Africa Energy Yearbook 2017 - full book by EnergyNet

2017

OPINION PIECES

From Ministers & Government Officials

INDUSTRY LEADER ARTICLES from AFC, Aggreko, Fieldstone Africa & more

A special chapter dedicated to DANISH ENERGY INSIGHTS

RECIPIENT OF THE ENERGYNET LIFETIME ACHIEVEMENT AWARD:

Featured power projects & directories of power technology providers and developers In association with 19TH ANNUAL

H.E. Honourable Madame Nkosazana Dlamini-Zuma, Former Chairperson of the African Union Commission

Sponsored by:

DANISH ENERGY INSIGHTS

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Why we need partnerships across the energy space

Anders Runevad, Group President & CEO, Vestas

INTERVIEW: Ulla Tørnæs, MINISTER FOR DEVELOPMENT COOPERATION, Denmark

Denmark – a green inspiration and partner Finn Mortensen, Executive Director, State of Green

Sustainable investments: Combining good returns with a positive change

Peter Damgaard Jensen, Director, PKA Pension, Denmark

Blended Finance Can Make Risky Investments Bankable Torben Möger, Director, PensionDanmark, Denmark

INTERVIEW:

Alexandre Santos, President, Medreg

AFRICA ENERGY YEARBOOK – Volume 11, June 2017 Published by: EnergyNet Limited Fulham Green Bedford House 69-79 Fulham High Street London SW6 3JW

Editor: Articles, Interviews & Project lists Amy Offord | Amy.offord@EnergyNet.co.uk +44 (0) 20 7384 8068 SUB-EDITOR: Ana Nicolaou | Ana.Nicolaou@energynet.co.uk +44 (0)20 7384 8226 Artwork & Design: Catherine van Dyk | Clear Impressions | Publishing & Print Media Design | clearimpressions@outlook.com +27 79 344 1649

Copyright c 2017 EnergyNet Limited ISBN 978-0-9551943-9-9 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of EnergyNet Limited.

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2017 Africa Energy Yearbook

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INVESTING IN POWER 38

Diary of an international commercial bank embarking on project financing for African IPPS

Nathalie Haller, Director, Mizuho bank

Building institutional capacity the AFC way – Just do it Nigeria David Bowers, Vice President in the Investment Division, Africa Finance Corporation (AFC)

Fieldstone Africa Renewables Index (FARI) – South Africa

Jason Harlan, CEO, Fieldstone Africa

54 INTERVIEW: Fieldstone Q & A with Jason Harlan, CEO, Fieldstone Africa

Fit for Finance: Safeguarding Investment in your Power Project

Nicky Crawford, Partner, ERM Shana Westfall, Eshia Service Lead, ERM

64 INTERVIEW:

Dr Mateus Magala, Chairman of the Board of Directors, EDM Mozambique

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STRATEGIES FOR SUCCESS 90

INTERVIEW:

Leadership – the key to solving Africa’s electricity shortage

Hon. Dr. Nkosazana Dlamini – Zuma, Former Chairperson, African Union Commission

Henry Asklar, Chief Executive Officer, Globeleq

102 Seeing the Light – Embracing IPPs to solve Africa’s power deficit

102

Romain Py, Head of Transactions, African Infrastructure Investment Managers (AIIM)

108 Realising Nigeria’s Untapped Solar Energy Potential in Improving Nigeria’s Energy Mix

Dolapo Kukoyi, Partner, Detail Solicitors Ifedayo Adeoba, Senior Associate, Detail Solicitors Bolaji Fasehun, Associate, Detail Solicitors

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DELIVERING POWER 116 Africa requires flexible energy mix: Diversified approach to generation and distribution will meet continent’s energy needs

Rentia Van Tonder, Head of Renewable Energy, Power & Infrastructure, Standard bank, South Africa

120 Flexible power strategies need to power progress in Africa

JAMES Shepherd, Managing Director, Aggreko Africa

124 Southern african transmission interconnectors

Omar Vajeth, Senior Transaction Advisor and Head of Project Advisory Unit, Southern African Power Pool (SAPP)

128 interview:

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H.E. Hon. Pierre Anatole, Minister of Energy and Water Resources, Democratic Republic of Congo (DRC)

130 Electricity Storage Solutions: Regulatory and Legal Considerations for Utilities

Amir Shaikh, Chief Legal COUNSEL (HEAD OF PROJECTS) African Legal Support Facility Gadi Taj Ndahumba, Legal Counsel, African Legal Support Facility

134 The legal issues around off grid solutions and energy storage

146

Faith Can, Vice President, Tekfen Construction, Turkey

THE RENEWABLES REVOLUTION 140 Portugal – A Global Actor in Renewable Energies and Sustainable Development

Jorge Seguro Sanches, Secretary of State for Energy

146 Unlocking the Energy Future of Africa

156

ENGIE

152 INTERVIEW: Electrifying Africa through Crowd-sourced Origination

Reda El Chaar, Executive Chairman, Access Power

156 The opportunity for renewables to unlock value through digital inclusion

2017 Africa Energy Yearbook

Alex Money, Programme Director, Smith School of Enterprise and the Environment, University of Oxford

DANISH ENERGY INSIGHTS

ADVERTISERS Inside front & outer back cover

Mizuho

136 Tekfen Construction

Manitoba Hydro International

162 EnergyNet Student Engagement Initiative

African Business

164 EnergyNet upcoming events

Africa Energy Forum 2018

Inside back cover

Africa Outlook

Andritz Hydro

PROJECTS 73 Angola 74 Botswana 74

Burkina Faso

Congo (Kinshasa)

Egypt

Ethiopia

76 Ghana 77 Kenya 79 Malawi 79 Mali 79 Morocco 80 Mozambique 81 Namibia 82

Nigeria

Rwanda

South Africa

Tanzania

Uganda

Zambia

99 80

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DIRECTORY 161 Conventional thermal Power 169 Temporary power 173 Wind power 174 Hydropower 175 Solar power 176 featured power developers at the africa energy forum 2017

INDEPENDENT ARTISTS

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177 Ermias Ekube 177 Leslie Lumeh

ARTISTS WITH THANKS TO AFRIART GALLERY 179 Ismael Kateregga 179 David Kigozi 179 Ronex Ahimbisibwe

180 FRED MUTEBI 180 Ocom Adonias 180 Collin Sekajugo

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Why we need partnerships across the energy space As a region, Africa has two unfortunate “records”: the lowest per capita electricity consumption in the world, and an average cost of electricity in most of its countries that is at least twice that of other developing countries across the globe. These are significant challenges for any electricity market, especially as the electricity demand is expected to triple by 2030. The region needs its electricity generation to grow exponentially, while ensuring that electricity is affordable and demand curtailment is minimised.

Today, we are already seeing how both large-scale gridconnected wind farms –Vestas’ core business –and offgrid wind hybrid solutions can bring clean, affordable and reliable energy to all parts of the world.

o Vestas, the increasing electricity demand in Africa and the challenges of affordability and curtailment are great examples of how wind energy can help Africa meet its energy needs while promoting inclusive and sustainable growth.

Today, we are already seeing how both large-scale grid-connected wind farms –Vestas’ core business –and off-grid wind hybrid solutions can bring clean, affordable and reliable energy to all parts of the world. On top of that, wind energy is also scalable and substantially faster to deploy than competing sources like oil and coal. To exemplify, Vestas has already installed wind parks in a number of African countries, including Cape Verde, Egypt, Kenya, Morocco and South Africa, for a total of 400 MW. Additionally, we have recently built Africa’s largest wind park to date, the 310 MW Lake Turkana Wind Power project in Kenya, which will make up to 15 per cent of Kenya’s total energy consumption when fully operational. All in all, we are in 2017 moving beyond 1 GW of wind power installed by Vestas in Africa. It doesn’t end there, though, and we are therefore exploring new opportunities to harness the power of wind at utility scale in Ghana, Senegal, Ivory Coast, Algeria, Tunisia, Ethiopia, Tanzania and Namibia, among many other African countries where wind can provide clean, cheap, and reliable energy to meet Africa’s growing needs. Having pioneered wind projects in 35 countries, Vestas has been the first company to install a commercial wind turbine in more than half of the 76 countries where we operate. This mean we have unique experience when it comes to developing, 2017 Africa Energy Yearbook

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Anders Runevad, Group President & CEO,Vestas Anders Runevad is Group President and CEO of Vestas. He was born in 1960 in Lud, Sweden. Current position: Group president and CEO, Vestas Wind Systems A/S since 2013. As CEO of Vestas, Runevad has completed the wind energy company’s turnaround and been keyto Vestas’ period of profitable growth since 2014, including improving return on invested capital from 7.7 percent in 2013 to 117.2 percent by end of 2015. Previous positions: Spent more than 20 years with Ericsson, holding leadership roles across the Americas, Asia and Europe. Current key positions of trust: Deputy chairman of the board of MHI Vestas Off shore A/S. Board member of NKT Holding A/S. Serves in the General Council of the Confederation of Danish Industries and the Industrial Policy Committee of the Confederation of Danish Industries. Education: Holds a Master of Science in Electrical Engineering and has completed MBA studies, both at Lund University, Sweden.

