Energy Efficiency Made Simple Vol IV 2015

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Conclusion There is much opti- mism in the market for the development of RE power projects in sub-Sa- haran Africa. Countries are in various stages of liberalisation of their electricity sector. Many governments are trying to establish new regulatory frameworks and contractual structures to allow IPPs in the power generation sector, which will greatly facilitate the adoption of RE power projects. However, some issues continue to restrain the development of these projects. Strong government support, including a long-term vision, good energy planning, and a real desire to involve the private sector is essential for the successful implementation of RE power projects in sub-Saharan Africa. If one can combine these with innovative financing structures, which allow circumventing the bankability and scaling issues, then one can expect to be proud of what this will bring for our future generations References [1] REN21: Renewables 2015 – Global Status Report. [2] Large-scale RE power development

Solar PV is by far the most popular technology in development to date, followed by wind, geothermal and CSP. Despite the small amount of MW under construction, significant progress occurred since the beginning of 2014 with some flagship projects being commissioned such as the Olkaria I-III-IV geothermal projects in Kenya (306 MW), the first grid-connected solar PV plant in Rwanda (8,5 MW), the Adama II wind project in Ethiopia (153 MW) or large projects having reached financial close such as the Lake Turkana wind project in Kenya (310 MW). This is in addition to the 1 800 MW of grid-connected solar and wind power projects having been commissioned in South Africa under the REIPPPP. There is still a shortage of expertise among government decision-makers and the relevant public institutions in sub-Saharan Africa. Corruption is still present in a lot of countries. Poor long- term planning often obliges governments to implement expensive short-term solutions. The lack of a clear and stable regulatory frame- work promoting private investment is jeopardising the bankability of these projects. What the market needs is to find new creative funding schemes which will improve the bankability of RE power projects. Examples such as the IFC’s recent ‘Scaling Solar Programme’ and the ‘Scaling Up RE in Low Income Countries Programme’ are going in this direction. It is important that the power technology that will be adopted makes economic sense for the country and helps it reach a sustainable, diversified and affordable electricity generation mix. Factors such as dispatchability, construction lead times, environmental impact and benefits to local communities must be considered and compared with alternative technologies. Furthermore, it is essential that governments strike a balance between grid-connected and off-grid power solutions, or centralised and decentralised power systems. Each country must look at its indigenous resources and what makes more sense economically, taking into consideration externalities such as fossil fuel subsidies, environmental impact, dependence on finite fossil resources, but also electricity affordability, especially for disseminated rural populations.

opportunities in sub-Saharan Africa – A story about bankability, affordability, and grid capacity. 2015. Frost & Sul- livan.

[3] IRENA: Estimating the Renewable Energy Potential in Africa. 2014.

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ENERGY EFFICIENCY MADE SIMPLE 2015