Workshop on Bioenergy Project Develop- ment and Packaging · Workshop on Bioenergy Project...

36
1 Workshop on Bioenergy Project Develop- ment and Packaging 1 Background The promotion of clean renewable energies (including clean cooking fuels and stoves, advanced biomass cooking stoves and biogas systems, micro hydro projects and wind and solar initiatives) is a pro-poor development strategy for Africa, which has a large share of rural population and is highly vulnerable to climate change-induced calamities such as droughts. The energy poverty in rural areas deprives communities of economic and social opportunities as they do not have ac- cess to, or cannot afford, adequate energy services. Women are disproportionately affected by the lack of energy, as they undertake the majority of household chores. In urban areas, some communities lack access to electricity and experience frequent power cuts due to electricity defi- cits. Unfortunately, many national and regional initiatives and programmes aimed at reducing poverty have not adequately taken into account the pivotal role of energy in human activities. As one of the world’s regions most vulnerable to climate change, should not Africa support global climate change mitigation efforts? By and large, African countries have largely untapped renewable energy potential, especially hydropower, geothermal energy, solar, wind power, and biomass (the latter being used more inefficiently). The sub region must develop effective nation- al policies on renewable energy and energy efficiency, and take advantage of opportunities for technological leapfrogging, using, among others, the Kyoto Protocol’s Clean Development Mechanism. There is a growing consensus that enhancing energy efficiency and promoting ac- cess to clean and renewable energies are effective methods for mitigating climate change. Cost- effective energy efficiency improvements and clean energy technologies are often self-financing in favourable economic and regulatory conditions, and sub-Saharan Africa can learn from the experience of countries, which have successfully promoted and implemented this approach. Knowledge, policy and institutional capacity are currently insufficient to promote clean energy and energy efficiency in Africa. In particular, the continent lacks an enabling environment for the promotion of investment in the sector.

Transcript of Workshop on Bioenergy Project Develop- ment and Packaging · Workshop on Bioenergy Project...

1

Workshop on Bioenergy Project Develop-

ment and Packaging

1 Background

The promotion of clean renewable energies (including clean cooking fuels and stoves, advanced

biomass cooking stoves and biogas systems, micro hydro projects and wind and solar initiatives)

is a pro-poor development strategy for Africa, which has a large share of rural population and is

highly vulnerable to climate change-induced calamities such as droughts. The energy poverty in

rural areas deprives communities of economic and social opportunities as they do not have ac-

cess to, or cannot afford, adequate energy services. Women are disproportionately affected by

the lack of energy, as they undertake the majority of household chores. In urban areas, some

communities lack access to electricity and experience frequent power cuts due to electricity defi-

cits. Unfortunately, many national and regional initiatives and programmes aimed at reducing

poverty have not adequately taken into account the pivotal role of energy in human activities.

As one of the world’s regions most vulnerable to climate change, should not Africa support

global climate change mitigation efforts? By and large, African countries have largely untapped

renewable energy potential, especially hydropower, geothermal energy, solar, wind power, and

biomass (the latter being used more inefficiently). The sub region must develop effective nation-

al policies on renewable energy and energy efficiency, and take advantage of opportunities for

technological leapfrogging, using, among others, the Kyoto Protocol’s Clean Development

Mechanism. There is a growing consensus that enhancing energy efficiency and promoting ac-

cess to clean and renewable energies are effective methods for mitigating climate change. Cost-

effective energy efficiency improvements and clean energy technologies are often self-financing

in favourable economic and regulatory conditions, and sub-Saharan Africa can learn from the

experience of countries, which have successfully promoted and implemented this approach.

Knowledge, policy and institutional capacity are currently insufficient to promote clean energy

and energy efficiency in Africa. In particular, the continent lacks an enabling environment for the

promotion of investment in the sector.

Workshop on Bioenergy Project Development and Packaging

2

In Africa, bioenergy constitutes an important source of energy, and would have even greater po-

tential if sustainably exploited. However its current exploitation is largely within unsustainable

systems with negative impacts on livelihoods in the areas of health, environment and social im-

pacts, including gender (ECA and AU 2014). Over 80% of the population in Africa depends on

solid fuels, primarily traditional biomass for cooking and heating, with related negative effects

such as respiratory diseases from indoor air pollution, and impacts on social outcomes as a result

of extensive time spent on firewood collection rather than on social and productive uses. Produc-

tion of charcoal is highly inefficient, thus contributing to deforestation, as does the inefficient use

of firewood and charcoal in applications such as brick firing and food processing (e.g. fish smok-

ing). Although bioenergy has many applications as a modern source of energy, high value bioen-

ergy application such as gasification, ethanol production, use of bagasse for electricity generation

and others are not fully exploited in Africa. In addition to providing energy for enabling econom-

ic and social activities, bioenergy can also reduce the import burden imposed by imported fossil

fuels. However, even in its modern form, bioenergy exploitation can have unintended negative

consequences if not well managed. Large-scale biofuels production and its associated mono

cropping can reduce biodiversity and disturb ecosystems. The acquisition of land for biofuel pro-

duction can also reduce food security as well as deprive rural people of the one asset they nor-

mally depend on: land. Biodiversity and food security effects of unsustainable bio-energy exploi-

tation can have wider effects across local areas as well as countries and lead to conflict.

There is therefore a huge biofuel potential in Africa. However, such potential is not adequately

harnessed and Africa is losing out on this competitive advantage. There are many barriers against

successful and widespread exploitation of this renewable energy source on the continent, includ-

ing ineffective supporting policy (and associated regulations and legislations) and lack of finan-

cial support. On the whole Africa does not have a coordinated approach towards biofuels devel-

opment, although some RECs and a few countries have begun to address this.

The Economic Commission for Africa (ECA) in partnership with the African Union Commission

(AUC) and NEPAD Planning and Coordinating Agency (NPCA) implementing a project which

promotes modern biofuels development in Africa, particularly providing policy and regulatory

support. The project activities should lead to (a) an establishment of harmonized financial, insti-

tutional and policy frameworks for the promotion of biofuels mainly for household and transport

end uses in Africa; (b) an enhanced capacity of African countries to formulate and implement

gender sensitive policies and programmes on biofuel development; and (c) an improved capacity

of African countries, particularly project developers, to package biofuels projects for investment.

This project is implemented to support the United Nations Sustainable Energy for All

(SE4ALL) initiative and the AUC Bioenergy Policy Framework and Guidelines. The latter,

which was endorsed by the African heads of state and government in January 2013, (a) builds

consensus on shared framework that inspires and provides guidance to individual African coun-

tries and regions in developing bioenergy policies and regulations; and (b) enhances awareness

Workshop on Bioenergy Project Development and Packaging

3

among African policymakers and civil society on the need for environmentally friendly and so-

cially acceptable bioenergy development policies.

The overall objective of the project is to build the capacity in order to promote the production

and usage of biofuels, as well as to achieve sustainable development and poverty reduction. The

main activities of the project are as follows:

• Case studies on the experience of enabling policies and regulatory reforms that facilitate

the adoption of the biofuels technologies.

• Regional capacity building workshops based on case studies to share the lessons learned,

and link these lessons to local context and experience.

• Guidelines, training materials and manuals, model agreements and standards for creating

a harmonized enabling environment for uptake of biofuels in Africa.

• Regional Training workshops on: (a) policy and regulations; (b) establishing the national

systems of innovation (linking R&D to industrial policy); (c) biofuels standards; (d) bio-

fuels project development; and contract negotiation (financing).

• Providing specific and demand-driven technical assistance to identified countries on how

they can develop and modernise the biofuel sector in order to generate modern electricity,

heat energy, and/or transport fuels.

•Baseline studies on

bioenergy development

•Bioenergy Framework &

Policy Guidines (endorced by

CEMA)

2011-12

•Bioenergy Resolution

adopted by AU Assembly

•Mainstreaming of

Framework incl. gender

2013-14 •Capacity Bulding Workshops

on best practices

•Technical training on biofuels

projects (and ID of projects

•Project development and

aackaging

2015-16

Workshop on Bioenergy Project Development and Packaging

4

The promotion of clean renewable energies is a pro-poor development strategy for Africa, which

has a large share of rural population and is highly vulnerable to climate change-induced calami-

ties such as droughts. The energy poverty in rural areas deprives communities of economic and

social opportunities as they do not have access to, or cannot afford, adequate energy services.

Women are disproportionately affected by the lack of energy, as they undertake the majority of

household chores. One of the most effective ways of addressing energy poverty, particularly in

underdeveloped areas in Africa, as well as facilitating or unlocking economics development is to

develop a modern biofuels sector.

The indicator of a successful implementation of this project will be the number of countries that,

as a result of the activities above, have embarked on implementing policies, measures and ac-

tions (PAMs) to modernise the biofuels sector. In addition, and more poignantly, it will be the

number of projects that have been designed and ready for funding. Therefore, the commitment

from government ministries/departments in charge of energy, local project developers (or private

sector) and NGOs will be essential if the expected accomplishments are to be achieved.

