SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Introduction
Module 1:
OVERVIEW OF RENEWABLE ENERGY AND
ENERGY EFFICIENCY
Module 1
SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Module overview
• Introduction
• Background on energy supply and consumption in Africa
• Status of renewable energy and energy efficiency in Africa
• Why Africa should promote renewables
• Why Africa should promote energy efficiency
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Module aims
• Provide a summary of the energy sector in Africa
• Highlight the potential benefits/contribution of renewables
to Africa’s’ energy sector and explain why Africa should
focus on renewable energy
• Highlight the potential benefits/contribution of energy
efficiency to the African energy sector and explain on why
the region should promote energy efficiency
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Module learning outcomes
• Enhanced understanding of the potential benefits/
contribution of renewables to the Africa’s energy sector
• Better understanding of the potential benefits/contribution
of energy efficiency to Africa
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Energy Supply in Africa
• Africa produces less than 10% of the world’s energy supply
Type Amount (Mtoe) Percentage
Solar/wind/tide 0.058 0.01
Geothermal 0.680 0.06
Nuclear 3.300 0.30
Hydro 7.300 0.66
Petroleum Products 128.560 11.69
Gas 129.890 11.81
Coal 139.010 12.64
Biomass * 272.100 24.74
Crude Oil 418.780 38.08
Total 1,099.678 100.00
* Biomass refers to combustible renewables (mainly fuelwood, charcoal and agro-residues) and waste. Source: IEA,
2005
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Energy Consumption in Africa
* Biomass refers to combustible renewables (mainly fuelwood, charcoal and agro-residues) and waste. Source: IEA,
2005
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Population with NO Electricity (millions)
A few successes (Ghana, Mauritius,
South Africa, Zimbabwe)
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Status of Renewables in Africa
• Renewable Energy = energy forms that occur naturally
and cannot be depleted
• Africa is endowed with substantial renewable energy
resources
– More than 1.1 GW of exploitable technical small hydropower
potential
– More than 9,000 MW of geothermal potential (steam/hot water
only
– Abundant biomass potential
– Substantial solar potential (the daily average solar radiation
ranges between 5 and 6 kWh/m2)
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Emphasis on Conventional Energy Options
• Higher proportion of funding allocated to
conventional energy sector i.e. large-scale
hydro and petroleum
• Ethiopia: Virtually entire energy budget
allocated to conventional large-scale
investments
• Smaller-scale renewables largely left out
(even dominant biomass is ignored)
• Results – contributes to low levels of access
to modern energy which, in turn, contribute
to increased poverty
• Note: Not that conventional energy is bad, it just takes
long to reach the poor
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Emphasis on Conventional Energy Options
Energy Sector Capital Budget – Ethiopia (1990-2000) % and Million Birr
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Energy Pyramid Need for Better Balance
Decreasing level Increasing impact
of Investment on population
Large-scale
initiatives
(large-scale hydro)
Medium-scale initiatives
(Cogen., LPG, wind pumps, solar
water heaters, , off-grid electrification)
Small-scale initiatives
(solar dryers, treadle irrigation pumps,
mechanical RETs, improved stoves, kerosene)
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
AFRICA
Status of Energy Efficiency in Africa
• Compared to renewables, very little done on energy
efficiency
• Energy efficiency programmes largely absent
• Significant waste recorded
– Kenya - 10 – 30% of primary energy input wasted
• Top 3 target sectors for energy efficiency programmes
– Industry
– Transport
– Residential
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Status of Energy Efficiency in Africa (2)
• Potential energy efficiency measures using renewables
– Solar water heaters – savings of up to 40% on electricity bill for
residential
• Utility-based Projects: Morocco, Tunisia and Egypt
– Renewables for producing combined heat and power
• Bagasse-based cogeneration
• Geothermal energy
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Renewables and Energy Efficiency
Policies in Africa
• Underdeveloped renewables and energy efficiency is
reflection of energy policies
• Focus on conventional energy systems
• Lack of implementation plans for renewables and energy
efficiency
• Rationale for promoting renewables and energy efficiency
not well argued:
– Leads to focus on conventional energy systems
– Does not attract significant budgetary allocations
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Renewables and Energy Efficiency
Policies in Africa (2)
• Promotion of renewables and energy efficiency through
climate change and environmental drivers do not resonate
in Africa
• Conclusion: Support for renewables and energy efficiency
is lukewarm
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Why should Africa promote
Renewables?
• Significant energy resource potential exists
• Increasingly unreliable conventional energy supply
• Lowering the risk profile of energy sector
• Enhance competitiveness of agro-industries
• Minimise high oil import bills
• Job creation potential
• Can attract CDM-related financing
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Cogeneration Potential for Replacing Oil
Electricity generation from Biomass-Based Cogeneration
Country
oil and petroleum (GWh) Potential (GWh)
Tanzania 143 315
Kenya 1,509 2,606
Ethiopia 19 1,750
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Estimated Job Creation Potential
Construction,
Operation and
Energy manufacturing and Total Employment
maintenance
Option installation (Employees/MW)
(Employees/MW)
(Employees/MW)
Geothermal 4.00 1.70 5.70
Wind 2.51 0.27 2.78
Natural gas 1.00 0.10 1.10
Coal 0.27 0.74 1.01
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Why should Africa promote
Energy Efficiency?
• The rate of increasing energy demand outpaces the rate
of increases in supply
• “Wake up call” from energy supply shortfalls
• Gradual withdrawal of donors from large scale energy
investments
• Delayed investment from “shaving off” peak loads
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Why should Africa promote
Energy Efficiency? (2)
• Reduction in the cost of energy supply
– Tunisia: Switch to SWH to reduce electricity cost by 20%
• Job creation potential
• Can attract CDM-related financing
• Industry: Reduction in the cost of production
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Energy Cost as % of Cost of Production
40%
30%
20%
10%
0%
Sri Lanka (low - 1998) Sri Lanka (High - 1998)
Eastern Africa (low - 2005) Eastern Africa (high - 2005)
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CONCLUSIONS
• Rationale for promoting renewables and energy efficiency not
well argued:
– Climate change and environmental concerns not applicable in Africa
• Solid rationale for promoting renewables and energy
efficiency:
– Enhanced energy security: reduce exposure to high oil import costs
– Availability of plentiful and cost-competitive renewables (hydro &
geothermal)
– Ability to provide cost-competitive energy services to remote rural
settlements
– Significant job and enterprise creation potential
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR
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Questions/Activities
– List the potential benefits of promoting renewable
energy in Africa?
– List the potential benefits of promoting energy
efficiency in Africa?
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