introduction€¦ · geothermal energy heat energy coming from underneath the earth, especially...

Saigon Model United Nations 2014

Research Report | Page 1 of 12

Forum: The Environmental Commission

Issue: Promoting the future of alternative energy sources in Africa

Student Officer: Trinh Thi Thuy Duong (Flora)

Position: Deputy President

Introduction

Africa is a diverse, ever-growing and statistically youngest continent in terms of population,

yet continues to have many social issues plaguing its development. Not only have political

controversies drawn the world’s attention years after years, on-going socioeconomic problems

have also received great concern from organizations, institutions, and countries from all over the

world. Although Africa is abundant in natural resources and has great potential in renewable

energy, nearly half of its population is living in poverty. The majority of its countries remain

underdeveloped due to hunger, high rates of illiteracy, low per capita income, lack of access to

medical facilities, and most importantly, lack of access to electricity and sustainable energy

sources. On its way towards a more developed economy and society, governments and energy

providers have faced many challenges regarding the adequate supply of energy in manufacturing

industries, daily lighting, healthcare, transportation, etc., as well as ways to achieve sustainable

development. Energy is the vital factor to economic and social development because it is

necessary in all kinds of productive activity. In the last few years, there has been substantial

growth in the African economies, but also followed by rapid growth in population. As a result, the

continent is demanding for more energy supplies to meet its current and future needs.

A stable energy supply is vital for strong economic development and poverty alleviation.

Africa needs a reliable and cost-effective energy sector which can provide a large amount of power

to better sustain economic activities, hence driving itself away from importing unsustainable and

unreliable energy. Globally, renewable technology is becoming very competitive with the use of

fossil fuels, and has become the trend for countries to initiate an energy revolution. Investments in

utilizing renewable resources will not only promise a future more conducive to stable economic

growth, but also demonstrate environmental sustainability. The enormous and untapped potential

for renewable resources will allow Africa to supply its current needs if properly harnessed, which

includes but is not limited to solar power, wind power, hydropower, and geothermal power. The

cost of renewable technology has become increasingly more affordable, with prices of materials

constantly plummeting, whereas costs in coal-fired power stations have steadily risen. Africa’s

advantageous geographical features and suitable climates can provide a plausible solution and a

wide variety of alternative energy, which can contribute a large sum of power to countries’ national

grid networks and off-grid electrification projects. With that in mind, development of sustainable

energy will play an important role in increasing the availability of electricity in remote/rural areas,

and ameliorating the poor living conditions of 600 million people.

Definition of Key Terms

Africa

Africa ranks second after Asia in terms of population and size. Even though Africa is the

most impoverished continent, it is predicted to have the world’s fastest-growing economies

reaching ‘’middle-income’’ status in 10 to 15 years. The African population will reach 2 billion

people in 2050 if the current birth rate continues.

Renewable energy / alternative energy

Energy sources generated from natural resources that can be continually replenished, such

as bioenergy, solar power, wind power, etc. An evaluation of the massive carbon footprint and gas

emissions (since 1971, global emissions of carbon dioxide have risen on average 2% per year,

however since 2010, it has increased to 4.9%) due to the consumption of fossil fuels has triggered

the need for sustainable development around the world. With replenishing resources available in

nature, alternative energy is becoming a prominent solution to the issue of global warming. Africa

is well endowed with renewable energy resources, such as solar, wind, hydro and geothermal

energy. The United Nations has called for nations to promote of the use of sustainable energy in

order to achieve the 7th Goal in the Millennium Development Goals sufficiently.

Solar energy

Solar energy is a widely used, reliable, and efficient source of energy, which takes solar

radiation as the input and converts it to heat and electricity. The most common ways to use solar

technology are solar photovoltaic (direct conversion to electricity) and solar thermal (stored heat).

Wind energy

Wind turbines are often built together to create a wind farm, providing large-scale power. In

remote areas, hybrid wind systems are used to generate power in smaller scale (<100 kW). Taking

the wind flow as the force to turn blades of turbines, generators then convert motion energy into

electricity for use.

