Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy...

28
VOLUME 13 NUMBER 3 www.erc.uct.ac.za SEPTEMBER 2007 IN THIS ISSUE Preparing Southern Africa for global oil depletion . . . . . . . . . . . 1 The role of Build Operate Transfer in the Southern African Power Pool . . . . . . . . . . . . . . . . 2 Botswana 2007 – The awakening of the coal giant . . . . 3 Power failures no longer threaten service delivery . . . . . . 4 4th Middle East and North Africa Renewable Energy Conference (Menarec ‘04) . . . . . . . . . . . . . . 5 Marine renewable energy. . . . . . 8 Eskom’s security of supply EXCO meeting. . . . . . . . . . . . . . 9 Eskom celebrates the start of Medupi Power Station construction . . . . . . . . . . . . . . . 10 Climate change in sub- Saharan Africa . . . . . . . . . . . . . 10 World Bank CDM Study . . . . . . 10 Rio Tinto’s purchase of Alcan . . 11 Particulate testing . . . . . . . . . . 12 Handling a tight energy situation . . . . . . . . . . . . . . . . . . 12 2007 Annual Report for Eskom . . . . . . . . . . . . . . . . . . . 13 First high-level biofuels seminar in Africa . . . . . . . . . . . 14 Dealing with an energy shock . 22 Big interest in WWEC 2007 . . . 22 Rejuvenation of cities through the development of energy miplementation strategies . . . . 23 Koeberg refueling outage . . . . . 24 Energy’s master-supply planning serves minerals interests . . . . . 25 Going green for 2010 . . . . . . . . 26 Energy events 2007 . . . . . . . . . 27 Sponsored by Eskom, Dept of Science & Technology, and Chevron SA T he Department of Minerals and Energy, together with the Uni- versities of Cape Town and Fort Hare, through the Minister and Vice- Chancellors, are hosting the Prepar- ing Southern Africa for Global Oil Depletion Conference, with the aim of raising awareness of key implications for Southern Africa and identifying the actions to be undertaken by planning agencies, policy makers (government departments and municipalities) and researchers. The Conference will be held at Gallagher Estate, Midrand, on the 8th and 9th November 2007. This first conference will focus on oil supply in the near to medium term and the preparation required for a future in which oil will be more expen- sive and in declining supply. Sessions at the conference will address the current state of knowledge regarding oil reserves, the expected downturn in production of conventional oil and the potential for unconventional oil to make up the gap between supply and demand. It will highlight the implica- tions for Southern African economies and societies of oil supply constraints and initiate a process of research and planning across a range of affected sectors. The structure of the conference will have a number of parallel ses- sions, each with its own theme. The themes will address the impact of the increasing oil price and depletion on: 1. Transport and Mobility 2. Food and Agriculture 3. Cities and Planning 4. Geopolitics and Conflict 5. Economy and Finance Each of the themes will be dealt with in three sessions, addressing the fol- lowing aspects: A. Understanding global oil: what does the peak in oil production mean and what are the implica- tions for Southern Africa? B. Debating the alternatives: what is the range of measures that can be taken to mitigate the effects of an increasing price of oil and dimin- ishing supply? C. Planning the way ahead: what are the appropriate choices to make, how and when should they be implemented? WHO SHOULD ATTEND This conference is open to all nation- al, regional and local policy makers, decision makers in business, aca- demics and researchers. RATES Delegate: R7 000 (incl VAT) Academic: R3 500 (incl VAT) Student: R1 500 (incl VAT) EXHIBITION There will be a sponsor’s exhibition and all tea/coffee will be served in the exhibition area to allow delegates to spend some time with the exhibitors. Should any organisation be interest- ed in exhibiting please contact Ried- waan Jacobs (contact details below). Contact: Preparing Southern Africa for Global Oil Depletion Conference Secretariat: Global Conference Africa Tel: 0861 111 706 Fax: 0861 111 707 E-mail: [email protected] Website: www.oildepletionconf.org/ Conference Steering Committee E-mail: [email protected] Preparing Southern Africa for global oil depletion

Transcript of Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy...

Page 1: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

VOLUME 13 NUMBER 3 www.erc.uct.ac.za SEPTEMBER 2007

IN THIS ISSUE

Preparing Southern Africa for

global oil depletion . . . . . . . . . . . 1

The role of Build Operate

Transfer in the Southern African

Power Pool . . . . . . . . . . . . . . . . 2

Botswana 2007 – The

awakening of the coal giant . . . . 3

Power failures no longer

threaten service delivery . . . . . . 4

4th Middle East and North Africa

Renewable Energy Conference

(Menarec ‘04) . . . . . . . . . . . . . . 5

Marine renewable energy. . . . . . 8

Eskom’s security of supply

EXCO meeting. . . . . . . . . . . . . . 9

Eskom celebrates the start of

Medupi Power Station

construction . . . . . . . . . . . . . . . 10

Climate change in sub-

Saharan Africa . . . . . . . . . . . . . 10

World Bank CDM Study . . . . . . 10

Rio Tinto’s purchase of Alcan . . 11

Particulate testing . . . . . . . . . . 12

Handling a tight energy

situation. . . . . . . . . . . . . . . . . . 12

2007 Annual Report for

Eskom . . . . . . . . . . . . . . . . . . . 13

First high-level biofuels

seminar in Africa . . . . . . . . . . . 14

Dealing with an energy shock . 22

Big interest in WWEC 2007 . . . 22

Rejuvenation of cities through

the development of energy

miplementation strategies . . . . 23

Koeberg refueling outage . . . . . 24

Energy’s master-supply planning

serves minerals interests . . . . . 25

Going green for 2010. . . . . . . . 26

Energy events 2007 . . . . . . . . . 27

Sponsored by Eskom, Dept of Science

& Technology, and Chevron SA

The Department of Minerals andEnergy, together with the Uni-versities of Cape Town and Fort

Hare, through the Minister and Vice-Chancellors, are hosting the Prepar-

ing Southern Africa for Global Oil

Depletion Conference, with the aim ofraising awareness of key implicationsfor Southern Africa and identifying theactions to be undertaken by planningagencies, policy makers (governmentdepartments and municipalities) andresearchers. The Conference will beheld at Gallagher Estate, Midrand, onthe 8th and 9th November 2007.

This first conference will focus onoil supply in the near to medium termand the preparation required for afuture in which oil will be more expen-sive and in declining supply. Sessionsat the conference will address thecurrent state of knowledge regardingoil reserves, the expected downturnin production of conventional oil andthe potential for unconventional oil tomake up the gap between supply anddemand. It will highlight the implica-tions for Southern African economiesand societies of oil supply constraintsand initiate a process of research andplanning across a range of affectedsectors.

The structure of the conferencewill have a number of parallel ses-sions, each with its own theme. Thethemes will address the impact of theincreasing oil price and depletion on:1. Transport and Mobility2. Food and Agriculture3. Cities and Planning4. Geopolitics and Conflict5. Economy and Finance Each of the themes will be dealt within three sessions, addressing the fol-

lowing aspects:A. Understanding global oil: what

does the peak in oil productionmean and what are the implica-tions for Southern Africa?

B. Debating the alternatives: what isthe range of measures that can betaken to mitigate the effects of anincreasing price of oil and dimin-ishing supply?

C. Planning the way ahead: what arethe appropriate choices to make,how and when should they beimplemented?

WHO SHOULD ATTEND

This conference is open to all nation-al, regional and local policy makers,decision makers in business, aca-demics and researchers.

RATES

Delegate: R7 000 (incl VAT) Academic: R3 500 (incl VAT) Student: R1 500 (incl VAT)

EXHIBITION

There will be a sponsor’s exhibitionand all tea/coffee will be served in theexhibition area to allow delegates tospend some time with the exhibitors.Should any organisation be interest-ed in exhibiting please contact Ried-waan Jacobs (contact details below).

l Contact: Preparing Southern Africafor Global Oil Depletion Conference

Secretariat: Global Conference

Africa Tel: 0861 111 706

Fax: 0861 111 707

E-mail: [email protected]

Website: www.oildepletionconf.org/

Conference Steering Committee

E-mail: [email protected]

Preparing Southern

Africa for global oil

depletion

Page 2: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

2 Energy Management News

This article discusses the problemthe Southern African Power Pool(SAPP) encounters concerning

lack of infrastructure development inthe electricity sector amongst memberstates. For the past six years, there hasbeen a decline of capacity trade withinthe power pool because some utilitiesdo not have enough electricity reservesto trade. This situation exists becausemany countries in the Southern AfricanDevelopment Community (SADC) didnot construct new power plants for overa decade. Another argument could beraised here, is there are no privatecompanies, which participate withinSAPP to trade power. However, there isa possibility for the fourteen memberstates to change this situation.

The article deals with the role ofBuild Operate Transfer (BOT) withinthe SA DC in boosting the electricityinfrastructure in different countries,which will have a positive impact withinSAPP. According to the World Bank(2004), it is now broadly recognisedthat pure public financing and provisionhave failed to adequately support eco-nomic and social development underthe poor governance standards foundin most of the Bank's clients, and thatthey have imposed high opportunitycosts on society. Private investors haveshown that they can deliver efficientinvestment and improve service deliv-ery to customers of the power sector,provided the correct business incen-tives are in place to attract investment.Other than that putting this framework(Public-Private Partnerships) in place,this could be challenging in many coun-tries.

Therefore, a practical answer forthese countries in the SADC regioncould be public-private partnershipsthat lie between these options such asBuild-Transfer, Build-Lease-Transfer,Build-Operate-Transfer, and Build-Own-Operate Transfer. The involve-ment of the BOT model in the SAPP willbe realised with the transformation ofthe electricity supply industry in theSADC. Most of the governmentsshould play a role in opening doors tothis kind of joint venture with privatepartners. Implementing BOT in theelectricity sector does not mean privati-sation of government assets. BOT is amodel many developed countries haveapplied for the construction of newinfrastructure in one particular sector oftheir society.

The applicability of BOT in electrici-ty infrastructure in the SADC region

requires expertise from the host coun-try. When a particular country does nothave financial capability to develop anew electricity infrastructure, a BOTapproach could be the best option toconsider. The host government shouldhave excellent expertise both in finan-cial matters and legally. The BOTdemand that the host country develop aproject within the particular period oftime. During the implementation of theBOT project, the government transferthe risk to the private company or proj-ect developer. It is argued by Bakatjan,Arikan and Tiong (2003) that one keyelement to the successful implementa-tion of the BOT concept in any countryis the raising of finance by the projectsponsors. Financial engineering tech-niques and capital structuring skills arerequired to find the proper mix of debtand equity and to achieve successfulfinancing for the proposed project.Another important element in this kindof project is that the project developersshould remain committed over the con-

cession periods. Their investment pro-vides strong incentive to have the proj-ect perform above the minimum expec-tation.

The implementation of this kind ofproject in the electricity sector in theSADC should target countries whichhave potential to construct largerhydro-power plants. There are coun-tries such as Mozambique, Angola,DRC and Zambia that could use theBOT to build new power plants. Othermember countries could also use thismodel to construct new coal powerplants. This could be the route forSouth Africa, Zimbabwe and Botswana.

Introducing BOT in electricity infra-structure in the SADC sub-region willimpact positively in the SAPP. The vol-ume of capacity trade in the short- termenergy market could increase. Figure 1shows the volume of capacity trade inthe five-year period, 2002-2006.

There is a strong probability that thecapacity could continue to decrease inthe future. This possibility is clearbecause of the reality of each countryin the sub-region. The number of sup-pliers within the power pool hasdecreased each year because of inter-nal demand. Also, the problems whicheach country faces impact on thedecrease of capacity within the powerpool. This situation requires a solutionfrom the member states of this region.The applicability of a Public PrivatePartnership could solve problems byintroducing a BOT model.

l Contact: Lukamba-Muhiya Tshombe(PhD candidate)

Department of Public Management

Cape Peninsula University of Tech-

nology

Cell: 083 542 0075

E-mail: [email protected]

Figure 1: Capacity traded in five-year period in the short term energy market

The role of

Build Operate

Transfer in the

Southern

African Power

Pool

Page 3: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 3

In his opening address, Dr A.R.Tombale, Permanent Secretary, Min-istry of Minerals, Energy and Water

Resources, spoke of increasing thecapacity of the coal industry ten-fold by2010, and making the country inde-pendent of imported power. As becameapparent later in the conference,Botswana is very cross with Eskom.Botswana generates 160 MW for itselfat Moropule, and imports around400 MW. When the 400 MW was cut offwithout warning, they lost an estimatedP40 million a day (around R50 million).As a result, Botswana is encouraginglocal production of power, for export ifneed be. It has the reserves, it has thefunds, and it is prepared to do every-thing necessary to become independ-ent as soon as possible.

Mr Abi, also from the Ministry, out-lined the Coal Development Pro-gramme. Botswana recognized its dia-mond revenues were likely to shrinkpost 2020. The identification of some200 billion tons of coal provided anideal opportunity to make good thisloss. He outlined a very clear strategyfor the way forward, which left one in lit-tle doubt as to the seriousness of theirintent.

He was followed by a man calledMichael Nightingale, MIPET, MFFFA,Principal Partner, Nightingale AfricaPartnership (UK), who mentioned atgreat length about ecological develop-ment of the coal resource. Coal ashcontained valuable minerals like alu-minium etc.

Then we got down to some of thereal meat. Wynand Marais of Bon TerraMining spoke about the Mmamabulamine. A proven resource of some400Mt, mainly mineable by strip min-ing, enough to keep 2 400 MWe powerstation going for 50 years. He was fol-lowed by Jan de Beer, ex-Eskom direc-tor, and now Chief Technical Adviser toCIC Energy, owners of Mmamabula.The station would be 3 x 900 MWe

gross, dry cooled and operated justsub-critical. It would have full gascleaning in order to satisfy the WorldBank funders. This would mean import-ing 170 000t/a limestone to scrub SOx(local limestone was too low grade).They were negotiating an off takeagreement with Eskom. They wereexpecting sent-out power costs at thelower end of Eskom’s estimates for anew plant. Integrating mine and stationunder one $5.5bn project meant costscould be rationalized and profits maxi-mized.

He was followed by Trevor Hadleyof the CSIR with a paper on fluidisedbed technology, which seemed to belargely a selling job for an upcominginternational conference on the subject.

The second session was on coalgeology. There were several speakersfrom Government, who all said more orless the same thing. Botswana geologyis difficult because of the deep cover ofKaroo drift sands, which masks theunderlying values. Probably the mostinteresting was that of Alan Golding, onthe coal deposits which were not theprimary subject of the conference –which made up much of the 200Gtreserve! Dukwe had about 50Gt inseams up to 13m thick, in-situ CV’s of19-21MJ/t, and very low sulphur val-ues. Lechana-Tshimoyapula had about2Gt of high-grade (>24MJ/kg), low sul-phur coal. Takotakwane had about 2Gtwhich washed well at a high rd to yieldover 80% of rom as a high-grade, lowsulphur coal.

The third session was on mining.Paya, from Water Affairs, described thewater problems in Botswana. Annualconsumption was of the order of 125000ML annually, rising at over 3%.Demand management, loss manage-ment and recycling would be necessaryto sustain this level of growth for thenext 30 years. The institutionalarrangements necessary to achievethis had been benchmarked against

best international practice, and hebelieved they could achieve structuresthat would ensure sustainable growth.Ace from the Department of Minesspoke on environmental management,stressing how they needed to shortcutmany procedures in order to supportthe essential developments. Chitambi-ra from the Department of Mines gavea good description of the only operatingmine, Morepule, which has some 18bntons of proven reserves.

Session 4 started with a good paperby Buti Mogotsi, Acting Director of theDepartment of Energy Affairs. Hestressed the crisis overtaking theSouthern African Power Pool, in whichdemand equalled supply this year.Rehabilitation and short-term projectscould add as much as 13 000 MW tothe 42 000 MW presently available. Bo-tswana had every intention of adding600 MW to the Morupule station by2010, and thus achieving energy inde-pendence. The recent cutting-off ofEskom power had cost Botswana P40million per day, as already mentioned.While Botswana would remain a mem-ber of the pool, it needed to be inde-pendent and a supplier into the pool,rather than reliant on imported power.

I followed him with a paper on thethreats to the coal industry from exces-sive and unjustified controls. Recogni-tion that the North had carried outextensive deforestation in order to cre-ate fields was necessary to balanceunjustified attacks on the South. Simi-larly, wildfires were controlled in theNorth by excellent fire fighting technol-ogy, but it had to be recognized thatthis came at a cost, namely the loss ofNOx from natural systems. Estimatesof this loss varied, but it seemed prob-able that it was as large as the emis-sions from fossil fuel consumption. Thebasis for the recent EC banning ofGondwana coal on grounds of the diffi-culty of burning it without excessiveNOx production had to be questioned.

Botswana 2007 –

The awakening of the coal giant

GABERONE INTERNATIONAL CONVENTION CENTRE, 28 – 29 JUNE 2007

Page 4: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

4 Energy Management News

Minesh Bipath of SANERI thenspoke on carbon capture and storage.One aspect of particular interest wasthe first flaring of gas from Eskom’sunderground gasification experiment.His paper finished with an excellentreview of the R&D activities of SANERI.The session closed with Lesolle of theDepartment of Minerals, Energy &Water Affairs on the subject of mitiga-tion and the need for Botswana todevelop responsibly via clean coaltechnologies.

