study on Wind Energy on Wind Energy Development in AfricaDevelopment in Africa

Presented by Presented by Mr. Louis Robert, MPMMr. Louis Robert, MPM

Vice-president, Helimax EnergyVice-president, Helimax Energy

Presented toPresented toAfrican Development Bank (AfDB)African Development Bank (AfDB)

Tunis Wind Energy ConferenceTunis Wind Energy Conference

October 28th, 2004

Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 2

Outline

+ Helimax in a few words

+ Wind Energy in the World

+ Presentation of the wind energy study – Background and Overall objective– Methodology– Results and conclusions of the reports– Recommendations


Helimax in a few Words

+ Leading wind energy consulting company in Canada– Projects/mandates in 9 of the 10 Canadian provinces / in 20

countries

+ Multidisciplinary team dedicated to wind energy. Among our team: – 6 scientists including 4 meteorologists– 11 engineers (various disciplines)– 2 masters in project management– 2 economists and specialists in the environment– 3 support staff (administration and accounting)

+ Presence nationally and internationally:– Québec : 30%– Canada (outside Québec) : 40%– International : 30%


Wind Energy in the World

+ Wind energy is clean, community friendly, and renewable.

+ Wind Turbine Generator (WTG) is a proven and reliable technology.

+ Approximately 40,000 megawatts (MW) of wind installed worldwide by the end of 2003.

+ Wind farms in operation in 52 countries by the end of 2003.

+ Average annual growth rate of about 32% over the past 10 years.



+ Investments on the order of US$ 10 billion in 2003.

+ Increasingly competitive with conventional generation due to ongoing reduction in price per kWh produced.

+ Major players in the energy and financing sectors have become involved.

+ Wind is no longer a marginal source of energy.



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Background and Overall Objective of the Study

Commissioned by: African Development Bank

(AfDB)

Supported by: Canadian International

Development Agency (CIDA)

Performed by: Helimax Energy Inc.

The overall objective of the Study was to promote investments in wind energy projects in Africa.


Methodology

The methodology was divided into 5 steps:

A. Wind mapping of Africa continent (53 countries) at a

resolution of 50 km.

B. Analysis of institutional and regulatory framework of

countries with high wind energy potential


Methodology (Cont’d)

C. Technical, economic, social and environmental analysis of

countries with high wind energy potential

D. Development of a strategic plan for wind energy

deployment in Africa.

E. Search for financial partners interested in investing in

wind energy projects in Africa.


A. Meso-scale Wind Mapping of Africa

+ Wind map produced using Helimax’s expertise with MC2-WEST.

+ WEST stands for Wind Energy Simulation Toolkit.

+ Dynamic, 3-Dimensional Atmospheric Model developed by Environment Canada, based on MC2.

+ Sources of information : NCEP/NCAR, Retscreen-NASA, Helimax knowledge, wind atlas, publically available information, pressure pattern, topographical maps.


A. Meso-scale Wind Mapping of Africa

CONCLUSION report A :

15 countries endowed with excellent wind resource

Southern Africa : South Africa, Lesotho, Madagascar, Mauritius

Eastern Africa : Djibouti, Eritrea, Seychelles, Somalia

North Africa : Algeria, Egypt, Morocco, Tunisia

West Africa: Cape Verde, Mauritania

Central Africa: Chad


B-C. Analysis of the country situations

+ Analysis of the 15 countries endowed with high wind

energy potential

+ From a policy, institutional, legislative, and regulatory

point of view

+ From a technical, economic, social, and environmental

point of view

CONCLUSION reports B & C :

+ the 15 countries can be grouped based on the similarities

of their national situations


B.-C. Similar country situations

Group 1

Morocco

Tunisia

Group 2

South Africa

Algeria

Egypt

SIMILARITIES+ Policy in favour of wind

energy+ Legal/regulatory framework

in place+ Rapid growth of the

electricity demand+ Wind farms up and running,

others under dev.+ Fossil fuel imports

SIMILARITIES+ Abundant fossil fuel+ Cheap electricity generation

cost + Huge emission reduction

potential+ Strong interest from various

stakeholders+ Capacity to establish a new

industry and create jobs


B.-C. Similar country situations

Group 3

Cape Verde

Eritrea

Madagascar

Mauritania

Somalia

Group 4

Djibouti

Lesotho

Mauritius

Seychelles

Chad

SIMILARITIES+ Interest in wind energy+ Need to extend the supply of

electricity to not served population

+ Small scale projects in remote areas or connected to small local grid

+ Investments restrictions

SIMILARITIES+ Not yet taken a stance+ Possible environmental

constraints (cyclone)+ Possible other sources of

energy more appropriate:- Geothermal, Djibouti- Hydro, Lesotho- Photovoltaic, Chad- Bio-combustibles, Mauritius/Seychelles


FIRST DISCUSSION PERIOD

+ Questions?

+ Commentaires / comments?

+ Suggestions?


D. Identification of the main barriers

+ Legal and regulatory– Lack of framework promoting private investment– Lack of framework promoting wind power production

+ Economic and Financial– Incremental cost of wind energy– Exacting financing conditions because of the risk

+ Technical– Limited knowledge of both the national wind resource and the

electrical grid features– Lack of wind power projects portfolio

+ Lack of information and training– Limited knowledge of wind energy, lack of qualified people, little

experience in IPP, lack of experience sharing and coordination


D. Profitability of large scale wind power projects


D. Strategic Plan 2005-2010

Objective 1:

+ Implementation of the required conditions for the development of wind energy.

+ Design and implementation of adequate institutional and regulatory framework, specifically to favour private development

+ Production of wind maps of high resolution+ Study of electrical grid integration+ National capacity building in all aspects relating to wind+ Development of demonstration projects+ Promotion of wind energy to pertinent institutions.


D. Strategic Plan 2005-2010

Objective 2:

+ Implementation of viable commercial wind energy projects.

+ Raising the interest of private sponsors and other potential investors in wind energy opportunities in Africa

+ Mobilizing required funds for project preparation+ Performing feasibility studies and developing most

promising wind energy projects+ Financing and implementing two or three wind power

projects totaling an installed capacity of 140 MW in Africa leading countries


Recommendations

It is recommended that the AfDB:

+ Keep promoting wind energy projects as one of its focus areas of action during the period 2005-2010.

+ Focus its action on a limited number of countries showing a different situations such as:Tunisia, Morocco, South AfricaMauritania, Madagascar, Cape Verde, Mauritius, EritreaOthers,…Selection criteria:- Excellent wind resource- Mix of large scale and small scale projects- Mix of advanced and less advanced countries with regard to wind

energy- Potential of greenhouse gas emission reductions- One or two countries showing industrial capacity to implement a

manufacturing plant


Recommendations

+ Address the needs of rural areas through the development of small wind energy (hybrid) systems for remote areas and small local grids.

+ Address the needs of urban areas through the development of grid-connected utility scale wind farms.

+ Develop a close collaboration with the most interested financial/institutional/governmental partners.

+ Develop a close collaboration with one or two sponsor/IPPs developer that will show the highest interest.


Recommendations

+ Support, on a country by country basis, the design and the financing of specific wind energy programme/projects to be started in 2005 in the target countries.

+ Confirm the collaboration with the most interested partners and secure part of the required funds to launch/pursue wind/ energy programmes/projects in 2005.


SECOND DISCUSSION PERIOD

+ Questions?

+ Commentaires / comments?

+ Recommandations / recommendations?

Documents

Hélimax Energie inc. 20-10- 2004 Strategic Studyon Wind Energy Development in Africa Strategic Study on Wind Energy Development in Africa