Geothermal energy

Heat energy coming from underneath the earth, especially from hot springs and reservoirs,

can be used for generating electricity through three ways: direct geothermal energy, geothermal

heat pump, and geothermal power plant.

Bioenergy

Bioenergy is the energy obtained from biological resources. The conversion of this energy for

usage starts with chemical energy stored in biofuel or biogas, and often through incineration,

generates heat and electricity. It is considered to be an appropriate alternative source of energy to

fossil fuels for industrial use.

Key Issues

Overview

Africa has to set out for itself some fundamental objectives while promoting further use of

sustainable energy, which includes identifying obstacles hindering sustainable energy

development (SED), acknowledging the advantages offered in plentiful alternative resources and

the means to exploit them in way that can foster economic, social, and environmental development.

Policies and strategies addressing the promotion of renewable energy technologies (RET) should

focus on the development of appropriate financing mechanism and budgetary administration.

Challenges and obstacles

For the past ten years, the low consumption of commercial energy due to poverty in the

population, the heavy use of traditional biomass to sustain survival activities, and the poor

infrastructure of electric utilities have collectively impeded the development of the energy sector.

Over time, the energy sector in Africa, especially in Northern Africa, has somewhat found its way

out from the past problems by shifting its market out of the continent, providing its commercial

energy resources (oil, petroleum, coal…) to worldwide fossil fuels consumers in return for the

funding of foreign investors in energy projects. The reliance on fossil fuels by actively importing

and exporting unsustainable resources while the economies are thriving rapidly presents a hidden

threat. The environmental issues and fossil fuel depletion happening in industrialized countries

foreshadow the problems Africa would confront on its way to economic and social growth, if that

path is not SED. Despite the huge benefits from the utilization of RETs, the promotion of its uses

faces capacity and economic barriers.

Capacity barriers

Expertise in RET, regional cooperation, and enabling policies are factors of RET that needs

to be harnessed to the fullest. For a population which yet has the access to power, its knowledge

of RET is limited to the unsustainable use of biofuels, which results in deforestation, soil erosion,

loss of biodiversity, and contamination of water resources. The lack of community participation

would limit RET’s penetration in those areas. The aforementioned poverty existing in the majority

of the population does not parallel well with the in-depth knowledge and intensive skill required in

operating, managing renewable energy plants and analysing, processing data in large scale

energy projects. In projects at national level, governments and the energy sector are suffering from

a shortage of qualified RET personnel. In local projects, these limitations in human resources

further obstruct the technology transfer to local workers, consequently relying on costly foreign

employees.

The lack of regional coordination and linkage of RET programmes, resulting from weak

policies and little harmonization between member nations regarding their sustainability criteria,

makes those programs function in low capacity due to increased project development costs and

duplication of projects. Inadequate legal and regulatory, and institutional framework, along with

poor infrastructure, limit the success of RETs. There exist few co-coordinating agencies

responsible for RETs, or if exists, remain somewhat idle due to a lack of resources. Electric utility

infrastructure necessary for large-scale renewable energy power plants is unreliable. As a result,

the conditions for investing in RET appear to be unattractive to both domestic and foreign investors

alike.

Economic barriers

There are barely any solutions for low-cost and long-term financing. Governments and the

private energy sector have difficulty in delivering energy from RET projects to consumers at

affordable prices while maintaining sustainability in the industry. Regardless of the constant price

drop of RET, the start-up costs of investment is massive. Prior to a project, developers and

investors need to conduct feasibility studies examining the financial, environmental, and technical

conditions required for a project to be invested in. During the planning phase, procedures require

payment for insurances, licenses, contracts for buying equipment and technical studies for later

operation of projects. The transaction cost and payment for renewable energy facilities are the

obstacles that investors have to overcome once they consider starting. During the stage of

constructing the necessary facilities, millions to billions of USD are required, depending on the

scale of the project. With that in mind, projects may take a long period to run in its fullest capacity,

investors waiting to get profits and returns would also have to bear the high start-up costs while

knowing the uncertain future of the projects invested, meanwhile, returns in conventional energy

projects are less time-consuming. To take advantage of economies of scales, large investors and

governments focus on developing on-grid large-scale projects, maintaining the power cost at a

reasonable price. While doing so, financial resources at sub-regional levels become lacking,

minimal focus is paid on rural electrification programmes and grid extension, and investment in off-

grid solutions is ignored. Mobilizing financial resources is considered a difficult task for African

governments while there is high rate of corruption and slow economic growth.

