“Creating a Sustainable Future: The Role of REEEP in accelerating REES in Southern Africa” Ms...
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Transcript of “Creating a Sustainable Future: The Role of REEEP in accelerating REES in Southern Africa” Ms...
“Creating a Sustainable Future: The Role of REEEP in accelerating REES in Southern
Africa”
Ms Amanda LuxandeREEEP Secretariat for Southern Africa
Townhouse Hotel, Cape Town. 25 May 2009
2
Presentation Outline
Introduction and background to REEEP.
Effectiveness of REEEP Programmes globally
REEEP’s programmes in Africa: Renewable Energy Applications.
Recommendations: The Status of REES in Southern Africa.
3
REEEP acts as a market facilitator by reducing market barriers for renewables and energy efficiency systems, with particular focus on emerging markets and developing countries
REEEP accelerates market development by addressing: policy/regulation development and improvement finance and business models
REEEP is driven by both a top-down and bottom-up approach to meet the real needs on the ground
REEEP works with governments as well as with the private sector
REEEP is committed to the achievement of MDGs and aims to improve access to sustainable clean energy for the poor
REEEP Vision and Focus
4
Well established regional and global networkthat is growing continuously
270 partners including: 42 governments all G7 countries 3 “plus 5”countries
(Brazil, SA, Mexico) states and key agencies from
China and India (NDRC, IREDA) development banks and
international organisations 3000 friends of REEEP Currently funded by 13 governments
Austria, Australia, Canada, Germany, EU, Ireland, Italy, the Netherlands, New Zealand, Norway, Spain, US, and UK (REEEP’s major donor)
5
An independent Analytical and Synthesis Study confirms the high effectiveness of REEEP programmes
71% of projects rated highly successful or successful v. their stated objective
REEEP developed good practices in providing renewable energy and energy efficient services to the poor Promotion of ESCO schemes and
working with small and medium sized businesses are particularly effective
Stakeholder participation is a central feature of REEEP projects and an instrumental factor in successes
REEEP is a relatively small player in the countries and sectors where it acts, but has proportionally high results for the level of funds disbursed
Projects often have the desired catalyst effect in market development.
Successful
48%
Highly Successful
23%
Unsuccessful
10%
Moderately
Successful
19%
Project success vs. stated objective
Source: Consortium Le Groupe-Conseil baastel Itée & Econoler International
6
E+Co West-Africa Modern Energy Fund
Goals Invest USD 12 million in Ghana,
Mali and Senegal Support and invest in 76 clean
energy enterprisesMain Activities Finalize fundraising strategy Negotiate with investors for grants
and loansMain Outputs SMEs providing access to clean,
reliable and affordable energy services
Catalyzing financing value chain Over 3 million people served Carbon offsets of over 2 million
tons annually
7
E+Co West Africa Modern Energy Fund
To provide energy for 3,191,489 people, reduce CO2 emissions by 2,112,676 tons annually and mobilize third-party capital of $120,000,000
Establishment of an investment fund to invest $12,000,000 in 76 clean energy SMEs in Ghana, Mali and Senegal,
Over the total operational period of 10-12 years, 12.8 million people will receive better energy supply through investments initiated by this fund
Replication of this fund to other E+Co regions, mainly South America and Mekong
Project Partner: E+Co
8
Developing a Rural Integrated Energy Utility (IEU) Roadmap in South Africa, Tanzania and Uganda
Integration of thermal and electrical needs and also energy efficiency concerns into an Integrated Energy Utility (IEU) concept.
