11

The Africa-EU Energy Partnership and its instruments

Sanne WillemsEuropean Commission

CEMA workshopNairobi, Kenya

22

The starting point: The starting point: the EU Energy Initiative (EUEI)the EU Energy Initiative (EUEI)

• Johannesburg 2002 – World Summit Johannesburg 2002 – World Summit on Sustainable Developmenton Sustainable Development

• An expanding global energy agenda: An expanding global energy agenda:

• energy security becomes a key concernenergy security becomes a key concern

• access to energy services remains key issue access to energy services remains key issue for Africa for Africa

• climate change moves higher on the agenda climate change moves higher on the agenda

• EUEI scope and dialogue expands accordingly, EUEI scope and dialogue expands accordingly, especially the energy dialogue with Africaespecially the energy dialogue with Africa

33

Institutional path to the Institutional path to the Africa-EU Partnership on EnergyAfrica-EU Partnership on Energy

• Africa - EU Ministerial Troika suggests comprehensive Africa - EU Ministerial Troika suggests comprehensive energy partnership (Brazzaville, October 2006)energy partnership (Brazzaville, October 2006)

• 2006/2007 Strategic European Energy Review (SEER) 2006/2007 Strategic European Energy Review (SEER) with strong external dimension; includes the with strong external dimension; includes the importance of integrating energy in development importance of integrating energy in development cooperationcooperation

• Joint Presidency - Commission Background Paper. Joint Presidency - Commission Background Paper. Berlin, Maputo and Accra meetings in March 2007Berlin, Maputo and Accra meetings in March 2007

• Council conclusions in May 2007 support the Energy Council conclusions in May 2007 support the Energy Partnership and outline the key elementsPartnership and outline the key elements

• December 2007: Adoption of the Energy Partnership December 2007: Adoption of the Energy Partnership as part of the Africa-EU Strategic Partnership in as part of the Africa-EU Strategic Partnership in LisbonLisbon

44

Overall objectives of the PartnershipOverall objectives of the Partnership

• Effective Africa-EU dialogue on energy access and energy security for both continents

• Improved access to reliable, secure, affordable, climate friendly and sustainable energy services

• Increased European and African investments in energy infrastructure in Africa, including promotion of renewables and energy efficiency

55

The Partnership’s Actors and FinanceThe Partnership’s Actors and Finance

ActorsActors

• EU Implementation Team: EU Implementation Team: - Co-chairs Germany and Austria, other EU Member StatesCo-chairs Germany and Austria, other EU Member States- European CommissionEuropean Commission

• African Implementation Team: African Implementation Team: - Co-chairs African Union Commission and Mauritius, other AU Member Co-chairs African Union Commission and Mauritius, other AU Member

StatesStates- Regional Economic Communities (Regional Economic Communities (RECs), AFREC and other African RECs), AFREC and other African

Energy InstitutionsEnergy Institutions• Private Sector (in particular, energy companies and utilities), Private Sector (in particular, energy companies and utilities),

AfDB, EIB, other IFIs, energy centres, civil societyAfDB, EIB, other IFIs, energy centres, civil society

FinanceFinance

• Integrated framework of EU financing instrumentsIntegrated framework of EU financing instruments• EU & African states, the AfDB, etc.EU & African states, the AfDB, etc.• Private sectorPrivate sector

66

• EU and Africa to enlarge appropriate institutional EU and Africa to enlarge appropriate institutional arrangements for the implementation of the arrangements for the implementation of the PartnershipPartnership

• Adopt Roadmap and Political Targets at High Level Adopt Roadmap and Political Targets at High Level Meeting 14th September 2010 in Vienna, AustriaMeeting 14th September 2010 in Vienna, Austria

• Develop second Action Plan for period 2011-2013Develop second Action Plan for period 2011-2013

• Monitoring and reportingMonitoring and reporting

The State of Play & the Way The State of Play & the Way ForwardForward

77

The Africa-EU Partnership on The Africa-EU Partnership on EnergyEnergy

• Priority actions and a Roadmap for implementation adoptedPriority actions and a Roadmap for implementation adopted

