Regional Workshop on Renewable Energy

ECOWAS Regional Centre for Renewable Energy and Energy

Efficiency

Mahama KappiahECOWAS Commission

Presentation Outline1. Preamble.

2. Context.

3. Energy Situation in the ECOWAS.

4. Barriers to the RE&EE sectors.

5. Aims and Objectives of the Center.

6. Objectives, activities and outcomes.

7. Funding and logistics.

8. Roadmap

1. Preamble

• The ECOWAS Energy policy of 1982• ECOWAS Energy protocol, 2002• The ECOWAS white Paper 2006• Council of Ministers meeting of November 2007• ECOWAS Conference on Peace and Security in

Ouagadougou – 12 November 2007.• Ouagadougou Declaration – need to Establish a

Regional Center for Renewable Energy and Energy Efficiency in ECOWAS region.

• Austrian Minister for European Affairs in charge of Development Cooperation pledged support to the proposed Center.

• President of ECOWAS Commission requested UNIDO to assist in the design of the Center.

2. Context : socio-economic

• Total population of 262million and projected to reach 320 million by 2015 – 2.65% growth rate.

• Region has 40% of population in SSA.

• Nigeria, Ghana and Cote D’Ivoire – 60% population.

• Rapid rural to urban migration that population in urban areas is expected to change from 43% to 50% in 10 years.

• Semi-arid Sahelien in the north and tropical climates along coastal south.

2. Context (cont’d) – poverty levels

• 44% of population lives on less than 1US$/day and is increasing

• 13 countries are LDCs & HIPC.

• Income inequalities within and between countries.

• Very low levels of access to basic social services.

• Economic growth is fragile & not match poverty levels.

• Agriculture is the main economic activity.

• Studies project that most countries are not schedule to meet the MDGs by 2015

• 44% of population lives on less than 1US$/day and is increasing

• 13 countries are LDCs & HIPC.

• Income inequalities within and between countries.

• Very low levels of access to basic social services.

• Economic growth is fragile & not match poverty levels.

• Agriculture is the main economic activity.

• Studies project that most countries are not schedule to meet the MDGs by 2015

3. Energy Situation• Significant but unevenly distributed energy

resources• 23,000MW potential with only 16% exploited. Located on 5 countries.• Nigeria has 98% proven resources of crude oil, natural gas.• Biomass, mainly in traditional forms, accounts for over 80% of energy consumed.

• Very low energy consumption rates in the world

• 4% of global population but accounts for 1.7% of total global energy consumption.• Per capita electricity consumption is 88kWh : continental average 563 kWh • Per capita final energy consumption is 454 Kgoe : global average 1145 Kgoe• Per capita primary energy production in 915 Kgoe : world average of 1163Kgoe

• Low access to energy services.• Household access to electricity services is about 20%. ( 40% urban & 6-8% rural).• No decentralized energy systems.• Access to modern fuels in rural areas is very low.• Energy for domestic purposes is mainly from biomass and access to LPG and kerosene

5%.

3. Energy Situation (cont’d.)

• Heavy dependence on oil – commercial energy.

• 60 % of electricity generation capacity from oil. ( in some countries like Gambia, Guinea Bissau and Liberia it is 100%)• Recent high oil prices have stifled economic growth.

• Little coordination between sectors.• Energy is a cross-sectoral issue hence the need for coordinated activities

• Electricity Sector faces several challenges.• Power sector reforms have not been able to increase efficiency, attract private sector investment and ODA in the sector.

• Lack of capital for expansion and maintenance and rehabilitation projects have led to increase malfunctions and inefficiencies.

• Non cost reflective tariffs that are adopted to protect the poor affect financial standing of utilities.

•Lack of skilled personnel in utilities and government institutions.

• Heavy dependence on oil – commercial energy.

• 60 % of electricity generation capacity from oil. ( in some countries like Gambia, Guinea Bissau and Liberia it is 100%)• Recent high oil prices have stifled economic growth.

• Little coordination between sectors.• Energy is a cross-sectoral issue hence the need for coordinated activities

• Electricity Sector faces several challenges.• Power sector reforms have not been able to increase efficiency, attract private sector investment and ODA in the sector.

• Lack of capital for expansion and maintenance and rehabilitation projects have led to increase malfunctions and inefficiencies.