Renewable energy potential

Figure 1: The distribution of identified renewable energy potential in Africa

According to the United Nations, in order to successfully achieve the Millennium

Development Goals (MDGs) in terms of poverty reductions by 2015, it is important that member

nations should improve access to reliable and sufficient sources of energy. Statistics suggest that

only 0.3% of the massive renewable energy collected through solar power alone from African

deserts could supply Europe’s energy needs. Yet countries have not found means to effectively

harness these sources because of several factors. In another example of insufficient harnessing,

93% of hydropower potential in Africa remains unexploited.

Solar power

Throughout Africa, the distribution of solar resources is the most consistent compared to

other resources, supplying the continent with 325 days of sunlight all year round. The scalability of

this resource potentially provides mini-grid and off-grid power solutions to the population in rural

and remote areas, satisfying energy needs for daily activities such as for desalination, small-scale

electrification (lighting for households and public utilities), water pumping (irrigation system for

agriculture), and water purification (hygienic water for daily use). These solutions not only help

Africa to meet its demand for energy, but also solve other controversial issues of unavailability of

clean water, and cost distortions of diesel in rural areas. Solar power could also be used to operate

healthcare facilities and schools to improve the living conditions around the region. There are on-

going solar power projects across Africa, such as those in Kenya, Gambia, Sierra Leone, Chad,

and Uganda.

Wind power

There is huge potential of harvesting wind resources distributed in mountain ranges, around

the Sahara where wind blows most intensely (a major cause of sandstorms in the Sahara), as well

as along the coastline. For regions where solar radiation is not as evenly distributed for the use of

solar PV, wind turbine is a great complement, providing energy during the night, and throughout

stormy seasons. According to AfDB, wind power in Africa is likely to experience a huge boost in

installed capacity over the next few years. Large wind energy resources are recognized in

countries in North Africa and near the Mediterranean Sea, which are Egypt, Morocco, and Tunisia,

where the installation of wind farms has already existed. In other areas, projects harnessing this

energy resource are under way, particularly in Nigeria (10 MW), Ethiopia (120 MW), and Kenya

(300MW). With only 24 wind energy projects out of 76 explored are completed, small scale wind

projects still remain idle, especially in West Africa.

Geothermal power

This resource is particularly concentrated in East Africa, extending throughout the Rift Valley

that runs through thirteen countries. Few countries in the region have yet recognized the potential

of geothermal energy. Despite having a bright prospect of 600-700 MW of geothermal energy,

Rwanda and Tanzania have not expressed commitment in utilizing this RET. Out of all Rift Valley

countries, only Kenya and Ethiopia are taking initiatives in exploring this energy resource with the

total installed geothermal capacity of 250 MW and 7 MW, respectively. Countries in this region

need to recognize the given advantages in this renewable, competitively-priced base-load power,

and mainstream geothermal power as their major source of supplying energy.

Hydropower

Hydro-projects built across Africa were primarily for industrialization and for social and

economic development, providing benefits such as water supply, irrigation, navigation, fisheries,

and tourism. There is a large potential for hydropower in Sub-Saharan countries, contributing

approximately 1,750,000 GW/yr. The exploitation of this energy remains relatively low, inefficient to

supply energy needs due to low demand and scattered population. Instead, the energy sector

should focus on mini-hydropower projects in matching supply with demand. In smaller scale

projects, capital cost needs to also remain low. However, for the purpose of expanding the energy

market, regional hydropower projects would be most beneficial if initiated in countries such as

Congo, Zambia, Mozambique, Swaziland, Ghana, and Uganda. Regional cooperation among the

nations is mandatory for generating power at a larger capacity. For regional-scale projects, the

risks involved in affecting the living conditions of the surrounding community are numerous.