2 Expected Accomplishment of the Workshop

However, due to diverse limitations, the modern bioenergy industry is heavily underdeveloped in

Africa. Some of the limitations could be, inter alia, attributed to the following factors: (i) lack of

bankable bioenergy projects;(ii) misinformation on the impact of bioenergy, particularly biofuels

on food security; (iii) lack of reliable information packages on the bioenergy industry and its po-

tential contribution to African development; (iv) weakness or absence of policy and regulatory

frameworks that guide bioenergy development; (iii) weak bioenergy development and implemen-

tation strategies; and (iv) underdeveloped bioenergy market and lack of financial resources.

Therefore, the workshop is expected to devise a detailed, implementable bioenergy roadmap, as

well as timelines. It is expected that this roadmap will be monitored in order to determine the

impact and elucidate lessons learnt for capacity building.

3 Aims of the Workshop

The purpose of this workshop is threefold. The first aim is to recap on the outcomes of the 2015

joint ECA-AUC-NPCA project on bioenergy development for the transport and household sec-

tors. In particular, this will recap the major outcome of this intervention: development of pipeline

projects by African policy and local project developers. These projects are the outcome an inten-

sive process of capacity building based on selected case studies in South Africa, Mauritius, Ken-

ya, Rwanda, Ethiopia, Burkina Faso and Senegal, as well as biofuels training (on policy and reg-

ulatory issues, standards, project development and contract negotiation).

Workshop on Bioenergy Project Development and Packaging

5

The second aim of the workshop is an interactive process on how these project concepts can be

placed in the IRENA’s Virtual Market Place for Renewable Energy Projects. The latter is ex-

plained in full below. This requires some skills and access to the virtual network. This will be

facilitated by IRENA and will require access to and use of software-based methodology. There-

fore, each participant will need to bring a computer to the meeting for this exercise.

The third aim of the workshop is to introduce the project developers to the array of the modali-

ties of African-based renewable energy initiatives. The latter support the development of renew-

able energies, particularly bioenergy technology development. The support that is expected is the

areas of (a) project packaging, (b) support with the enabling environment, (c) project finance and

investment requirements, and (d) match-making.

4 Workshop Programming

The workshop will take place over 3.5 days. The first day of the workshop will be devoted to the

introductory remarks (early morning) as well as the presentation of all the identified project con-

cepts. The second day of the workshop will be focussed on each project developers learning on

how to put their projects on market place. The third of the workshop will be an interactive pro-

cess between the project developers (at country levels) as well as representatives of the targeted

initiatives. This will be a facilitative process that will take place in small group according to the

project categorisation. The last half day of the workshop will be focussed on plenary and will

highlight roadmaps for project packaging and finance based on the outcomes of the small group

meetings (on 3rd

day). The provisional programme of work is as follows:

Morning Afternoon

DAY 1 • Opening statements (AUC, NPCA, ECA)

• Workshop objectives & process

• Presentation of the Market Place

(IRENA)

Presentations of Projects

• Enabling environment

• Capacity Building & Awareness Raising

• Bioenergy project developers

DAY 2 Presentations of current initiatives

• Sustainable Energy Fund for Africa

• Climate Investment Fund

• Green Africa Power

• Renewable Energy Performance Platform

• African Renewable Energy Initiative

• European Union-Africa Energy Partner-

ship

Interactive process between project devel-

opers & initiatives

• Modalities and conditions for support

• Gap analysis and areas of support

• Roadmap and way forwards for support

Workshop on Bioenergy Project Development and Packaging

6

DAY 3 Roadmapping

• Workshop Summary (highlights)

• Presentation of the roadmaps

• Action Plans

• Formal Closure

5 The Projects Pipeline Sample: 2015 Outcomes of the DA Project

The following project concepts were received as an outcome of the ECA-AUC-NEPAD project

cited above. This workshop will aim to refine these concepts as well as providing individual

roadmap on their further development:

Project Title Country Project Champion

1. A study of the roles of growers in biofuel value chain Harare, Zimba-

bwe

Mr. Aleck Gubba, Director – Minis-

try of Energy and Power

([email protected])

2. Scaling up the production of biodiesel in Botswana Gaborone, Bot-

swana

Mr. Boiki Mabowe, Chief Executive

Officer, Biodiesel Botswana

([email protected])

3. Biofuels development strategy to reduce reliance on

imported petroleum, especially for households and

transport use

Maseru, Leso-

tho

Mrs. Palesa Malataliana - Depart-

ment of Energy

([email protected])

4. Innovative capacity building and awareness for key

stakeholders in the development of biofuels in Bot-

swana

Gaborone, Bot-

swana

Mrs. Nozipho Wright – Private Con-

sultant ([email protected])

5. Raising awareness on modern biofuels as an im-

portant energy source in Zimbabwe

Harare, Zimba-

bwe

Mrs. Abigail T. Magugu, Director,

Women and Resources in Eastern

and Southern Africa

([email protected])

6. Assistance in the development of implementation

strategy for biofuel development in Malawi

Blantyre, Ma-

lawi

Mr. Joseph Kalowekamo, Director,

Renewables – Ministry of Energy

([email protected]

7. Rural development project for production of 8,000

Litres of ethanol per day to supply households &

transport in the Southern Africa

Pretoria, South

Africa

Ms. Fikile Hlatshwayo, FH Renew-

able Energy Solutions Pty Ltd

([email protected])

8. Biofuels target setting and regional harmonization of Mbabane, Swa- Mrs. Candy Stromvig, Ministry of

Natural Resources & Energy

Workshop on Bioenergy Project Development and Packaging

7

Swaziland biofuels standards ziland ([email protected])

9. Study on how Mauritius could develop strategies for

uptake of ethanol for the transport sector.

Port Louis,

Mauritius

Mr. Hemant Multra, Ministry of

Energy and Public Utilities (EEMO)

([email protected])

10. Communication strategy for all stakeholders in the

biofuels sphere in Lesotho

Maseru, Leso-

tho

Ms. Makhosi Makhobalo, Private

Consultant

([email protected])

11. Financing options for bagasse energy co-generation

potential in Zambia

Lusaka, Zambia Mr. Shadreck Saili, Zambian Devel-

opment Agency

([email protected])

12. Feasibility and viability for uptake of biofuel blend-

ing commercially and development of sustainable

clean cookstove programme in Swaziland

Manzini, Swa-

ziland

Mr. Thembinkosi Ndzimandze, Min-

istry of Natural Resources & Energy

([email protected])

13. Biofuels value-chain promotion & development pro-

ject to enhance Ethiopia’s efficient, resilient & sus-

tainable energy.

Addis Ababa,

Ethiopia

Mr. Dereje Worknhe, Biofuels Di-

rectorate, Ministry of Water, Irriga-

tion & Energy

([email protected].

14. Promotion of modern biofuels for transport and

household sectors through information awareness in

Tanzania

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO,

15. Improved cookstoves promotion though local tech-

nology adaptation, innovation and marketing

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO

16. Mainstreaming biofuels in the policy, promotion of

Jatropha and oil palm kernel and creation of jobs for

marginalized groups in Burundi

Bujumbura,

Burundi

Mr. Jean-Marie Nibizi, Director

SHINE ([email protected])

17. Promotion of energy conservation & reduced defor-

estation through gender sensitive awareness creation

and adaptation of energy efficient locally produced

improved cookstoves usage 2016-2019.

Kampala,

Uganda

Mr. Desmond Tutu Opio, Uganda

Energy Credit Capitalization Com-

pany ([email protected])

18. Mechanization of Cassava Production for Enhanced

Food and Energy Security and Bioenergy Feedstock

Production in Ghana

Accra, Ghana Mrs. Gifty Tettey

[email protected]

19. Development of locally fabricated biomass gasifica-

tion units for efficient thermal applications in Ugan-

da

Kampala,

Uganda,

Shira Bayigga Mukiibi

[email protected]; shi-

[email protected]

20. Scaling up the production of ethanol and technolo- Antananarivo, Dina Anjaraniana Razafimahatratra

Workshop on Bioenergy Project Development and Packaging

8

gies for cooking Madagascar & Ando Rakoto

[email protected]

[email protected]

6 Linking with Relevant Renewable Energy Initiatives

The workshop will be engaging the support of the existing project support that have footprint in

Africa. It is expected that these identified initiatives will give further impetus and on-going sup-

port in refinement, packaging and fund mobilisation for the projects post bioenergy energy pro-

ject development workshop. Such support and further engagement will be monitored over time to

track impact as well as lesson learned.

a) Sustainable Energy Fund for Africa

Established in 2011, SEFA is a USD 95 million Multi-Donor Trust Fund – managed by

the African Development Bank, and assists African Nations and Private Entrepreneur’s

unlocking investments in sustainable energy. The Fund supports the following:

Project Preparation

Window

Enabling Environment

Window

Equity Investment

Window

Scope • Preparation support

to RE and EE Pro-

jects

• Total Costs USD 30

– 200 million]

• Beneficiaries: Pri-

vate Companies

• Enabling Environ-

ment Support

• Beneficiaries: Gov-

ernments and Na-

tional entities

• Seed/growth capital

for RE and EE pro-

jects [USD 10-80

million]

• Beneficiaries: Pri-

vate Companies

Financing Instrument • Non-reimbursable

grants

• Non reimbursable

grants for technical

assistance and ca-

pacity building

• Equity and reim-

bursable grants for

project preparation

Activities • Preparation activi-

ties from Origina-

tion to Financial

Close

• Capacity Building

and Advisory, Poli-

cy and Regulatory

Development, Mar-

ket Development

and Preparation

• Preparation Activi-

ties (TA component)

• Investment Capital

b) IRENA Sustainable Energy Market Place

As part of the IRENA’s objective to sustain and facilitate the spread of renewable energy

technologies, IRENA has implemented a virtual “Market Place” for renewable energy

Workshop on Bioenergy Project Development and Packaging

9

projects. The Sustainable Energy Market Place is a free platform for project owner, gov-

ernments, financiers, and service and technology providers to help develop and drive in-

vestments to new renewable energy projects.