constructing and managing wind projects in new markets, because doing the first project is always the most challenging, but also the one that provides the most learning. Many capabilities are needed across the value chain when introducing wind energy to new markets: from market development and technical assessment to providing the right wind solution and being able to successfully execute the project, ensuring that maximum value is achieved throughout the project’s lifetime. Africa is no different but sometimes the continent’s great geographical lengths and the harsh climatic conditions at times make the challenge even greater. For instance, at Lake Turkana Wind Park average wind speeds are around 11 m/s and the nearest port is located 1,200 kilometres away, which is an extreme environment for both logistics and construction. WIND’S BENEFITS AND THE CHALLENGES AHEAD

For Africa, wind energy makes all the sense: it is abundant and readily available, fast to install, scalable to meet needs, and without fuel costs or the risks associated with importing energy. 2017 Africa Energy Yearbook

It is also a water-free, CO2-free and drought-proof power technology that reduces demand of fresh water from the power sector and contributes to the fight against climate change –two of the Sustainable Development Goals which most matter to the African continent. When completed, Lake Turkana Wind Park will not only provide Kenya with much-needed green energy, but also save the country more that EUR100 million a year in imported fuel costs and sixteen million tons of CO 2 emissions compared to a fossil fuel fired power plant, while driving down overall electricity prices for Kenyan consumers and businesses. However, developing wind power projects in Africa is not straightforward for a number of reasons. First, grid access and instability are of the major bottlenecks, and governments increasingly need to invest in transmission capacity if they want to increase the uptake of renewable energy. Moreover, national grid companies typically do not have enough knowledge of wind energy and how it will affect the grid. With more than 35 years of experience, Vestas has a unique knowledge of how to integrate wind energy into the grid. We provide training, grid impact studies

and grid modelling assistance for local transmission system operators to learn how to meet these new challenges. Second, international electricity trade plays a significant role. Providing the institutional structure for international electricity trade, the power markets in Africa –according to a recent study from the Proceedings of the National Academy of Services1 -can lay the groundwork for power plant siting that minimises regional system costs. When strategic siting for solar and wind projects and international interconnections are considered, the need for conventional power plants will be reduced while less competitive renewable energy sites will become more economically feasible. Third, political and regulatory risk can also be challenging, especially in countries where the government often changes. Political risk insurance (such as those offered by the Multilateral Investment Guarantee Agency and OPIC) and in-depth country and offtaker due to diligence are key to mitigating these types of risks. Fourth, the enabling legislative or regulatory environments as support schemes for renewable energy –such as Feed-in-Tariff or quotas/green certificates –are often not yet developed. Policy 11

EXCHANGE BUREAUX COLLIN SEKAJUGO Recycled Plastics 34cm x 17cm

Images submitted by Afriart gallery, Uganda

The increase in energy across Africa has offered its artists the opportunity to recreate themselves by creating artworks that give back to society. Government investment in energy has offered artists avenues for recycling materials.â&#x20AC;? COLLIN SEKAJUGO ENERGISED COLLIN SEKAJUGO Recycled Plastics 40cm x 120cm 12

Images submitted by Afriart gallery, Uganda

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guidance provided by international financial institutions (IFIs) or think tanks such as IRENA and IEA can be valuable to jump-start wind power development in some countries. Fifth, transportation and the lack of adequate ports, roads and other infrastructure are a challenge. As an example, we had to construct more than 200 kilometres of road for the transport of the 365 turbines from the harbour in Mombasa to site, located 8 km East of Lake Turkana in northern Kenya, which will also benefit the local communities for other means. FINANCING OF ENERGY PROJECTS, OR THE LACK THEREOF

The financial challenges to developing large-scale, grid-connected projects are quite different than those facing smaller, off-grid projects. In some cases, African banks and other local financial institutions lack the experience or information to assess the large infrastructure projects that utility-scale wind parks are. Given these constraints, infrastructure projects are tailored to the perceived reality that infrastructure must be donor-funded and hard-currency financed. For the large-scale projects, however, the focus should be on building local capabilities and robust capital markets for long-term investment into energy infrastructure. Furthermore, in mature markets in Europe and North America, wind power investments are largely becoming a mainstream asset class suitable for securitisation. The attractiveness of wind power investments reflects the stable cash flow generated from a portfolio of wind power plants. This in turn allows for inexpensive access to financing of new investments (i.e. yield cost). Unfortunately, such a solution to the financing of wind power investments is not replicable in Africa, at least not outside South Africa. The key reason for this is the off-taker risk. In African countries there is usually one single buyer of the energy generated by a wind power plant, a state-owned 2017 Africa Energy Yearbook

The financial challenges to developing large-scale, grid-connected projects are quite different than those facing smaller, off-grid projects. In some cases, African banks and other local financial institutions lack the experience or information to assess the large infrastructure projects that utility-scale wind parks are. utility, which is usually cash strapped. Hence, the counterparty of the power purchase agreement (PPA) is an entity which typically has no credit rating and needs to rely on sovereign guarantees provided by the government. But governments in Africa cannot always provide sovereign guarantees to infrastructure projects. Even though one of the main arguments for the rise of Independent Power Produce (IPP) projects in Africa is their ability to decrease the financial strains on the public finance of a country, it is also true that sovereign guarantees may impose undue hardship by affecting the country’s creditworthiness (the consequences of a government’s overall public debt levels and restricting its access to capital markets. One prescription to this challenge is power sector reform providing a stable framework for IPPs and addressing the insolvency of off-takers. Some countries in Sub-Saharan Africa, notably Kenya and Uganda, have followed this route with some success. Nonetheless, it is fair to say that recent IPP investments in these countries would have materialised without the implicit and explicit guarantees provided by IFIs. Hence, a potential solution is to increase the use of international development aid to provide guaranteed

fund/s for renewable energy projects and their underlying PPAs, in effect becoming a first loss taker in the event of default. As an example, the European Commission is already working on a guarantee scheme targeted for Africa which, hopefully, will see the light at the end of the year. All these challenges reveal the rue power of partnerships and why partnerships across the energy space are the key to meeting Africa’s future energy demand. Take Lake Turkana Wind Power Project, the largest single private sector investment in Kenya’s history, as an example of where key players in the energy space worked together to make it happen: from technology providers and wind turbine manufacturers (OEMs) to project developers, civil contractors, law firms, institutional investors, equity investors, Multilateral Financial Institutions, Export Credit Agencies, NGOs, local communities and governments. As the old African proverb reads: “if you want to go fast, go alone, if you want to go far, go together”

http://www.pnas.org/content/ early/2017/03/21/1611845114.full

DANISH ENERGY INSIGHTS

YEARBOOK PROFILE PIECE ULLA TØRNÆS, MINISTER FOR DEVELOPMENT COOPERATION, DENMARK Ulla Tørnæs was born on 4 September 1962 in Esbjerg and is the daughter of fishing-vessel master and former Minister Laurits Tørnæs, and director Katty Tørnæs. She is a member of the Liberal Party and, from 1994 to 2014, was a member of the Danish parliament (Folketing). She currently serves as the Minister of the Development Cooperation, Denmark.

Can you please provide the readers of the Africa Energy Yearbook with an overview of Denmark’s Energy Model? What were the key decisions which led to this mix of resources being recognised as one of the cleanest and most advanced on earth? The Danish Energy Model has shown that it is possible to sustain significant economic growth and achieve a high standard of living. This is made possible by having a long-term focused energy policy with ambitious renewable energy goals, enhanced energy efficiency and support for technical innovation and industrial development. Additionally, renewable energy has become a Danish core competence and a source of competitiveness. Denmark has been a pioneer in developing renewable energy. Denmark has managed to become a global leader in renewable energy generation since the 1980s despite having no hydropower resources, thanks mostly to advancements in wind energy. Renewable energy’s share of final energy consumption in Denmark has steadily been increasing ever since. Today, more than 30 per cent of

Denmark has been a pioneer in developing renewable energy 14

Denmark’s final energy consumption is supplied by renewable energy. The political goal is that more than half the energy consumption will be supplied by renewable energy by 2030. In the power sector alone, 42 per cent of the final electricity consumption is covered by wind energy; this is the highest share of wind energy used globally. The long-term vision supported by a broad majority in the Danish national Parliament is to be independent of fossil fuels by 2050.