Major Parties Involved and Their Views

African Development Bank (AfDB)

The African Development Bank Group has supported the energy development of its member

countries for forty years, contributing numerous sound strategies and financing a broad scope of

programs and projects. As an African institution, it is committed to mobilize and leverage different

sources of development finance, hence assist countries achieving their own energy goals. It is the

Bank’s priority to make the investment in regional energy projects, benefiting many countries, as

well as small scale projects that improves access to power in rural areas. Through the Sustainable

Energy Fund for Africa (SEFA), the Bank has demonstrated a prime example of its financing

reaching the smaller private renewable initiatives. The Bank also sets the mainstreaming of low-

cost and eco-friendly energy, the promotion of investment in renewable energy, and efficient and

sustainable utilization of such resources as the main targets while assisting member countries to

meet their critical energy needs.

United Nations Development Programme (UNDP)

UNDP believes that access to sustainable energy is important for Africa in making societies

more equitable, and for promoting green growth and sustainable development. It also suggests

that with different power demand from different groups, it is necessary to balance the financing of

large-scale energy projects with other decentralized energy projects. Currently, UNDP, together

with many African countries and regional organizations, is working toward expanding energy

access, collaborating on the design and implementation of strategies. UNDP has collaborated, for

instance, with ECOWAS and set out a target of further providing energy and electricity to millions

of people by 2015.

The World Bank

To address the World Bank’s concern for access of energy in Africa and its support for

promoting renewable energy, the World Bank Africa Energy Unit (AFTEG) was formed, dedicated

to solving energy issues in Africa’s energy sector. The unit aims to “bring reliable, environmentally-

sound power to more people across Africa”. The World Bank Group continuously shows their

dedication by lending Africa indispensable annual funding to projects and programs in more than

25 Sub-Saharan African countries, focusing on interconnection, electricity generation, transmission,

distribution and energy efficiency. In fiscal year 2010, the World Bank’s lending went up to nearly

US$5 billion. Some of the programs funded by the Bank were Africa Renewable Energy and

Access program (AFREA), Africa Clean Cooking Energy Solutions Initiative (ACCES), Africa

Electrification Initiative (AEI). Besides financial support, the World Bank has also published

multiple reports investigating the on-going challenges in Africa’s energy sector, updating statistics

and achievements.

Timeline of Relevant Resolutions, Treaties and Events

Date Description of event

2000 September

UNGA adopted resolution 55/2, in which included the United Nations

Millennium Declaration

2001 December

UNGA adopted resolution 56/200 on “Promotion of new and renewable

sources of energy, including the implementation of the World Solar

Programme 1996–2005.”

2007 December UNGA adopted resolution 62/197

2008 September African Carbon Forum held in Dakar, Senegal

2009 February Africa’s Ministerial declarations on renewable energy, reaffirmed

political will in the Maputo Declaration

2010 March African Carbon Forum held in Nairobi, Kenya

2010 December

Launching of the UN Secretary General energy initiative - Sustainable

Energy for All (SE4ALL) in UNGA.

2011 July African countries and African ministers adopted the Abu Dhabi

Communique on Renewable Energy for Accelerating Africa’s

Development

2011 July African Carbon Forum held in Marrakech, Morocco

2012 April African Carbon Forum held in Addis Ababa, Ethiopia

2012 December

UNGA adopted resolution 65/151, declaring 2012 “International Year of

Sustainable Energy for All.”

2012 December UNGA adopted resolution 67/215 on “Promotion of new and renewable

sources of energy”

Evaluation of Previous Attempts to Resolve the Issue

Development in the renewable energy industry has been different for each country in Africa

as each has its own unique energy policies and economic, environmental conditions. A few African

governments have taken initiative in evaluating and assessing their own resources, while others

are reaching out for collaboration with foreign investors to initiate several projects. With the

assistance of CDM, some attempts made in boosting the exploitation of renewable energy sources

through a range of large scale projects launched by foreign businesses, governments, or local

entrepreneurs were successful in terms of grid extension and laying the groundwork for economies

of scale, opening up a potential market for power trade. However, this energy policy has yet

covered small-scale appliances of renewable energy, unable energy sector to expand energy

access to the sub-regional population.