The second day started with anoth-er session on coal geology. John Swift,Deputy Assistant Secretary for Interna-tional Affairs in the Office of FossilEnergy, opened with a very solid reviewof US work on clean coal technology –slightly marred by a claim that the UShad supported Botswana since its inde-pendence, a claim that evoked muttersall around me! Ntsimanyana of Geolog-ical Survey spoke of coal and gasexploration. I had the feeling that hisclaims for a proven resource of 60tcf atMmashoro with an indicated additional136tcf in surrounding shales were notfully appreciated by the audience. Theadditional 12.5tcf at Sebere was acherry on top. I chatted to Ntsi-manyana, who was also surprised atthe relative lack of excitement. He feltthe audience was more hard rock ori-ented, and did not appreciate the mag-nitude of the finds. However, therewere 57 applications for coalbed me-thane exploration, and 86 combinedcoal/cbm licences, so there was clearlya lot of activity. He was followed byLindsay Reed, of the Australian AvivaCorporation. Aviva have a 600Mt targetat Mmamantswe, on which confirmato-ry drilling had just started. Develop-ment would be open-cast, and initiallyfeed a small (400 MW) coal-fired powerstation. The company was moving rap-idly, and in discussion with Eskom repower takeoff. Mmamantswe is a littleway NE of Gaberone. Lesley Jeffrey ofSRK gave an excellent review of thegeology of Moropule, but it seemed pri-marily aimed directly at the geologist.

After tea, Dick Kruger of the SAChamber of Mines spoke of develop-ments in the industry and the environ-mental steps necessary after mine clo-sure. He stressed how accent wasbeginning to fall on the Waterberg forfuture supply, and Witbank becamepositively mature. Mulenga Tembe, ofthe Department of Mines, gave a com-petent exposition of safety legislation inBotswana. Johan de Korte, of the

CSIR, gave an excellent presentationon the benefits of coal washing. I haveheard him before on the topic, and hegets better every time. He was followedby Obusitswe Seretse, of the Depart-ment of Mines, on developments incoal washing at Morupule. Unfortunate-ly, as became apparent during discus-sion, he was not fully up to speed withdevelopments. The mine had succeed-ed in generating additional markets forwashed coal, which had enabled themto move from a jig to a hydrocycloneoperation, with the discard blendedwith -15 mm material to provide thepower station with a satisfactory feed.The session closed with David Aniku, ofthe Department of Environment Affairs,on EIA’s for the mining industry – evenhe complained that previous speakershad stolen his thunder.

The final session had three paperson legal aspects of mining in Botswanawhich were informative rather thaninteresting; and the programme closedwith an excellent review of railwayoperations in Botswana, by the Directorof Operations, Mr K Ramapane, whostressed how the system was beingupgraded and extended in support ofthe coal industry.

So, in a nutshell:1. Botswana is very cross with Eskom

for cutting off their power, and isdetermined to be independent (atleast) and a significant exporter (forpreference).

2. There are two significant fieldsMmamabula (400 Mt) and Mma-mantswe (600 Mt) under activedevelopment with a 2400 MW and a400 MW station respectively.

3. The existing mine, Morupule, isbeing equipped with 30 000 t/awashing and enlarged to supply theenlarged power station which willgo from 160 to 560 MW by 2010.

4. There is reasonably proven 72tcfcoal bed methane in two locationsand a probable additional 125 tcf atone of those locations.A CD with the full proceedings and

a delegates list is available if anyonewants more.

l Contact: Dr Philip LloydEnergy Research Centre

University of Cape Town

E-mail: [email protected]

Power

failures

no longer

threaten

service

delivery

In view of the spate of recentpower failures across the country,Monitoring South Africa has

announced that it is in the process ofupgrading its electrical power back-up systems.

According to CEO Chris Ver-meulen, power failures like thoseseen in the Western Cape in the pastfew years, and more recently inJohannesburg, have a serious im-pact on service delivery and there-fore on client companies’ ability toreact to media events timeously.

‘MSA has always been commit-ted to service delivery of the higheststandard and quality, and thisupgrade goes a long way in demon-strating that commitment,’ Vemeulensaid.

The project includes the installa-tion of a 125kVA power generator atthe company’s head office in Centu-rion. This will generate enough elec-tricity to power all of the company’ssystems, ensuring continued servicedelivery during power failures.

Two new 5kVA UPS systemshave also been installed at the com-pany’s Cape Town office, providingsufficient power to operate at fullcapacity for up to 8 hours.

MSA has awarded the R320 000contract for the upgrades to SquareOne Solutions. Work in Centurionwas expected to be finalised by theend of June 2007.

(With acknowledgements to

Bizcommunity.com)

l Website: www.bizcommunity.com

Page 5: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 5

1. INTRODUCTION

This is a brief overview of the FourthMiddle East and North Africa (MENA)Renewable Energy Conference (REC).MENAREC‘4 started in Damascus (old-est inhabited capital known to Mankind)and was then moved to Palmyra (‘Syri-an Bride of the desert’) to enable the600 plus delegates to familiarise them-selves with the region and its inherentenergy problems. The concept of split-ting a conference between two venueswent down well, and it is recommendedthat the Domestic Use of Energy (DUE)conference organisers consider doingthe same in 2008. Since energy hasbecome a global issue, politicians atministerial level from adjoining Arabstates actively participated as keynotespeakers and session chairpersons. Allsessions had two chairpersons, whospent a lot of time praising each other –often at the expense of the time allottedto the technical speakers. Most partici-pating politicians were themselvesengineers by profession.

Official delegations to MENAREC’4represented Germany (as co-spon-sors), Egypt, Morocco, Yemen, Pales-tine, Jordan and the Arab League.

2. PLENARY PROGRAMME

The Opening session included speak-ers from the United Nations Develop-ment Program (UNDP); United NationsEnvironmental Program (UNEP); Eco-nomic and Social Commission for WestAsia (ESCWA); the German FederalMinister for Environment, Nature Con-servation and Nuclear Safety; the Syri-an Prime Minister; the Syrian Ministerof Electricity; and the former GermanChancellor, Dr Gerhard Schröder.

3. GLOBAL AND REGIONAL

POLICIES

Dr Anhar Hegazi, UN-ESCWA, outlined

the renewable energy (RE) prospectsand policies for the MENA region. Glob-al conferences and declarations havetargeted energy for sustainable devel-opment; achieving millennium develop-ment goals; and mitigating climatechange. RE plays a vital role in all ofthese objectives. Sustainable develop-ment rests on access to modern ener-gy services; improving energy produc-tion and consumption efficiency;prompting the use of RE resources;developing cleaner fossil fuel technolo-gies; and energy in transport. The over-arching objectives are poverty eradica-tion; changing unsustainable patternsof production and consumption; andprotecting and managing naturalresources.

While fossil fuels will continue toplay an important role in energy supplyin the decades to come, every effortmust be made to diversify the energymix. Progress to date includes: • Small-scale photovoltaic (PV) appli-

cations in Egypt, Jordan, Oman,Morocco, Saudi Arabia, Sudan andSyria;

• Large-scale Wind farms in Egyptand Morocco (100s of MW);

• Solar thermal power plants areplanned in Egypt, Morocco and theUAE;

• Solar desalination plants have beendemonstrated in Egypt, Jordan,Saudi Arabia and the UAE; and

• There are limited Biomass applica-tions in Egypt, Jordan, Lebanon.Palestine, Syria and Yemen. In 2006, the unavailability of electric

energy to the population in selectedArab countries was as follows: Under3% (Kuwait, Libya, Egypt, Saudi Ara-bia); 50% (Palestine, Yemen); 70%(Sudan); and 92% (Comoros, Djibouti,Mauritania, Somalia).Most countries inthe region have ratified the Kyoto Pro-

tocol. Although the oil-producingnations are profiting by higher oilprices, the non-oil producing countriesare suffering and RE applications havestarted to prove economical to them.

Priority areas for RE policiesinclude: • A well-trained work force to manu-

facture, install, operate and main-tain technology and business. Adoubling of full-time jobs in RE isforecast from 1m in 2010 to 2m in2020.

• Major growth is seen in PV from 30000 (2010) to 245 000 (2020) and inSolar Thermal from 70 000 (2010)to 280 000 (2020).

• Educational institutions shouldfocus on the new energy chal-lenges; strengthen RE research;and promote training and capacitybuilding programmes.Dr Anca-Diana Barbu, EEA, Den-

mark, claimed that co-operation be-tween the European Union and MENAcould be strengthened by employingthe lessons learnt from the new EU pol-icy frameworks for renewable energiesand their R&D programmes. Techno-logical innovation entails measures toreduce barriers; a flexible capacity-building programme; measures forearly adoption of promising technolo-gies; and the allocation of targetedfinancial resources. These have to beaccompanied by good governance toidentify market failures at an earlystage. Enhanced international co-oper-ation is crucial to achieve an ‘energyrevolution’.

A spokesperson from EREC/Green-peace called for an Energy [R]evolu-tion. He presented scenarios of alterna-tive futures, to help us understand thelimitations of our ‘mental maps’ of theWorld – to think the unthinkable, antici-pate the unknowable and utilise both to

4th Middle East and North Africa

Renewable Energy Conference

(Menarec ‘04)

DAMASCUS AND PALMYRA, 21 – 24 JUNE 2007

Page 6: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

6 Energy Management News

make better strategic decisions. TheInternational Energy Agency (IEA)World Energy Outlook of 2004 wasextrapolated to year 2050. Main driversfor energy demand are populationgrowth from 6.3bn today to 8.9bn in2050. The known technical potential forenergy efficiency measures will largelybe exploited by then. In short, smartergeneration, distribution and consump-tion are called for. Energy productionwill have to move closer to the con-sumer and maximum use of locallyavailable, environmentally friendly,fuels are called for to convert theincreased demand of 47% to actualsavings by 2050. In order to make thisEnergy [R]evolution happen, set legallybinding targets for RE; implement abalanced and timely mobilisation ofclean technologies; give RE guaran-teed and priority access to the grid; andshift investment away from fossil andnuclear fuels by cutting their direct andindirect subsidies.

Kirsten Neumann, InternationalLeadership Institute of the UnitedNations University, Amman, Syria,identified numerous barriers, based oninterviews with role players in theregion, preventing large-scale REimplantation. They include high tariffs,subsidies, complicated funding struc-tures, low awareness, lack of trans-parency in regulations, lack of legalframeworks, lack of institutional frame-works, lack of co-operation of varioussectors, lack of long-term planning, anda lack of market transparency.

Wael Hmaidan, IndyACT, claimedthat subsidising conventional fuel tech-nologies could serve as a barrier to theuse of RE. Subsidising RE, on theother hand, could actually alleviatepoverty and improve the economymore effectively in the long run.

As invited speaker, the author indi-cated that in developing countries, aninsecure supply of electricity, ratherthan environmental issues, could bethe driving force to propagate the useof RE. By way of an example, the 2006power outages in the Western Capewere mentioned and how Demand SideManagement (DSM) effectively low-ered the evening peak demand. In theshort to medium term, RE could play animportant supplementary role, providedthe additional costs are borne on a pub-lic-private partnership basis.

4. WIND ENERGY

Dr Anil Kane – President of the WorldWind Energy Association and Chair-

man of the Indian Wind Energy Associ-ation, gave an excellent situation analy-sis, highlighting the global and regionalpotential of wind energy. According tothe MIT, the world electrical energyrequirement will triple by 2050. Modernnuclear plants are far safer and envi-ronmental friendlier than in the days ofThree Mile Island and Chernobyl. Theradio-active waste during decommis-sioning still has to be addressed effec-tively. On the other hand, the globalharm done to the atmosphere and sub-sequently to the entire plant and animalkingdoms, by burning fossil fuels, isextremely serious. The oxides of car-bon, nitrogen and sulphur have createdhavoc – global warming, unpredictableseasonal changes, and wide-spreadclimate changes.

Dr Kane went on to compare thecapital and operating costs of wind ver-sus nuclear power, concluding thatwind was a clear winner. Launchingwind farms is far quicker and cheaper.Stanford University claims that windenergy can meet 7 times the currentworld demand for electric power, evenif only 20% is captured from knownsites having wind speeds in excess of7m/sec. The world has currentlyinstalled in excess of 60 000 MW ofwind generator capacity and its contin-ued growth is unequalled. Today 80%of electrical energy is produced fromfossil fuel (oil, gas and coal). Dr Kanepredicts that fossil fuels, nuclear andRE will each have to produce one-thirdof the predicted 10m MW by 2050. Atthe beginning of 2007, global windenergy installations were found inEurope (66%); America (18%); Asia(14%); Africa (1%) and Australia Pacif-ic (1%).

Prof. Galal Osman, Vice-Presidentof the World Wind Energy Association,cited the following potential of REsworldwide: • Solar radiation on the Earth’s sur-

face: 152 424.0 x 1013 kWhWind energy: 3 084.4 x 1013 kWh

• Energy from waves and the sea:762.1 x 1013 kWh

• Biomass: 152.4 x 1013 kWh• Hydropower: 4.6 x 1013 kWh.It is interesting to note that world ener-gy consumption was 9.5 x 1013 kWh in1995. The rest of the presentation wasdevoted to the current status and costof offshore wind energy and futuredevelopments in various leading coun-tries.

Dr Christine Wörlein, German Ener-gy Agency – dena GmbH, reported on

Germany’s results with dena’s grid inte-gration of wind energy. Tasks complet-ed included: • Balancing power stations and con-

sumers with different feed-in andconsumption characteristics;

• Networking to reduce regulationand reserve power; and

• Buffering load fluctuations by inte-grated pump storage.

Current and future tasks include: • Handling increasing fluctuations by

RE power generation; • Integration of geographically con-

centrated wind energy; and• Provision of transfer capacity for

electric power trading. Typical questions addressed

include the stability of the grid; whowould know and who would be respon-sible for keeping the grid stable; andthe corresponding financial implica-tions.

5. SOLAR ENERGY

An interesting innovation described inthis session was the ‘solar steam gen-eration unit’ by NOVATEC BioSol AG.The cost of conventional parabolictrough technology is greatly reduced byusing flat mirrors aimed at a receivertube in which water is vaporised andthen directed to a steam turbine. Thissystem also offers shading for vehicles,etc. Its uses are primarily for substitu-tion of fossil fired steam generation inexisting power plants; steam genera-tion in new hybrid power plants; gener-ation of chill for district cooling systemswith absorption chillers; and seawaterdemineralisation based on MED orMSF technology. This system achieves950 kWh to 1200 kWh steam per m2

solar field per annum. Its capital cost is14Eur per m2 per annum with anexpected life time of 20 years. Mainte-nance and operation costs amount to2Eur per m2 per annum. The total pricefor solar steam amounts to 1,69Eurcents to 1,33Eur cents/kWh.

Roland Reichel, German SolarMobility Association, made out a strongcase for solar vehicles. Land use for‘energy for mobility’ was summarisedas follows, assuming that the annualdistance travelled is 25 000 km by carof average energy consumption:• Plant oil: 10 000 – 20 000 kWh/ha

land for 1 car• Biomass: 15 000 – 35 000 kWh/ha

land for 2 cars• Solar – hydrogen: 200 000 – 500

000 kWh/ha land for 13 cars• Solar – electric: 200 000 – 500 000

Page 7: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 7

kWh/ha land for 45 carsHe also foresaw that electric vehicle-to-grid charging could be bi-directional.

6. BIOMASS

Dr Michael Mobin Meskal, ECOTEK,described new manufacturing process-es for producing Ethanol from cellulosicfeedstocks, such as agricultural waste,corn, grain, grasses, sugar cane, straw,wood-based waste, news-print, woodchips, and manufacturing waste materi-als. Cellulosic ethanol is generallyblended into gasoline to reduce emis-sions, increase octane and extendgasoline feed-stocks. Green-house gasemissions (GHGs) are lowered by up to60%. Biomass, like trees, absorb CO

2

as they grow. Until recently cellulose enzymes

used for enzymatic hydrolysis werevery expensive, costing over US$5 pergallon of ethanol. In 2005, NovozymesBiotech and Genecor International bothreduced this cost to US10-20cents pergallon of ethanol. No vehicle modifica-tions are required for E10 ethanol sub-stitution. The emissions of acetalde-hyde, evaporative emissions and NO

x

will increase, however.

7. HYDROGEN

Dr Ibrahim Abdel Gelil, Arabian GulfUniversity, Bahrain, foresaw a shiftfrom an oil-based economy towards aHydrogen economy. He outlined theHydrogen economy, based on the useof RE to split water into oxygen andhydrogen. It can be used to run fuelcells, producing electricity for differentuses, including powering vehicles. Theonly emission from fuel cells is purewater. Alternative fuels are important,since of the 65 largest oil producingcountries, 54 are already past theirpeak production. Several productionprocesses are already available.Approximately 650 ‘Fuel cell vehicles’are being demonstrated by 20 majorauto manufacturers and 12 companiesare demonstrating fuel cell buses.Mass production breakthroughs areexpected just after 2015, especially inChina. In the MENA region, PV cellscould be used to generate electricity toproduce hydrogen through water elec-trolysis to feed fuel cells. Concentratedsolar power (CSP) can provide electric-ity to power the energy-intensivedesalination plants and produce hydro-gen. Wind turbines could also assist.

