Africa Energy Challenges and Opportunities By Atef Marzouk

Africa Energy Challenges and Opportunities By Atef Marzouk Energy, Senior Policy Officer Department of Infrastructure and Energy African Union Commission High Level Workshop on “Public Private Partnership” 30 June-1 July 2011 1

The World at Day and Night … 2

Energy Sector : Key Challenges 1. Low Electrification Rate 1. Food - Fuel- Financial Crisis 1. Inefficient Operations and Distributions Systems 2. High Dependency on Traditional Fuels 3. Low Level of Energy Exchange among Countries 4. Under-exploitation of Renewable Sources of Energy ENERGY CRISIS IS REAL IN AFRICA IN TERMS OF ACCESS, QUALITY, EFFICIENCY AND FUNDING

Energy Sector : Opportunities 1. Large Hydropower Potential (Only 7 % exploited so far) 2. 8% of Global Natural Gas Reserves 3. 10% of Global Oil Reserves 4. Huge Potential of Renewables – Bioenergy, Solar, Wind and Geothermal 5. Huge Untapped Potential of Energy Efficiencies 6. Regional integration for Better Energy Supply and Security

STRATEGIES AND KEY ACTIONS • • • Promoting strong policy and investment climate Diversification of the energy supply mix and promoting systems efficiencies Strengthening legal, regulatory and institutional capacity Investing in human resource development Regional / sub-regional integration and Interconnection - Development of the Hydropower Resources in a Regional Context - Establishing a Strategic Framework for Refineries and operationalizing African Petroleum Fund - Capturing the Flared Gas and delivering to Regional and International Markets - Implementing Dakar Plan of Action on Renewables and Promoting Energy Efficiency - Establishing an African Electrification Fund

Enhancing Energy Access and Promoting Energy Efficiency n Technology Transfer – a Key Issue for Africa n Scaling up Renewable Energy Markets – Development of Local Manufacturing Capacities n Promoting Energy Efficiency in Industries, Buildings and Transport Sector n Creation of IRENA – a new Initiative n ECOWAS Centre for Renewable Energy and Energy Efficiency

WAY FORWARD Key Words: INTEGRATION, INTERCONNECTION, DIVERSIFICATION AND INVESTMENTS TRANSITION to Low Carbon Economy; Enhancing Energy Access for Bottom Billion; and Promoting Energy for Productive Uses TRANSFORMATION to Green Energy and Green Economies GREEN NEW DEAL

DIE Thank you Atef Marzouk: Energy, Senior Policy Officer E- mail : marzouka@africa-union. org Web Site: www. africa-union. org 8