The objective of the virtual market place is accelerate the scale-up investments – both

public and private – to promote initiation, development and financing of low carbon re-

newable energy projects by bringing together project owners, governments, financiers

and service and technology providers. It makes investment opportunities visible and easi-

ly identifiable for investors and helps project developers to identify relevant funding

sources and expertise:

• Search information of interests like projects with certain investment area, financing

sources, or advisors according to specific needs of the project; and

• Find information about and contact relevant entities, projects or financing instru-

ments.

c) Climate Investment Fund

The main purpose of the Climate Investment Fund is to pilot and demonstrate the eco-

nomic, social and environmental viability of low carbon development pathways in the

energy sector by creating new economic opportunities and increasing energy access

through the use of renewable energy. It is a USD 8.1 billion investment from the African

Development Bank (AfDB), Asian Development Bank (ADB), European Bank (EB), In-

ter-American Development Bank (IDB) and World Bank (WB). One of the sub-

programmes of is a USD 796 million “Scaling-up Renewable Energy Programme”

(SREP), which is piloted in several African countries including Madagascar, Malawi,

Ethiopia, Rwanda, Sierra Leone, Uganda and Zambia.

It mainly provides investments in the form of grant and credit to eligible projects that are

less than 10 MW in solar, wind, bioenergy, geothermal, and small hydro; electricity and

thermal; and off-grid and mini grids. It also provides grants towards capacity building

and advisory services to governments for the (a) development of energy policies and leg-

islation; (b) assessment of technical resources potential; (c) strengthening governance

and institutional capacity; and (d) creation of incentive scheme to improve financial via-

bility of RETs.

d) Green Africa Power

This Private Infrastructure Development Group (PIDG) facility offers quasi-equity debt

and contingent lines of credit. The total facility size is USD 200 million. It receives funds

Workshop on Bioenergy Project Development and Packaging

10

from the UK Department for International Development (DFID), UK Department for En-

ergy and Climate Change (DECC) and the Government of Norway. Its fund advisors are

Eiser Infrastructureand CAMCO Clean Energy. It focuses on advanced projects which

are struggling to reach financial close by providing mezzanine finance (subordinated

debt, quasi-equity debt); contingent lines of credit; long tenuresand funding not readily

available from commercial markets.

The mandate of the Green Africa Power is least developed countries, and covers a wide

range of renewable energy technologies. Most of these are utility-scale, grid-connected

projects. It provides later-stage project development support and attracts private sector fi-

nance.

e) Renewable Energy Performance Platform

This is an initiative of UNEP, European Investment Bank (EIB) and funded by the UK

Department of Energy and Climate Change, managed by CAMCO and GreenStream. The

initiative addresses key issues and barriers such as the limited sources of development fi-

nance; limited commercial viability of small-scale renewable energy projects (i.e. Level-

ised costs are not sustainable/equity returns are low); long-term debt (unavailability, high

pricing and short tenors); lack of access to risk mitigation instruments; and lack of tech-

nical know-how amongst small-scale developers.

The REPP mandate is on small-scale renewables based in least developed countries.

Nineteen African countries are target countries and also cover a wide range of renewable

energy technologies. REPP is developer-focused. It also aims to unlocking private sector

finance.

It provides products, services and solutions such as technical assistance during develop-

ment (technical studiesLegal and due diligence costs); structuring support (financial

structuring, Facilitating access to risk mitigation instruments, and facilitating access to long-

term debt); results-based finance.

f) African Renewable Energy Initiative

The AREI wants to help Africa to achieve the Sustainable Development Goals, enhanced

well-being and sound economic development by ensuring universal access to clean, ap-

propriate and affordable energy sources. Across the continents it hopes to achieve at least

300 GW of new and additional installed capacity with initial 10 GW by 2020. This

means increased (a) number of users connected to the national grids or new mini-grids;

(b) share of renewable energy consumption in productive sectors: agriculture, industry,

and services; and (c) share of local/African firms providing renewable equipment and

supply on the continent. The implementation timeline of the AREI is as follows:

Workshop on Bioenergy Project Development and Packaging

11

Establishment Phase Phase I (2016-2020) Phase II (2020-2020

Co

nti

nen

tal

Establishment of AREI

Delivery Unit and Trus-

tee Facility set up

• All core and crosscutting

work areas initiated

• Delivery unit fully opera-

tional

• Africa Energy Institute

established

• AREI Delivery Unit fur-

ther expanded

• Trustee Facility further

capacitated

• Most successful schemes

adopted and modified

across the continent

Su

b-r

egio

na

l

Consultations with

Sub-regional institu-

tions

• GCF obtained for cluster

of countries

• Sub-regional programs &

pilot efforts

• Sub-regional efforts &

programs further consol-

idated

Na

tio

na

l

Countries shaping for-

mally establishing

AREI

• Comprehensive polic-

es/programs in some coun-

tries

• Project support in many

countries

• Assessments, planning

studies & engagement in

all countries

• Comprehensive poli-

cies/programs & effec-

tive RE incentives

schemes in all countries

g) European Union-Africa Energy Partnership

The EU Energy Initiative – Partnership Dialogue Facility (EUEI PDF) was founded in 2004

by several EU member states and the European Commission as a flexible instrument of the EU

Energy Initiative (EUEI). The EUEI PDF is currently funded by the European Commission, Aus-

tria, Finland, France, Germany, the Netherlands and Sweden. An integral part of our mandate is

the coordination of our activities with a variety of partners from the EU as well as regional and

international organisations. EUEI PDF works with partner countries and regions to develop poli-

cies and strategies that contribute to improved access to affordable and sustainable energy ser-

vices. Its activities focus on Africa, but also operate in other parts of the world, such as Southeast

Asia, Latin America, and the Pacific.

EUEI PDF’s goal is to support the creation of an enabling environment for investments in sus-

tainable energy markets in developing countries through (a) policy, regulation and strategy de-

velopment; (b) institutional building and strengthening; (c) private sector cooperation; (d) ca-

pacity development; and (e) knowledge sharing.

Workshop on Bioenergy Project Development and Packaging

12

7 Workshop Venue and Other Logistics

This workshop will take place at the African Union Commission Headquarters in Addis Ababa.

The dates for the workshops are 26-28 October 2016. An Aide Memoire, which outlines useful

information about the logistics and other information, will be sent to confirmed participants.

1

Workshop on Bioenergy Project Develop-

ment and Packaging

1 Background

The promotion of clean renewable energies (including clean cooking fuels and stoves, advanced

biomass cooking stoves and biogas systems, micro hydro projects and wind and solar initiatives)

is a pro-poor development strategy for Africa, which has a large share of rural population and is

highly vulnerable to climate change-induced calamities such as droughts. The energy poverty in

rural areas deprives communities of economic and social opportunities as they do not have ac-

cess to, or cannot afford, adequate energy services. Women are disproportionately affected by

the lack of energy, as they undertake the majority of household chores. In urban areas, some

communities lack access to electricity and experience frequent power cuts due to electricity defi-

cits. Unfortunately, many national and regional initiatives and programmes aimed at reducing

poverty have not adequately taken into account the pivotal role of energy in human activities.

As one of the world’s regions most vulnerable to climate change, should not Africa support

global climate change mitigation efforts? By and large, African countries have largely untapped

renewable energy potential, especially hydropower, geothermal energy, solar, wind power, and

biomass (the latter being used more inefficiently). The sub region must develop effective nation-

al policies on renewable energy and energy efficiency, and take advantage of opportunities for

technological leapfrogging, using, among others, the Kyoto Protocol’s Clean Development

Mechanism. There is a growing consensus that enhancing energy efficiency and promoting ac-

cess to clean and renewable energies are effective methods for mitigating climate change. Cost-

effective energy efficiency improvements and clean energy technologies are often self-financing

in favourable economic and regulatory conditions, and sub-Saharan Africa can learn from the

experience of countries, which have successfully promoted and implemented this approach.

Knowledge, policy and institutional capacity are currently insufficient to promote clean energy

and energy efficiency in Africa. In particular, the continent lacks an enabling environment for the

promotion of investment in the sector.