• Non cost reflective tariffs that are adopted to protect the poor affect financial standing of utilities.

•Lack of skilled personnel in utilities and government institutions.

• Renewable energy resources unexploited.• Biomass energy largely used in its traditional forms.• Average insolation of 5-6 kWh/m2 per day throughout the year.• Wind energy resources along the coast and desert zones.• Small hydro potential largely unexploited• Notable projects underway to promote biofuels

• Energy efficiency not prioritized• Lack of political will to promote energy efficiency.• Policy statements have not been operationalised.• Urgent need to increase energy efficiency in industry for competitiveness and

in other sectors to reduce costs.

• Increased regional approaches in the energy sector• West African Power Pool - WAPP• West African Gas pipeline – WAGP• The regional policy for increase access to energy services.

3. Energy Situation (cont’d.)

4. Barriers to RE & EE sectors

• Policy, Legal and regulatory frameworks

• Technology Transfer and Adaptation

• Low Capacity

• Low Awareness raising and advocacy

• Financing

• Lack of Institutional support

4.1 Barriers to RE & EE sectors• Policy, Legal and regulatory frameworks.

• Some countries have developed comprehensive policies, laws and regulations but the challenges is in the operationalisation.

• Consequently, interest and investment from private sector has remain very low.

• Private sector has shunned large-scale grid-connected (>1MW) RE peojects.

• No clear terms of engaging Independent Power Producers (IPP) – feed in tariffs and technical specifications

• No model power purchase agreements (PPA) at national and regional levels.

• Business case for EE in all sectors is not made.

• Technology Transfer and Adaptation.• Technology transfer efforts have not been based on meeting priority energy needs.

• Local manufacture of technologies is minimal & ensuring quality and standards

• R&D has tended to focus on prototype development, performance assessment at the expense of practical issues such as feasibility studies and policy and market research.

• More technology demonstration required for technologies like gasification.

• South-south and north-south cooperation frameworks can promote technology transfer.

• Partnerships are required to support technology acquisition and ownership.

• Capacity• Policy makers, regulators and parliamentarians need capacity to formulate and implement

policies that would create a level playing field for RE.

• Support institutions require capacity to effectively carryout their mandates.

• Market players such as project developers, financiers etc require capacity.

• Past capacity building initiatives employed a narrow set of tools like seminars, workshop that are not well integrated into actual project development and implementation. There is need to focus on practical training and learning-by-doing tools to include counterparting and twinning.

• Awareness raising and advocacy• Lack of awareness about the potential benefits of RE&EE to the region.

• At policy makers level – policies that are not supportive to RE&EE sectors.

• Private sector, project developers and financial institutions – missed business opportunities.

• Consumers – decisions are not based on energy considerations

• Lack of standards and performance labeling schemes results in inferior equipment and appliances flooding the local markets e.g. second-hand fridges, air conditioners etc

4.2 Barriers to RE & EE sectors (cont’d)

4.3 Barriers to RE & EE sectors (cont’d)4.3 Barriers to RE & EE sectors (cont’d)

•Financing•No credit and financing facilities that are suitable to RE& EE projects.•Financial services providers tend to cite market risks such as high transaction costs for small RE systems, uncertainties on resources base, price uncertainties etc.•Project developers cannot prepare financing packages that respond to the needs of financiers•Financial service providers need to widen their products to be able to finance RE&EE projects•Public-private partnerships need to be employed to mitigate perceived and real risks.•Carbon market opportunities have not been tapped.

• Institutional support•Various projects have been implemented to promote RE&EE in the region.•Once completed, there is reversal of some of the gains.•There is need for instutionalized support to the development of RE&EE in the region.

5. Aim of the Regional Center5. Aim of the Regional Center

Aim :

Promote renewable energy and energy efficiency sectors in the ECOWAS/UEMOA region so as to increase access to modern energy services and enhance energy security to support sustainable economic and social growth and reduce negative environmental consequences of energy production.

Aim :

Promote renewable energy and energy efficiency sectors in the ECOWAS/UEMOA region so as to increase access to modern energy services and enhance energy security to support sustainable economic and social growth and reduce negative environmental consequences of energy production.