Siemens described their solid oxidefuel cells (SOFC) operation and testingin TurboCare, Italy. Fuel cells are elec-

trical generators that also contain bat-teries. The latter store a finite quantityof reactants in a closed system, where-as fuel cells must be replenished con-tinuously. The advantages of SOFCinclude their high efficiency, being envi-ronmental friendly, requiring minimalinstallation, high availability and relia-bility, minimal degradation, low noise,unattended operation, low mainte-nance, air cooled, optional steam/hotwater cogeneration, fuel flexibility, andthey recover from sulphur poisoning.Demonstration units have been instal-led in Westervoort (Netherlands), Essenand Hanover (Germany), OntarioPower (Canada), and Turin (Italy). Re-sults from the latter installation reflectavoidance of 180 tons of CO

2, 1035 kg

of NOx,

and the import of 77 tons of oilequivalent. More information is avail-able from the website: www.powergen-eration.siemens.com/en/fuelcells

8. OCEAN ENERGY

Under Ocean Energy, Prof Ahmed El-Gindy, Alexandria University, Egypt,included tidal power, wave power,ocean thermal energy conversion(OTEC) and, to a lesser extent, oceancurrents and ocean winds. Tidal turbinedesigns were discussed. He concludedthat Tidal power, requiring large tidaldifferences, works in Alaska andMaine. OTEC is limited to tropicalregions like Hawaii and some Atlanticcoasts. Wave energy offers a moregeneral application as in California.Wave energy could be harnessed inthe Mediterranean, the Red Sea andthe Arabian Gulf.

9. LOW ENERGY ARCHITECTURE

Prof. Mohsen Aboulnaga, EmiratesGreen Building Council, Dubai, men-tioned the global energy used daily isequivalent to 22 bulbs burning continu-ously per person on the planet. Overthe next 6 years, US$57 bn will bespent in the MENA region for the instal-lation of new electricity capacity. Greenbuildings have the following 7 addedvalues: • Increased performance by 40%;• Reducing building-related illnesses;• Decreasing absenteeism by 15%; • Improving health conditions;• Boosting productivity by 20%;• Enhancing pupils’ performance and

exam results by 15%; and• Prolonging the building’s life cycle.

Klaus Wenzel, Med-Enec, Beirut,Lebanon, indicated that according tothe EU the full energy savings potential

in buildings is as follows: Residential(27%); Commercial (30%); Transport(26%); and Manufacturing (25%).Reducing the window surface in afaçade to 35%, will reduce heating andcooling requirements by 50%. Solarwater heaters can reduce 70% of ener-gy consumption for household waterheating.

Monika Zimmermann, ICLEI Inter-national Training Centre, Freiburg, Ger-many, identified cities as relevantactors for implementation of RE, Ener-gy Efficiency and Energy Savings pro-grammes. The ICLEI has over 600members in 66 countries. Information isdistributed on local activities, target set-ting, local planning, sustainable con-struction, public purchasing, local infra-structure, co-generation and districtheating. It has opened public-privatepartnership Resource Centres in Nag-pur and Bhubaneswar (India) and inBetim (Brazil).

Hendrik Rotman, Philips Lighting,The Netherlands, gave an overview ofenergy efficient lighting. He quoted thefollowing potential energy savings,quoted in a Philips booklet: Road light-ing (57%); Shop lighting, halogen ->CDM (80%); Office & Industrial lighting,TL8 -> TL5 (61%); Home lighting, GLS-> CFL (80%) and with LEDs, GLS ->LED (82%). Realistic values by Philipsare as follows: Street-lighting (25%);Office and Industry (20%) and Resi-dential (50%).

Dr Saad Baradiy, iproplan, Chem-nitz, Germany, outlined energy savingsin building construction and heat insu-lation. Factors contributing to low car-bon in buildings are mainly Architecture(<50% by design modifications); Con-struction (<30%, with quality materials);Heating, Ventilation, Air-conditioning(HVAC) (<80% with quality equipment);Occupant (+/- 50%, with better livinghabits). These claims were substantiat-ed with illustrated case studies fromQatar, Bangladesh, Germany andScotland. The envisaged proceduresand parameters towards energy-effi-cient labelling (an ‘Energy Pass’) ofhomes were also discussed.

10. NATIONAL CASE STUDIES

Dr Mohamad Kordab, UN-ESCWA,gave an assessment of the status andopportunities for RE Manufacturing andTechnology Transfer in Egypt, Jordan,Syria and Yemen. The main solar ther-mal applications in the 4 selectedMENA countries are Solar Water Heat-ing Systems (SWHS) for industrial, res-

Page 8: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

8 Energy Management News

idential, commercial and tourism appli-cations. A typical cost breakdown is col-lector (35%), Storage tank (30%),Accessories (15%) and Transportation,installation, taxes, and administration(20%). In Egypt and Syria, PV systemsare assembled from imported cells.Jordan and Yemen only have dealersand distributors. All wind turbines areimported. Barriers to Technology Trans-fer include: Corporate decision –mak-ing rules, lack of information, limitedcapital availability, shortage of trainedpersonnel and low energy prices.

Prof. Amin Mubarak, Cairo Univer-sity, outlined Egypt’s plans to manufac-ture RE systems. According to the IEA,RE costs in 2006 cents/kWh are as fol-lows: Large hydro (3-4); Small hydro (4-7); Onshore wind (4-6); Offshore wind(6-10); Biomass power (5-12); Geot-hermal power (4-7); Solar PV (20-40);and Solar thermal (12-18). Direct nor-mal solar irradiation varies from 2000kWh/m2/y in the North to 3200kWh/m2/y in the South, with very fewcloudy days and 9–11 hours sunshineper day. Egypt also has an excellentwind regime, particularly in the SuezGulf, where it reaches 10.8 m/sec.Concentrated solar power plants (CSP)are of the parabolic trough and solartower types. Detailed costing and thecorresponding action plans for all typesof RE systems mentioned were given.

Mohammed Khalil Sheki, NERC,gave an overview of the Syrian situa-tion. The present energy independencywould change after 2010, growing to21% dependency (2015) to 44%dependency (2020) and so on. The RE(hydro and biomass) share is currently6.9%. This value is estimated to drop to4.6% (2010); 3.2% (2015), and approx-imately 2% thereafter. A major effort isto be launched to create an awarenessof RE and EE applications. The mainbarriers were a lack of funds and a lim-ited R&D capacity. The Hadaya Groupreported on the Syrian experience inRE. Small-scale wind turbines up to 65KVA (16 m diameter) were designedand built for off-grid uses. The windfarm has a capacity of 308 MW. Aver-age annual wind speeds of up to 12m/s were recorded in some areas.Solar PV projects were deployed forthe electrification of rural areas meas-uring solar energy of 5.2 kW.h/m2/dayat the horizontal plane. The installa-tions are still performing well – since2003.

Dr Johan Nylander, VattenfallPower, reported on their RE activities in

Sweden. It aims at surpassing theKyoto Protocol RE targets. RE produc-ers receive a ‘Green Certificate’ foreach MWh produced. Distributors mustbe in possession of a number of theseCertificates in relation to their sales.Wind power constituted less than 1% in2005. Currently 500 MW is installed,adding 50MW – 60 MW per annum.CDM projects include Hydro power(large and small scale); Wind power;Solar power; and Biomass (bagasse forinternal fuel at sugar/ethanol plant andfor the grid). Other biomass sourcesinclude wood waste and rice husks.Vattenfall has also built an 18 MW bio-mass plant in India.

Nesreen Ghadda an Fadi Mouk-allad, American University of Beirut,reported on RE plans for the recon-struction of villages in South Lebanon.Experience from neighbouring coun-tries like Egypt and Cyprus will be builtupon for solar water heating (SWH), PVand Wind Energy.

Mariso Olano, IDEA, outlined thesituation in Spain. RE is popular sinceSpain has a high external energydependence and it has a great potentialfor RE. In 2006, RE contributed 18.8%of electricity production. A furtherbreakdown shows Hydro (9.7%); Wind(7.5%); Biomass (0.8%); Biogas(0.3%); MSW (0.4%); and PV (0.04%).Spain with an installed wind capacity of9.78 MW follows the leader, Germany,with 18.43 MW. The country’s targets,action plans and legislation were dis-cussed in detail.

11. CONCLUSION AND

ACKNOWLEDGEMENTS

Many commonalities with the SouthAfrican situation were reported at the4th Middle East and North AfricaRenewable Energy Conference inDamascus and Palmyra. Sponsorshipby the conference organisers and localindustry is gratefully acknowledged,making the author’s attendance possi-ble. It is recommended that the R&Dlinks established be nurtured in certainselected fields and that site visits to theMENA region be undertaken by indus-try and energy planners beforeembarking on similar developmentsand community schemes.

l Contact: Prof. Ernst UkenHead: Energy Technology Unit

Cape Peninsula University of Tech-

nology, Cape Town

Tel: +27 21 460 3127

E-mail: [email protected]

Marine

renewable

energy

There is an abundance of waveand tidal stream energy inwaters throughout the world,

but the big challenge is to be able tocapture this energy in an efficientand cost effective way. Since the late1990s, a number of technologies arebeing developed and there havebeen successful prototype demon-strations, principally in Europeanwaters.

However, there are engineering,environmental, social and economicchallenges that need to be ad-dressed before marine renewableenergy becomes a mature technolo-gy. The potential marine energyresource and the challenges it bringsare attractive to South Africa. Cur-rently both wave and tidal streamtechnology are being led by smalltechnology developers, with supportfrom generic academic research.The current state-of-the-art will belinked to research priorities requiredfor full commercial exploitation by2020.

Dr Markus A. Mueller is leadingthe UK Energy Research Centre’sroad-map project for marine renew-able energy. His research interestsinclude the design of low-speedelectrical machines for direct-drivewind and marine renewable energyconverters, finite-element modellingof electrical machines, switched-reluctance (SR) machines, andnovel permanent-magnet (PM)machines.

l Contact: Gillian le CordeurTel: 011 789 1384

E-mail: [email protected]

Dr. Markus Mueller

Institute for Energy Systems

School of Engineering and Elec-

tronics

UK Energy Research Centre

University of Edinburgh

Website: www.ukerc.ac.uk

Page 9: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 9

Various issues related to thesecurity of supply were dis-cussed at Eskom’s EXCO meet-

ing in early August. These included thefollowing:

1. Eskom’s long-term electricity de-mand forecasts and assumptionswere discussed. This is a complexissue which requires ongoing moni-toring as it drives Eskom’s newbuild strategies and plans. Theimportance of having proper plan-ning alignment across all parts ofthe organisation was emphasised.It will be important to agree on thebest plan possible, taking intoaccount the various planning para-meters and to ensure that this planis actively pursued. At the sametime, flexibility needs to be built intoits capacity expansion and supplystrategies to cater for changesalong the way. It was also agreedthat, as a result of the tight supplysituation, a revised strategy isrequired to deal with new customersupply applications.

2. The demand and supply outlook forthe period up to 2014 was dis-cussed. The situation remains verytight from now until 2011/12 when itwill start to improve with the com-missioning of new coal-fired baseload generating units. The risksover this period and mitigatingstrategies to minimise the impactthereof were discussed and theprocess to monitor the situation onan ongoing basis was agreed upon.

3. A report was submitted to EXCO onthe impact of rain on opencast coalmining and the transportation ofcoal by road and rail. This includedthe mitigation plans in place to min-imise the risks to Eskom.

4. A status report was provided on theconclusion of long-term coal con-tracts as well as future contractnegotiations that will be required.The importance of taking a long-term power station life cycle viewand considering all the factorsimpacting on coal supply wasemphasised.

5. The status of the new build pro-

gramme was presented and dis-cussed. A highlight was the comple-tion of the Beta / Delphi 400 kVtransmission line of 408 kilometresand the substation upgrade. Thecompletion of the 400 kV Palmiet /Stikland line is delayed as a resultof various factors including workbeing suspended temporarily as aresult of a fatality on 21 July 2007.The work was due to be completedby the end of August / beginning ofSeptember 2007.

6. The commercial and negotiatingstrategy for the first new nuclearpower station was discussed and aprocess was agreed upon.

7. An update was provided on thenational accelerated demand sidemanagement progress. The 3000MW target for savings on peakdemand by 2012 is on track. Anemployee programme aimed atassisting employees to becomemore energy efficient at home wasapproved. Details will be madeavailable in due course. Eskomemployees are encouraged tobecome role models and ambassa-dors for the effective use of electric-ity. This will go a long way in ensur-ing that the risk of powerinterruptions as a result of the tightsystem is minimised.

8. Professor Anton Eberhard from theUniversity of Cape Town BusinessSchool engaged with EXCO on thenational electricity supply situation,risks facing the security of supplyand mitigating steps that can betaken to minimise these risks. Pro-fessor Eberhard is a renownedelectricity industry and regulatoryexpert. It was encouraging to notethat most of the key focus areasand recommended actions pro-posed by Professor Eberhard havealready been identified by Eskom.

9. The recently appointed new com-munications agencies engaged withEXCO on a proposed new corpo-rate positioning strategy for Eskomwithin the context of the currentdemand and supply realities andchallenges. The framework for anew and different positioning

approach was agreed upon basedon which further developmentalwork will now be undertaken.

10. A stakeholder engagement strategyaimed at enhancing strategic rela-tionships with key stakeholders wasdiscussed. The intention is to linkindividual EXCO members / seniorexecutives to specific key stake-holders and to make them respon-sible for the building of mutuallybeneficial relationships. EXCO gaveinput into the proposed strategywhich will be further refined beforeimplementation.

11. The important role that Eskom willplay in contributing towards a suc-cessful 2010 Soccer World Cupwas discussed. Feedback wasgiven on progress with the Eskom2010 World Cup strategy approvedby EXCO previously and the man-date to the project team wasendorsed.

l Contact: Group CommunicationDepartment, Eskom

E-mail: GroupCommunicationDepart-

[email protected]

Website: www.eskom.co.za

Eskom’s security of supply

EXCO meeting

Page 10: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

10 Energy Management News

Eskom celebrates the start of

Medupi Power Station

construction

August 14 2007 saw the sod-turning ceremony at the construction site of thenew Medupi Power Station in Lephalale, Limpopo Province – a ceremonywhich traditionally marks the beginning of a construction project.

The sod-turning was performed by Eskom’s Chief Executive, Jacob Maroga,Brian Dames, Managing Director (Enterprises Division), the Minister of Public Enter-prises, Mr. Alec Erwin, and the Premier of Limpopo Province, Mr. Sello Moloto.Other guests included the mayors of Lephalale and Waterberg, dignitaries from Lep-halale and the very busy Medupi project team.

This ceremony followed the granting on 20 May 2007, of the Medupi Power Sta-tion license by the National Energy Regulator of South Africa (NERSA) to build thefirst new coal-fired power station in more than 20 years.

The first unit is planned to be commissioned in 2011, with the last unit scheduledfor commissioning in 2015. The Medupi Power Station units are scheduled to becommissioned at nine-monthly intervals – in line with international practice. Medupiwill utilise direct dry-cooling, which will make it Eskom’s fourth dry-cooled base-loadstation after Kendal, Majuba and Matimba Power Stations.

The land which Medupi will be built on was formerly the farm, Naauw Ontkomen,and was bought from Kumba Coal (Pty) Ltd – now known as Exxaro Coal (Pty) Ltd.The site measures 883 hectares and was previously used for game and cattle graz-ing. During the clearing of the site, many environmental factors were taken intoaccount.

A visual beacon on the site wasa baobab tree which is believed tobe a few hundred years old. Theteam immediately made plans topreserve this beautiful tree.

A lengthy process was put inplace to relocate it on 10 Augustand plant it where the entrance tothe power station will ultimately be.

l Contact: Group CommunicationDepartment, Eskom

E-mail: GroupCommunicationDe-

[email protected]

Website: www.eskom.co.za

Climate

change in

sub-Saharan

Africa

Africa has contributed lessthan any other part of theworld to global warming, but

is most vulnerable to the conse-quences. The effects of climatechange are already evident on theground, and the continent's policy-makers can no longer afford toignore it.

SciDev.Net's latest 'spotlight' onclimate change in sub-SaharanAfrica brings you an overview of thekey issues faced by the continent inadjusting to a warming climate. Keystakeholders present their views on: • How African policymakers can

begin to tackle climate change;• What the international communi-

ty must do to help; and• How we should focus on the

continent's strengths to adapt. Both an editorial and Patrick

Luganda's feature highlight the factthat if adaptation to climate changeis to succeed, it must be driven fromwithin Africa. The spotlight alsobrings together SciDev.Net's latestnews on climate change in Africa,and links to a selection of the Inter-net's most relevant and useful policybriefs, documents and websites.

You can sign up for free emailupdates with the latest news, com-mentaries and notices about sci-ence, technology and development.All material is free to reproduce pro-vided the organisation and authorare credited.

For more information on climatechange in other parts of the devel-oping world, visit our online climatechange dossier.

l Contact: David DicksonDirector – SciDev.Net

97 – 99 Dean Street

London W1D 3TE UK

E-mail: [email protected]

Websites: www.scidev.net and

www.scidev.net/climate_africa

World Bank CDM Study

Two Members of the CDM Meth Panel, namely Prof. Felix Dayo and Dr. Mas-samba Thioye had requested to have a meeting with Energy Research Cen-tre (ERC) in June, to discuss CDM potentials in the energy sector in South

Africa. They are in fact doing this as part of a World Bank study, involving a numberof Sub-Saharan African (SSA) countries as case studies.

