African Union African Development Bank All Africa Joint Events UN Economic Commission for Africa AU Conference of Energy Ministers of Africa (CEMA) All-Africa Energy Week 2012 (AAEW) Pan-African Investment Forum (PAIF) CONCEPT NOTE Renewable Energy for Sustainable Development: From Potential to Infrastructure and Services November 12 to 16 2012 Addis Ababa (Ethiopia) 1 Page
The African Union Commission (AUC), African Development Bank (AfDB), and the UN Economic Commission for Africa (UNECA) are co-organizing from November 12 to 16 2012, in Addis Ababa, Ethiopia, All-Africa Energy Week and the Pan African Investment Forum. The event is organized in conjunction with and under the auspices of AU Conference of Energy Ministers of Africa that will hold its statutory meeting during the week. I. Background The Energy Ministers of Africa adopted during a meeting in Maputo, Mozambique in November 2010,a Declaration creating the Conference of Energy Ministers of Africa(CEMA) as sole continental holistic Energy Ministerial organ under the auspices of the African Union. In addition the Ministers adopted a resolution establishing the All Africa Energy Week, as a framework to evaluate the progress made in infrastructure development and Regional energy services, consensus building on emerging issues, high level coordination of all the actions and stakeholders in the energy sector. These resolutions were further endorsed by African Heads of States and Government during the January 2011 AU Summit. Both CEMA conference and All Africa Energy Week are scheduled to take place every two years. Given that 2012 is declared as the International Year of Sustainable Energy Access for All (SE4ALL) by the United Nations Secretary General and the UN system, the AAEW will be an important opportunity to reiterate the crucial role of Renewable energy in achieving sustainable development in Africa by contributing to thethree following goals of the SE4ALL initiative: Ensuring universal access to modem forms of energy for all by 2030, improving significantly energy efficiency, and doubling the global share of renewable energy by 2030. In January 2012, African Heads of State and Government (HSG) adopted a Declaration approving the Programme for Infrastructure Development in Africa (PIDA) and the institutional architecture for its implementation (Dec. EX.CL/702 (XX)). It establishes the highest level political commitments on the continent in recognition of the vital and facilitator role that infrastructure and its related services play in the political and socioeconomic development and physical integration of the continent as well as in the attainment of the Millennium Development Goals. With the completion of the study of the Programme for Infrastructure Development in Africa (PIDA), and its adoption by African HSG as Africa s continental priority programme, the AAEW-CEMA-PAIF platform offers a unique opportunity to address urgent concerns about the continental ownership and consultations around the roll out of major projects in the energy sector with key partners. Finally, Africa hosted important events in energy sector such as the COP17 meeting (November December 2011) and the African EU Energy Partnership Forum (9-10 2 Page
May, 2012). These meetings are strongly tied to renewable energy issues and their outcomes will be taken in account in the framework of the discussions. II. Overall Objectives The main theme of the 2012 All Africa Energy Week/CEMA /PAIF is: Renewable Energy for Sustainable Development: From Potential to Infrastructure and Services. The overall objectives of the AAEW/PAIF Thematic Forum are: o To achieve more efficient, coherent and coordinated actions towards increasing energy access and ensuring energy security for development in Africa; o To accelerate progress through dialogue and partnerships toward the scaling up of investments in the African energy sector; o To inform decision-makers and influence sector policies for scaling up energy infrastructure and services for increased productivity on the continent. The specific objectives will be: o To take stock of and monitor progress achieved in the African energy sector by major national, regional and international institutions; o To improve strategic and operational tools used by the main energy actors for supporting the implementation of the African energy agenda; o To share updated knowledge and disseminate it among energy policy-makers, development partners, private sector and other energy stakeholders; o To increase the building of strategic partnerships among key players, and particularly with the private sector for the development, implementation and closing knowledge and financial gaps in energy projects; o To build capacity in innovative knowledge and attain early understanding towards a consensus on emerging key issues in the sector. III. All Africa Joint Events The joint events include the following: - Conference of Energy Ministers of Africa ( CEMA) - All Africa Energy Week (AAEW) - Pan- African Investment Forum (PAIF) - Ministerial round table, - Business round table and investment consultation, - Exhibition on renewable energy technologies, innovation, and pilot projects. IV. Conference of Energy Ministers of Africa(CEMA) African Ministers responsible for energy will convene under the auspice of the African Union, to discuss on the progress in sector in the light of the Maputo Declaration Maputo adopted on 5 November 2010 and the main events since the first Conference. The meeting will comprise a ministerial round-table and a statutory ministerial meeting, preceded by a senior Experts meeting. 3 Page