5. Objectives of the Regional Center

Four pillars/objectives:• Capacity building and awareness raising;

• Research and Technology transfer;

• Policy, legal and regulatory frameworks and quality assurance; and

• Knowledge Management and advisory services.

6. Objectives, activities and outcomesObjective 1 Build capacity and raise awareness of key players in the RE&EE sectors

Expected Outcomes

• Key stakeholder have capacity and skill to develop and implement RE&EE projects and programmes.• Citizens of the ECOWAS are aware and conscious of the possibilities and opportunities of using RE and energy conservation.

Activities •Conduct integrated and real life project related training programmes for the following target groups : high-level decision makers; staff for national institutions, project developers, financial services providers, local manufacturers/SMEs, consumer organizations; existing professional associations.• Organize secondment activities (counterparting and twining) in priority areas.•Develop curriculum of RE&EE for educational institutions and train their staff.• Conduct targeted awareness raising and sensitization programmes that include seminars, coaching clinics, demonstration programmes and projects and provide decision support tools

Objective 2

Promote research and technology transfer

Expected Outcomes

• Research on renewable energy and energy efficiency policies, markets, technologies etc is carried out and findings are disseminated.• Selected renewable energy and energy efficiency demonstration projects are implemented.• Appropriate renewable energy and energy efficiency technologies are transferred among countries in the region and between the region and other regions.

Activities •Initiate research/studies on renewable energy and energy efficiency policies, markets, technologies etc and disseminate findings.•Conduct studies on renewable energy and energy efficiency success stories (and the not so successful cases) in the region and elsewhere and publish findings.•Establish north-south and south-south cooperation frameworks with similar institutions to support the transfer of technologies, knowledge to the region.• Identify and implement target demonstration projects and provide support to other countries to replicate and scale-up such projects. This entails developing investment projects based on lessons learnt.

6. Objectives, activities and outcomes

6. Objectives, activities and outcomesObjective 3 Develop and operationalise supportive policy, legal and regulatory framework &

quality assurance

Expected Outcomes

•Policy, legal and regulatory frameworks for promoting renewable energy and energy efficiency sectors are established at national level and harmonized at regional level. •Model power purchase agreement (PPA) are developed at country levels and harmonized at regional level.•Renewable energy and energy efficiency equipment in the region meet agreed standards and all appliances in the region have performance labels.•Increase in local manufacture of renewable energy and energy efficiency equipment.

Activities •- Assist in the development of national and regional policies, laws and regulations that create a conducive environment for the promotion on RE & EE sectors. -- Develop guidelines for engagement with IPPs for RE embedded power generation and model power purchase agreements (PPAs) at national and harmonize at regional level.•- Develop and enforce regionally accepted standards of renewable energy equipment.•- Develop and apply performance-labeling scheme for equipment used in the region and train local equipment manufactures to comply.•- Train national renewable energy and energy efficiency related institutions to implement and enforce regional standards and equipment labeling scheme.

Target Activities for 1st 3 years• Equip Centre with relevant tool and equipment to carry capacity

development programme for relevant renewable energy technologies

• Develop a Capacity Building Program and carry out Capacity building for various stakeholders for rapid market penetration of renewable and energy efficiency

• Carry out RE Resource Assessment and Develop maps and atlases for various RE resources to provide information on the quantity, quality, distribution, utilization and commercial feasibility of relevant RE applications for decision making on investments

• Develop appropriate regional policy frameworks and quality assurance standards to promote renewable energy and energy efficiency in member states

• Develop a web-based knowledge management services and products

Target Activities for 1st 3 years• Implement Multi cylinder Biomass Briquetting Project

• Implement Non-Grid Hybrid Wind Energy Project to demonstrate the viability of the hybrid system to boost rural electrification program and promote sustainable development in the region

• Implement a Solar Photovoltaic Project to demonstrate the viabiliy of solar PV applications in household, commercial, industrial, agricultural and institutional sectors to promote sustainable development in the region

• Implement a solar thermal project

• Develop Community-based Improved Wood Burning Stoves Program

• Implement a Compact Fluorescent Lamp (CFL) Projects in at Least three Member States

Partners

• CIEMAT- Technical Partnership through the support of AECID

• ADA- Institutional support for the operation of Centre• ECOWAS Commission- Institutional support for the

operation of Centre• EBID- through ABREF• EU• Germany• France• USA

7. INSTITUTIONAL LOCATION & STAFFING•Effective use of resources and speedy establishment.

• Possible institutions to consider include ESP, CERER, EIER-ETSHER, EMIG & Energy Centre- KNUST, KITE.