Workshop on Bioenergy Project Development and Packaging

2

In Africa, bioenergy constitutes an important source of energy, and would have even greater po-

tential if sustainably exploited. However its current exploitation is largely within unsustainable

systems with negative impacts on livelihoods in the areas of health, environment and social im-

pacts, including gender (ECA and AU 2014). Over 80% of the population in Africa depends on

solid fuels, primarily traditional biomass for cooking and heating, with related negative effects

such as respiratory diseases from indoor air pollution, and impacts on social outcomes as a result

of extensive time spent on firewood collection rather than on social and productive uses. Produc-

tion of charcoal is highly inefficient, thus contributing to deforestation, as does the inefficient use

of firewood and charcoal in applications such as brick firing and food processing (e.g. fish smok-

ing). Although bioenergy has many applications as a modern source of energy, high value bioen-

ergy application such as gasification, ethanol production, use of bagasse for electricity generation

and others are not fully exploited in Africa. In addition to providing energy for enabling econom-

ic and social activities, bioenergy can also reduce the import burden imposed by imported fossil

fuels. However, even in its modern form, bioenergy exploitation can have unintended negative

consequences if not well managed. Large-scale biofuels production and its associated mono

cropping can reduce biodiversity and disturb ecosystems. The acquisition of land for biofuel pro-

duction can also reduce food security as well as deprive rural people of the one asset they nor-

mally depend on: land. Biodiversity and food security effects of unsustainable bio-energy exploi-

tation can have wider effects across local areas as well as countries and lead to conflict.

There is therefore a huge biofuel potential in Africa. However, such potential is not adequately

harnessed and Africa is losing out on this competitive advantage. There are many barriers against

successful and widespread exploitation of this renewable energy source on the continent, includ-

ing ineffective supporting policy (and associated regulations and legislations) and lack of finan-

cial support. On the whole Africa does not have a coordinated approach towards biofuels devel-

opment, although some RECs and a few countries have begun to address this.

The Economic Commission for Africa (ECA) in partnership with the African Union Commission

(AUC) and NEPAD Planning and Coordinating Agency (NPCA) implementing a project which

promotes modern biofuels development in Africa, particularly providing policy and regulatory

support. The project activities should lead to (a) an establishment of harmonized financial, insti-

tutional and policy frameworks for the promotion of biofuels mainly for household and transport

end uses in Africa; (b) an enhanced capacity of African countries to formulate and implement

gender sensitive policies and programmes on biofuel development; and (c) an improved capacity

of African countries, particularly project developers, to package biofuels projects for investment.

This project is implemented to support the United Nations Sustainable Energy for All

(SE4ALL) initiative and the AUC Bioenergy Policy Framework and Guidelines. The latter,

which was endorsed by the African heads of state and government in January 2013, (a) builds

consensus on shared framework that inspires and provides guidance to individual African coun-

tries and regions in developing bioenergy policies and regulations; and (b) enhances awareness

Workshop on Bioenergy Project Development and Packaging

3

among African policymakers and civil society on the need for environmentally friendly and so-

cially acceptable bioenergy development policies.

The overall objective of the project is to build the capacity in order to promote the production

and usage of biofuels, as well as to achieve sustainable development and poverty reduction. The

main activities of the project are as follows:

• Case studies on the experience of enabling policies and regulatory reforms that facilitate

the adoption of the biofuels technologies.

• Regional capacity building workshops based on case studies to share the lessons learned,

and link these lessons to local context and experience.

• Guidelines, training materials and manuals, model agreements and standards for creating

a harmonized enabling environment for uptake of biofuels in Africa.

• Regional Training workshops on: (a) policy and regulations; (b) establishing the national

systems of innovation (linking R&D to industrial policy); (c) biofuels standards; (d) bio-

fuels project development; and contract negotiation (financing).

• Providing specific and demand-driven technical assistance to identified countries on how

they can develop and modernise the biofuel sector in order to generate modern electricity,

heat energy, and/or transport fuels.

•Baseline studies on

bioenergy development

•Bioenergy Framework &

Policy Guidines (endorced by

CEMA)

2011-12

•Bioenergy Resolution

adopted by AU Assembly

•Mainstreaming of

Framework incl. gender

2013-14 •Capacity Bulding Workshops

on best practices

•Technical training on biofuels

projects (and ID of projects

•Project development and

aackaging

2015-16

Workshop on Bioenergy Project Development and Packaging

4

The promotion of clean renewable energies is a pro-poor development strategy for Africa, which

has a large share of rural population and is highly vulnerable to climate change-induced calami-

ties such as droughts. The energy poverty in rural areas deprives communities of economic and

social opportunities as they do not have access to, or cannot afford, adequate energy services.

Women are disproportionately affected by the lack of energy, as they undertake the majority of

household chores. One of the most effective ways of addressing energy poverty, particularly in

underdeveloped areas in Africa, as well as facilitating or unlocking economics development is to

develop a modern biofuels sector.

The indicator of a successful implementation of this project will be the number of countries that,

as a result of the activities above, have embarked on implementing policies, measures and ac-

tions (PAMs) to modernise the biofuels sector. In addition, and more poignantly, it will be the

number of projects that have been designed and ready for funding. Therefore, the commitment

from government ministries/departments in charge of energy, local project developers (or private

sector) and NGOs will be essential if the expected accomplishments are to be achieved.

2 Expected Accomplishment of the Workshop

However, due to diverse limitations, the modern bioenergy industry is heavily underdeveloped in

Africa. Some of the limitations could be, inter alia, attributed to the following factors: (i) lack of

bankable bioenergy projects;(ii) misinformation on the impact of bioenergy, particularly biofuels

on food security; (iii) lack of reliable information packages on the bioenergy industry and its po-

tential contribution to African development; (iv) weakness or absence of policy and regulatory

frameworks that guide bioenergy development; (iii) weak bioenergy development and implemen-

tation strategies; and (iv) underdeveloped bioenergy market and lack of financial resources.

Therefore, the workshop is expected to devise a detailed, implementable bioenergy roadmap, as

well as timelines. It is expected that this roadmap will be monitored in order to determine the

impact and elucidate lessons learnt for capacity building.

3 Aims of the Workshop

The purpose of this workshop is threefold. The first aim is to recap on the outcomes of the 2015

joint ECA-AUC-NPCA project on bioenergy development for the transport and household sec-

tors. In particular, this will recap the major outcome of this intervention: development of pipeline

projects by African policy and local project developers. These projects are the outcome an inten-

sive process of capacity building based on selected case studies in South Africa, Mauritius, Ken-

ya, Rwanda, Ethiopia, Burkina Faso and Senegal, as well as biofuels training (on policy and reg-

ulatory issues, standards, project development and contract negotiation).

Workshop on Bioenergy Project Development and Packaging

5

The second aim of the workshop is an interactive process on how these project concepts can be

placed in the IRENA’s Virtual Market Place for Renewable Energy Projects. The latter is ex-

plained in full below. This requires some skills and access to the virtual network. This will be

facilitated by IRENA and will require access to and use of software-based methodology. There-

fore, each participant will need to bring a computer to the meeting for this exercise.

The third aim of the workshop is to introduce the project developers to the array of the modali-

ties of African-based renewable energy initiatives. The latter support the development of renew-

able energies, particularly bioenergy technology development. The support that is expected is the

areas of (a) project packaging, (b) support with the enabling environment, (c) project finance and

investment requirements, and (d) match-making.

4 Workshop Programming

The workshop will take place over 3.5 days. The first day of the workshop will be devoted to the

introductory remarks (early morning) as well as the presentation of all the identified project con-

cepts. The second day of the workshop will be focussed on each project developers learning on

how to put their projects on market place. The third of the workshop will be an interactive pro-

cess between the project developers (at country levels) as well as representatives of the targeted

initiatives. This will be a facilitative process that will take place in small group according to the

project categorisation. The last half day of the workshop will be focussed on plenary and will

highlight roadmaps for project packaging and finance based on the outcomes of the small group

meetings (on 3rd

day). The provisional programme of work is as follows:

Morning Afternoon

DAY 1 • Opening statements (AUC, NPCA, ECA)

• Workshop objectives & process

• Presentation of the Market Place

(IRENA)

Presentations of Projects

• Enabling environment

• Capacity Building & Awareness Raising

• Bioenergy project developers

DAY 2 Presentations of current initiatives

• Sustainable Energy Fund for Africa

• Climate Investment Fund

• Green Africa Power

• Renewable Energy Performance Platform

• African Renewable Energy Initiative

• European Union-Africa Energy Partner-

ship

Interactive process between project devel-

opers & initiatives

• Modalities and conditions for support

• Gap analysis and areas of support

• Roadmap and way forwards for support

Workshop on Bioenergy Project Development and Packaging

6

DAY 3 Roadmapping

• Workshop Summary (highlights)

• Presentation of the roadmaps

• Action Plans

• Formal Closure

5 The Projects Pipeline Sample: 2015 Outcomes of the DA Project

The following project concepts were received as an outcome of the ECA-AUC-NEPAD project

cited above. This workshop will aim to refine these concepts as well as providing individual

roadmap on their further development:

Project Title Country Project Champion

1. A study of the roles of growers in biofuel value chain Harare, Zimba-

bwe

Mr. Aleck Gubba, Director – Minis-

try of Energy and Power

([email protected])

2. Scaling up the production of biodiesel in Botswana Gaborone, Bot-

swana

Mr. Boiki Mabowe, Chief Executive

Officer, Biodiesel Botswana

([email protected])

3. Biofuels development strategy to reduce reliance on

imported petroleum, especially for households and

transport use

Maseru, Leso-

tho

Mrs. Palesa Malataliana - Depart-

ment of Energy

([email protected])

4. Innovative capacity building and awareness for key

stakeholders in the development of biofuels in Bot-

swana

Gaborone, Bot-

swana

Mrs. Nozipho Wright – Private Con-

sultant ([email protected])

5. Raising awareness on modern biofuels as an im-

portant energy source in Zimbabwe

Harare, Zimba-

bwe

Mrs. Abigail T. Magugu, Director,

Women and Resources in Eastern

and Southern Africa

([email protected])

6. Assistance in the development of implementation

strategy for biofuel development in Malawi

Blantyre, Ma-

lawi

Mr. Joseph Kalowekamo, Director,

Renewables – Ministry of Energy

([email protected]

7. Rural development project for production of 8,000

Litres of ethanol per day to supply households &

transport in the Southern Africa

Pretoria, South

Africa

Ms. Fikile Hlatshwayo, FH Renew-

able Energy Solutions Pty Ltd

([email protected])

8. Biofuels target setting and regional harmonization of Mbabane, Swa- Mrs. Candy Stromvig, Ministry of

Natural Resources & Energy

Workshop on Bioenergy Project Development and Packaging

7

Swaziland biofuels standards ziland ([email protected])

9. Study on how Mauritius could develop strategies for

uptake of ethanol for the transport sector.

Port Louis,

Mauritius

Mr. Hemant Multra, Ministry of

Energy and Public Utilities (EEMO)

([email protected])

10. Communication strategy for all stakeholders in the

biofuels sphere in Lesotho

Maseru, Leso-

tho

Ms. Makhosi Makhobalo, Private

Consultant

([email protected])

11. Financing options for bagasse energy co-generation

potential in Zambia

Lusaka, Zambia Mr. Shadreck Saili, Zambian Devel-

opment Agency

([email protected])

12. Feasibility and viability for uptake of biofuel blend-

ing commercially and development of sustainable

clean cookstove programme in Swaziland

Manzini, Swa-

ziland

Mr. Thembinkosi Ndzimandze, Min-

istry of Natural Resources & Energy

([email protected])

13. Biofuels value-chain promotion & development pro-

ject to enhance Ethiopia’s efficient, resilient & sus-

tainable energy.

Addis Ababa,

Ethiopia

Mr. Dereje Worknhe, Biofuels Di-

rectorate, Ministry of Water, Irriga-

tion & Energy

([email protected].

14. Promotion of modern biofuels for transport and

household sectors through information awareness in

Tanzania

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO,

15. Improved cookstoves promotion though local tech-

nology adaptation, innovation and marketing

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO

16. Mainstreaming biofuels in the policy, promotion of

Jatropha and oil palm kernel and creation of jobs for

marginalized groups in Burundi

Bujumbura,

Burundi

Mr. Jean-Marie Nibizi, Director

SHINE ([email protected])

17. Promotion of energy conservation & reduced defor-

estation through gender sensitive awareness creation

and adaptation of energy efficient locally produced

improved cookstoves usage 2016-2019.

Kampala,

Uganda

Mr. Desmond Tutu Opio, Uganda

Energy Credit Capitalization Com-

pany ([email protected])

18. Mechanization of Cassava Production for Enhanced

Food and Energy Security and Bioenergy Feedstock

Production in Ghana

Accra, Ghana Mrs. Gifty Tettey

[email protected]

19. Development of locally fabricated biomass gasifica-

tion units for efficient thermal applications in Ugan-

da

Kampala,

Uganda,

Shira Bayigga Mukiibi

[email protected]; shi-

[email protected]

20. Scaling up the production of ethanol and technolo- Antananarivo, Dina Anjaraniana Razafimahatratra

Workshop on Bioenergy Project Development and Packaging

8

gies for cooking Madagascar & Ando Rakoto

[email protected]

[email protected]

6 Linking with Relevant Renewable Energy Initiatives

The workshop will be engaging the support of the existing project support that have footprint in

Africa. It is expected that these identified initiatives will give further impetus and on-going sup-

port in refinement, packaging and fund mobilisation for the projects post bioenergy energy pro-

ject development workshop. Such support and further engagement will be monitored over time to

track impact as well as lesson learned.

a) Sustainable Energy Fund for Africa

Established in 2011, SEFA is a USD 95 million Multi-Donor Trust Fund – managed by

the African Development Bank, and assists African Nations and Private Entrepreneur’s

unlocking investments in sustainable energy. The Fund supports the following:

Project Preparation

Window

Enabling Environment

Window

Equity Investment

Window

Scope • Preparation support

to RE and EE Pro-

jects

• Total Costs USD 30

– 200 million]

• Beneficiaries: Pri-

vate Companies

• Enabling Environ-

ment Support

• Beneficiaries: Gov-

ernments and Na-

tional entities

• Seed/growth capital

for RE and EE pro-

jects [USD 10-80

million]

• Beneficiaries: Pri-

vate Companies

Financing Instrument • Non-reimbursable

grants

• Non reimbursable

grants for technical

assistance and ca-

pacity building

• Equity and reim-

bursable grants for

project preparation

Activities • Preparation activi-

ties from Origina-

tion to Financial

Close

• Capacity Building

and Advisory, Poli-

cy and Regulatory

Development, Mar-

ket Development

and Preparation

• Preparation Activi-

ties (TA component)

• Investment Capital

b) IRENA Sustainable Energy Market Place

As part of the IRENA’s objective to sustain and facilitate the spread of renewable energy

technologies, IRENA has implemented a virtual “Market Place” for renewable energy

Workshop on Bioenergy Project Development and Packaging

9

projects. The Sustainable Energy Market Place is a free platform for project owner, gov-

ernments, financiers, and service and technology providers to help develop and drive in-

vestments to new renewable energy projects.

The objective of the virtual market place is accelerate the scale-up investments – both

public and private – to promote initiation, development and financing of low carbon re-

newable energy projects by bringing together project owners, governments, financiers

and service and technology providers. It makes investment opportunities visible and easi-

ly identifiable for investors and helps project developers to identify relevant funding

sources and expertise:

• Search information of interests like projects with certain investment area, financing

sources, or advisors according to specific needs of the project; and

• Find information about and contact relevant entities, projects or financing instru-

ments.

c) Climate Investment Fund

The main purpose of the Climate Investment Fund is to pilot and demonstrate the eco-

nomic, social and environmental viability of low carbon development pathways in the

energy sector by creating new economic opportunities and increasing energy access

through the use of renewable energy. It is a USD 8.1 billion investment from the African

Development Bank (AfDB), Asian Development Bank (ADB), European Bank (EB), In-

ter-American Development Bank (IDB) and World Bank (WB). One of the sub-

programmes of is a USD 796 million “Scaling-up Renewable Energy Programme”

(SREP), which is piloted in several African countries including Madagascar, Malawi,

Ethiopia, Rwanda, Sierra Leone, Uganda and Zambia.

It mainly provides investments in the form of grant and credit to eligible projects that are

less than 10 MW in solar, wind, bioenergy, geothermal, and small hydro; electricity and

thermal; and off-grid and mini grids. It also provides grants towards capacity building

and advisory services to governments for the (a) development of energy policies and leg-

islation; (b) assessment of technical resources potential; (c) strengthening governance

and institutional capacity; and (d) creation of incentive scheme to improve financial via-

bility of RETs.

d) Green Africa Power

This Private Infrastructure Development Group (PIDG) facility offers quasi-equity debt

and contingent lines of credit. The total facility size is USD 200 million. It receives funds

Workshop on Bioenergy Project Development and Packaging

10

from the UK Department for International Development (DFID), UK Department for En-

ergy and Climate Change (DECC) and the Government of Norway. Its fund advisors are

Eiser Infrastructureand CAMCO Clean Energy. It focuses on advanced projects which

are struggling to reach financial close by providing mezzanine finance (subordinated

debt, quasi-equity debt); contingent lines of credit; long tenuresand funding not readily

available from commercial markets.

The mandate of the Green Africa Power is least developed countries, and covers a wide

range of renewable energy technologies. Most of these are utility-scale, grid-connected

projects. It provides later-stage project development support and attracts private sector fi-

nance.

e) Renewable Energy Performance Platform

This is an initiative of UNEP, European Investment Bank (EIB) and funded by the UK

Department of Energy and Climate Change, managed by CAMCO and GreenStream. The

initiative addresses key issues and barriers such as the limited sources of development fi-

nance; limited commercial viability of small-scale renewable energy projects (i.e. Level-

ised costs are not sustainable/equity returns are low); long-term debt (unavailability, high

pricing and short tenors); lack of access to risk mitigation instruments; and lack of tech-

nical know-how amongst small-scale developers.