It is expected that Ministers will decide on new modalities of functioning of CEMA and a Declaration with important decisions related to continental policies in the energy sector, including way forward recommendations on PIDA, issues related to renewable energy in Africa (solar, wind, geothermal), issues related to the Africa-EU Energy Partnership, and others. In particular important outcomes are: Establishing the new Bureau of CEMA; Endorsement of Roll out Plan of Priority Action Plan of PIDA in energy as well as the Institutional Architecture for PIDA implementation; Sustainable Energy For All commitments; The Geothermal Regional Program; COP17; Africa-EU Energy Partnership; Hydropower 2020 Initiative; Way forward decisions and Declaration. V. All Africa Energy Week (AAEW) It has became clear recently that Africa need to be on a sustainable energy production and consumption path to ensure its energy security and it with an assurance for economic resiliency. To this effect, the energy sector plays a central role both in mitigation and adaptation measures, African governments, African regional institutions and most Development partners (bilateral and multilateral) are in the process to adapt their strategies and services to address the urgency for scaling-up investments in the energy sector in Africa. The choices are often complex (sometimes controversial), and require sectoral and economic crafting based on large consultation, innovation, and sharing of knowledge towards which a Forum such as the AAEW would undoubtedly contribute. VI. Pan-African Investment Forum (PAIF) The underdevelopment of energy infrastructure in Africa, particularly in sub-saharan Africa is the consequence of delayed and low investments in the sector while the population has more than doubled in many countries. Experts estimate that, in order to provide energy to half of the population in the next 20 years, the current level of investment must quadruple; a daunting challenge for most national governments on the continent. Thus, developing key partnership between the public and the private sector (through PPP arrangements) and attracting new private investments are required. The second African Energy Investment Forum is to take stock on the achievements of the first one and to provide a Pan-Africa platform for interface and partnership between the African policy makers, the private sector and financial institutions. The Forum will also act as a vehicle for empowering the African Private Sector through advocacy, sharing business and market information and skills. The Forum will underscore the formation of a partnership s and network structure for the implementation of policy recommendations and will also link these measures with on-going private sector efforts towards strengthening Africa s investment climate and business community. 4 Page
VII. Special Events (a) Ministerial Round Table The Ministerial Round Table is a half a day event that addresses the issue of major challenges for private sector participation/investment in infrastructure development in Africa through a high-level open dialogue between African ministers, regional representatives, decision-makers in the private sector, financial institutions, development partners, and selected civil society representatives. The high-level policy dialogue will focus on: Workable approaches to tackle the infrastructure deficit in Africa through private sector participation. The efficient implementation of the regional and sub-regional projects including the regional power pools and power trades. (b) Business Round Table and Investment Consultation Sessions The business round table and investment consultations will provide a practical platform,to promote private investment through a Business Round Table and investment consultation sessions focusing on regional/sub regional pipe-line projects as well as some selected country projects in energy and energy-related other infrastructure. In particular, given the importance of private investment and the presence of many untapped investment opportunities in Africa through: 5 Page (i) Presentations on projects in infrastructure and potential package investment deals at regional, cross border, and country levels; (ii) Business Round Tables focusing on regional and sub-regional priority projects; and (iii) Building Business/Investment Networks between policy makers, investors and financing institutions. VIII. Exhibition Alongside the meetings, Industries, technology developers, R&D practitioners, and development actors are invited to showcase their companies and organizations, display equipments, materials, services, innovative findings, new knowledge and other practices relevant to addressing energy poverty. Together with the outcomes of the deliberations of the meetings, the exhibition will contribute to enlighten developers and policy-makers on the various opportunities for shifting energy investments. IX. Thematic Sessions The focus of the policy/ thematic session include discussions and recommendations on the following topics:
a. Rolling Out the Programme for Infrastructure Development in Africa (PIDA) The meeting is to take stock of progress in the development of energy infrastructure, services and knowledge in Africa. The outcomes of the Programme for Infrastructure Development in Africa (PIDA) study and its implications will be discussed. Deliberations will be conducted on the draft Roll-Out Plan (ROP) for the energy sector and consensual approaches will be determined b. Stepping up hydropower development for regional integration Africa is, among all developing areas of the world, the continent where needs are the most urgent. In Africa, less than 7% of hydropower potential has been developed while more than 60% of its population does not have access to electricity. This highlights the contrast of a continent well-endowed with energy resources and the deprivation of its population, industries and businesses of the minimum energy services and products that they require to face the challenges of modern lives, and economic growth. Given the low energy consumption in most of African countries and the huge needs in capital to develop hydropower energy resources, ensuring the whole energy security is only possible by scaling-up regional power supply and transmission networks. This is the main mandate of the Regional Power Pools to facilitate regional energy planning and development of large energy projects on a regional basis. c. Solar energy viability in Africa The African Energy Ministers adopted in Maputo a Resolution on Solar Energy calling for harnessing the immense potential of solar energy radiation of the Sahara Desert and other semi-arid areas in the African regions for electric power generation. To this regard, a study was conducted by AFREC to assess the potential of energy in the Sahara and Sahel regions as first phase. The outcomes of the study will be communicated and discussed. 6 Page d. Harnessing wind and geothermal potentials Wind and geothermal energy potential are significant in several regions of the continent. The East African Rift System (EARS) is one of the major tectonic structures of the earth which extends for about 6,500 km from the Middle East (Dead Sea-Jordan Valley) in the north to Mozambique in the south. The EARS appears to possess a remarkable geothermal energy potential. Using today's technologies, the EARS has the potential to generate more than 15,000 MW of power from geothermal energy. The Regional Geothermal Program led by the African Union has been established and a Geothermal Risk Mitigation Facility (GRMF) amounting 50 M Euros is in place with the contribution of the German Government through the KfW for 20 M Euros and of the European Union Infrastructure Trust Fund for 30 M Euros. The main objective of the GRMF is to promote private and public investment for the development of geothermal energy potential in providing grants for five countries in EARS as first phase.
7 Page e. Grid connection, Tariff and financing issues, Regulations and Policies Given the scale of investments needed, innovative approaches for planning and financing are critical. These approaches should pay great attention to promote mixed technologies appropriately targeted for grid extension in urban and rural areas with high population density and on mini grid as well as off-grid systems based on renewable energy technologies for remote areas. Addressing tariffs issues is crucial for sustainability of the sector and for fund mobilization needed for refurbishment and expansion of energy infrastructure. It is generally agreed that of the 70 GW of installed capacity, 40 GW need to be refurbished and 7 GW of new capacity need to be built yearly to meet suppressed demand and to face projected economic growth. The total amount per year is estimated to $ 41 billion. In order to ensure the viability of the system which need broad participation of private sector it is critical (i) to avoid under pricing; (ii) to ensure adequate cost recovery (iii) to have good governance of the utilities and (iv) to invest in energy efficiency as driver for affordability. Participation of private sector in the development of energy infrastructure in various forms such as PPP or IPP is essential for achieving supply/demand balance. As energy sector involves long term agreements, a predictable regulatory framework especially on tariff matters is crucial to attract and maintain private actors. Energy policy in Africa could drive economic growth when it is established with a minimum of regional consensus. Countries should agree on Power Trade with clear mechanisms for cross-border sale of electricity that brings benefits for all. Indeed, expended regional energy trade based on large hydropower facilities lead to lower generation costs and encourage investments, economic growth and job creations. f. AUC/UNECA Bioenergy Cooperation Programme In recognition of the critical role that bioenergy can play in promoting Africa s energy security and access, as well as agricultural transformation, and fostering broad- based economic growth, the IED has been recently advocating for the sustainable development of bioenergy in Africa through a number of political initiatives that include, among others: (1) Addis Ababa Declaration and Action Plan on Sustainable Bio-fuels Development in Africa, which was adopted at the first High-level Bio-fuels Seminar in Africa, August 2007; and (2) Dakar Renewable Energy Development Plan of Action, adopted by the International Conference on Renewable energy in Africa organized by the AUC jointly with a number of concerned organizations, Dakar, April 2008. Those two initiatives inspired some favorable resolutions on promoting bioenergy in Africa as adopted by the 12 th AU Summit held in Addis Ababa, February 2009 and the Conference of Ministers responsible for Energy in Africa (CEMA), held in Maputo, November 2010, that approved the 2 nd Action Plan of Africa-EU Energy Partnership