The team had a presentation of what they are trying to do; the information theyare trying to source and how the information will be utilized to develop the CDMpotential database; etc. The presentation was then followed by a discussion ses-sion.

l Contact: Stanford MwakasondaEnergy Research Centre (ERC), University of Cape Town

Private Bag, Rondebosch, 7701

Tel: +27 21 650 2521

Fax: +27 21 650 2830

Cell: +27 7220 37352

E-mail: [email protected]

Page 11: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 11

In July, the global mining companyRio Tinto, made a deal to purchaseAlcan for US$38.1 billion. In pur-

chasing Alcan, Rio Tinto inherits themoral and social responsibility of Alcanto fully disclose the details of a pro-posed aluminium smelter at Coega.

In particular, Rio Tinto needs toaddress the following concerns:• What is the price of electricity

agreed upon by Alcan and Eskom?• What are the conditions of supply of

electricity?• Will the price paid to Eskom cover

the indirect costs of smelter? Forexample, the environmental groupTWIG has calculated that the indi-rect costs of harm to the environ-ment based on Eskom CO

2emis-

sions to supply the smelter withelectricity would be R6.4 billion.

• What measures will be put in placeby Rio Tinto to account for the indi-rect costs of operating the smelter?

• Will Rio Tinto initiate a new Envi-ronmental Impact Assessment inorder to meet the concerns of citi-zens within the Port Elizabeth area?The EIA for the smelter was for aone pot design, while the Alcansmelter is to be a two pot design.The purchase of Alcan represents a

new opportunity for Rio Tinto. As Tris-ten Taylor, Energy Policy Officer atEarthlife Africa JHB, states: ‘By becom-ing the new owner of Alcan, Rio Tintohas the opportunity to do what Alcanhas refused to do; that is, come cleanon all the details regarding energy sup-ply to the smelter. Rio Tinto mining hasthe chance to prove to South Africa thatit is the kind of corporation that believesin transparency, not secrecy, and is will-ing to enter into public debate as agood corporate citizen.’

Earthlife Africa Johannesburg callsupon Rio Tinto to make a special effortto fully disclose all the details of theAlcan and Eskom deal, including theactual price of electricity. This informa-tion needs to come to the forefront ofpublic debate so that all South Africanswill be able to have an opportunity tomeaningfully discuss the energy futureof this country.

Earthlife Africa Johannesburg fur-

ther calls upon the Department of Envi-ronmental Affairs and Tourism to begina new EIA process for the proposedsmelter in light of the changing specifi-cations and ownership.

On the 12th of September 2007,Earthlife Africa Johannesburg and vari-ous community organisations were tomarch on the Alcan headquarters toprotest to their preferential tariff ratesand to demand increased basic accessto electricity. This action is in conjunc-tion with actions against Alcan, RioTinto, and Alcoa across the globe.

For the past two years, EarthlifeAfrica Johannesburg has consistentlycalled upon the Department of Tradeand Industry (DTI), the Department ofPublic Enterprises, Eskom and Alcan todisclose the details of electricity salesto Alcan for its proposed smelter. Boththe South African Government andAlcan have hidden behind a profoundlyanti-democratic clause in the Develop-mental Electricity Pricing Programme(DEPP). Alcan is the first foreign com-pany to benefit from the DEPP, and hassigned a 25 year deal for 1350 MWsupply of electricity.

What is the DEPP? Essentially, theDEPP provides for uniquely discountedelectricity tariffs for foreign industriesthat are heavy consumers of electricity(over 50 MW) in South Africa. In returnfor investment in South Africa, theDEPP will ensure that electricity tariffsare internationally competitive (ournearest competitor is Australia, whichsells electricity at US$0.053 per kwhand is 30% more expensive) and thatthe industry in question can achieve aprofitable internal rate of return; i.e. if

electricity is a major overhead (such asin aluminium smelting), it the tariff thatwill be low enough to ensure profit.

This is a significant incentive forheavy industry to invest in South Africaand is supposed to provide significantjobs. However, what it really does iscommit Eskom to tariffs for heavyindustry at a rate lower (or, at most, onpar with the next cheapest supplier ofelectricity) than anywhere else. It is, ineffective, a subsidy for foreign indus-tries, similar to a tax break or importduty waiver.

The most worrying factor about theDEPP is the ‘built-in’ secrecy clause.Eskom is a public enterprise, ultimatelyowned by the citizenry at large. Howev-er, the DEPP guidelines ensure thatany contracts signed under the DEPPare to remain secret. This is profoundlyanti-democratic. The DEPP states(Clause 12.1):

All officials, employees or membersof the Department, the adjudicationcommittee, NERSA, Eskom andnon Eskom distributors shall regardas confidential all technical informa-tion, records, particularly any strate-gic commercial information and allknowledge that pertains to any proj-ect that applied for benefits in termsof DEPP, whether such informationis recorded on paper or in an elec-tronic manner.

The very next Clause (12.2) in theguidelines bounds individuals withknowledge about the contracts tosilence for the rest of their lives.

If the DEPP is a method for promot-ing growth and development in SouthAfrica, then why the secrecy? Whyshouldn’t this be in the public domain?This clause gives foreign corporationslike Alcan the right to build an electrici-ty-intensive industrial plant in SouthAfrica, get electricity on favourableterms in relation to their expected rateof return, and not to have to tell thecountry at large what rate they pur-chased electricity from the SouthAfrican state. Furthermore, this clauseseems at odds with the spirit of the Pro-motion of Access to Information Act,

Rio

Tinto’s

purchase

of

Alcan

Page 12: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

12 Energy Management News

through a pre-emptive strike againstthe releasing of information.

The DEPP deal with Alcan meansthat the citizens of this country won’tknow the answers to the followingquestions:• What is the price of electricity

agreed upon by Alcan and Eskom?• What are the conditions of supply of

electricity?• Will the price paid to Eskom cover

the indirect costs of smelter? Forexample, the environmental groupTWIG has calculated that the indi-rect costs of harm to the environ-ment based on Eskom CO

2 emis-

sions to supply the smelter withelectricity would be R6.4 billion.

• Why doesn’t Eskom release its for-ward cost pricing curve, on a regu-lar basis, as the anticipated costs ofa new plant escalate?

• Are promised future measures toaccount for externalised costs ofelectricity generation compromisedby the deal or the DEPP?Earthlife Africa Johannesburg calls

upon Eskom and Alcan to fully discloseall the details of their deal, including theactual price of electricity.

The fact that Alcan and the Govern-ment refuse to disclose these details isespecially arrogant in light of the factthat 30% of South Africans are withoutelectricity. Furthermore, the basic life-line of 50kwh per month per householdis entirely inadequate and downrightmiserly. If the South African Govern-ment can offer foreign corporations likeAlcan electricity tariffs low enough toensure profit, then surely it can providethe poorest of its citizens a meaningfulallocation of electricity?

Therefore, Earthlife Africa Johan-nesburg calls upon Eskom and theGovernment to increase the basic allo-cation of electricity to 100kWh per per-son per month with a step-block tariff.

l Contact: Tristen TaylorEnergy Policy Officer

Earthlife Africa Johannesburg

Tel: +27 11 339 3662

Fax: +27 11 339 3270

Cell: +27 84 250 2434

E-mail: [email protected]

Lerato Maregele

Outreach Officer

Earthlife Africa Johannesburg

Tel: 011 339 3662

Fax: 086 686 8434

Cell: 072 157 2155

[email protected]

Website: www.earthlife.org.za

Particulate testing

ECochrane & Associates are undertaking an assessment of the effective-ness of a wet scrubber in removing particulates from the products of acombustion process. The process is the cyclonic furnace burning of tobac-

co waste. One of the characteristics of the combustion of this particular biomassis its tendency to fume. These particles are very small: 0.01 micron size.

In order to carry out the test, they will need to make measurements at the fol-lowing state points:1. Hot gas at exit from the furnace at +- 1020 C, gas mass flow 130 kg/h, par-

ticulate 1.4 kg/h;2. Air quenched hot gas to 500 C, gas-air mass flow 275 kg/h, particulate 1.4

kg/h;3. Water spray cooled gas-air mass flow to 110 C, mass 320 kg/h, particulate

1.4 kg/h; and4. Wet scrubber to remove 99.9% of particulate material. The estimated exit

temperature is +-70 C.Cochrane and Associates would like to carry out gas chromatograph analysis

at state point 1 or 2 and 3. Alternately, to collect particles on a filter at state points2 and 4 for a wide spectrum analysis if the gas analysis is not practical.

It is their intention to set up the furnace to be linked to the existing test wetscrubber at the CFW site. Readers are welcome to give their input into thisresearch. Work was due to commence on 12 July.

l Contact: Denzil CochraneE Cochrane & Associates

E-mail: [email protected]

Handling a tight energy situation

Much is being written about the tight energy situation that is gripping ourcountry and will continue to do so until about 2012. There is particularconcern about electricity and liquid fuels.

The latest initiative was a challenge issued by Radio 702 for all businessesto switch off non-essential lights and equipment on Thursday, 23 August from21:00 to 22:00. Now this is a sure way to raise awareness and it has engendereda great deal of well-intended effort as businesses phone in to pledge their sup-port and challenge others to do likewise.

But will it make any sustainable difference? The designated hour was wellafter the peak demand time and is also at a time when inconvenience will beabsolutely minimal. This is one of those ‘feel good’ activities that do more for ourown conscience than it delivers real benefit to the intended recipients.

So what should we do with this new-found awareness? We should have agood look around our place of work and identify those items that are consumingenergy in a wasteful manner or where there is opportunity for efficiency improve-ment. Amazingly, in South Africa about 6 500 MW is needed for pumping. This isnearly 20% of Eskom’s installed capacity. Now in most businesses the pumpsand their motors are neglected until they give trouble and then they are put backinto service as quickly as possible because production is affected. We are noteven sure if they have been correctly sized and matched to the system. Thechances are that they are oversized ‘to be on the safe side’. Imagine what a dif-ference we could make if we saved only 10% of the energy used for pumping.There would be a direct saving on our electricity bill but Eskom would avoid theconstruction of a new coal-fired unit saving billions of rands.

Motors are another area deserving of attention and there more. Switch yourlights by all means, but in the cold light of day take a hard look at the real ener-gy wasters that lurk in the shadows around us and deal with them now.

l Contact: Brian A. StathamChairman – SANEA

E-mail: [email protected]

Page 13: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 13

The theme of the 2007 EskomAnnual Report is ‘partnering forgrowth’ and looking at the results

for the financial year ended 31 March2007, Eskom’s financial and technicalperformance looks very good. Theresults set a solid foundation on whichto build its capital expansion pro-gramme, primarily aimed at ensuringthat it meets the rising national demandfor power.

Its financial results have been satis-factory, driven by a high growth in elec-tricity sales (4.9% against a projected2.3%). The increase in sales can beattributed to the increasing demand forelectricity as the South African econo-my continues to grow.

The profit for the Eskom Group wasR6 454 million, but if the impact ofembedded derivatives is excluded, theprofit after tax was R3.4 billion. Thisreflects a strong and satisfactory per-formance across key areas of the busi-ness and provides a solid platform todrive its R150 billion capacity expan-sion programme.

During the past year, Eskom hasfaced a number of challenges as aresult of the steadily growing demandfor electricity in a growing economy. Itsmain challenges are the continued sup-ply of reliable electricity and it has totake steps to ensure that the companycontinues to support economic growth.

Through the broadening andstrengthening of partnerships with theSouth African public and with business,Eskom will be in a better position toovercome these challenges. It hasaccelerated the rollout of the build pro-gramme to ensure that South Africahas sufficient generation and transmis-sion capacity to meet the future energyneeds. In fact, two new open-cycle gasturbine power stations (Ankerlig nearAtlantis and Gourikwa near MosselBay) are in full operation (four unitswere already in commercial operationat 31 March 2007).

The return-to-service programme is

also progressing well at Camden,Grootvlei and Komati Power Stations.At Camden 772 MW was commis-sioned in 2007 (190 MW in 2006), andthe remaining 600 MW will be commis-sioned by March 2008. In addition, thecountry’s transmission network wasconsiderably strengthened through thebuilding of about 430 km of new powerlines.

This year the procurement spend-ing of the group with black businesswas R16.56 billion against the budget-ed R14.57 billion. This included expen-diture on black women-owned busi-nesses, which increased to R2.09billion against R1.30 billion in 2006. Itscontribution to the development of skillsnationally includes supporting 5 136learners and graduates.

Eskom is also making significantinvestments in its human resources. Ithas increased the organisation’s train-ing spending to R748 million in 2007(up from R543 million in 2006) andhave begun recruiting skilled personnelthrough national and internationalcareer drives – 2 738 employees wererecruited in the 2007 period, with thekey focus on engineering, procurementand financial skills. These are the skillsthat are critical to the success of itscapacity expansion programme.

Over the next five years, Eskom willspend R150 billion on capacity expan-sion, 70% being allocated for genera-tion, 14% for distribution infrastructureand 14% for the strengthening of thetransmission network. Its current strat-egy is to fund up to R100 billion inmoney that it will borrow (locally andinternationally) and the rest from itsown operations.

Currently 88% of its generatingcapacity is coal-fired. Given the inter-

national importance of climate change,it plans to reduce the coal componentof its energy mix to 70% by 2025. Themain contribution to achieving this willbe through nuclear energy. Its contribu-tion to the national grid will rise by up to20 000 MW by 2025. Renewable ener-gy production will also increase by anadditional 1 600 MW.

The construction of Medupi PowerStation, the new coal-fired base-loadpower station in Lephalale, Limpopo,started in May 2007. This station willdeliver at least 4 500 MW to the overallsystem. Work has also begun on theIngula pumped storage scheme nearLadysmith, scheduled for completionby 2012 and adding 1 332 MW to peakelectricity demand.

Eskom’s partnership with SouthAfrican electricity consumers, in termsof ensuring an energy-efficient nation,will see it spending millions per year onenergy-saving measures nationally. Ithas now accelerated its nationaldemand-side management target to 8000 MW over the next 18 years.

Eskom’s vision – Together buildingthe power base for sustainable growthand development – emphasises thevalue of teamwork. This was powerfullydemonstrated over the last year byemployees working together, acrossdivisional boundaries to keep its sys-tem running.

A major focus for the coming yearsis that all Eskom employees, their fam-ilies, friends and fellow citizens and itsbusiness partners – start using electric-ity more sparingly to ensure that wekeep South Africa’s lights burning. Thiswill establish a culture of energy effi-ciency, which has now also becomeimportant across the world.

l Contact: Group CommunicationDepartment, Eskom

E-mail: GroupCommunicationDepart-

[email protected]

Website: www.eskom.co.za/annre-

port07

2007 Annual Report

for Eskom

Page 14: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

14 Energy Management News

The First High-level Biofuels Sem-inar in Africa was held at theAfrican Union (AU) Headquarters

in Addis Ababa, Ethiopia, from 30 July– 1 August 2007. The seminar, heldunder the theme of ‘Sustainable Biofu-els Development in Africa: Opportuni-ties and Challenges,’ was jointly organ-ized by the African Union Commission,the Government of Brazil and the Unit-ed Nations Industrial DevelopmentOrganization. It brought together some250 participants representing AU mem-ber states, African regional economiccommunities, UN agencies, the scien-tific community, the private sector andnon-government organizations.

The major objectives of the seminarwere to: brief policy makers, the privatesector and regional institutions on theimportance of biofuels development inAfrica; explore possibilities for develop-ing this new energy source while ensur-ing a balance between its potential,risks and trade-offs; bring togetherstakeholders to formulate a commonstrategic vision for biofuels develop-ment throughout the continent; andfacilitate the development of viable poli-cies and strategies for the African bio-fuels industry.

The three day meeting consisted ofplenary and parallel sessions, and aMinisterial Roundtable that was held onWednesday, 1 August. In the plenarysessions, held from Monday, 30 Julythrough Wednesday, 1 August, partici-pants discussed a range of matters,including the Brazilian biofuels experi-ence and its potential application inAfrica. During the parallel sessions,held on Tuesday, 30 July, participantsaddressed biofuel conversion technolo-gies for ethanol, biodiesel, biogas andbiomass gasification, and cross-cuttingissues relating to policy and regulatoryframeworks, financing and investment,and environmental sustainability.

Recommendations from these ses-sions were consolidated into an ActionPlan for Biofuels Development in

Africa, which was annexed to the AddisAbaba Declaration on Sustainable Bio-fuels Development in Africa, adopted atthe Ministerial Roundtable. This decla-ration calls for, inter alia: developingenabling policy and regulatory frame-works; participating in global sustain-ability discussions; formulating guidingprinciples on biofuels to enhanceAfrica’s competitiveness; and minimiz-ing the risks of biofuels developmentfor small-scale producers. It furthercalls for the engagement of develop-ment partners to enable North-Southand South-South cooperation, urgesthe engagement of public financinginstitutions to support biofuels projects,and proposes the establishment of aforum to promote access to biofuelsinformation and knowledge.

REPORT OF THE MEETING

On Monday, Aboubakari Baba-Moussa,Director, Infrastructure and Energy,AUC, welcomed participants to AddisAbaba and reported on preparatorymeetings for the seminar held underthe auspices of the AUC.

Guilherme Cassel, Minister ofAgrarian Development, Brazil, suggest-ed that the Brazilian experience in bio-fuels had direct relevance to the semi-nar’s theme of opportunities andchallenges for biofuels development inAfrica. He underscored that biofuelscan help to achieve energy security,promote agricultural development, in-crease employment opportunities, pro-tect the environment and reduce green-house gas emissions. He also notedthat the World is currently facing anenergy crisis, due to the depletion offossil fuels, and that there is an urgentneed to find substitutes that can meetboth energy demands and the needs ofthe rural poor.