The REPP mandate is on small-scale renewables based in least developed countries.

Nineteen African countries are target countries and also cover a wide range of renewable

energy technologies. REPP is developer-focused. It also aims to unlocking private sector

finance.

It provides products, services and solutions such as technical assistance during develop-

ment (technical studiesLegal and due diligence costs); structuring support (financial

structuring, Facilitating access to risk mitigation instruments, and facilitating access to long-

term debt); results-based finance.

f) African Renewable Energy Initiative

The AREI wants to help Africa to achieve the Sustainable Development Goals, enhanced

well-being and sound economic development by ensuring universal access to clean, ap-

propriate and affordable energy sources. Across the continents it hopes to achieve at least

300 GW of new and additional installed capacity with initial 10 GW by 2020. This

means increased (a) number of users connected to the national grids or new mini-grids;

(b) share of renewable energy consumption in productive sectors: agriculture, industry,

and services; and (c) share of local/African firms providing renewable equipment and

supply on the continent. The implementation timeline of the AREI is as follows:

Workshop on Bioenergy Project Development and Packaging

11

Establishment Phase Phase I (2016-2020) Phase II (2020-2020

Co

nti

nen

tal

Establishment of AREI

Delivery Unit and Trus-

tee Facility set up

• All core and crosscutting

work areas initiated

• Delivery unit fully opera-

tional

• Africa Energy Institute

established

• AREI Delivery Unit fur-

ther expanded

• Trustee Facility further

capacitated

• Most successful schemes

adopted and modified

across the continent

Su

b-r

egio

na

l

Consultations with

Sub-regional institu-

tions

• GCF obtained for cluster

of countries

• Sub-regional programs &

pilot efforts

• Sub-regional efforts &

programs further consol-

idated

Na

tio

na

l

Countries shaping for-

mally establishing

AREI

• Comprehensive polic-

es/programs in some coun-

tries

• Project support in many

countries

• Assessments, planning

studies & engagement in

all countries

• Comprehensive poli-

cies/programs & effec-

tive RE incentives

schemes in all countries

g) European Union-Africa Energy Partnership

The EU Energy Initiative – Partnership Dialogue Facility (EUEI PDF) was founded in 2004

by several EU member states and the European Commission as a flexible instrument of the EU

Energy Initiative (EUEI). The EUEI PDF is currently funded by the European Commission, Aus-

tria, Finland, France, Germany, the Netherlands and Sweden. An integral part of our mandate is

the coordination of our activities with a variety of partners from the EU as well as regional and

international organisations. EUEI PDF works with partner countries and regions to develop poli-

cies and strategies that contribute to improved access to affordable and sustainable energy ser-

vices. Its activities focus on Africa, but also operate in other parts of the world, such as Southeast

Asia, Latin America, and the Pacific.

EUEI PDF’s goal is to support the creation of an enabling environment for investments in sus-

tainable energy markets in developing countries through (a) policy, regulation and strategy de-

velopment; (b) institutional building and strengthening; (c) private sector cooperation; (d) ca-

pacity development; and (e) knowledge sharing.

Workshop on Bioenergy Project Development and Packaging

12

7 Workshop Venue and Other Logistics

This workshop will take place at the African Union Commission Headquarters in Addis Ababa.

The dates for the workshops are 26-28 October 2016. An Aide Memoire, which outlines useful

information about the logistics and other information, will be sent to confirmed participants.

1

Workshop on Bioenergy Project Develop-

ment and Packaging

1 Background

The promotion of clean renewable energies (including clean cooking fuels and stoves, advanced

biomass cooking stoves and biogas systems, micro hydro projects and wind and solar initiatives)

is a pro-poor development strategy for Africa, which has a large share of rural population and is

highly vulnerable to climate change-induced calamities such as droughts. The energy poverty in

rural areas deprives communities of economic and social opportunities as they do not have ac-

cess to, or cannot afford, adequate energy services. Women are disproportionately affected by

the lack of energy, as they undertake the majority of household chores. In urban areas, some

communities lack access to electricity and experience frequent power cuts due to electricity defi-

cits. Unfortunately, many national and regional initiatives and programmes aimed at reducing

poverty have not adequately taken into account the pivotal role of energy in human activities.

As one of the world’s regions most vulnerable to climate change, should not Africa support

global climate change mitigation efforts? By and large, African countries have largely untapped

renewable energy potential, especially hydropower, geothermal energy, solar, wind power, and

biomass (the latter being used more inefficiently). The sub region must develop effective nation-

al policies on renewable energy and energy efficiency, and take advantage of opportunities for

technological leapfrogging, using, among others, the Kyoto Protocol’s Clean Development

Mechanism. There is a growing consensus that enhancing energy efficiency and promoting ac-

cess to clean and renewable energies are effective methods for mitigating climate change. Cost-

effective energy efficiency improvements and clean energy technologies are often self-financing

in favourable economic and regulatory conditions, and sub-Saharan Africa can learn from the

experience of countries, which have successfully promoted and implemented this approach.

Knowledge, policy and institutional capacity are currently insufficient to promote clean energy

and energy efficiency in Africa. In particular, the continent lacks an enabling environment for the

promotion of investment in the sector.

Workshop on Bioenergy Project Development and Packaging

2

In Africa, bioenergy constitutes an important source of energy, and would have even greater po-

tential if sustainably exploited. However its current exploitation is largely within unsustainable

systems with negative impacts on livelihoods in the areas of health, environment and social im-

pacts, including gender (ECA and AU 2014). Over 80% of the population in Africa depends on

solid fuels, primarily traditional biomass for cooking and heating, with related negative effects

such as respiratory diseases from indoor air pollution, and impacts on social outcomes as a result

of extensive time spent on firewood collection rather than on social and productive uses. Produc-

tion of charcoal is highly inefficient, thus contributing to deforestation, as does the inefficient use

of firewood and charcoal in applications such as brick firing and food processing (e.g. fish smok-

ing). Although bioenergy has many applications as a modern source of energy, high value bioen-

ergy application such as gasification, ethanol production, use of bagasse for electricity generation

and others are not fully exploited in Africa. In addition to providing energy for enabling econom-

ic and social activities, bioenergy can also reduce the import burden imposed by imported fossil

fuels. However, even in its modern form, bioenergy exploitation can have unintended negative

consequences if not well managed. Large-scale biofuels production and its associated mono

cropping can reduce biodiversity and disturb ecosystems. The acquisition of land for biofuel pro-

duction can also reduce food security as well as deprive rural people of the one asset they nor-

mally depend on: land. Biodiversity and food security effects of unsustainable bio-energy exploi-

tation can have wider effects across local areas as well as countries and lead to conflict.

There is therefore a huge biofuel potential in Africa. However, such potential is not adequately

harnessed and Africa is losing out on this competitive advantage. There are many barriers against

successful and widespread exploitation of this renewable energy source on the continent, includ-

ing ineffective supporting policy (and associated regulations and legislations) and lack of finan-

cial support. On the whole Africa does not have a coordinated approach towards biofuels devel-

opment, although some RECs and a few countries have begun to address this.

The Economic Commission for Africa (ECA) in partnership with the African Union Commission

(AUC) and NEPAD Planning and Coordinating Agency (NPCA) implementing a project which

promotes modern biofuels development in Africa, particularly providing policy and regulatory

support. The project activities should lead to (a) an establishment of harmonized financial, insti-

tutional and policy frameworks for the promotion of biofuels mainly for household and transport

end uses in Africa; (b) an enhanced capacity of African countries to formulate and implement

gender sensitive policies and programmes on biofuel development; and (c) an improved capacity

of African countries, particularly project developers, to package biofuels projects for investment.

This project is implemented to support the United Nations Sustainable Energy for All

(SE4ALL) initiative and the AUC Bioenergy Policy Framework and Guidelines. The latter,

which was endorsed by the African heads of state and government in January 2013, (a) builds

consensus on shared framework that inspires and provides guidance to individual African coun-

tries and regions in developing bioenergy policies and regulations; and (b) enhances awareness

Workshop on Bioenergy Project Development and Packaging

3

among African policymakers and civil society on the need for environmentally friendly and so-

cially acceptable bioenergy development policies.

The overall objective of the project is to build the capacity in order to promote the production

and usage of biofuels, as well as to achieve sustainable development and poverty reduction. The

main activities of the project are as follows:

• Case studies on the experience of enabling policies and regulatory reforms that facilitate

the adoption of the biofuels technologies.

• Regional capacity building workshops based on case studies to share the lessons learned,

and link these lessons to local context and experience.

• Guidelines, training materials and manuals, model agreements and standards for creating

a harmonized enabling environment for uptake of biofuels in Africa.

• Regional Training workshops on: (a) policy and regulations; (b) establishing the national

systems of innovation (linking R&D to industrial policy); (c) biofuels standards; (d) bio-

fuels project development; and contract negotiation (financing).