Over the last ten years Denmark has made considerable investments across Africa and is probably more involved in energy projects across the continent than many investors realise – this is of course just one of the many reasons why we are bringing the Africa Energy Forum to Copenhagen. What is the Danish vision of their role on the continent? In January, the Danish government presented Denmark’s new strategy for development cooperation and humanitarian action. The strategy stresses four areas, and one of them is “inclusive, sustainable growth and development”. The strategy builds on the UN’s Sustainable Development Goals and Goal 7, promoting “affordable and clean energy”, is a special priority for Denmark. It is a Danish priority not only because lack of electricity is a barrier for growth across Africa, but

also because Denmark, with core green competences, has substantial knowledge to offer. Finally, we believe that when we invest in green energy, the climate – and by that I mean everyone – wins. This is why I see Denmark’s priority of green energy in our development cooperation as a win-win-win strategy. A strong Danish priority is promoting public-private partnerships as a tool to mobilise increased capital for climate investments. This we have done with success through the Danish Climate Investment Fund, which has mobilised finance from institutional investors, including Danish pension funds. Denmark is also among the founders of the Sustainable Energy Fund for Africa, a multi-donor trust fund for preparing, financing and facilitating green energy investments in Africa. This is done in collaboration with the private sector. Lately, the Danish company Vestas has played a key role in the development of Africa’s biggest windmill park, Lake Turkana, in Kenya.

Why is sustainable energy a priority for you as the Danish Minister for Development Cooperation? Sustainable energy is important for many reasons. Transformation to green sustainable sources of energy is crucial if we are to stop climate change which threatens the livelihood of both present and future generations. At the same time, access to sustainable energy is also essential for both human and economic development. Growth and access to energy goes hand in hand. It is estimated that the lack of 2017 Africa Energy Yearbook

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Today, more than 30 per cent of Denmarkâ&#x20AC;&#x2122;s final energy consumption is supplied by renewable energy. The political goal is that more than half the energy consumption will be supplied by renewable energy by 2030. 2017 Africa Energy Yearbook

It is important to represent modern advancements in artwork because it is the responsibility of the artists to engage as role models in documenting changing lifestyles and developments.” COLLIN SEKAJUGO

These works are part of my study on how consumerism is quickly inspiring and influencing innovation and creativity in today’s world. I have adopted the Jerrycan which, over the years, has played a big role in the development process of African communities; a significant symbol of our society today. Given the intensity of today’s consumer world and the functionality of this seemingly iconic commodity, I am inclined to dub our lives as ‘Jerrycanned’.” COLLIN SEKAJUGO

GAS PUMPS COLLIN SEKAJUGO Recycled Plastics 40cm x 120cm 16

Images submitted by Afriart gallery, Uganda

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access to energy costs African countries 2–4 per cent of their GDP per year. It is critical to turn these figures around. Denmark has a lot to offer in terms of technology and concrete solutions when it comes to renewable energy and energy efficiency. Danish companies are leaders in these fields and this is a winwin situation from my point of view.

Denmark is a leader in technology and innovation – what do you make of the current opportunity for new technology in Africa’s electricity sector, and can the continent leap frog traditional grid-connected electrification via the distribution of off-grid and micro-grid technologies? What is the key to the successful roll out of off-grid and micro-grid solutions? Low carbon mini grids are expected to play a critical role in achieving the Sustainable Development Goal 7 and the Sustainable Energy for All (SE4All) goal of universal access to clean and affordable modern energy by 2030. Mini‐grids have a long history and have been an integral part of the power sector development of many of the current high‐income countries. These mini-grids are only now emerging as a scalable option for meeting the energy demand in Sub‐Saharan Africa. In this region, mini‐grids are a cheap and timely option for many villages and towns. A key element to ensure the successful roll-out of off-grid and micro-grid solutions is to deal with some of the barriers which have constrained the roll-out of mini-grids so far. These barriers are: (i) Limited proven business models that are viable for replication; 2017 Africa Energy Yearbook

Denmark has a lot to offer in terms of technology and concrete solutions when it comes to renewable energy and energy efficiency. Danish companies are leaders in these fields and this is a win-win situation from my point of view. (ii) Gaps in policies and regulations; (iii) The absence of long‐term financing. In rural areas, green mini‐grids have the potential to provide high quality and low carbon energy for communities that otherwise might have to wait for years to be connected to the main power grid. As decentralised energy generation, electrical storage systems, smart meters, and efficient appliances continue to come down in price, independent power producers will find innovative ways to bring electricity services to new customers at affordable prices. This can be seen in Tanzania where small power producers are now able to sell to customers without going through a lengthy licensing process.

The Nordic States are a beacon of excellence for regional cooperation. How has this multilateral partnership been able to flourish and how important do you think it is that Africa functions more cohesively? The Nordic countries have given priority to renewable energy, energy efficiency and clean energy technologies for a long time. To be able to provide renewable energy space in the electricity grid, it is necessary to have integrated electricity markets and stable connections between countries. We have succeeded in establishing that in the Nordic region. The Nordic electricity market is the most coordinated in Europe and is a

model for the European integration process. I believe there is no size that fits all, but I hope that African countries can learn and find inspiration in the Nordic region.

What are your expectations for the Africa Energy Forum in Copenhagen? I expect and hope that the conference will provide a platform for encouraging green investment in the energy sector across Africa. This will be a good venue for Danish companies and stakeholders to showcase their solutions and strengths. Furthermore, I hope that it will provide a platform for good and constructive dialogue among all relevant stakeholders on the role of energy in creating sustainable development for all. I am very pleased that the conference puts focus on the role of Development, Finance Institutions, which I believe, have an important role to play in terms of encouraging investments. The Danish focus a lot on working in partnerships with the private sector and other stakeholders and on how to use our Official Development Aid in a catalytic way that leverages private investments. One thing is certain – if we are to reach the ambitious SDGs, everybody must contribute. We must share governmental knowledge, private investments and competence and the sustainable choices made by energy users in their everyday lives. I look forward to sharing these and other experiences at the conference. 17

I believe energy access is now a fundamental human rightwithout it life is miserable. Communication, education and healthcare are impossible without enough energy access in one country. The absence of these features is often what causes people’s migration from the continent.” ERMIAS EKUBE

EXAMINING AN EGG Image submitted by the Artist ERMIAS EKUBE Charcoal on Paper 155cm x 135cm 18

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Although Denmark is smaller, with just 5.6 million people, and its climate conditions might be different than most African countries, it is a powerful base for knowledge as well as technical and financial solutions.

a green inspiration Denmark has decided to lead the transition to a green growth economy and to be the first country in the world to become independent of fossil fuels by 2050.

t is an extremely ambitious goal, but in Denmark, we think it is realistic. The Danish policy, passed through Parliament in 2012, has turned out to be an inspiration for the rest of the world. Political and business decision makers from all around the world come 20

to Denmark to learn for themselves what the Danes are doing, and how. Although Denmark is smaller, with just 5.6 million people, and its climate conditions might be different than most African countries, it is a powerful base for knowledge as well as

technical and financial solutions. This can be beneficial to African countries in their pursuit of the implementation of renewable energy. Denmark has been involved in projects for developing infrastructure in Africa for decades. The on-going development 2017 Africa Energy Yearbook

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Finn Mortensen, Executive Director, State of Green Before joining State of Green, Finn was the business editor of Berlingske Tidende (2002-2008), news editor of Borsen (1995-2002) and an economic political specialist at the U.S. Embassy in Copenhagen (1985-1995). Finn holds a masterâ&#x20AC;&#x2122;s degree in Modern Languages, and attended executive leadership programmes at Columbia University and Wharton Business School as well as media management programmes in the U.S. and Sweden. He is the co-author of the bestselling biography on Danish shipping magnate, Maersk Mc-Kinney Moller of A.P. Moller â&#x20AC;&#x201C; Maersk, which was published in 2008. The book has since appeared in English and Chinese translations.

and partner of the Lake Turkana wind farm, which will be a major step forward for the power supply in Kenya, is a very good example of how Danish manufacturers, Danish government and Danish financing institutions step in to make huge projects a reality.

2017 Africa Energy Yearbook

Danish pension funds have seen the potential in projects for developing renewable infrastructure. Their willingness to invest considerable sums in Denmark as well as internationally has set new standards and has been extremely good for projects and for their thousands of customers. Projects

Danish pension funds have seen the potential in projects for developing renewable infrastructure. 21

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in Africa are also financially supported by the Danish Climate Investment Fund (KIF) and Denmarkâ&#x20AC;&#x2122;s Export Credit Agency (EKF). KIF offers risk capital and advice for climate investments or climate-related projects in developing countries as well as emerging markets and is interested in co-investing with companies and developers of climatefriendly projects. EKF helps foreign buyers raise capital for their purchase of Danish solutions. For a country of our size, we have unique experience and knowledge in managing the transition to renewable energy. We want to share this knowledge with countries around the world. Through State of Green, the organisation behind the national green brand of Denmark, decision makers from both the public and private sectors worldwide visit Denmark to learn from our experience and set up valuable connections to Danish professionals.