Robert Okello, Director, NEPADand Regional Integration, ECA, onbehalf of ECA Executive SecretaryAbdoulie Janneh, noted the unprece-dented interest in biofuels in both

developed and developing countries.He said key reasons for this interestinclude: high and volatile oil prices;opportunities for job creation in ruralareas and for revitalizing the agricultur-al sector; the availability of new andmore efficient biomass technologies;and the need to address global envi-ronmental challenges. Noting thatAfrica is increasingly seen as a poten-tial major player in the field of biofuels,he called on policy makers to developappropriate policies and strategies forsustainable biofuels development.

Maria Michela Morese, Global Bio-energy Partnership (GBEP), UN Foodand Agriculture Organization (FAO), onbehalf of GBEP Chair Corrado Clini,highlighted bioenergy as an emerginginternational priority, and pointed to thetriple challenge of achieving food secu-rity, energy security and sustainabledevelopment. She noted the opportuni-ty to harness Africa’s vast biomassresources, along with the continent’schallenge to transition from traditionalto modern bioenergy. She stressed thatsustainability should be the key ele-ment of biofuels development andcalled for global standards on biofuels,including in relation to full lifecycleanalysis, labelling and certification.

Ato Alemayehu Tegenu, Minister ofMines and Energy, Ethiopia, providedan overview of the energy situation inhis country, suggesting that renewableenergy, especially biofuels, could makea substantial contribution to reducingenergy import costs and promotingrural development. He elaborated onEthiopia’s potential and efforts in thearea of biofuels development, includingits recent biofuels strategy, and under-scored the importance of consideringthe environmental impacts of biofuelsand of creating commercial opportuni-ties in the biofuels sector for farmers.

UNIDO Director-General KandehYumkella suggested that there is anongoing ‘biofuels revolution’ that Africacannot afford not to be a part of, and

First high-level biofuels

seminar in Africa

Page 15: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 15

underscored that the global fightagainst poverty needs to address the‘energy poverty’ question. Highlightingthe importance of sustainability in bio-fuels development, he noted the needto: create a better policy climate, devel-op both first- and second-generationbiofuel technologies; and add value toAfrican commodities in internationalmarkets. He pledged UNIDO’s supportto the ECA and the AU in their elabora-tion of relevant policies and strategies,and outlined related UNIDO initiatives,including the development of an inter-regional bioenergy network.

AU Commissioner for Infrastructureand Energy, Bernard Zoba (Republic ofCongo) said the seminar represented aconcrete outcome of the political will,expressed at the First Africa-SouthAmerica Summit, to promote South-South partnerships for biofuels devel-opment, along with the decision takenat the Eighth AU Summit to develop anew renewable energy policy and strat-egy for Africa. He stressed that Africashould not become a mere consumerof biofuels and a producer of raw mate-rials, but should take full advantage ofavailable technologies and the experi-ences of leading biofuel-producingcountries. In closing, he thanked theGovernment of Brazil and UNIDO forjointly organizing the seminar anddeclared the meeting open.

PROCEDURAL MATTERS

Delegates adopted the meeting’s agen-da and programme of work, agreeing toconduct their work in some plenary andsome parallel sessions. They electedUNIDO and the AU as Co-Chairs of theseminar.

This report summarizes the discus-sions and outcomes of the meeting inchronological order.

PLENARY SESSIONS

Seminar overview and objectives

This session took place on the Mondayand was chaired by Mafa Chipeta,FAO.

Philippe Niyongabo, Directorate ofInfrastructure and Energy, AUC, pre-sented an overview of biofuels devel-opment in Africa. He highlighted oppor-tunities presented by the vast area ofland available for food and energycrops, favourable climatic conditionsand the relatively inexpensive labourforce, while noting environmental andsocio-economic concerns. Stressingthat biofuels can help achieve the

MDGs and address climate change, hesaid the proposed vision for biofuels inAfrica focuses on enhancing ruraleconomies through integrated bioener-gy development. For developing theAfrican biofuels sector, he recommend-ed, inter alia: the creation of appropri-ate policy, institutional and legal frame-works; increased stakeholder aware-ness; incentive measures; a focus onpoverty reduction; drawing on experi-ences from other regions; and researchand development into small-scale pro-duction.

Outlining global energy trends,Heinz Leuenberger, UNIDO, drewattention to the fact that around half ofAfrica’s energy is derived from tradi-tional biomass, and that only one infour Africans presently has access toelectricity. He also noted that the futureincrease in electricity demand will begreatest in developing countries, andthat global energy consumption isexpected to triple by 2050 if the MDGsare achieved. Regarding the exportpotential for biofuels, he noted the EU’starget of sourcing 10% of transportenergy from biofuels by 2020 and cli-matic constraints on growing biofuelcrops in Europe. Stressing that the sus-tainability of production will be crucialfor the future of the biofuels market, hesuggested the formulation of regionalbiofuels action plans within a sustain-able development framework and withan initial focus on self-sufficiency.

Noting that biofuels is a growingmarket with huge potential in Africa,Njeri Wamukonya, UNEP, presented onthe sustainability aspects of biofuelsdevelopment. She highlighted a num-ber of associated risks, such as poten-tial implications for food security andwater scarcity. She outlined an initiativebeing carried out by UNEP and otherpartners to formulate guidelines for bio-fuels that focus on both producers andconsumers, and that uses certificationas a key tool. She also noted thatUNEP is ready to develop criteria andstandards for biofuels development inAfrica that accommodate environmen-tal and social concerns.

Noting Africa’s food productionchallenges, dependence on foodimports and decreasing share in globaltrade, session Chair Chipeta suggest-ed that countries capitalize on energydevelopment to boost food production.

Discussion

During the ensuing discussion, par-ticipants drew attention to, inter alia:the implications of the World Trade

Organization’s Doha Round of negotia-tions for the future biofuels market; theimportance of research and develop-ment; and avoiding biofuel crop ‘com-modity booms’ that lead to food short-ages. An industry association called fora moratorium on the African export ofraw materials for biofuels until the con-tinent has further developed its capaci-ty in finished products. Pointing to theexample of the oil industry in Africa,one participant expressed concern thatbiofuels might become an export-based industry, rather than one thatserves the domestic market. Inresponse, another participant com-mented that Brazil is a case in point fordeveloping and using biofuels fornational consumption and for address-ing small-scale producers’ needs. Par-ticipants further discussed the need to:broaden certification schemes to otherenergy sectors, such as coal, oil andgas; develop country-driven certifica-tion schemes; and produce and con-sume biofuels locally.

COUNTRY AND SUBREGIONAL

EXPERIENCES

Held on Monday, this session waschaired by Robert Okello.

Stephen Karekezi, Energy, Environ-ment and Development Network forAfrica, presented an overview ofnational and regional perspectives onand experiences with biofuels. He saidthat the African energy sector has threemain clusters: hydrocarbons in NorthAfrica; biomass across most of the con-tinent; and coal in South Africa. Urginga transition from traditional biomassenergy technology to modern technolo-gies such as biofuels, he highlightedopportunities presented by biofuels,including for: enhanced energy securityand diversification; higher convertiblecurrency revenues; new revenuestreams for agro-industries and farm-ers; the encouragement of carbonfinancing; the creation of jobs; andmeeting local energy needs. He furtherunderscored the need to capitalize onthe global growth in the biofuels mar-ket, illustrated by the 95% increase inethanol production from 2001-2005and the projection that biodiesel couldmeet up to 25% of the World’s energyneeds in the next 20 years.

Summarizing the continent’s expe-riences, he prioritised biomass cogen-eration as a readily available option,and ethanol as the most developedoption, noting that it is largely concen-trated in Southern Africa. He advocated

Page 16: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

16 Energy Management News

pre-determined tariffs and compulsoryrequirements for the blending ofethanol and oil. He further noted, interalia: Ghana’s experience with biogas;West Africa’s efforts to explorebiodiesel; and the limited continentalexperience with biomass gasification.Addressing sustainability concernsassociated with biofuels, he arguedthat positive outcomes outweigh nega-tive ones.

West Africa

Essel Ben Hagan, Institute of IndustrialResearch, Ghana, noted that the biofu-el technologies under development inWest Africa are biogas and biodiesel.He said that key barriers to the widerproduction and use of biofuels includethe reluctance of financial institutions toadvance loans for their development,and he urged the establishment ofbioenergy development funds for useby the private sector. Discussing biofu-els development in Ghana, he outlineda number of initiatives, such as the cre-ation of a national biofuel committee in2005, and the efforts of institutionssuch as the Council for Scientific andIndustrial Research.

Ibrahim Togola, Mali FolkecenterN’yetaa, described biofuels develop-ment in Mali, highlighting the develop-ment of a local jatropha press, theintroduction of jatropha use in thetransport sector and the establishmentof rural energy service centres. He alsoidentified inefficient coordinationbetween stakeholders as a key barrierto biofuels development.

Central Africa

Demba Diop, Environmental Marketand Product Consulting, the Nether-lands, noted that despite the presenceof oil in Central Africa, the population’saccess to energy remains a challenge,and poverty and hunger are still wide-spread. Regarding prospects for biofu-els development, he noted the highdependence of some countries on oilexports, the ongoing decline of oil pro-duction and a projected depletion insubregional oil reserves. Comparingpossible scenarios for African oil andbiofuel exports, he said more than 60%of the value added post-production inthe case of biofuels could remain inproducer countries, while an estimated80% of the value added post-produc-tion for oil goes abroad. He under-scored various measures necessary forpromoting biofuels development,including: adequate political will; multi-

stakeholder partnerships; appropriatefinancing mechanisms; institutional,legal and regulatory frameworks; secu-rity of land tenure; and gender main-streaming.

Eastern and Southern Africa

Stephen Karekezi focused on subregional experiences with two majorbiofuels options: ethanol and biomasscogeneration. On ethanol use, he high-lighted Malawi as the country with thelongest experience, and Kenya andZimbabwe’s initiatives on ethanolblending. He noted that since ethanol isalready used in the sugar industry, itprovides greater security against mar-ket fluctuations. He also stressed theimportance of exploring local marketsfor biofuels before engaging in interna-tional trade.

On biomass cogeneration, StephenKarekezi described the experience ofMauritius, where the sugar industryprovides close to 40% of national elec-tricity supply. He highlighted nationalpolicies that have helped to: promoteindustry involvement through appropri-ate energy pricing and fiscal incentives;achieve economies of scale for powergeneration through the centralization ofsugar factories; and increase equitythrough revenue-sharing schemes withfarmers and local communities.

Discussion

In the ensuing discussion, Mauritiushighlighted an initiative to producepetrol from plastic waste, and Sudanand Senegal reported on their experi-ences in using jatropha as a biofuel.Participants stressed the potential ben-efits of biofuels for rural communities,showcasing Malaysia as a countrywhere there has been simultaneousbiofuels development and povertyreduction. Participants further dis-cussed the need to assess the environ-mental impact and potential incomegeneration from biofuels development.One participant highlighted the chal-lenge of reduced employment opportu-nities in the case of extensive mecha-nization in the biofuels sector. Onethanol use, several participantsstressed the need for proper pricingand the consideration of ethanol gelfuels. Brazil underscored the impor-tance of considering the comparativeadvantages of various biofuels and theneed to build an international marketfor ethanol once domestic marketshave been developed.

THE BRAZILIAN EXPERIENCE

Lawrence Darkwah, Kwame NkrumahUniversity of Science and Technology(KNUST), Ghana, chaired this session,which was held on the Tuesday.

Guilherme Cassel provided an his-torical overview of Brazil’s biofuels pro-gramme, noting that its main objectivesare to combat poverty and socialinequality in rural areas, particularlyrelating to energy access. Explainingthe family nature of farming in ruralBrazil, he underscored that biofuels area viable option for both small- andlarge-scale farms. He emphasized theprogramme’s policy and institutionalfeatures, including biodiesel legislation,legal protections for investors, amandatory limit on biofuels production,marketing of products with social objec-tives, and tax benefits at different levelsof production. He also discussed the‘social fuel seal,’ a national certificationscheme that encourages participationin the biofuels programme throughfavourable credit policies and biddingprocesses. Suggesting that other coun-tries could learn from the Brazilianexperience, he stressed that biofuelsdevelopment does not lead to thespread of a monoculture, namely sin-gle-crop plantations, nor does it com-pete with food production activities.

Ricardo de Gusmão Dornelles, Min-istry of Mines and Energy, Brazil, notedthat the main objectives of the Brazilianbiofuels policy include increasingnational production and consumption,and promoting a global market in biofu-els. He elaborated on the nationalexperience with ethanol, suggestingthat ethanol can be produced at com-petitive costs and from different rawmaterials. He also noted the predomi-nant use of sugarcane for ethanol pro-duction, and stressed that sugarcaneproduction does not contribute to defor-estation in the Amazon. He describedongoing government efforts to improvelabour relationships and harvest prac-tices at the crop production stage andto improve water usage at the industri-al stage of ethanol production. He alsodiscussed the steps involved in devel-oping an ethanol programme and sug-gested that Brazil could help othercountries by, among other things, pro-viding information and technical sup-port on breeding sugarcane varieties.

Discussion

Responding to a question on the legalframework for protection of land rightsin biofuel contracts, a Brazilian repre-

Page 17: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 17

sentative said that biodiesel companiesare granted fiscal exemptions only ifthey can prove that they have obtainedthe raw materials from farmers. Headded that contracts are prepared inconsultation with trade unions. He alsonoted that, inter alia, conversion fromfood- to ethanol-based crops is a sim-ple procedure that is easily adapted bysubsistence farmers, and that sugar-cane and food crops can be growntogether. Participants discussed theprotection of intellectual property rights(IPRs) in biofuels technology and thecosts associated with current incen-tives for biofuels development. Somealso expressed concern regarding theeffects on farmers of land acquisitionfor biofuels development and thespread of a single-crop monoculture.

AFRICAN CONTEXT

Discussions on the application of theBrazilian experience in Africa tookplace on the Tuesday and Wednesday,and were chaired by Heinz Leuenberg-er.

Thomson Sinkala, Chair, BiofuelsAssociation of Zambia, presented onbiofuels for poverty reduction, stressedthat unless Africa develops biofuels,poverty will be perpetuated. Drawing acomparison between biofuels develop-ment and mining, he argued that theongoing ‘biofuels hype’ exaggeratesconcerns related to food security, landrequirements and sustainability. Healso emphasized the importance of bio-fuels development for the empower-ment of marginalized rural communi-ties, the promotion of family cohesionand the development of skills and tech-nologies.

Abeeku Brew-Hammond, KNUST,emphasized the centrality of govern-ment leadership for kick-starting thebiofuels industry and for ensuring theprotection of small-scale farmers. Not-ing that biofuel technologies are knowl-edge-intensive, he called for sharingexperiences and know-how at the inter-national, regional and national levels,mobilizing regional resources, andidentifying the comparative advantageof African countries in using variousfeedstocks and biofuel technologies.

Mpoko Bokanga, African Agricultur-al Technology Foundation, discussedthe research and development aspectsof biofuels development based on theNigerian experience. He noted that asthe World’s largest cassava producer,Nigeria has been involved in ethanolproduction since 1973, is exploring it as

an alternative to oil, and has recentlyadopted a 10% ethanol blending stan-dard for the transportation sector. Heidentified the need to move fromethanol to butanol production in thefuture and to establish bioenergy scien-tific intelligence units for promotinginnovation in the energy and agricultur-al sectors. Among other policy meas-ures, he proposed introducing ‘smartsubsidies,’ examining land tenure sys-tems, securing access to IPRs, andsharing the benefits derived from biofu-els.

Francis Yamba, Competence Plat-form on Energy Crop and AgroforestrySystems for Arid and Semi-aridEcosystems – Africa (COMPETE) Pro-ject, outlined prerequisites for biofuelsdevelopment in Africa and noted theexistence of biofuels markets, especial-ly in Southern Africa. He explained thatbiofuels markets are influenced by,inter alia, requirements for the manda-tory blending of biofuels with fossilfuels, the suitability and availability ofland and feedstocks, technological andresearch capacities, production costs,international crude oil prices, nationalfiscal policies, and environmental con-siderations. He emphasized the needto select appropriate feedstocks andtechnologies, and to undertake econo-mic cost-benefit analyses. Among otherpolicy measures, he recommended:implementing national biofuels strate-gies; developing legal and regulatoryframeworks; ensuring the sustainableuse of lands and resources; promotingintegrated agro-energy programmes;and supporting biofuels research.

Youssef Arfaoui, AfDB, presentedon the Bank’s perspective on renew-able energy development in Africa, not-ing that the AfDB’s focus areas includegeothermal energy, small hydropower,cogeneration technologies and biofu-els. Among AfDB’s strategic interven-tions, he identified: raising the interestof private sector investors in renewableenergy projects; mobilizing the fundingrequired for project preparation; per-forming feasibility studies; and devel-oping ‘promising’ projects. Reportingon a recent study on wind energypotential in Africa, he suggested a sim-ilar study be undertaken on biofuels.He also noted that in developing biofu-el-related projects, investors shouldconsider legal frameworks, concessionarrangements, feedstock agreementsand security, and relevant environmen-tal factors.

Reviewing biofuels production tech-

nologies, Stanislav Miertus, UNIDOInternational Centre for Science (ICS-UNIDO), noted the need to improve theperformance of first-generation tech-nologies, and to focus on the develop-ment of second-generation technolo-gies that are still transitioning towardlarge-scale production. He outlined anumber of recent ICS-UNIDO activities,including in the area of improvingbiodiesel production in Malaysia.