A recent example of RET project being launched is the Ashegoda wind farm in Ethiopia,

which has the capacity of 120 MW. This project was achieved through the partnership of Ethiopian

government and German, French companies. Regardless of the crucial project launched, one

quarter of Ethiopian population has no electricity. There still exist some projects being abandoned

due to the lack of funding and unfavourable government policies, while other projects are under

way but lack RET planning. The Desertec in Ghana, a tremendous and ambitious project aiming at

providing 20% of the energy needed in European countries, later collapsed due to the withdrawal

of major investors after considering the potential of the project. The Grand Inga in DR of the Congo

aims for South Africa as its main customer, promises the future of generating up to 40,000 MW

once launched, when its barely 10% of its population have access to electricity. Thus, the

corrupted government together with weak infrastructure of utilities and unresolved management

problems put a huge question to the possibility of the project.

Possible Solutions

Solutions proposed should tackle the following: policies, legislation and regulatory strategies

making Africa have favourable conditions for investment in RETs, capacity building for running

RET programmes, and mobilizing financial resources for large, medium and small scale energy

projects. African governments need to propose financial incentives for suppliers of renewable

energy.

Clean Development Mechanism (CDM)

African countries should put the establishment of innovative financing programmes for RET

as one of their priorities. The Clean Development Mechanism presents a feasible financing

opportunity. It was created under the Kyoto Protocol to encourage development in sustainable

energy and boost its consumption by providing stimulus in investment, thus hopefully preventing

critical climate change. This mechanism allows industrialized countries to reach the targeted

greenhouse gas emission reduction through the financing of renewable energy projects in

developing countries. CDM also generates Certified Emission Reduction credits (CERs), providing

incentives for investment. These CERs credits may be gained through the emissions reduction

achieved by financing energy projects, which investors can trade them and earn profit in the

international carbon market. African countries could use this mechanism as a tool to boost their

energy sector through carbon finance.

Feed-in Tariffs (FITs)

Feed-in tariff is a policy in which governments and energy producers both reach Power

Purchase Agreements (PPAs); producers then receive financial benefits for generating green

energy for either the promotion of decentralized production of renewable energy, or the

contribution to the grid system. FITs are important when countries open their market to

Independent Power Producers (IPPs). This policy not only proposes good solutions for high

transaction cost of small-scale energy projects in rural areas because of its decentralized nature,

but also serves as the catalyst for foreign investment in the renewable energy industry, in place of

the limited presence of public subsidies. The combination of FITs and the existing CDM will benefit

African energy development in multiple large-scale energy projects.

To improve the dissemination strategies which then improve the participation of energy

consumers in energy markets, there should be general awareness of RET and information on

suppliers and resources availability. To get more participation in SED, improvements in education

for the general public regarding the efficient utilization of biomass will also be mandatory.

Regarding RET planning, expertise in human resources, integration of RETs in development

programmes, and dedicated bodies handling renewable energy issues are all compulsory in SED.

When developing a better and larger energy sector, finding ways to finance this transformation to

renewable energy have always been placed in the top priority. Regardless of the constant price

drop of renewable technology, the cost is still relatively expensive for renewable projects in remote

and economically underdeveloped areas. It is logical to argue that investment in RET would only

be appealing to investors when sound policies from governments favouring the development of

RET. There are cases in Africa when government only use up a small portion of national GDP for

funding RET, an increase in government funding and government’s mobilization of financial

resources will also increase opportunities RET has in SED. Plus, the elimination of poor

governance and inefficiency in public and private institutions will attract private investors into the

new and renewable energy sector.

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David, Jacobs, et al. Unleashing Renewable Energy Power in Developing Countries. Hamburg:

WFC, 2009. World Future Council. Web. 26 Jan. 2014.

<http://www.worldfuturecouncil.org/fileadmin/user_upload/_Media/REPfund_DEC_09.pdf>.

Helen, Clark. "Sustainable Energy Access Critical for Poverty Reduction, Development in Africa."

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Kerri, Elgar, Muzenda Dambudzo, and Phillips Karuna. Boosting Africa's Energy Sector through

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