• A reformulated overall objective:A reformulated overall objective:

Improved access to reliable, secure, Improved access to reliable, secure, affordable, cost-affordable, cost- effective, climate friendly and effective, climate friendly and sustainable energy sustainable energy services for both services for both continents, with a special focus on continents, with a special focus on achieving the achieving the MDGs in AfricaMDGs in Africa

• Three priority areas, with political targets for 2020:Three priority areas, with political targets for 2020:– Energy AccessEnergy Access

– Energy SecurityEnergy Security

– Renewable Energy and Energy EfficiencyRenewable Energy and Energy Efficiency

• High Level Meeting in Vienna Austria 14 September 2010 to High Level Meeting in Vienna Austria 14 September 2010 to endorse the second Action Plan (2011-2013)endorse the second Action Plan (2011-2013)

• See website: http://www.aeep-conference.org/See website: http://www.aeep-conference.org/

88

The Africa-EU Energy PartnershipThe Africa-EU Energy Partnership Joint Africa-EU Targets Joint Africa-EU Targets

Access to Energy

+100 million people in Africa +100 million people in Africa to have access to to have access to

modern energy sourcesmodern energy sources

Energy Security

double energy interconnections double energy interconnections in Africa and between in Africa and between

Africa and EuropeAfrica and Europe

double the use of double the use of natural gas in Africanatural gas in Africa

Renewable Energy and Energy Efficiency

renewable energy (+10,000 MWrenewable energy (+10,000 MW hydro, +5000MW wind, +500MWhydro, +5000MW wind, +500MW

solar, triple other renewables)solar, triple other renewables)

improve energy improve energy efficiency in Africaefficiency in Africa

N.B. Political Africa-EU targets (not commitments), within a scenario of wider African targets.

99

Integrated Framework of EUIntegrated Framework of EUinstruments behind the AEEPinstruments behind the AEEP

Main elementsMain elements

• Africa Infrastructure Partnership & its ITF: continental & regional scaleAfrica Infrastructure Partnership & its ITF: continental & regional scale• Regional Indicative Programmes of the 10th EDF (COM funds)Regional Indicative Programmes of the 10th EDF (COM funds)• National Indicative Programmes of the 10th EDF (COM funds)National Indicative Programmes of the 10th EDF (COM funds)• ACP-EU Energy Facility (COM and, possibly, MS) fund local scale projectsACP-EU Energy Facility (COM and, possibly, MS) fund local scale projects• ENPI: Neighbourhood Investment Facility (NIF), Mediterranean Solar PlanENPI: Neighbourhood Investment Facility (NIF), Mediterranean Solar Plan

Other resourcesOther resources

• DCI Thematic Programme (ENTRP) DCI Thematic Programme (ENTRP) ○ Capacity for Capacity for management of energy resources (Coopener, CEMA)management of energy resources (Coopener, CEMA)○ Contribution to the Extractive Industries Transparency InitiativeContribution to the Extractive Industries Transparency Initiative○ Contribution to the Global Gas Flaring Reduction Initiative (GGFRI) Contribution to the Global Gas Flaring Reduction Initiative (GGFRI)

Global Energy Efficiency and Renewable Energy Fund (GEEREF) Global Energy Efficiency and Renewable Energy Fund (GEEREF) • Africa-EU Partnership on Climate Change/GCCA (e.g. CDM)Africa-EU Partnership on Climate Change/GCCA (e.g. CDM)• Bilateral programmes and other initiatives of MS, including the EUEI Bilateral programmes and other initiatives of MS, including the EUEI

Partnership Dialogue Initiative (EUEI PDF)Partnership Dialogue Initiative (EUEI PDF)

1010

Instruments: EC contribution Instruments: EC contribution breakdown on 9th EDF Energy Facility breakdown on 9th EDF Energy Facility projectsprojects