Discussion

In the ensuing discussion, Cote d’Ivoirestressed the importance of researchand development. Guinea emphasizedthe significance of traditional know-how, while Senegal highlighted theimportance of assessing whether biofu-el crops can be productive when grownon marginal lands. One participantstressed the importance of examiningthe environmental impacts of biofueltechnologies, while another noted theneed to create guidelines for entrepre-neurs engaging in biofuels develop-ment. Highlighting its national certifica-tion scheme and its success ininvolving small-scale farmers in thescheme, Brazil said that an internation-al certification scheme was not desir-able and that efforts should be directedtowards the development of nationalbiofuels industries.

PARALLEL SESSIONS

On Tuesday afternoon, two sets of par-allel sessions were held. First, threeparallel sessions addressed biofuelconversion technologies, namely:ethanol; biodiesel; and biogas and bio-mass gasification. Following from thesesessions, another two parallel sessionsexamined cross-cutting issues relatingto: policy and regulatory frameworks,and financing and investment; andenvironment and sustainability. Reportsand recommendations from these ses-sions were presented in plenary onWednesday and consolidated into theAction Plan for Biofuels Developmentin Africa, adopted by ministers as partof the Addis Ababa Declaration onWednesday afternoon.

BIOFUEL CONVERSION

TECHNOLOGIES

Ethanol

Session Chair Daniel Liwimbi, EthanolProduction Limited, opened the ses-sion on ethanol technologies.

Bothwell Batidzirai, Chinhoyi Uni-versity of Technology, Zimbabwe, pro-

Page 18: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

18 Energy Management News

vided an overview of ethanol technolo-gies and discussed challenges to pro-moting this type of energy in Africa. Henoted that sugarcane- based ethanolcan be produced cheaply in Africa andhighlighted African initiatives, includingexisting ethanol blending programmesin Kenya, Malawi and Zimbabwe, newprogrammes in South Africa andEthiopia, and a proposed partnershipbetween Nigeria and Brazil. He notedthat lessons learned from existing pro-grammes include the importance ofongoing government support, the cre-ation of public-private partnerships andsustained feedstock availability.

Francis Johnson, Stockholm Envi-ronment Institute, Sweden, noted hisInstitute’s work on the use of sugar-cane and sweet sorghum for ethanolproduction, and provided an analysis ofproduction and export potential inAfrican regions. He highlighted highland availability and crop productivity incertain Southern African countries. Healso said that the development ofethanol programmes requires multisec-toral and multipurpose strategies,along with the use of the most produc-tive feedstocks. Presenting global sce-narios for ethanol blending by 2030, hesuggested that the biofuels marketcould become competitive with theremoval of international trade barriers.

In the ensuing discussion, one par-ticipant noted the need to identify cropsand technologies suited to local condi-tions. Some participants questioned thelikelihood of achieving an equitable dis-tribution of benefits from biofuels whenthe concept of economies of scaleencourages larger-scale production.One participant pointed to limitationswith regard to the use of sorghum forethanol production.

Reporting on the session’s out-comes in plenary on Wednesday,Nogoye Thiam, environnement etdéveloppement du tiers-monde(ENDA), noted that participant’s recom-mendations for an action plan onethanol development concerned build-ing stakeholders’ capacity, developinglocal expertise in technology, andestablishing an expert network for pro-moting best practices. He said sessionparticipants also recommended, interalia: focusing on domestic energydemands over exports; meeting needsin relation to both energy availabilityand rural development; creating inven-tories of biofuel technologies; consider-ing the environmental impacts of suchtechnologies; developing cogeneration

plants; undertaking feasibility studieson potential competition between foodand energy crops; and pricing biofuelsappropriately.

Biodiesel

The session on biodiesel was chairedby Rainer Janssen, WIP, Germany.

Ibrahim Togola highlighted differ-ences between pure plant oil andbiodiesel technologies. He describedthe characteristics of pure plant oildevelopment, including: the adaptationof an engine to the fuel; small, decen-tralized production; and low investmentrequirements. He explained that, incontrast, biodiesel requires adaptationof the fuel to the engine, centralizedproduction and higher investments. Henoted that biodiesel is not a solution formany countries and suggested pureplant oil production as most appropriatefor the Sahel region. He stressed that,regardless of the technology used, aclear regulatory framework is needed.He also recommended the establish-ment of centres of excellence for shar-ing good practices and lessonslearned.

Regarding pure plant oil processes,some participants discussed presssize, outputs, costs and availabilities atthe local level. Noting biodiesel is still atthe experimental stage in Africa, oneparticipant recommended establishingresearch centres where in-depthresearch on biodiesel can take place,while another suggested establishingfacilities to exchange experiences.

Session Chair Janssen noted thatthere are advantages to both biodieseland pure plant oil, and cautionedagainst comparing the two as they fulfildifferent needs. One participant saidbiodiesel should not be discredited onthe continent before it is further devel-oped, while another cautioned againstpromoting rural development at theexpense of industrial development.Other recommendations included:investigating biofuel technologies andequipment already available in Africa;taking into account human rights issueswhen allocating land for biofuels; satis-fying domestic consumption needsbefore exporting; establishing a fund toencourage biodiesel production; anddeveloping policies to support small-scale biodiesel development.

In plenary on Wednesday, ChairJanssen reported on the session’s out-comes, noting that discussions high-lighted a similar approach to ethanoland biodiesel development. He pre-

sented participants’ recommendationsfor the plan of action on biofuels’ devel-opment in Africa, including: • developing regional and national

strategies and policies and appro-priate financing tools to ensure thecontribution of biofuels to economicdevelopment;

• harnessing opportunities presentedby both biodiesel and straight veg-etable oil at the village level, andthe benefits offered by agro-indus-trial development for national con-sumption and future exports;

• assessing social and environmentalimpacts;

• performing research and develop-ment on, and maximizing the bene-fits of, the whole ‘value chain’; and

• establishing centres of excellenceto disseminate information oncrops, production methods andconversion technologies, in cooper-ation with UNIDO and AFREC.

BIOGAS AND BIOMASS

GASIFICATION

Session Chair Pradeep Monga,UNIDO, noted that biomass gasifica-tion technology dates back to the1940s, has had varied experiencesworldwide, and has been commer-cialised mostly in India and China.

Srinivasaiah Dasappa, Indian Insti-tute of Science, examined the potentialof biomass gasification in Africa, notingthat it can replace existing oil-basedelectricity generation in remote com-munities without major capital invest-ments, thus contributing to rural devel-opment and climate change mitigation.He identified several barriers to thewider application of this technology,including the lack of comprehensivedata on: regional demand; existing fos-sil fuel-based power generation; andestimates of the region’s biomasspotential.

Graziano Bertogli, ICS-UNIDO,noted that while bioenergy productionpresents a promising opportunity forAfrican countries, broader renewableenergy options such as geothermalenergy, should also be considered.Noting that 70% of global water con-sumption occurs in the agricultural sec-tor, he cautioned that biofuels mayincrease pressure on water resources,especially as biofuel crops are amongthe most water-intensive.

John Afari-Idan, Biofuel Task TeamLeader, African Roundtable on Sustain-able Consumption and Production, pre-sented on the industrial application of

Page 19: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 19

biogas technology, highlighting Ghana’sexperiences in introducing this technol-ogy into the food, healthcare, hospitali-ty and other sectors. Pointing to weak-nesses in current waste managementpractices, he stressed the potential ofbiogas for generating energy, achievingbetter sanitation, reducing pollution andmitigating climate change. Noting thatfinancing remains the greatest chal-lenge, he called for increased stake-holder awareness, appropriate institu-tional frameworks, capacity buildingand secure IPRs.

During the discussion that followed,participants, inter alia, welcomed bio-mass gasification and biogas genera-tion as promising technologies, dis-cussed their application for meetinghousehold energy needs and encour-aged studies on Africa’s market poten-tial.

Presenting the session’s recom-mendations in plenary on Wednesday,session Chair Monga noted that partic-ipants identified the need for: anenabling policy environment; incentivesfor technology and knowledge transfer;training and capacity building, particu-larly regarding the maintenance of bio-fuels facilities; strengthened researchand development; dedicated financialmechanisms; and information sharingon lessons learned and best practices.

CROSS-CUTTING ISSUES

Policy and regulatory frameworks

Ibrahima Konate, West African Eco-nomic and Monetary Union (UEMOA),chaired this session.

Jacques Molout, ECA, presentedon policy and regulatory frameworks forbiofuels development in Africa. Hestressed the need to elaborate policiesthat reflect national and regional priori-ties, clarify the role of stakeholders,and develop implementation strategies.He suggested that policy and regulato-ry guidelines could: identify priorityfeedstocks; favour the usage of exist-ing crops; provide safeguards for foodsecurity; set national consumption tar-gets; promote small-scale production;remove barriers to national and interna-tional investments; and create incen-tives for private sector participation. Hesaid future priority actions shouldinclude supporting policy makers at thenational and regional levels, and organ-izing national dialogues on the opportu-nities and challenges of biofuels devel-opment.

In the ensuing discussion, partici-

pants suggested implementing a biofu-els levy, enhancing private sectorincentives, creating national institution-al and consultative frameworks, andharnessing local funding and expertise.

Reporting on the session’s recom-mendations in plenary on Wednesday,Jacques Molout noted that, in order toharness biofuels for poverty reductionand energy security, African policymakers should develop policies andregulations that are linked to nationaland subregional development visions.He also noted that policies should betargeted at poverty reduction, and atensuring food security, economic andenvironmental sustainability, socialequity and inclusiveness. He addedthat policies should encourage the useof marginal lands; induce local transfor-mation; promote research and develop-ment and technology transfer; includecapacity building; and foster privatesector participation.

Environment and sustainability

The session on environment and sus-tainability was chaired by Yogesh Vyas,AfDB.

Maria Michela Morese, GBEP,emphasized the need to develop andharmonize sustainability principles forbiofuels, cautioning that standards andcertification schemes should not createunnecessary trade barriers.

Njeri Wamukonya, UNEP, highlight-ed the importance of recognizing sub-regional contexts in developing sustain-ability criteria, and discussed risksassociated with biofuels production,including increased water demand, fer-tilizer use and the degradation of mar-ginal lands.

Rocio Diaz-Chavez, Imperial Col-lege London, briefed participants onEuropean initiatives to develop sustain-ability criteria for biofuels, spearheadedby the UK, the Netherlands and Ger-many. She said that the proposed envi-ronmental sustainability criteria relateto biodiversity conservation, soil quali-ty, water quantity, air pollution andgreenhouse gas emissions reductions.

Stanford Mwakasonda, EnergyResearch Centre, University of CapeTown, advocated: biofuels specializa-tion based on a country’s comparativeadvantage; integrating biofuels intoexisting sectoral policies; and develop-ing regional programmes and initiativesthat can withstand the ‘sustainabledevelopment test.’

During the ensuing discussion,some participants voiced concerns

about the possible imposition of stan-dards and certification schemes bydeveloped countries, and the unafford-ability of such standards for small-scalefarmers. Many participants called for a‘home-grown’ African certificationapproach that would recognize region-al circumstances and capacity con-straints. Some participants suggesteddrawing on the experience of certifica-tion in the flower industry. They furtheridentified areas for future research,including available technologies for,and impacts associated with, variousfeedstocks. They also emphasizedNorth-South and South-South coopera-tion.

In plenary on Wednesday, sessionChair Vyas presented the participants’outcomes, noting consensus on theneed for establishing a biofuels indus-try in Africa and developing policies andguidelines to ensure environmentalsustainability and social equity. He alsounderscored the need for a compre-hensive study on feedstocks, technolo-gies, end-use applications, and envi-ronmental impacts before developingbiofuels policies and guidelines, andsaid the group thought that UNIDO,UNEP, the FAO and the AfDB, amongothers, should lead such a process. Onbiofuel certification, he emphasized therelevance of learning from internationalcertification schemes in the forestryand agricultural sectors; consideringthe implications of certificationschemes for small-scale farmers; andexercising continental political leader-ship in international negotiations.

Financing and investment

Session Chair Kwadwo Asenso-Okyere, International Food PolicyResearch Institute, noted the need tofocus on the economics of biofuels,especially with regard to small-scalefarmers.

Ernest Tettey, AfDB, elaborated onthe AfDB’s financial products and keyareas of intervention, including directlending to private sector entities andloan syndication. Discussing loantypes, such as floating and variableloans, he said that the payment periodfor AfDB loans is longer than that ofcommercial banks and that there is a‘grace period’ on repayments. He alsonoted that the AfDB sometimes grantsloans in local currencies. He elaboratedon loan eligibility criteria, including therequirement that a qualifying companymay be owned by a foreign enterprisebut must also be established in Africa.

Page 20: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

20 Energy Management News

Participants discussed the pre-paredness of the AfDB to finance biofu-els projects, particularly through start-up loans, alternative funding optionsand the financial risks associated withbiofuels projects. Several participantsurged greater private sector support bythe AfDB, while others advocatedfinancing options that address the con-cerns of small-scale farmers andpoverty alleviation. Participants alsodiscussed the need for regional leader-ship, given that financing challengescannot be met by countries individually.

Recalling the Maputo Declarationon Energy Security and Sustainabilityin Africa, adopted by FEMA on 30March 2007, and its provisions onincreasing funds for agricultural devel-opment, session Chair Asenso-Okyerehighlighted the role of the public sectorin creating enabling environments andfinancing for biofuels development.

PLENARY SESSIONS

Regional biofuels activities

On Wednesday, Lami Keun, Director ofEnergy, Senegal, chaired a plenarysession on regional biofuels activities.

Nzola Mahungu, International Insti-tute of Tropical Agriculture, presentedon the NEPAD Pan-African CassavaInitiative (PACI), established in 2004 topromote food security and income gen-eration. He noted that PACI invests incassava cultivation, primary processingand feedstock supply, and stressedthat the overall objective of the initiativeis to make cassava production sustain-able and competitive for ethanol pro-duction in Africa. He underscored therole of the private sector in this areaand the need for governments to createenabling conditions for private sectorparticipation.

Mohamedain Seif-Elnasr, CommonMarket for Eastern and Southern Africa(COMESA), presented on COMESAprogrammes that relate to biofuels andother renewable energy sources. Henoted large-scale ethanol programmesin Malawi and Swaziland, and biogaselectricity generation in Kenya. Outlin-ing the COMESA energy programme,he noted ongoing efforts to adopt amodel energy framework for promotingbiofuels and to develop guidelines forpromoting investment in the renewableenergy sector.

Mamadou Dianka, UEMOA, notedthe subregion’s dependence on oilimports and biomass, and UEMOA’scommon energy policy. He recom-

mended, among other things, develop-ment of national policies and strategiesbased on resource availability, andadoption of a continental action planfocused on rural development and localentrepreneurship.

Stressing the need for an institu-tional framework to oversee biofuelsdevelopment on the continent, HusseinElhag, AFREC, outlined the concept ofan African biofuels centre. He said thecentre could be created as a subsidiaryof AFREC and could seek to achievesustainable energy security for Africathrough establishing an integrated bio-fuels industry characterized by a con-sistent ‘value chain.’ He added that thecentre’s proposed vision would be tocreate a pathway towards an African‘green’ alternative to the Organizationof Petroleum Exporting Countries.

Pradeep Monga outlined a UNIDOinitiative to establish an interregionalbioenergy network, noting it could playa catalytic role in: information sharing;the linking of technological, trade,investment and environmental issues;and the promotion of interregionalcooperation. He also noted that the net-work will initially focus on Africa, partic-ularly on sharing industrial conversiontechnologies and information, and onaddressing economic and sustainabilityissues.

Rex Brown, D1 Oil, Swaziland, pre-sented on his company’s jatrophaactivities in Swaziland. He said that D1Oil signed an agreement with theSwaziland Government and WorldVision to provide alternative livelihoodsfor farmers through jatropha produc-tion. He elaborated on a number ofrelated activities, including the develop-ment of superior jatropha varieties andthe training of farmers.

ACTION PLAN FOR BIOFUELS

DEVELOPMENT IN AFRICA

In plenary on Wednesday, StephenKarekezi presented a draft ten-yearaction plan for biofuels development inAfrica. He explained that the plan’s pri-ority sectors included ethanol, biomassgasification, biodiesel and cogenera-tion. He listed certain short- and long-term measures for various ecoregions,suggesting – in the case of wetlandecosystems – ethanol and cogenera-tion as short-term measures and bio-mass gasification and biodiesel aslong-term measures.

He also identified a number ofcross-cutting programme areas, name-ly, policy and institutional frameworks,

financing mechanisms, resource ass-essments, capacity building and thestrengthening of technical expertise.Highlighting potential outputs and indi-cators for monitoring progress on eachof the cross-cutting areas, he suggest-ed that for policy and institutionalframeworks, technical policy studiesshould be produced as outputs, withthe number of countries establishingsupportive policy measures acting asan indicator.

Elaborating on immediate priorities,he recommended that countries focuson proven options relating to existingagro-industries, undertake regular re-source assessments, encourage theexchange of technical skills nationallyand internationally, build a platform forimplementing a regional biofuels net-work, and establish centres of excel-lence for bioenergy.

Commenting on the proposedaction plan, Guinea noted the need forbetter research and development ofbiofuel crop varieties and the need toinclude agriculture and environmentministers in biofuels discussions. Theaction plan was agreed with thisamendment and subsequently annex-ed to the Ministerial Declaration, dis-cussed below.