Replicable IEU guidelines and reference materials for governments, regulators, donors and investors
Development of a financial model and business plan for the IEU
Project Partner: Restio Energy
9
Developing a Vehicle for Solar Water Heater (SWH) Mass Implementation in South Africa
Reduction of peak power need, leading to enhanced energy security and financial benefit for the urban poor
Implementation of a fee-for-service business model to roll out SWH in at least three Cities in South Africa
Provide technical, legal and financial assistance to key stakeholders in these cities by using and amending the REEEP manual for RE/EE options
Project Partner: SEA
10
Financial Risk Management Instruments for Supporting Energy Services Development Investment in Sub-Saharan Africa
Financial risk management instruments for the financing of small-scale energy equipment and service delivery projects in Ghana, Mali, Senegal, Tanzania and Zambia
Supporting multilateral initiatives designed to improve RE/EE use
Achievement of maximum leverage of donor funds
Increased energy access for the poor through the promotion of RE and EE
Project Partner: Econoler Int.
11
Promotion of Solar Water Heating (SWH) in Uganda
Peak shaving of 1 MW from the Ugandan grid by installing 500 SWH
Train engineers and technicians to develop local capacity and run an awareness campaign for SWH
Policy document, standards code and installation manual for solar water heaters
Investment plan for scale-up and implementation
Project Partner: MoEMD
12
Improving Electricity Governance in Brazil and South Africa
Improved government and regulatory capacity to implement legislation that promotes RE and EE and social welfare
Convening a coalition of civil society, regulatory commissions, government, legislators, and utility representatives
Identification of weaknesses in policy and regulatory processes
Recommendations on how to address these weaknesses
Improved understanding of regulators and policy makers of how better governance can help build political support for RE and EE
Project Partner: WRI
13
Barriers to the deployment of Renewable Energy and Energy Efficiency Systems
Poor level of regional co-ordination.
Ad hoc/ poor quality of long-term energy planning.
Insufficient financing/investment into RE to support planning.
Insufficient infrastructure, skills and capacity to implement RE programmes in the region.
Challenges are somewhat defined but key issue = implementation.
14
Regional Perspectives: Context in Southern Africa
Key challenge: increasing access while mitigating against the economic costs of a supply crisis
Status of REES in Southern Africa: Market feedback mechanisms not well understood. Patchy/Uneven development. Low levels of energy access. Energy intensity and carbon footprint is high because of the reliance
on coal. Electricity supply crisis.
15
Recommendations
Well co-ordinated plans amongst relevant stakeholders in RE and EE.
Current support mechanisms such as feed-in tariffs and CER’s/VER’s need to be reviewed and optimised.
CDM procedures must be simplified to make carbon funding more easily accessible.
Concrete funding committed to long-term energy master plans to increase confidence in markets and partnerships.
Stability in investments: governments required to provide long-term confidence for investment into RE.
Integration of energy requirements within all spheres: Gov Depts., institutions, households and all sectors of industry.
Increased focus on regional projects and develop projects to supply entire regions i.e. lowered costs of construction and operation as smaller projects likely to be expensive to build and costs borne by individual countries.
16
Concluding Remarks
Regional co-ordination necessary for successful uptake of RE in terms of Common policy development and modes of
implementation (including legislations) Common regulatory approaches and frameworks Common regional trading mechanisms for physical
power and RE support mechanisms Commitment to regional co-operation from key
institutional stakeholders to support initiatives for RE in Southern Africa
To set common targets for RE for the region. Regional Co-ordination remains an important part of
working towards a low carbon future e.g. SADC ETG.
17
Concluding Remarks cont…
Governments ultimately play a crucial role in setting the legal, policy, trade and finance conditions necessary to encourage the uptake of RE and EE.
RE provide energy security and climate change security: Protects countries from fluctuating oil prices – less spent on
expensive oil imports or leaves more oil for export thereby increases a country’s export revenues
RE offers great opportunities for social and economic development:
Job opportunities. Achieving MDG goals through energy access which
alleviates poverty.
18
REEEP –SA Contact Details
THANK YOU
REEEP Regional Secretariat for Southern Africa
SANERI Offices
Sandton
Johannesburg
Tel: +27 010 201 4703
E-mail: [email protected]
www.reeep-sa.org