Comp.1. b-

Large infrastructure projects:18 projects

61% EC funding (118,81€ M)

Comp. 1a-

Small-scale initiatives: 41 projects

30% EC funding (58,01€ M)

Comp.2-

Improvement of the management and governance of energy:

11 projects 5% EC funding (10,58€ M)

Comp. 3-

Improvement of cross border cooperation in the energy sector:

4 projects 4% EC funding (8,57€ M)

1111

Instruments: Lessons learned EF IInstruments: Lessons learned EF I

• EF has increased awareness on access to energy both at EF has increased awareness on access to energy both at the level of the EC, Delegations and ACP countries.the level of the EC, Delegations and ACP countries.

• ACP bodiesACP bodies received major contribution from the 1st EF, received major contribution from the 1st EF, both in terms of number of projects and funds. both in terms of number of projects and funds.

• Generation projects used mainly Generation projects used mainly renewable energiesrenewable energies alone or combined in hybrid systemsalone or combined in hybrid systems

• Local and decentralised solutions have proved potential to Local and decentralised solutions have proved potential to increase access to energyincrease access to energy

• CfP not considered the most suitable tool for large CfP not considered the most suitable tool for large infrastructure projectsinfrastructure projects

• Level of financing from private sector rather low Level of financing from private sector rather low

1212

Instruments: The 2nd Energy Instruments: The 2nd Energy FacilityFacility

• 2 Call for Proposals2 Call for Proposals– EC € 150M & MS; 2,5m per EC € 150M & MS; 2,5m per

projectproject– Focus on Renewable EnergyFocus on Renewable Energy– Rural and peri-urban areasRural and peri-urban areas– Private sector involvementPrivate sector involvement

• Other componentsOther components– € € 40m Pooling Mechanism: 40m Pooling Mechanism:

leverage of loans, private leverage of loans, private sector investmentsector investment

– € € 3,53,5m m EUEI Partnership EUEI Partnership Dialogue Facility (EUEI PDF): Dialogue Facility (EUEI PDF): GovernanceGovernance

• http://ec.europa.eu/europeaid/whehttp://ec.europa.eu/europeaid/where/acp/regional-cooperation/energyre/acp/regional-cooperation/energy/second-energy-facility_en/index_e/second-energy-facility_en/index_en.htmn.htm

1313

Instruments: The 2nd Energy Instruments: The 2nd Energy Facility- ProcessFacility- Process

• The €100 M CfP was launched on 1/11/2009 and the deadline to submit the concept notes was the 01/02/2010

• 668 project proposals were received and submitted to the first administrative check

• 613 project proposals passed the administrative check and have been evaluated

• The 219 successful candidates (representing 320M€) have been invited to submit a detailed proposal

• 167 full proposals have been received and evaluation of these proposals is ongoing.

• End of October evaluation is expected to be finalised and successful candidates will be informed

1414

Initial distribution of projects per Initial distribution of projects per energy typeenergy type

1515

Instruments: Infrastructure Trust Instruments: Infrastructure Trust Fund under the Infrastructure Fund under the Infrastructure PartnershipPartnership

1616

Instruments: Instruments: Global Energy Global Energy Efficiency and Renewable Energy Efficiency and Renewable Energy

Fund - GEEREFFund - GEEREF

• Overall objective of GEEREF is contribute to Overall objective of GEEREF is contribute to the expansion of RE, efficiency and other clean the expansion of RE, efficiency and other clean energy technologies markets and services in energy technologies markets and services in developing countries and transition economiesdeveloping countries and transition economies

• Catalyst function to attract commercial Catalyst function to attract commercial investors to become shareholders of the Fund investors to become shareholders of the Fund and thereby multiply the volume of financeand thereby multiply the volume of finance

• Implemented by EIB/European Investment Implemented by EIB/European Investment FundFund

1717

Thank you

Sanne WillemsEuropean Union- Delegation to the Republic of

KenyaSanne.willems@ec.europa.eu