MINISTERIAL ROUNDTABLE

Held on Wednesday afternoon, theMinisterial Roundtable was chaired byMichael Nyambuya, Minister of Energyand Power Development, Zimbabwe,who noted that the seminar had helpedto identify the current status of biofuelsdevelopment in Africa and practicalways forward for non-oil producingcountries.

Ato Alemayehu Tegenu, Minister ofEnergy and Mines, Ethiopia, noted thatworld oil prices are no longer affordablefor his country, and urged a ‘fast-track’approach to biofuels development onthe continent.

Angelina Jan Teny, State Minister ofEnergy, Sudan, emphasized that theestablishment of a sustainable biofuelsindustry in developing countries wouldnot be a luxury, but a tangible contribu-tion to poverty reduction. Noting thatwhile Sudan is a major oil producer,only 30% of its population has accessto electricity, she called for Africancountries to avoid the pitfalls of Africa’sexperience with the oil industry bybecoming a part of the ‘global biofuelsequation.’

Mahmoud Camara, Minister of Agri-culture, Livestock, Environment, Water

Page 21: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 21

and Forests, Guinea, noted that theprincipal objective of biofuels develop-ment should be to improve the liveli-hoods of the rural poor, which he saidaccount for 60% of his country’s popu-lation. He stressed the need to ensurethat Africa’s resources are exploited tothe benefit of its population and to sat-isfy domestic demand for biofuelsbefore entering international markets.

Following these comments, round-table Chair Nyambuya presented theconclusions of the Ministerial Round-table discussions, entitled ‘SustainableBiofuels Development in Africa: Oppor-tunities and Challenges.’ He noted rec-ommendations relating to the coordi-nating role of the AU; governmentleadership; support for an African biofu-els partnership; investment incentives;the establishment of a biofuels fund;technological assessments; informa-tion exchange; synergies betweenAfrican and international initiatives;food security and environmentalissues; and certification and sustain-ability concerns.

Brazil suggested there was a lackof consensus on the development ofcertification measures, contending thatsuch measures might result in cumber-some and costly schemes that wouldjeopardize the development of anAfrican biofuels industry. Sudan andothers highlighted the importance ofsustainability issues and proposedreferring to national, rather than global,certification schemes. Delegates agreedto the conclusions with these amend-ments.

Philippe Niyongabo then presentedthe draft Addis Ababa Declaration onSustainable Biofuels Development inAfrica. Commenting on the draft decla-ration, Brazil suggested referring to theneed to stimulate private sector partici-pation and access to international mar-kets, emphasizing its readiness tocooperate with Africa on biofuels devel-opment. Supporting the declaration,Mozambique suggested referring to theBrazilian experience in the document.Senegal called for conducting an inven-tory of local crop varieties and improv-ing them for biofuels development.Guinea proposed the insertion of anannex containing a list of biofuel cropvarieties and their yields, costs andbenefits. The Democratic Republic ofCongo called for the establishment of aregional consultative framework for bio-fuels development, consideration ofbiofuels by all research institutes andUNIDO’s support for biofuels-related

activities. The declaration was adopted fol-

lowing these comments.

Addis Ababa Declaration

In the Addis Ababa Declaration on Sus-tainable Biofuels Development inAfrica, the preamble notes that biofuelsdevelopment is an important priority forAfrica, given increasing oil prices, agri-cultural and trade policy reforms, localand global environmental challenges,and the availability of new technolo-gies.

The declaration calls for, inter alia: • developing enabling policy and reg-

ulatory frameworks, linked to over-all development policies, that pro-mote equity, participation, localconsumption and energy security;

• integrating biofuels in broad ener-gy-related frameworks;

• taking the lead on biofuels researchand development aspects relevantto Africa;

• harmonizing national biofuels poli-cies and standards through theregional economic communities;

• increasing stakeholder capacity;• participating in global sustainability

discussions and preparing guidingprinciples on biofuels to enableAfrica to compete internationally;

• engaging public financing institu-tions to support biofuels develop-ment;

• engaging development partners toenable North-South and South-South cooperation;

• minimizing the risks for small-scaleproducers in captive markets;

• formalizing the organization of simi-lar high-level seminars at continen-tal and regional levels; and

• establishing a forum to promoteaccess to information relating tobest practices, technology transferand investments.

Through the declaration, African minis-ters also commit to implementing theidentified priority actions on biofuelsand request the AU to present the dec-laration to upcoming ministerial confer-ences on sectors relevant to biofuels.

ACTION PLAN

The declaration also contains an ActionPlan for Biofuels Development inAfrica, which covers a ten-year period.The action plan is based on an ecore-gional approach, and encompasses thedevelopment of ethanol, biodiesel, bio-gas, biomass gasification, and cogen-eration as priority sectors.

The action plan also contains anumber of cross-cutting programmeareas, including policy and institutionalframeworks, financing mechanisms,resource assessments, capacity build-ing and strengthening technical expert-ise. The action plan proposes outputsand indicators for monitoring progressin these cross-cutting areas. Immediatepriority areas identified in the actionplan include a focus on proven optionsrelating to existing agro-industries; reg-ular resource assessments; and theestablishment of a regional biofuelsnetwork.

CLOSING SESSION

Heinz Leuenberger thanked partici-pants for their contributions, empha-sized UNIDO’s commitment to support-ing biofuels development, and ex-pressed hope that the second high-level seminar on biofuels would be heldin Africa in 2009.

Antonio Simões, Ministry of ForeignAffairs, Brazil, acknowledged the semi-nar as an important first step towardmaking biofuels a reality in Africa, andnoted that much work remains to bedone.

AU Commissioner Bernard Zobathanked ministers, AU member statesand other participants for the quality ofwork carried out. He note that the sem-inar helped to identify social, economicand environmental concerns regardingbiofuels development in Africa, and toformulate guidance for an African visionfor biofuels policies and strategies. Hepledged the AU’s support for the sus-tainable development of biofuels inAfrica, in cooperation with internationalorganizations and leading biofuel-pro-ducing countries, and closed the meet-ing.

(Adapted from Earth Negotiations Bulletin)

l Contact: Stanford MwakasondaEnergy Research Centre (ERC)

University of Cape Town

Private Bag, Rondebosch, 7701

South Africa

Tel: +27 21 650 2521

Fax: +27 21 650 2830

Cell: +27 7220 37352

E-mail:

[email protected]

Page 22: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

22 Energy Management News

Despite all appearances of stronggrowth, robust corporate earn-ings growth and rising equity

prices, we are being subjected tosevere disruptive labour, energy andcredit shocks as much at the globallevel as locally.

Some of these shocks cancel eachother out, others reinforce one another.Is the net effect derailment through(much) higher interest rates, interestrate cuts or nothing of the kind?

Global labour supply expansion inAsia, for example, has led to fast glob-al GDP growth (supply push), accom-modating consumption surges in richcountries (demand pull), and high sav-ings surpluses available for globalinvestment in many emerging producercountries.

This is a force that fans demandgrowth, creates surplus savings, andserves to keep global inflation sup-pressed. It is a virtuous shock in everyrespect, also for us, supporting ourexports and capital inflows, suppress-ing our inflation and interest rates, andfanning our domestic demand growth.

In contrast, our domestic labourshock is quite a different kettle of fish.Skilled labour supply has become con-strained through high absorption byway of growing employment, retirement(often premature), emigration and polit-ical intrusion skewing labour marketconditions through affirmative action.

Such constrained supply is con-tributing of late to high wage and salarysettlements, well in excess of inflation,in some instances maintaining gener-ous real income gains.

While this condition keeps stimulat-ing consumption growth, it is theupward pressure on unit labour costs,underlying inflation and ultimately inter-est rates that could eventually short-cir-cuit the growth process.

The energy shock is mostly thesame, globally and domestic. Primarilyan oil shock, brought on by strongdemand growth, curtailed supply ofcrude and refinery capacity, haspushed oil prices steadily higher.

There is also a large speculativeelement that has entered the market,hedge funds investing in commodities,

pushing up prices beyond ordinarydemand pressures. Such speculativedemand can still intensify, but it canalso at times unwind, making for turbu-lent price trends.

For the moment, oil prices arepushing record levels and may still risefurther in coming months. In theprocess, it will eventually reinforce ourrising CPIX inflation trend, even iffalling refined product prices in theshort-term pull our petrol price down too.

A domestic energy aspect isEskom’s expansion ambition and itspreference to raise capital financingthrough higher tariffs. To the extent thatthe regulator goes along with this strat-egy, local inflation and interest ratesmay suffer upward pressure.

The oil shock has further ramifica-tions in the food chain, creating demandfor biofuels, pushing inflation higher.

Thus, the external labour shockbenefits us, while the local labourshock and the various energy shockspenalize us. To this must still be addedthe credit shocks.

l Website: www.fnb.co.za/economics

Big interest in

WWEC 2007

The 6th World Wind Energy Con-ference & Exhibition is to be heldin Mar del Plata/Argentina from 2

– 4 October, which is organised by theWWEA and the Argentine Wind EnergyAssociation. It is obtaining an over-whelming interest from Latin Americaand worldwide. International and re-gional companies will meet to take thenecessary steps for the creation ofstrong domestic wind industries andrelated industrial capacities.

Most of the Latin American coun-tries are currently facing a seriousshortage of electricity. In the host coun-try, Argentina, more and more compa-

nies are seriously affected by powershortages and blackouts and are there-fore willing to invest in domestic renew-able energy capacities. In Argentina,200 MW of wind farms have beenauthorised by the national wholesalemarket regulator, CAMESSA, to beinstalled as a first step at the Atlanticcoastline of Buenos Aires province, andto meet the energy needs of thosecompanies directly affected by powershortages. In the neighbouring Brazil,the wind market started its take-off in2006 with 208 MW of new installationsmaking it the number one wind countryin the region. Further countries likeChile, Mexico and Cuba have startedsetting up favourable frameworks forwind energy utilisation on a large scale.

One major challenge for the LatinAmerican wind markets will be theestablishment of domestic wind indus-tries and manufacturing capacitieswithin the region. The actual worldwideshortage of wind turbines affects theregion heavily because only little man-ufacturing capacities have been set upso far.

WWEC 2007 as the first majorinternational wind energy event ever

held in Latin America will offer possibil-ities for companies and political deci-sion-makers to discuss strategies onhow to answer these challengesthrough favourable political frameworksand industry partnerships. High-leveldelegates from all over the world willcontribute their first-hand experiencesand enable Latin American countries toboost their domestic wind industries.

Several leading international anddomestic wind turbine manufacturers,actual and potential wind farm opera-tors like electricity cooperatives as wellas wind farm developers will attendWWEC 2007 to establish new joint ven-tures and further cooperation in orderto develop the emerging Latin Ameri-can wind markets.

l Contact: Stefan GsängerSecretary General – World Wind

Energy Association

Charles de Gaulle Str. 5

53113 Bonn, Germany

Tel: +49 228 369 4080

Fax: +49 228 369 4084

Skype: StefanGsaenger

E-mail: [email protected]

Websites: www.wwindea.org and

www.wwec2007.org

Dealing with an energy shock

Page 23: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 23

Rejuvenation

of cities

through the

development

of energy

implementation

strategiesEugene Linden wrote: ‘The rhythm of

history has been the rise, collapse and

occasional rebirth of cities’

INTRODUCTION

As cities grow, develop and form apattern and identity, the use ofenergy shapes their future. The

use of energy goes hand in hand withincrease in population, and the rise inworld population has led to a corre-sponding increase in the demand forenergy. O’Meara (1999) stated that thegrowth of cities has a direct link and isinfluenced by the development of ener-gy technology. Energy is very importantin the development process. It plays avital role in determining the socio-eco-nomic development of an area. Theachievement of the Millennium Devel-opment Goals (MDG) which includeshalving the number of persons living inPoverty by 2015 cannot be realisedwithout access to modern energy serv-ices.

City Development is based onmany factors. Abu-Lughod (1991) indi-cated that most cities tend to developalong rivers, trade routes and at cere-monial and religious sites; their growthis based on development of energy,proper organisational structure andtransportation. Developments bring iso-lated communities together and leadsto growth, and leads to formation ofcities. Today more people live in citiesrather than in rural areas, and there isconstant influx of people into cities(Habitat, 2001). It is projected that by2050 two thirds of the world’s popula-tion will be living in cities. The chal-lenge of policy makers is to reducepoverty in cities (UN Habitat 2006).

There are many advantages of liv-

ing in cities, but the environmentalcosts, which are considerable, must notbe overlooked. This influx of peopleinto cities has various positive attrib-utes; however, it can lead to urbanpoverty if the city cannot provide theservices needed by its residents. Fur-thermore, this influx negatively affectsthe ability of humans to achieve theirpotential and prevents the full develop-ment of social capital.1

CITY REJUVENATION

Cities occupy two percent of the Earth’ssurface, but consume the bulk of itsresources; therefore the struggle toachieve a sustainable environment onEarth will be won or lost in cities. Theonus is therefore to create a city thatreduces the demand it places on theEarth’s resources by creating less neg-ative impacts and waste. This can beachieved by various means includingreduction in the total energy use percapita, decrease in car use and encour-agement of car pooling, cycling, walk-ing and mass transit.

Cities therefore need to transformto respond to these changes by adapt-ing new realities. This transformationaffects energy use, the pattern of landuse, the physical concentration of peo-ple, their social structure and interac-tions, as well as the nature and scale ofeconomic production (World Bank,2000). However, when a city lacks theability to provide these services fortransformation, its social equity will becompromised. Nijkamp and Perrels(1994) feel that the solution is for citiesto restructure their environmental, eco-nomic and technological base. This canbe done with new investment and useof technology. O’Meara (1999) in con-trast, states that, for cities to be viable,transformation is needed in six vitalareas: food, water, energy, waste,transportation and land use. These willrequire new technologies and policies,although much will depend on imple-menting already existing policies andtechnologies.

The rejuvenation of cities has tochange a city from being unsustainableto sustainable. Nijkamp and Perrels(1994) see urban sustainability as ‘con-tinuity in changing situations’. Theimplication is that cities are in constantstate of flux in response to various fac-tors, which can be external or internal.The achievement of sustainabilitytherefore has various ramifications withemphasis on the ability of present andfuture generations to take care of their

needs. The local authority has a duty tofacilitate such development. It cannotbe achieved by only policy formulation,but with a clear focus on implementa-tion.

CITY AND SUSTAINABILITY

Cities can be classified as unsustain-able if it has the following characteris-tics according to Nijkamp and Perrels(1994): decline in economic base,decline in population, inefficient energysystems, loss of employment andunbalanced demographic composition.Rees and Wackernagel (1996) viewcities as a system that absorbs energyand matter from their surroundings tomaintain their integrity and return it in adegraded form. When the consumptionbecomes unsustainable it will havenegative impacts on the system andwill lead to the depletion of natural cap-ital.2 An efficient energy system is vitalfor the sustained growth of a city. Aninefficient energy system can lead to adecline in economic base, leading tounemployment and people leaving thecity which will lead to an unbalanceddemographic composition of the city.Therefore, for a city to be sustainable,careful consideration of its energy useis vital.

This then creates a responsibility onthe city to be watchful of the resourcesthey use, for it is this input that pro-duces waste as a by product. Alberti(1996) indicates that in applying theprinciples of sustainability to cities, theinhabitants should be able to meet theirneeds without imposing unsustainableimpacts on local and global resources.Ideally, a sustainable city is one that isself-reliant and has no negativeimpacts on its surroundings.

ENERGY IMPLEMENTATION

STRATEGIES

For cities to be effective in the imple-mentation of sustainability principles, ithas to start from grassroots and shouldbe based on the reality at each place.The implication is that the differentpeculiarities of each city in terms ofsize, economics, social, politics, cul-ture, energy use, etc will be taken intoconsideration. Rosen and Dincer (2001)indicated that energy can be used tocontribute significantly to urban sus-tainability if the source is secure, reli-able, has less negative impact and isobtainable at reasonable cost.

Energy cannot be separated fromsustainable development. It is one ofthe pillars of economic and social

Page 24: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

24 Energy Management News

development. The generation and useof energy has various environmentaleffects, some of which are immediateand other futuristic. For example, fossilfuel use causes pollution, which hasserious implications for health. Theseeffects have not deterred the use ofenergy because it is vital for having abetter quality of life and economicgrowth. The implication of this is thatpolicy makers are faced with the dilem-ma of paying lip service to long-termenvironmental implications of theaction.

The lack of strategies to implementenergy policies was identified and hasbeen the central theme in most interna-tional and inters government forumslike the 2005 World Summit (Takada &Charles, 2006). The 14th session of theCommission on Sustainable Develop-ment (CSD) in 2006 identified a lack ofan energy implementation strategy asthe bane of development. At the WorldSummit on Sustainable Developmentin 2002, the Johannesburg Plan ofImplementation (JPOI) was adopted asa tool to address energy in the frame-work of sustainable development. Itcalls among others an improvement ofaccess to reliable, affordable andviable energy services. It affirms thatsuch energy services have a positiveimpact in poverty eradication; and italso calls for greater use of renewableenergy sources (www.un.org/esa/sust-dev/sdissues/energy/enr.htm).

This article concludes that there is aneed to develop various strategies forsustainable energy implementation incities. This strategy to be developedtherefore depends on the nature of thecity as argued above. There is nogeneric model for every city, however,cities can learn from the experience ofother cities. The beginning of successin having sustainable cities will be wononce cities take the step in developingstrategies on energy implementation.

Notes

1. The combination of informal institu-tions, norms, conventions andsocial preferences possessed by asociety enabling effective achieve-ment of social and economic goals.Bonding social capital draws peoplein a given group more closelytogether, while bridging social capi-tal builds links between socialgroups. www.med.govt.nz/irdev/econ_dev/population/2003/2003-07.html.

