AFRICA RENEWABLE ENERGY INITIATIVE

AREI

Transitioning Africa to a renewable energy powered

future with access for all

AREI is…

• Africa-led & sustainable development oriented

• Explicitly addresses needs of major productive sectors

• Development focused/climate compatible

• Open to wide participation and collaboration

• A multi-stakeholder mobilization effort to accelerate transition of Africa’s energy-economies

• A framework that cultivates partnerships and synergies among existing and future RE efforts

CONTEXT

GOALS AND PRINCIPLES

WORK AREAS

GOVERNANCE

TIMELINE

AFRICAN COUNTRIES AMONG THE FASTEST-GROWING

FOR THE MAJORITY OF AFRICAN COUNTRIES…• Growth is not inclusive – economic

growth has been accompanied by growth in joblessness.

• Access to energy and other growth-enabling infrastructure remains low and uneven

• Demand for resources and services rising rapidly in tandem with population growth.

• Demand for energy is of particular concern: if not met, growth may stall, then fall

THE ENERGY ACCESS GAP

Future access situation: BAU scenario

• Huge implications on human well-being, employment and prospects for sustainable development

Share of population without electricity access

IMPORTANCE OF ENERGY FOR AGRICULTURE AND FOOD

Agricultural sector …energy-related limitations

• Minimal mechanization

• Low productivity

• 60% employment

• 19% value added

• 40% hard currency earnings

Designation Africa LatinAmerica

Europe World

Tractors 523,917 1,765,242 10,737,469 25,530,184

Agricultural workers/tractor 394 24 3 51

Hectares/tractor 2,113 67 45 187

IMPORTANCE OF ENERGY FOR AGRICULTURE

LandPreparationFertilizingCrop protectionHarvesting/threshing

DryingMilling

PackingPressing

Storing

Infrastructureand transportICTsTrainingSelling

Energy supply mix:Electricity

Mechanical powerFuels/thermal

ACTIVITIES

AGRICULTURAL VALUE CHAIN (Simplified)

Production

Distributionand retail(domestic andexport markets)

Processing,post-harvestand storage

THE IMPORTANCE OF ENERGY FOR MSMES

SME sector potential …energy-related limitations

A HUGE ENERGY ACCESS GAP

700

600

500

400

300

200

100

2000 2005 2010 2015 2020 2015 20300

GIGAWATTS (GW)

ACCESS GAP

YEAR

Current growth based on historic trends

Pathway to 100% access

PIDA projektions at 6% growth/year

AREIGOALS AND PRINCIPES

GOALS

ENERGY ACCESS… …CLIMATE

help achieve the Sustainable Development

Goals, enhanced well-being, and sound

economic development by ensuring universal access to sufficient amounts of clean, appropriate and

affordable energy

help African countries leapfrog towards

renewable energy systemsthat support their low-carbon development

strategies while enhancing economic and

energy security

EXPECTED TRANSITIONACROSS THE CONTINENT… MORE SPECIFICALLY

At least 300 GW by 2030 of new and

additional installed capacity with an initial 10 GW by

2020

• Increase absolute number of users connected to the national grids or new mini-grids

• Increase absolute share of RE of energy consumption in productive sectors: agriculture, industry, and services

• Increase in the share of local/African firms providing RE equipment & supply on the continent

GUIDING PRINCIPLES

Contributing to achieving SD in Africa

Addressing the entire

African continent

and benefit all African countries.

Boosting intra-regional

cooperation

Promoting all kinds of renewable

energy technologies

Promoting the full range of renewable

electricity applications, as well as non-electrical

forms of energy

KEY PRECEPTS

Country Ownership

Enhanced private and

public sector engagement

Smart, modern distributed

renewable energy systems of the

future

Transformative and

programmatic

Multi-stakeholder participation and

social and environmental

safeguards

RESOURCES, TECHNOLOGY, EXPERIENCE

Amount Used1870-2011:

515GtC

Amount Remaining:

275GtC

Total Carbon Budget:

790GtC

The African continent has:

Immense RE resources: solar,

geothermal, wind, small hydro

Access to lower cost, more mature RE

technologies

Growing experience in

RE deployment

A renewable energy “rich” energy development path for Africa is entirely

feasible!