How has Denmark managed to reach this very special position in the global transition to green energy? The short answers are: political vision, willpower and parliamentary consensus, long-term planning (and sticking to it) and sound cooperation between virtually all parts of society. Cooperation between the public, private sectors and research institutions resulted in world-class technological solutions. Cooperation between state and investors, especially pension funds, is important for financial viability. Cooperation between the state and local government is very important because the municipalities are the essential drivers for green growth. Copenhagen is an example for cities around the world for its ambition of becoming the first CO2 neutral capital in the world by 2025. Last but not least is the involvement of the citizens. Danes expect their children to drink clean water, breathe clean air, eat healthy food and be able to travel safely to school. This is indeed deep-rooted and

For a country of our size, we have unique experience and knowledge in managing the transition to renewable energy. We want to share this knowledge with countries around the world.

is an important factor for the political agenda both locally and nationally. The Danish green energy revolution took off as a consequence of the first oil crisis in 1973. At that time, Denmark imported 99 per cent of our energy and was hit very hard by booming oil prices and the shortage of oil. The political solution was to change direction and make the country less dependent on imported energy. One important focus was to reduce energy consumption wherever possible; another was to seek new energy sources. The implementation of the energy policy and the increase in technological research set a course that has been immensely beneficial for the country almost half a century later. A similar focus on the environment and water is essential to obtain similar results. Results have indeed been remarkable. Since 1980, the Danish economy has grown by more than 70 per cent without increasing its gross energy consumption, showing that it is possible to transform a traditional energy sector to a modern system, built on sustainability and renewable energy, and still become a richer society. The focus on resource efficiency has also resulted in a drop of 40 per cent in water consumption.

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Today, we see energy-efficient production in both industry and agriculture with a strong focus on saving water in their respective processes. New technological solutions have been invented by the industry, often because more ambitious solutions have been necessary to live up to demands from an ambitious public framework. A large number of Danish companies have grown by developing world-class energy-efficient solutions and similar stories can be seen in other sectors as well. A new global industry was born in Denmark with the development of the modern wind turbine, from virtually level zero, in the 1970s. Now, 40 years later, wind power is one of the most advanced technologies, both onshore and offshore. Two of the biggest manufacturers in the world, Vestas and Siemens, are still mainly based in Denmark. With a wide range of research and test centres and hundreds of smaller sub-suppliers to the industry, Denmark is still the dynamic leader in pushing the wind industry forward. A big focus right now is bringing down cost in production and making wind energy a feasible business case. Denmark’s decision to lead is backed by an ambitious policy framework as well as a multiple-solution approach. Our ambitious goal will be reached by increasing energy efficiency and resource optimisation. This can be achieved by expanding the share of renewable energy from sources such as wind and biomass, and by driving the development of an intelligent energy system capable of managing the fluctuations of renewable energy. The transformation of the energy sector is remarkable. In 2015, 42 per cent of the power consumption in Denmark came from wind. In 2020, it will be 50 per cent. The Danish Government and the Danish Parliament firmly believe that economic growth is possible without an increase in use of resources. Time has shown that economic and environmental policies can indeed go hand in hand. No single technology can do the trick by itself – no matter how innovative and effective it is. Danish companies 2017 Africa Energy Yearbook

know this. Instead, they successfully complement each other. As a result, Denmark has become a global leader in developing and producing integrated end-to-end solutions to match the international growing need for sustainable green energy.

Denmark wants to show the world that the green sector is not just green; it is also good business and the potential is immense. Danish solutions are world leaders of a number of technological sectors – apart from onshore and offshore wind power, we can mention energy-efficiency, solar power, district heating and cooling, intelligent energy systems, water energy, environmental conservation and bioenergy. Denmark wants to show the world that the green sector is not just green; it is also good business and the potential is immense. This is the task of State of Green. Behind the State of Green brand is a public-private consortium, formed by the Danish state and four major business organisations, with the purpose of promoting green Danish solutions worldwide. We do that on our webportal www.stateofgreen.com where more than 1,400 Danish solutions are on show. About 600 companies, municipalities and organisations present their specific skills and solutions; many of them are minor companies and use this very practical portal to be visible to a larger international audience. To help professional international visitors forward to the right solutions and business partners, the portal has defined ten sectors: • Bioenergy • Climate adaption • Energy efficiency • Environment & resources • Heating & cooling • Intelligent energy • Solar & other renewables

• Sustainable transportation • Water • Wind energy Through State of Green Tours, public and private decision makers visit Denmark to experience green solutions at the sites where they are implemented and to meet Danish counterparts in companies, organisations, in cities, in state administration or government. Last year more than 2,000 professional, international visitors came to our country via State of Green Tours. Denmark regards Africa, both the public and private sectors, as natural business partners. Our experience can be valuable for future cooperation and as inspiration for nations and companies worldwide to invest in African green growth. 23

As an artist and teacher, I believe that itâ&#x20AC;&#x2122;s paramount that art should be used to inform people about global challenges. It is extremely important to reach as many people as possible with art that relates with their issues, especially the youth of Uganda.â&#x20AC;? FRED MUTEBI

WOMEN ACTIVISTS FRED MUTEBI Woodblock Print on paper 46cm x 36cm 24

Images submitted by Afriart gallery, Uganda

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Sustainable investments: Combining good returns with a positive change Danish pension fund PKA eyes opportunities of investing in renewable energy in Africa, but the challenges are many.

Peter Damgaard Jensen, Chief Executive Officer, PKA Since 2001, Peter Damgaard Jensen has been the CEO of PKA. After graduating in 1981 from The University of Aarhus as a master of Political Science, he joined the Association of County Councils in Denmark. In 1985, he moved to the Danish Nurses Organi-zation. He left the Danish Nurses Organization in 2001 to join PKA. Peter is a member of the board of The Danish Insurance Association, of which, he was previously the chairman and vice chairman. He is the vice chairman of Forca Ltd (pension fund and life in-surance industry). Peter is a member of the advisory board of The Danish Climate Investment Fund for climate investments in emerging markets and a member of the advisory board in Axcel Ltd (leading Danish private equity Company). Peter was a member of the board of Concito in 2008-2010. He has been a member of the board of the climate organization, IIGCC, since 2013; in 2017, he became chairman of IIGCC. PKA PKA Ltd is one of the largest occupational pension funds in Denmark. The PKA Group is owned by three occupational pension funds with nearly 300,000 members, who are mainly employees in the public social and health sectors. At the end of 2016, the market value of the assets managed by PKA Ltd. was approximately DKK 250 billion (€35 bn.).

KA has two clear goals when it comes to investments. The first is to ensure the best possible returns for our 300,000 members’ pensions – we are obliged to do so by Danish law. Second, we have a clear mandate from our members to pursue investments that combine good returns with a positive impact.

uity and fixed income to diversify the portfolio. This strategy has expanded over the years and investments in alternatives now account for one fourth of all PKA’s investments.

As a result, PKA has invested US$2.5bn in CO2-friendly projects, ranging from offshore wind farms to solar energy and hydro power.

Jensen says that over the years PKA has invested resources to establish a team that has the competence and experience in finding the right type of alternative investments that can ensure them the necessary long-term returns for their members’ pensions. He also says that they will continue to focus on these kinds of investments.

“Our members want us to explore opportunities to do good and making money at the same time, but it must never be at the expense of good returns. Luckily, we see many opportunities to combine the two,” says Peter Damgaard Jensen, CEO at PKA.

PKA made the first major green energy investment in 2011 when they invested US$300m in the Anholt offshore wind farm. Since then, PKA has invested additionally in four other offshore wind farms, though one of them was sold in the latter part of 2016.

PKA was established in 1954 and is one of the largest pension service providers for la-bour market pension funds in Denmark. PKA manages the US$36bn worth of assets on behalf of three pension funds with 300,000 members employed within the social healthcare.

Investing in renewables fulfils many areas of PKA’s strategy: - High return relative to risk - Diversification - Long investment horizon - Cost-efficient - Socially responsible investments

In the wake of the financial crisis of 2008–2009, PKA changed its investment strategy to investing in alternatives in an effort to minimise the risk of investing heavily in listed eq-

Over the years, PKA has made investments on the African continent through various funds targeting infrastructure and agriculture. The investments are commonly made in collaboration with 2017 Africa Energy Yearbook

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local NGOs to oversee that they comply with PKA’s guidelines for re-sponsible investment cover, for example human rights and labour rights. “The African continent is a very different region to invest in compared with other markets and therefore we need all the assistance we can get to overcome the cultural and political challenges that might occur,” says Jensen. This is one of the reasons why PKA collaborates with the Danish Investment Fund for Developing Countries (IFU) when investing in Africa. Most recently, PKA, in collaboration with IFU, the Danish government and other Danish pension funds, established the Danish Climate Investment Fund to secure funding for climate-related projects in developing countries and emerging markets as well as to promote the sale of Danish climate-related technology. The fund has, for instance, invested in the Lake Turkana wind farm in Kenya. Due to the business opportunities in Africa, PKA would increasingly like to be a part of the societal changes many African countries are undergoing: high growth, young population, increasingly stable political systems – all leading to business opportunities being de-veloped by Africans for Africa. On the other hand, many African nations are still facing challenges such as weak capital markets and financial infrastructure, investment cases being too small, political instability and corruption. If PKA were to increasingly invest in Africa, certain parameters will have be considered: - Political conciliations should be broad and stable; - Large-scale projects such as PublicPrivate-Partnerships (PPP) should be launched; - Long-term investment schemes should be supported; and - Investment should be made attractive for private capital to invest in smallscale projects. PKA has an ambition to invest 10 per cent of our capital in climate-related projects by the year 2020. Africa could and should play a bigger role in fulfilling this goal. .