(AEEP) and the Renewable Energy Cooperation Programme (RECP) which aimed at, among others, tripling bioenergy production in Africa by 2020. An Experts Group Meeting jointly organized by AU Commission and UNECA took place from 21 to 23 November 2011 in Addis Ababa, Ethiopia with the objective to validate two reports: (1) Biofuels Development in Africa: Technology Options and Related Policy and Regulatory Issues; and (2) Sustainable Bioenergy Policy Framework and Guidelines: Toward Energy Security and Sustainable Livelihoods in Africa. The first report which was adopted in November 2011 analyses the biofuels value chain, specifically in terms of available technologies and the policy and regulatory issues pertaining to developing the biofuels industry on the continent.. The second report which will be adopted during the next AAEW aims primarily to develop a draft bioenergy policy framework and guidelines for Africa based on a comprehensive assessment of opportunities, challenges and risks for bioenergy expansion in Africa, and lessons learned. g. Building Public Private Partnerships to Scale-Up Resources for Climate Friendly Investment Key areas to be covered under this heading includes the following: Climate Friendly Investment and PPPs in Renewable Energy in Africa Energy mix and Energy Efficiency in Africa Public-Private Partnership (PPPs) in Renewable Energy: Best Practices Implementation Framework of PPPs in Africa Strategy to Boost Green and Climate-Friendly Investment and Mobilize Resource for its Development X. Expected outcomes Expected outcomes of the joint event includes, A declaration on important decisions related to continental policies in the energy sector,, progress report on the Programme for Infrastructure Development in Africa (PIDA), the launching of the AAEW series, issues on Africa-EU partnership, the PAIF and others. Private sector participation in infrastructure development promoted, and capacity of public and private sectors to invest in energy and energy related sectors improved. More consensus, coherence and strategic partnerships among key players (international, public and private) for the development and investments in energy projects built; A communication strategy will be designed. Strategic and operational tools for supporting the implementation the African renewable energy agenda improved; Best practices and updated knowledge on energy and energy-related infrastructure including clean energy infrastructure and services shared and disseminated among relevant stakeholders. energy planning capabilities at the country and REC s level improved; and 8 Page
XI. Participation and Beneficiaries The main beneficiaries are participants and their related organizations/countries: African Ministers responsible for energy; investors, private sector and development partners; country-specific experts, stakeholders and partners; partners from the AfDB, EU, WB, and UN organizations; Investment promotion agencies in Africa; Regional Economic Communities (RECs), Regional Power Pools, African specialized institutions, and Sub- Regional Development Banks; Energy NGO, selected academia and research institutions. The proceedings of the conference (on electronic support) will directly benefit the participants, and also other decision-makers in various governmental and nongovernmental organizations, including investors, private sector and civil societies. XII. Venue and date The dates for the Meetings are from November 12 th to November 16 th, 2012, in Addis Ababa, Ethiopia XIII. Agenda of the AAEW/CEMA/PAIF Day 0: registration Day 1: Thematic Session of the AAEW/PAIF Renewable Energy for sustainable development: from potential to infrastructure and services Roll-Out of the PIDA Priority Action Plan SE4ALL: Achieving Commitments Stepping up hydropower development for regional integration Solar energy viability in Africa Day 2 : Promoting Private Investments and PPPs in Renewable Energy Grid Connection policy and regulation IPP and PPP in large scale RE infrastructure Success factors Meso-scale projects, Partnerships and Entrepreneurship Innovative financing sources and modalities Geothermal Risk Mitigation Facility Day 3: Statutory CEMA Experts Meeting Day 4: Statutory CEMA Experts Meeting Adoption of the Experts Meeting Report Day 4 : Ministerial Round Table-Stakeholders Forum Day 5: Session of the Conference of Energy Ministers of Africa Statutory matters Reports and Adoption of declaration 9 Page
Closing Ceremony Parallel events: Day 1-Day 5: Exhibition Day3 Day4: Business Round Table 10 Page