2. Natural capital can include: biodi-versity, fisheries, air / water. Deple-tion through de-vegetation, defor-estation, desertification, etc.

ReferencesAbu-Lughod, J. L. (1991). Changing Cities:

Urban Sociology. New York: Harper-Collins.

Alberta, M. (1996). Measuring Urban Sus-tainability. Environmental Impact Assess-

ment Review, 16: 381 – 424. New York:Elsevier.

Habitats (2001). Cities in a Globalising

World: Global Report on Human Settle-

ments 2001. London: Earthscan.

Newman, P. & Kenworthy, J. (1999). Sus-

tainability and Cities: Overcoming Auto-

mobile Dependence. Washington, D.C.:Island Press.

Nijkamp, P. & Perrels, A. (1994). Sustain-

able Cities in Europe. London: Earthscan.

O’Meara, M. (1999). Reinventing Cities for

People and the Planet. Washington, D.C.:Worldwatch Publications.

Pacione, M. (2001). Urban Geography: a

Spatial Perspective. London: Routledge.

Rees, W. & Wackernagel (1996). UrbanEcological Footprints: Why Cities cannotbe Sustainable – and why they are Key toSustainability; In Environmental Impact

Assessment Review. New York: Elsevier.

Rosen, M. A. & Dincer, I. (2001). Exergy asthe Confluence of Energy, Environmentand Sustainable Development. Exergy

International journal.1 (1) 2001) 3 –13.

Takada, M. & Charles, A.N. – lead authors,(2006). Energizing Poverty Reduction: A

Review of the Energy-Poverty Nexus in

Poverty Reduction Strategy Papers.

UNDP: New York.

World Bank, (2000). Cities in Transition:

World Bank Urban and Local Government

Strategy. Washington, D.C.: World Bank.

l Contact: Colins ImohEnergy Research Centre

University of Cape Town

Mobile: +27 (0)82 504 5252

E-mail: [email protected]

Koeberg refueling

outage

On Monday 13 August 2007; Koeberg’s Unit 1 was shut down for refuellingand maintenance. During this period, Unit 2 continued to operate.

This was a planned outage and provision was made to ensure that therewould be enough power to supply the Western Cape as well as the rest of thecountry.

The new Open-Cycle Gas Turbines, Ankerlig at Atlantis and Gourikwa atMossel Bay are fully operational and will help supply power during the peak peri-ods (06:00 till 08:00 in the morning and 17:00 till 20:00 in the evening). Powerfrom Koeberg’s Unit 2, the Open-Cycle Gas Turbines as well as the power thatcan be transferred in via overhead lines from Mpumalanga, will ensure the con-tinuity of supply to the Western Cape.

The Koeberg units have to shut down every 16 to 18 months to undergo refu-elling and maintenance.

l Contact: Group Communication Department, EskomE-mail: [email protected]

Website: www.eskom.co.za

Page 25: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 25

Hilary Joffe wrote an article inBusiness Day titled: Bad time

for government to get coy about

its vision for energy. While I wouldagree with her that government is high-ly selective in its enthusiasm for com-petition and partnerships with the pri-vate sector, as it is with implementingthe 1998 White Paper on Energy policy,I see no evidence of any vision. More ofeverything we have been doing, includ-ing subsidising dirty energy options,with an expanded role for nuclearpower the only deviation from businessas usual, does not constitute a vision.

The DME’s ‘Energy Security MasterPlan – Liquid Fuels’ seems typical. Wewere promised an Integrated EnergyPlan by early this year, but that processhas been ‘held in abeyance’ since lastSeptember and we now have anothersupply-driven strategy. Judging by theMinister of Public Enterprises, all deci-sions regarding electricity supply infra-structure investments will also havebeen made well before an IntegratedEnergy Plan has been developed.

The lip service paid to proper plan-ning in this latest DME strategy is con-tradicted by the behaviour of this andother departments. The three sen-tences on improving energy efficiencyare welcome, particularly the statementthat reviews of efficiency and demandside management policy ‘should starttowards end 2007 or early 2008’, butthis is no substitute for appropriate allo-cation of resources, such as financingsolar water heating on a scale compa-rable to the avoided cost of a new gen-eration plan that it can deliver.

Treasury has waived the opportuni-ty to recoup some of the massive pub-lic subsidies on which Sasol was built,while also addressing the excessiveprofits extracted from all consumers(including those struggling to cope withour pathetic public transport system)due to the perversities of faith-basedmarkets. The revenue could have beenused for strategic investments to meetpolicy commitments to utilising ourabundant renewable energy resources,but the Minister of Finance, TrevorMaunuel, considers the goodwill of this

transnational to be of greater value. Tax incentives for more coal to liq-

uid fuel plant – the most greenhousegas intensive energy option by far –have also been mooted, despite theTreasury’s task team finding that addi-tional tax was justified with oil pricesover $55 per barrel. Such a plant wouldrequire inter-basin water transfer, e.g.from another big dam in Lesotho, tomeet its high water demand. Such sup-ply may not last as the climate changeimpacts our fossil fuel addiction mani-fest.

The Supply Master Plan makessome commendable observations,including: ‘In ensuring energy security,a clear understanding of the interactionof energy with the economy and theenvironment is required, complement-ed by an understanding of the impact ofchanges in the environment on energy.’– indeed, this could be quoting the1998 White Paper, as with: ‘a modellingand integrated planning capability willneed to be built.’

However, one wonders what hasprovoked the line: ‘To prevent energyplans from being used for selfish pur-poses by individuals who are intent onselling their products at the expense ofthe economy and the people of SouthAfrica, energy modelling should alwaysbe policy neutral’ (page 56). GivenTreasury’s deference to Sasol, justified

as part of a package to tempt Sasol toproduce more products to sell to thepeople of South Africa, at prices thatare set bearing no relation to produc-tion costs and yielding revenues unre-lated to the publicly borne costs of mas-sive pollution and inefficient resourceuse, these must be the good guys. So Iguess it must be the fiendish emis-saries of the wind turbine companieslike Suzlon of India – as this companyrecently bought a majority share of alarge German turbine manufacturer,perhaps they can now be consideredas part of the neo-colonial conspiracyto deny Africans the right to screwthings up just as royally others didbefore them.

We need to know not only howmuch the role of government in energysupply might cost us, as Joffe pointsout, but also the failure to implementfull-cost accounting in the private sec-tor or to carry through Treasury’s envi-ronmental fiscal reform process. Weshould also count the costs of choosingenergy technologies and resourceswith low labour-intensity. Unfortunatelythe Externalities Study, mandated by1998 policy, was deferred again lastyear and new tendering is yet to com-mence.

The subservience of energy to theminerals sector, part of the apartheidlegacy, is arguably the greatest barrierto sustainable development in SouthAfrica. We’re unlikely to see anythingvisionary from government on energyunless it is liberated from this role, in adedicated department.

l Contact: Richard WorthingtonEarthlife Africa Johannesburg

E-mail: [email protected]

Website: www.earthlife.org.za

Energy’s

master-

supply

planning

serves

minerals

interests

Page 26: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

26 Energy Management News

Talk Radio 702, in partnership withSouth African Formula One worldchampion Jody Scheckter, Food

& Trees for Africa and JohannesburgCity Parks, is supporting the SowetoGreening Project, which aims to planthundreds of thousands of trees inSoweto in time for the 2010 FIFA WorldCup.

On Saturday, 1 September 2007,Scheckter handed over the first of 11000 trees he has sponsored throughFood & Trees for Africa to the commu-nity of Dobsonville, Soweto.

There were a number of VIPs, in-cluding Johannesburg Executive Mayor,Councillor Amos Masondo, and 500community members invited to cele-brate this milestone.

‘For the past two years, Talk Radio702 has been involved in greening proj-ects aimed at uplifting previously disad-vantaged communities and encourag-ing people to become self-sufficient,’says Talk Radio 702 station manager,Pheladi Gwangwa.

702 TREES

‘In 2005 we handed 702 trees to thecommunity of Soweto and last year wedonated the same amount to the com-munity of Ivory Park in Midrand. Thisyear we decided to get involved in theSoweto Greening Project.

‘We want to create an urban forestin Soweto, just as we have urbanforests in the northern suburbs ofJohannesburg. For us, it is more thanjust about planting trees. It's aboutleaving a legacy for the children andgrandchildren of the community ofSoweto.’

The project came about after SouthAfrica's greening organisation, Food &Trees for Africa (FTFA), was ap-proached to help raise funds and imple-ment its award-winning Trees forHomes programme in Soweto.

The Soweto Green project's keygoals are to distribute 200 000 fruit andindigenous trees to 200 000 Sowetanhomeowners, as well as train unem-ployed community members whobecome community based educators(CBEs), and provide them with short-term employment.

For every 500 trees FTFA (togetherwith the local stakeholders) identifiesand trains 10 CBEs who are employedpart-time for up to three months tospread awareness of the programme,the need for clean and green neigh-bourhoods, and the many benefits thattrees have, including their role in miti-gating climate change.

‘Climate change is arguably themost crucial issue of our time and is thebiggest environmental challenge thatwe face. While many of us agree thatwe must do something, it seems toovast a problem for any one of us totackle,’ says Jeunesse Park, CEO ofFTFA.

CARBON STANDARD

‘Early last year FTFA launched the Car-bon Standard – the first South Africancarbon calculator (accessible onwww.trees.co.za), which facilitates themeasurement of carbon footprints andequates this to the number of treesneeded to offset these emissions. TheCarbon Standard was launched tomake it easy and affordable for govern-ment, individuals, corporations andcommunities to measure their carbonfootprints and offset carbon emissionsby planting trees.’

FTFA has the backing of severallarge organisations, government offi-cials, as well as prominent personali-ties. Scheckter says he decided to getinvolved with FTFA because it touchedon two points he believed were of greatimportance.

‘Teaching people how to grow theirown food encourages long-term sus-tainability, which in turn, empowers

local communities. This way they don'thave to rely on the occasional food par-cel to survive,’ he says. ‘There is alsosomething very rewarding about pick-ing and eating fruit or vegetable grownin your own garden, and every tree thatis planted helps the environment.’

In addition, for the first time, thisyear's SAB Environmental Awards willbe carbon friendly, and this will beachieved by planting fruit trees inSoweto to offset the event's carbonemissions. The trees will form part ofthe Greening Soweto Project to im-prove the environment and to ensure itis a place that will welcome all visitorsexpected for the 2010 FIFA World Cup.

A MORE HEALTHY ENVIRONMENT

Johannesburg City Parks – the green-ing entity in the City of Johannesburg –aims to plant 100 000 trees in parksand public spaces and is acceleratinggreening programmes in its bid to builda more healthy and vibrant environ-ment in Johannesburg.

‘Programmes such as the SowetoGreening Project and the Tree-by-Treegreening initiative, are aimed at resolv-ing greening imbalances in new anddeveloping suburbs,’ said the Memberof Mayoral Committee for Environmentin the City of Johannesburg, CouncillorPrema Naidoo.

‘Greening our city is a sharedresponsibility. So many of our areas arerich in heritage and culture and yet poorin environment and in health. Johan-nesburg City Parks and its greeningpartners will observe National ArbourWeek by partnering schools, communi-ties and the private sector in varioustree planting ceremonies and use theweek as a platform to highlight theimportance of growing and nurturingour natural environment.’

(With acknowledgement to Biz-commu-

nity.com)

l Websites: www.bizcommunity.comwww.trees.co.za

www.sablimited.co.za.

Going

green

for

2010

Page 27: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Energy Management News 27

NOVEMBER 2007

8 – 9

PREPARING SOUTHERN AFRICA

FOR GLOBAL OIL DEPLETION

CONFERENCE

Gallagher Estate, Midrand, South

Africa

Contact: Preparing Southern Africa for

Global Oil Depletion Conference Sec-

retariat:

Global Conference Africa

Tel: 0861 111 706

Fax: 0861 111 707

E-mail: [email protected]

Website:

http://www.oildepletionconf.org/

Conference Steering Committee

E-mail: [email protected]

11 – 15

20TH WORLD ENERGY CONGRESS

– THE ENERGY FUTURE IN AN

INTERDEPENDENT WORLD

Rome, Italy

Contact: Arrivederci a Roma, Rome

2007 Organising Secretariat

Tel: +39 06 333 99 397

Fax: +39 06 333 99 401

E-mail:

[email protected]

Website: wwwrome2007.it

13 – 14

TPWIND FIRST GENERAL

ASSEMBLY

Brussels, Belgium

E-mail: [email protected]

Website: www.windplatform.eu

19 – 21

4TH WEST AFRICAN POWER

INDUSTRY CONVENTION (WAPIC)

Sheraton Hotel, Abuja, Nigeria

Contact: Nicole L. Smith, Conference

Manager NAPIC 2007, Spintelligent

(Pty) Ltd

Tel: +27 21 700 3500

Fax: +27 21 700 3501

Email: [email protected]

Websites: www.spintelligent.com and

www.esi-africa.com/events

DECEMBER 2007

3 – 12

THIRD INTERNATIONAL

CONFERENCE ON INDUSTRIAL

ELECTRONICS, TECHNOLOGY &

AUTOMATION

Contact: Dr Khaled Elleithy, CISSE

2007 General Co-Chair, Associate

Dean, School of Engineering, Univer-

sity of Bridgeport, Bridgeport, CT

06604, USA

E-mail: [email protected]

Website: www.cisse2007online.org

3 – 14

UNITED NATIONS CLIMATE

CHANGE CONFERENCE

Bali, Indonesia

Website: http://unfccc.int/meetings/

cop_13/items/4049.php

4 – 6

EUROPEAN OFFSHORE WIND

CONFERENCE (EOW2007)

Berlin, Germany

Contact: Jonathan Collings, EWEA

Tel: +32 2400 1056

E-mails: [email protected] and

[email protected]

MARCH 2008

17 – 19

3RD SUB-SAHARAN OIL, GAS &

PETROCHEMICAL EXHIBITION &

CONFERENCE

Cape Town International Confer-

ence Centre, Cape Town, South

Africa

Contact: Mark Burridge, Sales Manag-

er

Tel: 27 21 713 3360

Fax: 27 21 713 3366

Website: www.fairconsultants.com

25 – 28

8TH EUROPEAN CONFERENCE ON

INDUSTRIAL FURNACES AND

BOILERS

(INFUB-8), Vilamoura, Algarve, Por-

tugal

Contact: Prof. Albino Reis, Chairman,

INFUB, Rua Gago Coutinho 185 –

187, 4435-

034 Rio Tinto, Portugal

Tel: 351 22 973 4624 / 0747

Fax: 351 22 973 0746

E-mail: [email protected]

Website: www.cenertec.pt

APRIL 2008

14 – 16

PLANNING AFRICA 2008 –

SHAPING THE FUTURE

Sandton Convention Centre, Johan-

nesburg, South Africa

Contact: Karen Feuilherade, Precision

Conference Organisers, PO Box

32048,

Kyalami, 1684, South Africa

Mobile: +27 83 378 9883

Fax: +27 86 6087 645

E-mail: karen@precisionconfer-

ences.co.za

Websites:

www.precisionconferences.co.za and

www.saplanners.org.za

Energy events 2007–2008

Visit www.erc.uct.ac.za forfurther events and details

Page 28: Preparing Southern IN THIS ISSUE Africa for global oil … for global oil depletion 2 Energy Management News This article discusses the problem the Southern African Power Pool (SAPP)

Subscribe to

The Journal of Energy in Southern Africa (JESA) has been running for fourteen years, and has provedto be of a consistently high standard and to have a widening subscription base. The key receivers of

this quarterly journal are researchers, consulting engineers, energy producers, energy consumers anddecision makers.

The publication is balanced, representative, up to date and authorative. It is becoming increasinglyknown in other countries especially in Africa.

The JESA is a successful vehicle for the dissemination of information on the latest results and activitiesin the Southern African energy field, publicising results achieved and stimulating future activities. Thepotential impact in terms of distribution is the whole of sub-Saharan Africa. It covers matters of local

and regional interest as opposed to the internationally high technology content of other journals servingenergy interests.

It is the intention to keep the subscription rate relatively low to allow as many people as possible tohave access to the JESA.

ANNUAL SUBSCRIPTION RATES (FOUR ISSUES)

Individuals (Africa): R134 (single copy R51)Individuals (beyond Africa): US$109 (single copy US$39)

Corporate (Africa): R321 (single copy R103)Corporate (beyond Africa): US$218 (single copy US$77)

Cost includes VAT and airmail postage.Cheques should be made payable to the University of Cape Town and sent to the address given below.

Contact: Ann Steiner, Energy Research Centre, University of Cape Town, Private Bag, Rondebosch 7701, South Africa.

Tel: 021 650 4646Fax: 021 650 2830

E-mail: [email protected]

The newsletter is published quarterly by the Energy Research Centre (ERC) of theUniversity of Cape Town. (ERC is an amalgamation in 2004 of two organisations at

the University: the former Energy Research Institute and the Energy and DevelopmentResearch Centre.)

Energy Management News is available free of charge. The articles do notnecessarily reflect the views of the editor or of ERC.

Enquiries, comments, articles, and information on energy events are welcome, andshould be sent to:

Richard DrummondEnergy Research CentreUniversity of Cape Town

Private BagRondebosch 7701

South Africa.Tel: 021 650 3894Fax: 021 650 2830

E-mail: [email protected]