PKA has an ambition to invest 10 per cent of our capital in climaterelated projects by the year 2020. 27

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Blended finance

can make risky investments bankable Investing in renewable energy in emerging and frontier markets is possible through public-private financial models such as blended finance. Torben Möger, Director, PensionDanmark Torben Möger Pedersen (b. 1955) is the CEO of PensionDanmark – one of the largest pension funds in Denmark, established in 1993. The fund manages defined contribution pension plans, health care plans and life-long training programs on the basis of collective agreements, covering more than 695,000 blue-collar workers employed in 26,000 companies within the private and public sector. Torben Möger Pedersen holds a number of board and investment committee memberships including Arbejdernes Landsbank, Copenhagen Infrastructure Fund I & II, the Danish Climate Investment Fund, the Danish Agribusiness Fund, Symbionfonden, Danish Society for Education and Business (DSEB), Board Leadership Society in Denmark and Center for Pension Research (PerCent) at CBS. in February 2014, Mr. Möger Pedersen became a member of the Private Sector Advisory Group of the UN’s Green Climate Fund, he is also a member of the World Economic Forum’s Global Agenda Council on Future of Investments and the Forum’s Investor Governors Steering Committee. Previously, he was also a member of the Danish Government’s Climate and Energy Growth Team, and member of the group of experts on the Review of the Danish Foreign and Security Policy. He was named “Environmental Finance Personality of 2013” by Environmental Finance. Torben Möger Pedersen holds a M.Sc. Economics from University of Copenhagen and has attended executive education at Insead Fontainebleau, Insead Singapore, Babson College and Wharton Business School.

Investing in solar power in the Maldives and wind power in Kenya is only made possible for a Danish institutional investor as PensionDanmark through blended finance models. 28

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COULD INVESTING IN SOLAR POWER IN THE MALDIVES AND WIND POWER IN KENYA SEEM TOO AMBITIOUS FOR A PENSION FUND LIKE PENSIONDANMARK?

Blended finance models make it possible for PensionDanmark to provide drinking water to 150,000 people in the Maldives based on solar power and investing in 365 wind turbines in Kenya. These models also make it possible to reduce Kenya’s dependence on the import of fossil fuel. As pure private investments they would be totally unfeasible for a Danish institutional investor such as PensionDanmark. However, blended finance models have made these investments possible through the Danish Climate Investment Fund (KIF) and the Danish Agribusiness Fund (DAF). In the Maldives, producing clean drinking water from seawater is energy intensive and uses diesel plants, which are both costly and pollutive. KIF has invested in Nordic Power Partners, a development company which will build and manage the solar plants using photovoltaic (PV) solar cells. These solar cells create electricity in a material exposed to light. The return on investment is based on a long-term power purchase agreement and the solar plants will reduce energy cost and reduce the CO2 emission considerably. Similarly, KIF has made its first big investment (DKK 87 million, EUR 11.6 million) in a wind farm next to Lake Turkana in Kenya. The wind power project will be the largest wind park in Sub-Saharan Africa. The 310 MW wind farm will produce around 20 per cent of Kenya’s currently installed electrical generating capacity at a very cost-efficient price and will replace fuel imports of approximately DKK 900 million (EUR 120 million) annually. The commitments to KIF are split between the Danish government, Denmark’s Investment Fund for Developing Countries (IFU), and the institutional investors PKA, PBU and PensionDanmark. PensionDanmark has committed DKK 200 million (EUR 2017 Africa Energy Yearbook

Blended Finance: OECD defines blended finance as the strategic use of development finance and philanthropic funds to mobilise private capital flows to emerging and frontier markets. Blended finance deliberately channels private investment to sectors of high-development impact, while delivering attractive risk-adjusted returns. The Danish Climate Investment Fund is one such example. Others include The IFCCanada Climate Change Program, Global Environment Facility and The Danish Agribusiness Fund.

Blended Finance can make risky investments bankable. 27 million) to investments through KIF. EKF, Denmark’s Export Credit Agency, has simultaneously provided approximately DKK 1 billion (EUR 135 million) in loan guarantees for the project. EKF’s guarantee relieves the funding providers of risk, thus enabling the institutional investor’s participation. The fund is managed by IFU, which since its inception 50 years ago has participated in 1,200 investments in more than 100 countries. This was done in cooperation with Danish trade and industry. Therefore, KIF and IFU can offer financial experience, substantial knowledge about local business conditions and a broad international network. Alongside the investments in KIF, PensionDanmark has also committed DKK 200 million (EUR 27 million) to the Danish Agribusiness Fund (DAF), investing in improved production, distribution and food sales in developing countries. PensionDanmark is investing in the two funds along with the Danish government, IFU, and the pension fund PKA, which has also committed DKK 200 million. The initial investments of DKK 796 million (EUR 107 million) and DKK 775 million (EUR 103 million) to the funds, KIF and DAF, are expected to ensure induced investments of approximately DKK 7–9 billion (EUR 1–1.2 billion) each. This return

can be contributed to the fact that the fund is investing in the projects with local investors. AS AN INTERNATIONAL INVESTOR, WHAT IS THE PERSPECTIVE OF BLENDED FINANCE?

Formulated briefly, blended finance can make this type of risky investments in emerging and frontier economies bankable. The concept has three key characteristics: • Leverage: Use of development finance and philanthropic funds to attract private capital. • Impact: Investing in projects that drive social, environmental and economic progress. • Returns: Financial returns for private investors in line with the market rate, based on real and perceived risks. Blended finance can foster private financing for projects that are environmentally friendly, enabling the diffusion of climate-friendly technology throughout the economy. At the same time, blended finance initiates bankable and financially stable projects that under normal circumstance would involve too high a degree of risk for private investors. The ability to reduce political and regulatory risks through the use of blended finance models is central to what makes the model relevant. 29

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YEARBOOK PROFILE PIECE ALEXANDRE SANTOS, PRESIDENT, ASSOCIATION OF MEDITERRANEAN ENERGY REGULATORS (MEDREG) & COMMISSIONER, PORTUGUESE ENERGY REGULATORY AUTHORITY (ERSE) Alexandre Santos has been a member of the Executive Board at the Portuguese Energy Regulatory Authority (ERSE) since June 2013. As one of three Commissioners, he supervises the electricity and natural gas sectors. In 2016, he was elected President of MEDREG – the Association of Mediterranean Energy Regulators, following his full term as Vice-President (2014-2016). He also Chairs the Consumer Working Group in ARIAE – the Ibero-American Energy Regulators Association. Prior to joining ERSE, Alexandre worked at the Ministry of Environment, Spatial Planning and Energy as member of the Board for the Fund for Innovation and Energy Efficiency. He dedicated much of his career to the IT sector and served as a consultant on energy and energy efficiency issues. He has also undertaken research at Lisbon’s Interdisciplinary Center for Economics Studies in the field of public policy and began his career in risk management in the banking sector. Alexandre holds a MSc in Organizational Behavior from the Higher Institute of Applied Psychology of Lisbon and a degree in Economics from Lisbon’s Catholic University School of Business & Economics.

Can you explain to us why the Africa Energy Forum is important for MEDREG? The Africa Energy Forum offers a unique platform to promote the importance of energy regulators to government ministers, heads of utilities, project developers and global investors driving forward the development of Africa’s energy projects. Mediterranean Energy Regulators (MEDREG) is an association which brings together 25 regulators from 21 countries, spanning the European Union (EU), the Balkans and North Africa. Mediterranean regulators work together to promote greater harmonisation of the regional energy markets with legislations, seeking progressive market integration in the Euro-Mediterranean basin. Through constant cooperation and information exchange among members, MEDREG aims at fostering consumers’ rights, energy efficiency, infrastructure investment and development, based on secure, safe, costeffective and environmentally sustainable energy systems. Several of our 21 member countries are located on the African continent, along the Mediterranean’s shores: Algeria, Egypt, Libya, Morocco and Tunisia. Our association works at promoting a clear and regulatory framework in the electricity and gas sectors, which 30

in turn helps to contribute to a stable investment climate that ultimately supports the development of our economies and societies. MEDREG is looking for opportunities to disseminate its messages to a wider public and to inform its work plan with inputs from relevant partners in the Mediterranean energy sector.

