UNFCCC Workshop on Climate Change Mitigation Renewables Initiatives

UNFCCC Workshop on Climate Change Mitigation Renewables Initiatives in Africa - Selected Case Studies of Mitigation by Stephen Karekezi African Energy Policy Research Network (AFREPREN) afrepren@africaonline. co. ke www. afrepren. org

Renewed Interest in Renewables in Africa < Increasing oil prices & pressure on convertible currency reserves ($40/barrel) $ < Attractive job generation (unemployment/under employment rates 50 -60%), technological development & enterprise creation potential of renewables

Renewed Interest in Renewables in Africa <Rio Conference/Climate Change Convention <Johannesburg WSSD Conference <Bonn 2004 Renewables Conference <Decision makers rarely want to be 1 st, prefer to be 2 nd or even better, 3 rd <Growing importance of renewables in industrialized countries such as Austria, Germany (renewable energy industry has over 100, 000 employees), Iceland Denmark <Success stories in selected African countries (Kenya & Mauritius)

Geothermal - Kenya < Large potential along the great Rift Valley (9, 000 MW - hot water/steam option only) < Significant exploitation, largely in Kenya < Large potential for grid-connected electricity generation from geothermal in Ethiopia, Tanzania and Uganda

Geothermal Energy Use

Limitations of Geothermal • Region-specific: Not available in all regions but non-hot water/steam option available throughout the world • High up-front drilling costs - equivalent to that of oil wells but lower risk • Cost competitive - least cost power development option for Kenya and cost even lower if heat application included

Benefits of Geothermal • Security of supply - Close to 100% availability: Not affected by climatic changes such as drought & strengthens system balance • Recent drought in Kenya, Tanzania and Ethiopia led to 8 hour power cuts resulting in close to 1% drop in GDP • Attractive heat applications potential - Reduces poverty through rural jobs and enterprise creation • Technology development - Kenya offering technical support to neighboring countries & in a few cases participated in technical missions to industrialized countries • Equitable negotiation - Geothermal industry composed of small to medium sized companies which allows developing Governments to negotiate equitable arrangements

Co-generation: Mauritius Combined Heat and Power (CHP) <Substantial potential in agro & forest-based industries, e. g. sugar, paper and pulp, wood and rice industries <Most sugar industries currently practicing co-generation for own use <Grid-connected co-generation not widespread in the region <Successful in Mauritius (40% of power supply of which 25% bagasse) <Promising developments in Uganda, Kenya and Tanzania Power Generation - Mauritius Sugar Industry Others

Limitations of Co-generation • Intermittent biomass feedstock - Can be addressed through dual-fuel boilers • Fixing price of co-generated power - Need pro-active and balanced Government or regulatory intervention to fix price agreeable to key stakeholders • Need a robust agro or forest industry: However, cogeneration can improve viability of agro or forest industry

Benefits of Co-generation < Cost-competitive - combined cost of heat & electricity very low < Local resource and strengthens system balance- security of supply and enhances rural energy service < Reduces in poverty - attractive job generation (at the sugar cane plantation level) and enterprise creation potential (local technology development) < Can lead to equitable sharing of benefits: Mauritius case < Incremental and modular - can start small (1 or 2 MW investment to 50 -70 MW installations) which lowers initial risks and facilitates local participation

Potential (Low Case): Bagasse-Based Cogeneration (% of current installed power generation capacity)

Self Sustaining Small Scale Renewable Industry: <1% of Electricity Bill

Abundant Renewable Energy Resources in Africa

Key Challenge • Articulate a convincing policy case for renewables aimed at Ministries of Finance, Ministries of Energy & Utilities < Focus on technological and economically proven renewables with near-term tangible benefits < Energy security vis a vis fluctuating oil prices and drought related hydro shortages < Enterprise creation < Jobs < Local technological development • Exploit existing and planned climate-related financing opportunities