•Effective use of resources and speedy establishment.

• Possible institutions to consider include ESP, CERER, EIER-ETSHER, EMIG & Energy Centre- KNUST, KITE.

Steering Committee

Regular Staff of the Center

Executive Board

Executive Director

Technical Assistance, Seconded Staff, Projects Staff etc.

7. INSTITUTIONAL LOCATION & STAFFING

• Core Staff of the Center•2 Renewable Energy Expert.

• Energy Efficiency Expert.

•Biomass Expert

• Energy policy and research experts.

• Training and information/communication expert.

• Administrative and secretarial support staff

• Other Staff of the Center•Technical Assistants and Seconded staff

•Project Staff to be hired on the project/programmes to be implemented.

• Core Staff of the Center•2 Renewable Energy Expert.

• Energy Efficiency Expert.

•Biomass Expert

• Energy policy and research experts.

• Training and information/communication expert.

• Administrative and secretarial support staff

• Other Staff of the Center•Technical Assistants and Seconded staff

•Project Staff to be hired on the project/programmes to be implemented.

7. INSTITUTIONAL LOCATION & STAFFING•Steering Committee.• To be chaired by the Director of the Center and meet twice a year.

• Composed of representatives of ECOWAS Member States, renewable energy institutions and staff of the Center.

• Review work progress and workplan of the Center and recommend to the Executive Board the for approval.

• To meet physically at least once every year

•Executive Board• To be chaired by high-level representative of ECOWAS (Commissioner for infrastructure/Environment) with Director of the Center as secretary.

• Composed of 2 high-level representatives from partners (e.g. AECID/CIEMAT, ADA/UNIDO, EBID) and selected energy experts from the region and to meet annually.

• Highest decision-making authority of the Center and to decide on strategic issues for the Center such as activities, funding etc.

•Recommend to the ECOWAS Commission and Energy Ministers relevant policies and regulation to promote the widespread application of RE technologies in the subrgion

•Steering Committee.• To be chaired by the Director of the Center and meet twice a year.

• Composed of representatives of ECOWAS Member States, renewable energy institutions and staff of the Center.

• Review work progress and workplan of the Center and recommend to the Executive Board the for approval.

• To meet physically at least once every year

•Executive Board• To be chaired by high-level representative of ECOWAS (Commissioner for infrastructure/Environment) with Director of the Center as secretary.

• Composed of 2 high-level representatives from partners (e.g. AECID/CIEMAT, ADA/UNIDO, EBID) and selected energy experts from the region and to meet annually.

• Highest decision-making authority of the Center and to decide on strategic issues for the Center such as activities, funding etc.

•Recommend to the ECOWAS Commission and Energy Ministers relevant policies and regulation to promote the widespread application of RE technologies in the subrgion

Mile stones

Oct 2008 Draft Report prepared and reviewed by committee comprising ECOWAS, UEMOA, AU, EU, UNIDO, SADC, etc

Oct 2008 Report appraised by technical experts of ECOWAS/UEMOA MS

Oct 2008 Resolution adopted by 9th Meeting of ECOWAS Energy Ministers on establishment of Centre

Dec 2008 Council Regulation Adopted on establishment of Centre

Dec 2008 Supplementary Act adopted by Authority of Heads of State on establishment of Centre and its location in Cape Verde

10. Roadmap

April-2009:- Liaise with the Gov. of CV to provide Office accommodation and Logistics

May – 2009 Finalise preparatory activities and Business plan for centre

June 2009 Finalise Technical cooperation Agreement with AECID and CIEMAT

June 2009:- Sign grant agreement with the gov. of Austria

July 2009:- launch Center and commence operation

April-2009:- Liaise with the Gov. of CV to provide Office accommodation and Logistics

May – 2009 Finalise preparatory activities and Business plan for centre

June 2009 Finalise Technical cooperation Agreement with AECID and CIEMAT

June 2009:- Sign grant agreement with the gov. of Austria

July 2009:- launch Center and commence operation