Can you give us further details on the recent establishment of the Egyptian Gas Regulator, and why it is important for the Mediterranean gas industry? As part of the overall reform of the Egyptian gas market following the regional gas discoveries (such as the Zohr field), the Egyptian government decided in 2015 to establish an independent institution in charge of overseeing the liberalisation of the gas market. Since the decision was made to establish an independent institution, MEDREG has supported this new body through its Gas Working Group, as well as organising dedicated technical workshops upon their request. In 2016, the interim Gas Regulator became a member of our organisation with full access to our supporting tools, such as training, support to European Union

TAIEX and twinning applications, and exposure to the expertise of other MEDREG members. Indeed, my authority, the Portuguese Energy Regulator, is planning to welcome technical staff from the new entity for an intensive study visit during 2017.

Following on from this, can you explain to our readers the importance of a sound regulatory framework when it comes to gas market development in the EuroMediterranean region? A sound legal and regulatory framework based on independent and objective regulatory bodies helps to attract investment, ensures efficient use of the system and of investments and encourages competition, consumer protection and fair practices. Regulation seeks to provide a level playing field for all energy actors. Thus, having an independent regulator for the Egyptian gas sector can ensure more efficient gas markets and greater participation by the private sector (and also by new investors) to develop Egyptian gas fields. Overall, this new regulator will contribute to strengthening the regional trading relations in gas and enhance energy 2017 Africa Energy Yearbook

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security for the Mediterranean region, while also increasing the diversification of gas sources for the EU. The size and complexity of gas projects entail providing a high degree of confidence and assurance to investors. To an increasing extent, gas systems stretch out over different countries and regions, each displaying different traditions in terms of their institutional and structural characteristics. This begs for some degree of coordination between bodies regulating the gas industry. They have to arrive at mutually acceptable (coherent combinations of ) regulatory approaches along the value chain. International gas markets and public interest are, in fact, not static but dynamic. The task of the government is to promote an investment climate that changes in line with the evolving stages of market development but that also secures public interest over time. The role of economic regulation, meanwhile, is to ensure that the rules of the sector allow interested parties to enter the market with a degree of certainty regarding the stability and predictability of the rules themselves. The presence of a regulatory framework is therefore a strong factor to encourage market development.

The task of the government is to promote an investment climate that changes in line with the evolving stages of market development but that also secures public interest over time. 2017 Africa Energy Yearbook

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Masai Boma House

2016 Energy Photo of the Year entry by Off Grid Electric This photo shows the interior and exterior realities of a Tanzanian Masai village house.

During the night, they are able to perform their activities with the help of our strong solar lights. It represents the confirmation of our mission to help power Africa.

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MEDREG has developed a new initiative called MEDREG Support to National Regulatory Reforms to offer assistance to and support the development of the national legal and regulatory frameworks across the Mediterranean. MEDREG believes that regulatory actions are important in ensuring a stable and fair regulatory framework for investors to the ultimate benefit of consumers. That is to say, a level playing field contributes to achieving a satisfactory degree of opening to competition in the gas sector. In addition, regulation guarantees the existence of a set of transparent and stable norms which are important for consumers. Through the design and setting of network tariffs, economic regulation results in energy prices that should reflect the costs of production, transport and supply. This can indeed be seen as a virtuous, or symbiotic, cycle as regards the development of the gas market. Economic regulation, network tariffs and market rules mean that infrastructure investors are able to recover the costs (and risks) of their investments. These investments in turn bring energy to consumers and businesses, who ultimately pay these tariffs, thus allowing the investor to receive a return on their investment. Network expansion and infrastructure investments also result in a broader consumer base, therefore extending the use of natural gas itself.

Are there any upcoming projects which you are particularly excited about, and why? MEDREG has developed a new initiative called MEDREG Support to National Regulatory Reforms to offer assistance to and support the development of the national legal and regulatory frameworks across the Mediterranean, through the use of a mix of flexible and adaptable tools. Support activities will take several forms, including exchanging information, high-level training for the regulators’ staff and identification and discussion of new regulatory measures. These activities should result in an increased awareness of regulation and in a more recognisable and effective role of regulators in the development of Mediterranean markets. The novelty and added value of these activities lie in the tailor-made and personalised nature of the support provided. Defined jointly by MEDREG and the regulator, the chosen support activities will answer to a precise regulatory need or gap

MEDREG believes that regulatory actions are important in ensuring a stable and fair regulatory framework for investors to the ultimate benefit of consumers. 2017 Africa Energy Yearbook

identified and raised by the regulator. We have already completed a pilot activity, which was the peer reviewing of the Egyptian electricity regulator by focusing on its organisation and competences, and we are now launching a new peer review for the Jordanian electricity regulator. Another area of work MEDREG is excited about is its increasing contribution to Union for the Mediterranean’s Energy Platforms, an initiative of the European Commission. These platforms bring together financial institutions, regional organisations, industrial enterprises and experts working towards the enhancement of synergies in the fields of renewable energies and energy efficiency, integration of electricity markets and gas in the Mediterranean region. MEDREG is actively contributing by providing technical expertise and identifying investment needs and relevant regulatory measures.

Finally, what is on the horizon for MEDREG in the next five years? In 2016, MEDREG celebrated 10 years of existence and successful cooperation. This anniversary marked a turning point for the organisation which is now entering a new phase. While we will continue to enhance the regulators’ technical outputs and support the convergence of regulatory approaches for the whole region, we will also encourage our member regulators to adopt a sub-regional approach, which is particularly valid for a diversified region such as the Mediterranean. The idea is not to have a “one-size-fits-all” approach but to create a dynamic that allows national interests to converge progressively through various smaller sub-regional projects. Most importantly, we are committed to supporting our members in their regulatory responsibilities (new and deepening), which ultimately play a central role in the development of our individual (and interconnected) energy markets in the Mediterranean. 33

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WE BEAR THE WORLD , WE FEED THE WORLD FRED MUTEBI Woodblock Print on paper 20cm X 60cm

2017 Africa Energy Yearbook

Images submitted by Afriart gallery, Uganda

INVESTING IN POWER

Investing in

POW 36

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ER 2017 Africa Energy Yearbook

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DIARY OF AN INTERNATIONAL COMMERCIAL BANK EMBARKING ON PROJECT FINANCING FOR AFRICAN IPPs Nathalie Haller, Director, Mizuho Bank Nathalie Haller is a Director in the Power & Advisory team of Mizuho Bank, Ltd. based in London. She has a decade’s worth of project finance experience as an investment banker, acting as Mandated Lead Arranger on numerous landmark transactions and a leading financial advisory for large scale infrastructure projects in the power and water sector; covering project development, financial structuring, multi-source fund raising, bankability assessment, valuation and financial modelling. She joined Mizuho Bank, Ltd in 2010 and her experience has been situated in Middle-East IPPs and renewables in Europe. She has recently taken on the primary responsibility for the coverage of Africa and developing the power sector pipeline in the region.

The Africa Rising narratives that formed the backdrop of the commodity boom have shone a spotlight on sub-Saharan Africa as a new, enthralling investment destination. It acted as a positive force, contributing to shift investor perceptions and raising international commercial banks’ interest for this “new frontier” in search of greater yields than what are available in the more “mature” markets that currently experience stagnating growth rates.

he broadening of the spectrum of private investors actively looking at Africa should certainly be welcomed as a potential solution to bridge the funding gap for infrastructure development and possibly, even more crucial, for the power sector. The challenge of electrifying sub-Saharan Africa is daunting, with more than 600 million people in the region today who lack access to reliable and affordable electricity. In 2014, the electrification

rate in sub-Saharan Africa averaged 35% (with 19% in rural areas), compared to 45% for the whole of Africa, 95% for Latin America, 92% for the Middle East and 86% for developing Asia.1 The chronic shortfall of electricity supply acts as a strong impediment to growth and poverty reduction. Closing the energy gap across the African continent is expected to result in 30% higher economic growth by 2040.2 This needs to be tackled both from the angle of security of supply through developing 2017 Africa Energy Yearbook

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Experts estimate that USD40–50 billion of annual capital investment would be required to meet the future energy demand in Africa by 2040. additional generation capacity (in 2014, only 90 GW was connected to the grid, of which half was located in South Africa)3 and, from an affordability perspective, by phasing out emergency power producers running on diesel and generating electricity at double or triple the price of other plants. PRIVATE SECTOR INVESTMENTS TO THE RESCUE

Experts estimate that USD40–50 billion of annual capital investment would be required to meet the future energy demand in Africa by 2040. In addition, at current trends, it will take until 2080 for every African to have access to electricity.4 Public sector budgets are still feeling the impact of austerity following the 2008 financial crisis and are not able to, nor should they, address the magnitude of 2017 Africa Energy Yearbook

the investments on their own. Private investment has an undeniable role to play in ramping up sustainable investment in power generation capacity. During a “Powering Africa” session at the World Economic Forum in Davos,5 South African Deputy President, Cyril Ramaphosa, confirmed this approach by declaring: “In the past, we have relied on governments to power our countries; we now need to bring in the private sector to help empower our economies and people.” Developing generation capacity under an Independent Power Producer (IPP) model seems to be an efficient way to address the challenge of lighting up Africa. Using private sector technical expertise and funding to construct, operate and maintain generation capacity and deliver electricity at competitive prices has a dual advantage: i) it shifts the upfront cost and

financial burden of the project away from government, freeing up capital that can be spent on other sectors that require it, such as healthcare or education, and ii) moves the risk allocation for preparation, implementation and operation to the private sector, where it can be managed more efficiently. The general trend of private sector participation in infrastructure investment is very encouraging, having increased from USD2.5bn in 2014 to USD6.3bn in 2015,6 of which 98% was invested in 22 power generation projects. This, however, still represents only a drop in the ocean and hides disparities between countries, with the South African renewables programme accounting for USD4bn of the total USD6.3bn. This upsurge in IPPs across sub-Saharan Africa, now numbering circa 130 IPPs operating across the region, has been 39