PEOPLE-CENTERED CENTRALISED, DECENTRALISED,

ENERGY SYSTEMS OF THE FUTURE

Amount Used1870-2011:

515GtC

Amount Remaining:

275GtC

Total Carbon Budget:

790GtC

KEY DRIVERS FORTRANSFORMATION

TRANSFORMATIVE CORE WORK AREAS

Mapping for coordination

Strengthen policy,

regulatory, organization,

and incentives frameworks

Capacity mobilization, building, and partnerships

Financing and funding

Project development and support

Mapping and coordinating (1/5)

• Thorough mapping of existing and proposed RE policies, regulations, and experiences.

• Determine the level of effort, gaps and priorities of the different RE initiatives.

• Facilitate exchange of best-practice policies

Building synergies between existing

and future RE

Initiatives

Strengthening Policy, Regulatory, Organization, and Support frameworks

…to provide long-term investment

security

…to drive upgrades of existing grids and

accelerated mini-grid rollouts

…to expand use of non-electrical energy in

productive applications

…to improve energy efficiency across all energy applications

…to enhance domestic capacity for

RE component manufacturing

(2/5)

Capacity mobilization/building (3/5)

• Elevate capacity building as a top priority and support an African regional strategic plan.

• Build partnerships with knowledge institutions outside of Africa, including South-South collaboration.

• Develop regional collaboration among African institutions. Support renewable energy education and training at universities.

• Mobilize the African diasporacommunity to deliver targeted expertise as needed.

Concerted capacity building

across stakeholde

rs at all levels

Finance (4/5)• Operating costs for African RE Initiative

• Funding from GCF and other sources for comprehensive country programs and investment incentives according to this framework.

• Financial commitments from international donors to fund the pre-2020 requirements with at least USD 5 billion.

• Establishment, through continued African leadership, of a global program for renewable energy support with sufficient, long-term funding commitments.

• New public sources of favorable, concessional finance for upfront investments.

Finance

To cover operating costs, enabling activities and

incentives

By facilitating access to credit

for investors and developers

Project development and support (5/5)

• Complementary effort: Enable good projects in the pipeline

• Invite countries for proposals

• Review and select proposals

• Ensure adherence to all AREI guidelines and principles

• Ensure new and additional

• Release funds through AREI trustee or through existing channels with full transparency

• Project development capacity building at continental and country level

More and higher quality

renewable energy

projects

TRANSFORMATIVE CROSS-CUTTINGWORK AREAS

Amount Used1870-2011:

515GtC

Amount Remaining:

275GtC

Total Carbon Budget:

790GtC

GOVERNANCE

• Board of Directors

• At the level of Heads of State and Government (9 members with 7 African)

• Technical Committee

• Composed of high-level experts with proven experience in relevant issues

• Independent Delivery Unit

• Housed at AfDB but independent

• African Development Bank as Trustee

TIMELINEThe Action Plan envisages a three-phase implementation process:

• The immediate establishment phase (2016-17): Formal implementation of the AREI, including establishment of the Independent Delivery Unit (IDU).

• Phase I (2017-2020): Assessments, preparations and critical enabling activities at the continental African level as well as in a number of pioneering countries, setting the basis for enhanced acceleration in phase II. Enabling of appropriate RE projects already in the pipeline. Achievement of at least 10 GW new and additional generation capacity.

• Phase II (2020-2030): Ambitious ,full-scale roll-out of nationally determined policies, programs and incentives as initiated under Phase I. Continuous assessments and revisions for further scaling up. Achievement of at least 300 GW new and additional generation capacity.

SUCCESS FACTOR OF AREI

• Country commitment is fundamental

• Bottom-up thinking solves real challenges

• Active engagement of multiple stakeholders for embedding energy in society and productive sectors

• Pipeline projects from the countries based on their assessment of needs and conditions

• Phase 1 success will depend on how well the establishment phase is developed; and phase 2 is dependent on the quality of earlier phases as building blocks for transformational pathways.

AREI STRENGTHS

• Strong Political Will with Clear Vision

• Required Institutional Innovation to Deliver the Vision

• Linkage of Short Term and Long Term Goals and Imperatives

• AREI development has gone through a consultativeprocess and it seeks to work collaboratively with partners

THANK YOU!

Download brochure, summary, framework, action plan, criteria, at

www.arei.org