• Providing specific and demand-driven technical assistance to identified countries on how

they can develop and modernise the biofuel sector in order to generate modern electricity,

heat energy, and/or transport fuels.

•Baseline studies on

bioenergy development

•Bioenergy Framework &

Policy Guidines (endorced by

CEMA)

2011-12

•Bioenergy Resolution

adopted by AU Assembly

•Mainstreaming of

Framework incl. gender

2013-14 •Capacity Bulding Workshops

on best practices

•Technical training on biofuels

projects (and ID of projects

•Project development and

aackaging

2015-16

Workshop on Bioenergy Project Development and Packaging

4

The promotion of clean renewable energies is a pro-poor development strategy for Africa, which

has a large share of rural population and is highly vulnerable to climate change-induced calami-

ties such as droughts. The energy poverty in rural areas deprives communities of economic and

social opportunities as they do not have access to, or cannot afford, adequate energy services.

Women are disproportionately affected by the lack of energy, as they undertake the majority of

household chores. One of the most effective ways of addressing energy poverty, particularly in

underdeveloped areas in Africa, as well as facilitating or unlocking economics development is to

develop a modern biofuels sector.

The indicator of a successful implementation of this project will be the number of countries that,

as a result of the activities above, have embarked on implementing policies, measures and ac-

tions (PAMs) to modernise the biofuels sector. In addition, and more poignantly, it will be the

number of projects that have been designed and ready for funding. Therefore, the commitment

from government ministries/departments in charge of energy, local project developers (or private

sector) and NGOs will be essential if the expected accomplishments are to be achieved.

2 Expected Accomplishment of the Workshop

However, due to diverse limitations, the modern bioenergy industry is heavily underdeveloped in

Africa. Some of the limitations could be, inter alia, attributed to the following factors: (i) lack of

bankable bioenergy projects;(ii) misinformation on the impact of bioenergy, particularly biofuels

on food security; (iii) lack of reliable information packages on the bioenergy industry and its po-

tential contribution to African development; (iv) weakness or absence of policy and regulatory

frameworks that guide bioenergy development; (iii) weak bioenergy development and implemen-

tation strategies; and (iv) underdeveloped bioenergy market and lack of financial resources.

Therefore, the workshop is expected to devise a detailed, implementable bioenergy roadmap, as

well as timelines. It is expected that this roadmap will be monitored in order to determine the

impact and elucidate lessons learnt for capacity building.

3 Aims of the Workshop

The purpose of this workshop is threefold. The first aim is to recap on the outcomes of the 2015

joint ECA-AUC-NPCA project on bioenergy development for the transport and household sec-

tors. In particular, this will recap the major outcome of this intervention: development of pipeline

projects by African policy and local project developers. These projects are the outcome an inten-

sive process of capacity building based on selected case studies in South Africa, Mauritius, Ken-

ya, Rwanda, Ethiopia, Burkina Faso and Senegal, as well as biofuels training (on policy and reg-

ulatory issues, standards, project development and contract negotiation).

Workshop on Bioenergy Project Development and Packaging

5

The second aim of the workshop is an interactive process on how these project concepts can be

placed in the IRENA’s Virtual Market Place for Renewable Energy Projects. The latter is ex-

plained in full below. This requires some skills and access to the virtual network. This will be

facilitated by IRENA and will require access to and use of software-based methodology. There-

fore, each participant will need to bring a computer to the meeting for this exercise.

The third aim of the workshop is to introduce the project developers to the array of the modali-

ties of African-based renewable energy initiatives. The latter support the development of renew-

able energies, particularly bioenergy technology development. The support that is expected is the

areas of (a) project packaging, (b) support with the enabling environment, (c) project finance and

investment requirements, and (d) match-making.

4 Workshop Programming

The workshop will take place over 3.5 days. The first day of the workshop will be devoted to the

introductory remarks (early morning) as well as the presentation of all the identified project con-

cepts. The second day of the workshop will be focussed on each project developers learning on

how to put their projects on market place. The third of the workshop will be an interactive pro-

cess between the project developers (at country levels) as well as representatives of the targeted

initiatives. This will be a facilitative process that will take place in small group according to the

project categorisation. The last half day of the workshop will be focussed on plenary and will

highlight roadmaps for project packaging and finance based on the outcomes of the small group

meetings (on 3rd

day). The provisional programme of work is as follows:

Morning Afternoon

DAY 1 • Opening statements (AUC, NPCA, ECA)

• Workshop objectives & process

• Presentation of the Market Place

(IRENA)

Presentations of Projects

• Enabling environment

• Capacity Building & Awareness Raising

• Bioenergy project developers

DAY 2 Presentations of current initiatives

• Sustainable Energy Fund for Africa

• Climate Investment Fund

• Green Africa Power

• Renewable Energy Performance Platform

• African Renewable Energy Initiative

• European Union-Africa Energy Partner-

ship

Interactive process between project devel-

opers & initiatives

• Modalities and conditions for support

• Gap analysis and areas of support

• Roadmap and way forwards for support

Workshop on Bioenergy Project Development and Packaging

6

DAY 3 Roadmapping

• Workshop Summary (highlights)

• Presentation of the roadmaps

• Action Plans

• Formal Closure

5 The Projects Pipeline Sample: 2015 Outcomes of the DA Project

The following project concepts were received as an outcome of the ECA-AUC-NEPAD project

cited above. This workshop will aim to refine these concepts as well as providing individual

roadmap on their further development:

Project Title Country Project Champion

1. A study of the roles of growers in biofuel value chain Harare, Zimba-

bwe

Mr. Aleck Gubba, Director – Minis-

try of Energy and Power

([email protected])

2. Scaling up the production of biodiesel in Botswana Gaborone, Bot-

swana

Mr. Boiki Mabowe, Chief Executive

Officer, Biodiesel Botswana

([email protected])

3. Biofuels development strategy to reduce reliance on

imported petroleum, especially for households and

transport use

Maseru, Leso-

tho

Mrs. Palesa Malataliana - Depart-

ment of Energy

([email protected])

4. Innovative capacity building and awareness for key

stakeholders in the development of biofuels in Bot-

swana

Gaborone, Bot-

swana

Mrs. Nozipho Wright – Private Con-

sultant ([email protected])

5. Raising awareness on modern biofuels as an im-

portant energy source in Zimbabwe

Harare, Zimba-

bwe

Mrs. Abigail T. Magugu, Director,

Women and Resources in Eastern

and Southern Africa

([email protected])

6. Assistance in the development of implementation

strategy for biofuel development in Malawi

Blantyre, Ma-

lawi

Mr. Joseph Kalowekamo, Director,

Renewables – Ministry of Energy

([email protected]

7. Rural development project for production of 8,000

Litres of ethanol per day to supply households &

transport in the Southern Africa

Pretoria, South

Africa

Ms. Fikile Hlatshwayo, FH Renew-

able Energy Solutions Pty Ltd

([email protected])

8. Biofuels target setting and regional harmonization of Mbabane, Swa- Mrs. Candy Stromvig, Ministry of

Natural Resources & Energy

Workshop on Bioenergy Project Development and Packaging

7

Swaziland biofuels standards ziland ([email protected])

9. Study on how Mauritius could develop strategies for

uptake of ethanol for the transport sector.

Port Louis,

Mauritius

Mr. Hemant Multra, Ministry of

Energy and Public Utilities (EEMO)

([email protected])

10. Communication strategy for all stakeholders in the

biofuels sphere in Lesotho

Maseru, Leso-

tho

Ms. Makhosi Makhobalo, Private

Consultant

([email protected])

11. Financing options for bagasse energy co-generation

potential in Zambia

Lusaka, Zambia Mr. Shadreck Saili, Zambian Devel-

opment Agency

([email protected])

12. Feasibility and viability for uptake of biofuel blend-

ing commercially and development of sustainable

clean cookstove programme in Swaziland

Manzini, Swa-

ziland

Mr. Thembinkosi Ndzimandze, Min-

istry of Natural Resources & Energy

([email protected])

13. Biofuels value-chain promotion & development pro-

ject to enhance Ethiopia’s efficient, resilient & sus-

tainable energy.

Addis Ababa,

Ethiopia

Mr. Dereje Worknhe, Biofuels Di-

rectorate, Ministry of Water, Irriga-

tion & Energy

([email protected].

14. Promotion of modern biofuels for transport and

household sectors through information awareness in

Tanzania

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO,

15. Improved cookstoves promotion though local tech-

nology adaptation, innovation and marketing

Dar-es-Salam,

Tanzania

Eng. Estomih Sawe, Director,

TaTEDO

16. Mainstreaming biofuels in the policy, promotion of

Jatropha and oil palm kernel and creation of jobs for

marginalized groups in Burundi

Bujumbura,

Burundi

Mr. Jean-Marie Nibizi, Director

SHINE ([email protected])

17. Promotion of energy conservation & reduced defor-

estation through gender sensitive awareness creation

and adaptation of energy efficient locally produced

improved cookstoves usage 2016-2019.