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accompanied by the rise of limited recourse project financing. 7 Such financing is, however, often primarily arranged and funded by multilateral agencies (e.g. International Finance Corporation, African Development Bank, etc.), development financial institutions (DFIs), export credit agencies (ECAs) and regional banks. Interestingly enough, to date not many international commercial banks have been observed as active in this market. For an international commercial bank like Mizuho Bank, Ltd. that is mostly accustomed to operating in investment grade territories on an uncovered basis, Africa is a dramatically different environment to explore. It will require a flexible and open-minded approach to navigate this new and extremely challenging investment landscape. The African reality is one where most IPPs carry substantial risks that can suppress an appetite for investing and make certain institutions shy away from the region. As a financing institution becoming familiar with the power sector in sub-Saharan

Foreign currency risk has severely curtailed international bank appetite for project financing in the region. Up until now, local banks, DFIs and ECAs have been able to cover the situation, although their ability to continue to do so is highly questionable. Africa, there are three main challenges that we at Mizuho Bank, Ltd. have been confronted with, namely: (i) the absence of a robust regulatory environment, (ii) a lack of demonstrable financial viability of the power sector and (iii) insufficient political support of the sector.

COUNTRY RISK ADRENALINE: DIGESTING POLITICAL AND REGULATORY RISK

Generally, the first hurdle for international commercial banks providing project financing in a new

Winner of the Photographic Excellence Energy Photo of 2017 Flight of the Barn Owl Submitted by Nandu Bhula ACWA Power / Bokpoort CSP

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country would undeniably be getting comfortable with the “country risk”, encompassing political stability and government commitment to provide a stable investment climate in which the rule of law is established and in which contractual provisions are enforceable. When assessing the investment climate, the strength of democratic processes (and smooth change-over of power through elections), lack of corruption and transparency, clarity of the regulatory framework, and the strength of investor protection will certainly be highly influential. One will need to undertake detailed due diligence and potentially consider political risk mitigation instruments to adjust the risk profile to an acceptable status. Risks around the convertibility or transferability of the local currency into hard currency are also critical factors as international banks typically would lend in EUR or USD. Foreign currency risk has severely curtailed international bank appetite for project financing in the region. Up until now, local banks,

DFIs and ECAs have been able to cover the situation, although their ability to continue to do so is highly questionable. The simplest solution, already seen in other regions, is structuring Power Purchase Agreements (“PPAs”) to be either denominated in or indexed to hard currency to make them bankable from an international bank perspective. Even where such PPAs are proposed, an analysis of the country’s access to USD/EUR will need to be undertaken. For most African countries, foreign commercial lending is typically limited to short-term transactions where FX volatility can be cost effectively managed. The power sector’s intrinsic characteristics may also present challenges in financing projects. This is due to i) the typical requirement of long-term financing with debt tenors of 15 years or longer, ii) longer payback and build-out periods and iii) the difficulties of forecasting longterm demand/supply dynamics, given the increasing grid interconnections across the continent.

TRAVEL GUIDE: REQUIREMENT FOR SYSTEMATIC AND DYNAMIC POWER SECTOR PLANNING

In recent decades, many sub-Saharan countries have moved away from the traditional state-owned vertically integrated power system monopolies and have taken steps towards unbundling and introducing IPPs to create competition in the generation sector through private sector participation8 Such steps are generally accompanied by the creation of an independent regulator, key to upholding and balancing the rights and interests of all stakeholders in the sector. The mere introduction of a framework for private sector participation is, however, not sufficient and needs to be supported by sound planning and transparent procurement procedures. Whilst revenues contracted under a PPA are a sine qua non condition for the project financing, financiers still require an understanding of supply/ demand dynamics, underpinning the

Winner of the Social Impact Energy Photo of 2017 Longido Village Submitted by Antipas Sabas Marandu

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rationale of the project over a mediumand long-term horizon. Banks typically shy away from a market characterised by oversupply, where the electricity produced by the project might become redundant. Although there are protections in place for contracted plants whose fixed costs, equity and debt are typically remunerated by capacity payments under the PPA regardless of them being dispatched or not, there will inevitably be pressure on an off-taker to avoid incurring such costs if the electricity generated by the project is no longer needed or can be sourced elsewhere at a lower cost. Ultimately, the existence of a clear need for the electricity, not only short-term but also medium to long-term, provides the comfort required by the banks to provide longterm financing. Most countries in sub-Saharan Africa currently operate in a supply-constrained system. There are, however, some countries, such as Kenya, which are close to bridging the gap. Emulating a more structured approach with one entity designated to oversee the development of the sector would have a positive impact on financiersâ&#x20AC;&#x2122; appetite to invest. While there are some sub-Saharan countries publishing clear electricity sector plans and translating them into timely procurement, the majority lack a systematic and dynamic planning process framed in terms of the target future energy mix of the country. Development of further capacity needs to be based on detailed analysis to determine the best options for decreasing the cost

of energy for consumers. In addition, a regional perspective and the impact of megaprojects need to be taken into account when conducting such planning, necessitating cooperation between interconnected countries.9 Export of excess power to neighbouring countries is often claimed as a solution for overcapacity but this relies on the further development of intra-regional transmission lines and ensuring that overall regional demand supports the development of the project. TRAVEL ADVISORY: UNCERTAIN CREDITWORTHINESS OF OFFTAKERS

The single buyer model prevalent in most of the sub-Saharan countries means that the PPA is effectively the only option for the sale of electricity generated by the project company. Should the PPA be terminated before its expiration, the project financiers may be left with a stranded asset and no other means to monetise the electricity produced to recover the investment they made in the project. This necessitates adequate termination compensation mechanisms in the PPA, backstopped by a strong guarantor if there are questions about the creditworthiness of the off-taker for such amounts. Banks are often faced with a loss-making national utility with a weak balance sheet as off-taker due to the absence, in most countries, of cost-reflective tariffs preventing the utility from recovering

Although there are protections in place for contracted plants whose fixed costs, equity and debt are typically remunerated by capacity payments under the PPA regardless of them being dispatched or not, there will inevitably be pressure on an off-taker to avoid incurring such costs ... 42

Many countries in sub-Saharan Africa currently operate in a supplyconstrained system its costs via existing tariffs paid by endusers. Financiers are then asked to rely on government support either through some form of subsidy or guarantees of the off-takerâ&#x20AC;&#x2122;s obligations, which are subject to political will. Some possible mitigant to the absence of independent financially viable off-takers could be the creation of special funds to be independently funded by taxes or some other mechanism to pay the fuel bills and which are, as such, sheltered to some extent from political interference.10 Another potential solution is to develop projects with a creditworthy industrial off-taker, like a captive plant developed with mining companies. This, however, creates other risks, such as project-on-project risk and exposure to commodity prices, depending on the activities of the industrial off-taker. Low collection rates and operational inefficiencies due to lack of investment in maintenance, high transmission losses, for instance, further exacerbate the problem. Improvements through operational excellence programmes can have a major impact as it has been assessed that the total revenue collection for a well-functioning system could be as much as 72% higher than the poorly functioning system leading to a commensurate reduction in costs.11 TRAVEL PROTECTION: RISK MITIGATION TOOLS AND SOVEREIGN GUARANTEES

In the interim, attracting foreign capital from international banks will continue to require substantial credit enhancement in the form of sovereign guarantees to safeguard payment streams. The support of DFIs, ECAs and multilaterals will 2017 Africa Energy Yearbook

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continue to be essential, particularly in countries with lower credit ratings. A range of products are already provided by such institutions, such as the World Bank Partial Risk Guarantee (which could be with a Letter of Credit (“L/C”) structure12), or Political Risk Insurance products provided by MIGA, OPIC or others. Banks will also insist on having off-taker escrow arrangements covering 1–6 months’ revenue in cash and/or L/ Cs to address any short-term liquidity issues. The reticence of governments to provide direct guarantees to cover the debt is understood, given the contingent liability this represents. However, some form of support is paramount in order to promote investment appetite. Structures such as the Put Call Option used on the Azura Edo independent power project in Nigeria could serve as an alternative solution to a direct government guarantee. TOWARDS A SHOULDER SEASON FOR INTERNATIONAL COMMERCIAL BANK INVESTMENT IN AFRICAN IPPS?