Kampala,

Uganda

Mr. Desmond Tutu Opio, Uganda

Energy Credit Capitalization Com-

pany ([email protected])

18. Mechanization of Cassava Production for Enhanced

Food and Energy Security and Bioenergy Feedstock

Production in Ghana

Accra, Ghana Mrs. Gifty Tettey

[email protected]

19. Development of locally fabricated biomass gasifica-

tion units for efficient thermal applications in Ugan-

da

Kampala,

Uganda,

Shira Bayigga Mukiibi

[email protected]; shi-

[email protected]

20. Scaling up the production of ethanol and technolo- Antananarivo, Dina Anjaraniana Razafimahatratra

Workshop on Bioenergy Project Development and Packaging

8

gies for cooking Madagascar & Ando Rakoto

[email protected]

[email protected]

6 Linking with Relevant Renewable Energy Initiatives

The workshop will be engaging the support of the existing project support that have footprint in

Africa. It is expected that these identified initiatives will give further impetus and on-going sup-

port in refinement, packaging and fund mobilisation for the projects post bioenergy energy pro-

ject development workshop. Such support and further engagement will be monitored over time to

track impact as well as lesson learned.

a) Sustainable Energy Fund for Africa

Established in 2011, SEFA is a USD 95 million Multi-Donor Trust Fund – managed by

the African Development Bank, and assists African Nations and Private Entrepreneur’s

unlocking investments in sustainable energy. The Fund supports the following:

Project Preparation

Window

Enabling Environment

Window

Equity Investment

Window

Scope • Preparation support

to RE and EE Pro-

jects

• Total Costs USD 30

– 200 million]

• Beneficiaries: Pri-

vate Companies

• Enabling Environ-

ment Support

• Beneficiaries: Gov-

ernments and Na-

tional entities

• Seed/growth capital

for RE and EE pro-

jects [USD 10-80

million]

• Beneficiaries: Pri-

vate Companies

Financing Instrument • Non-reimbursable

grants

• Non reimbursable

grants for technical

assistance and ca-

pacity building

• Equity and reim-

bursable grants for

project preparation

Activities • Preparation activi-

ties from Origina-

tion to Financial

Close

• Capacity Building

and Advisory, Poli-

cy and Regulatory

Development, Mar-

ket Development

and Preparation

• Preparation Activi-

ties (TA component)

• Investment Capital

b) IRENA Sustainable Energy Market Place

As part of the IRENA’s objective to sustain and facilitate the spread of renewable energy

technologies, IRENA has implemented a virtual “Market Place” for renewable energy

Workshop on Bioenergy Project Development and Packaging

9

projects. The Sustainable Energy Market Place is a free platform for project owner, gov-

ernments, financiers, and service and technology providers to help develop and drive in-

vestments to new renewable energy projects.

The objective of the virtual market place is accelerate the scale-up investments – both

public and private – to promote initiation, development and financing of low carbon re-

newable energy projects by bringing together project owners, governments, financiers

and service and technology providers. It makes investment opportunities visible and easi-

ly identifiable for investors and helps project developers to identify relevant funding

sources and expertise:

• Search information of interests like projects with certain investment area, financing

sources, or advisors according to specific needs of the project; and

• Find information about and contact relevant entities, projects or financing instru-

ments.

c) Climate Investment Fund

The main purpose of the Climate Investment Fund is to pilot and demonstrate the eco-

nomic, social and environmental viability of low carbon development pathways in the

energy sector by creating new economic opportunities and increasing energy access

through the use of renewable energy. It is a USD 8.1 billion investment from the African

Development Bank (AfDB), Asian Development Bank (ADB), European Bank (EB), In-

ter-American Development Bank (IDB) and World Bank (WB). One of the sub-

programmes of is a USD 796 million “Scaling-up Renewable Energy Programme”

(SREP), which is piloted in several African countries including Madagascar, Malawi,

Ethiopia, Rwanda, Sierra Leone, Uganda and Zambia.

It mainly provides investments in the form of grant and credit to eligible projects that are

less than 10 MW in solar, wind, bioenergy, geothermal, and small hydro; electricity and

thermal; and off-grid and mini grids. It also provides grants towards capacity building

and advisory services to governments for the (a) development of energy policies and leg-

islation; (b) assessment of technical resources potential; (c) strengthening governance

and institutional capacity; and (d) creation of incentive scheme to improve financial via-

bility of RETs.

d) Green Africa Power

This Private Infrastructure Development Group (PIDG) facility offers quasi-equity debt

and contingent lines of credit. The total facility size is USD 200 million. It receives funds

Workshop on Bioenergy Project Development and Packaging

10

from the UK Department for International Development (DFID), UK Department for En-

ergy and Climate Change (DECC) and the Government of Norway. Its fund advisors are

Eiser Infrastructureand CAMCO Clean Energy. It focuses on advanced projects which

are struggling to reach financial close by providing mezzanine finance (subordinated

debt, quasi-equity debt); contingent lines of credit; long tenuresand funding not readily

available from commercial markets.

The mandate of the Green Africa Power is least developed countries, and covers a wide

range of renewable energy technologies. Most of these are utility-scale, grid-connected

projects. It provides later-stage project development support and attracts private sector fi-

nance.

e) Renewable Energy Performance Platform

This is an initiative of UNEP, European Investment Bank (EIB) and funded by the UK

Department of Energy and Climate Change, managed by CAMCO and GreenStream. The

initiative addresses key issues and barriers such as the limited sources of development fi-

nance; limited commercial viability of small-scale renewable energy projects (i.e. Level-

ised costs are not sustainable/equity returns are low); long-term debt (unavailability, high

pricing and short tenors); lack of access to risk mitigation instruments; and lack of tech-

nical know-how amongst small-scale developers.

The REPP mandate is on small-scale renewables based in least developed countries.

Nineteen African countries are target countries and also cover a wide range of renewable

energy technologies. REPP is developer-focused. It also aims to unlocking private sector

finance.

It provides products, services and solutions such as technical assistance during develop-

ment (technical studiesLegal and due diligence costs); structuring support (financial

structuring, Facilitating access to risk mitigation instruments, and facilitating access to long-

term debt); results-based finance.

f) African Renewable Energy Initiative

The AREI wants to help Africa to achieve the Sustainable Development Goals, enhanced

well-being and sound economic development by ensuring universal access to clean, ap-

propriate and affordable energy sources. Across the continents it hopes to achieve at least

300 GW of new and additional installed capacity with initial 10 GW by 2020. This

means increased (a) number of users connected to the national grids or new mini-grids;

(b) share of renewable energy consumption in productive sectors: agriculture, industry,

and services; and (c) share of local/African firms providing renewable equipment and

supply on the continent. The implementation timeline of the AREI is as follows:

Workshop on Bioenergy Project Development and Packaging

11

Establishment Phase Phase I (2016-2020) Phase II (2020-2020

Co

nti

nen

tal

Establishment of AREI

Delivery Unit and Trus-

tee Facility set up

• All core and crosscutting

work areas initiated

• Delivery unit fully opera-

tional

• Africa Energy Institute

established

• AREI Delivery Unit fur-

ther expanded

• Trustee Facility further

capacitated

• Most successful schemes

adopted and modified

across the continent

Su

b-r

egio

na

l

Consultations with

Sub-regional institu-

tions

• GCF obtained for cluster

of countries

• Sub-regional programs &

pilot efforts

• Sub-regional efforts &

programs further consol-

idated

Na

tio

na

l

Countries shaping for-

mally establishing

AREI

• Comprehensive polic-

es/programs in some coun-

tries

• Project support in many

countries

• Assessments, planning

studies & engagement in

all countries

• Comprehensive poli-

cies/programs & effec-

tive RE incentives

schemes in all countries

g) European Union-Africa Energy Partnership

The EU Energy Initiative – Partnership Dialogue Facility (EUEI PDF) was founded in 2004

by several EU member states and the European Commission as a flexible instrument of the EU

Energy Initiative (EUEI). The EUEI PDF is currently funded by the European Commission, Aus-

tria, Finland, France, Germany, the Netherlands and Sweden. An integral part of our mandate is

the coordination of our activities with a variety of partners from the EU as well as regional and

international organisations. EUEI PDF works with partner countries and regions to develop poli-

cies and strategies that contribute to improved access to affordable and sustainable energy ser-

vices. Its activities focus on Africa, but also operate in other parts of the world, such as Southeast

Asia, Latin America, and the Pacific.

EUEI PDF’s goal is to support the creation of an enabling environment for investments in sus-

tainable energy markets in developing countries through (a) policy, regulation and strategy de-

velopment; (b) institutional building and strengthening; (c) private sector cooperation; (d) ca-

pacity development; and (e) knowledge sharing.

Workshop on Bioenergy Project Development and Packaging

12

7 Workshop Venue and Other Logistics

This workshop will take place at the African Union Commission Headquarters in Addis Ababa.

The dates for the workshops are 26-28 October 2016. An Aide Memoire, which outlines useful

information about the logistics and other information, will be sent to confirmed participants.