The recent macroeconomic environment and impact of the global downturn in commodity prices have resulted in a sharp drop in growth in resource-rich and commodity-dependent countries. It has also led to significant strain on the budgets of some African countries, widening the fiscal deficit and exacerbating liquidity stress. Moody’s downgraded a third of the region’s 19 rated sovereigns by an average of around two notches by 31 December 2016, underlining a negative outlook for sub-Saharan Africa sovereign creditworthiness.13 This has definitely stifled the appetite for raising commercial debt funding for project finance. However, there are certainly also many positive signs that this trend may be reversing. Development of an optimal energy mix by using each country’s abundant natural resources and moving away from expensive diesel-generated electricity will certainly help reduce the electricity tariff, perhaps to levels where cost-reflective tariffs are sustainable.14 While coal is expected to remain key for base-load capacity given its relatively low costs (expected to be 2017 Africa Energy Yearbook

Banks are often faced with a lossmaking national utility with a weak balance sheet ... 27% of total generation by 2040)15, it is challenging to find funding today for new large coal power projects, given the more severe environmental guidelines from the financing community for this technology . Natural gas-fired generation is expected to undergo a dramatic increase, from a 9% share in the energy mix in 2012 to 25% by 2040. Hydropower will remain a major source for electricity supply (expected to be 26% by 2040) but vast solar, wind and geothermal potential remains untapped and could be a great complement to the hydroelectric power stations, which are highly subject to disruption following poor rainfall periods. Developing large

power plants is the most cost-effective way of generating electricity but can be confronted by challenges with regard to insufficient grid infrastructure. Off-grid solutions and deployment of smaller capacity through a “pay as you go” model in parallel with large projects can help progress access to reliable electricity in Africa. There are indications that reaching costreflective electricity tariffs may well be within reach for some countries across the region. Establishment of an IPP track record and sound procurement programme supported by multilateral institutions (for example, Scaling Solar program) in a number of countries is another important driver. Nothing makes private investors more nervous than uncertainty and surprises. Predictability is key for investing. As more and more IPP projects are successfully completed in sub-Saharan Africa, the appetite of international commercial banks is expected to increase in parallel with their comfort that the region can provide longterm certainty for investment.

Source: International Energy Agency, World Energy Outlook 2016 – Electricity Access Database. Please note that all Middle East countries have national electrification rates higher than 98%, except for Syria (93%) and Yemen (46%). 2 Source: World Economic Forum, https://www.weforum.org/press/2017/01/close-africa-s-energygap-to-increase-economic-growth-by-30-by-2040/ 3 Source: International Energy Agency, World Energy Outlook Special Report, “Africa Energy Outlook. A focus on energy prospects in sub-Saharan Africa” October 2014. 4 Source: Africa Progress Panel, “Seizing Africa’s Energy and Climate Opportunities,” Africa Progress Report 2015, http://www.africaprogresspanel.org/publications/policy-papers/2015-africa-progressreport/ 5 Forty-seventh Annual Meeting held on the 17-20 January 2017. 6 Source: Private Participation in Infrastructure (PPI) Database, “2015 Sub-Saharan Africa (AFR) PPI Update.” https://ppi.worldbank.org/~/media/GIAWB/PPI/Documents/Data-Notes/AFRUpdate-2015.pdf 7 Source: World Bank Group, “Independent Power Projects in Sub-Saharan Africa, Lessons from Five Key Countries.”, published April 2016. 8 Still, as of 2014, 21 of the 48 sub-Saharan countries had state-owned vertically integrated utilities with no private sector participation. Source: World Bank Group, “Independent Power Projects in Sub-Saharan Africa, Lessons from Five Key Countries.” 9 For example, the 44 GW Grand Inga Hydropower project in Democratic Republic of Congo (with the first phase 4.8 GW Inga III project) or the 6 GW Grand Ethiopian Renaissance Dam in Ethiopia. 10 Such as the “Fonds spécial de soutien au secteur de l’énergie” in Sénégal. 11 Source: McKinsey & Company, “Brighter Africa. The growth potential of the sub-Saharan electricity sector”, February 2015. 12 A L/C is issued by either a domestic or international bank which the project company is entitled to draw upon a cash flow shortfall resulting from a government non-compliance of its contractual undertakings. Following a drawing on the L/C the government would be obligated to reimburse the amounts drawn, and the PRG backstops such obligation. 13 Source: Announcement, “Moody’s: Liquidity stress, low growth and political risk drive negative outlook for Sub-Saharan African sovereigns”, 09 January 2017. 14 In 2010, the average effective electricity tariff in Africa was USD0.14/kWh versus USD0.04/kWh in South Asia and USD0.07/kWh for East Asia (Source: African Development Bank, “The High Cost of Electricity Generation in Africa”, 18 February 2013). 15 Source: International Energy Agency, World Energy Outlook Special Report, “Africa Energy Outlook. A focus on energy prospects in sub-Saharan Africa”, October 2014. 1

Before the Liberian civil war (19892003), the country enjoyed uninterrupted electricity. However, since 1989, energy, or rather the lack of, is a major problem in Liberia today. If Liberia had a stable supply of electricity, this would be a ‘magic wand’ for development!” LESLIE LUMEH

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2017 Africa Energy Yearbook

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Building institutional capacity the AFC way â&#x20AC;&#x201C;

Just do it

The Ministry of Energy wants to maximise power installed on the grid and the Ministry of Finance wants to minimise government and taxpayer liabilities.

David Bowers, Vice President in the Investment Division, Africa Finance Corporation (AFC) David has executed and advised on infrastructure transactions valued at tens of billions of dollars, including wind, solar, gas-fired and nuclear power plants around the world. Prior to working at AFC, he worked for Greengate LLC, an independent financial advisor specializing in bringing highly quantitative analytics to support structuring of complex transactions, including some of the largest project finance deals closed in recent years. Mr. Bowers holds an MA from Johns Hopkins University School for Advanced International Studies, where he studied international development and finance.

2017 Africa Energy Yearbook

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A large number of private sector developed projects, particularly in the energy sector in Africa, struggle because government institutions often have limited capacity and experience. But rather than letting this stop them, Ghana’s Cenpower team went ahead with their ambitious project and, in the process, helped develop invaluable capacity in the country’s power institution. David Bowers* tells the story.

t is common knowledge that Africa suffers a crippling power deficit (the African Development Bank estimates that 620 million Africans have no access to electricity). What most people do not realise is just how complex putting together a power project can be. The first characteristic of a large-scale power project is the sheer number of stakeholders and professionals involved – both in the private as well as public sectors. On the one side, you have the developer who coordinates the whole enterprise; on the other, you have the financiers, the designers, the engineers, the project managers, the administrators and a host of other highly skilled professionals – and several government institutions. The various institutions will each have different and sometimes competing priorities and interests. The Ministry of Energy wants to maximise power installed on the grid and the Ministry of Finance wants to minimise government and taxpayer liabilities. The energy regulator wants to ensure that a prudent price is charged to protect ratepayers and the state-owned utility company wants to maximise service delivery and maintain healthy credit metrics. For the project to become bankable and progress smoothly through its various stages, these different institutions will need to function not only effectively, but just as importantly, in a coherent and cooperative fashion. This will ensure that the project succeeds in its ultimate goal of delivering electrical capacity and energy to customers. In any industry and for any sector which requires strong government cooperation, this is challenging. It demands a high level of institutional capacity – a factor

2017 Africa Energy Yearbook

which tends to be in short supply. It is not surprising therefore that this shortage of institutional capacity is often cited as the arch villain responsible for the African continent’s energy deficit. So how to break this impasse? While there are a number of training and technical assistance programmes available to governments and plenty of theories, the actual capacity to get things done can only be accumulated in the doing. As Rwanda’s President Paul Kagame has said so often: “If we wait until our institutions have developed their full capacity, we will wait forever for projects to get off the ground.” At the Africa Finance Corporation (AFC), we take this argument a step further. We believe that one of the most effective ways to build institutional capacity is to roll up your sleeves and just do it. We believe in utilising international best practices and the support of recognised specialists in the field. In the process, government institutions work closely with private developers and industry specialists to put theory into practice. This in turn enables effective, cohesive institutional capacity to emerge. A CASE IN POINT

A case in point is the 350 MW Kpone IPP project, the first project financed independent power project (IPP) in Ghana, owned by Cenpower Generation Company Limited (Cenpower). The AFC (the largest shareholder in Cenpower) has been able to build institutional capacity in-country by doing just that. To provide context: the Ghanaian founding shareholders of Cenpower, led by Nana Brew-Butler (the current Board Chairman of Cenpower), began the project in 2000. The project company was incorporated in 2003. In 2005, the

shareholders partnered with eleQtra (which operated as InfraCo at the time) to continue development of the project. In June 2007, Ghana’s Energy Commission granted Cenpower a generation licence. In the same year, a MOU was signed with the state-owned utility company, Electricity Company of Ghana (ECG,) to lay out principles for negotiating a power purchase agreement (PPA). Two years later, in August 2009, the first PPA was signed between Cenpower and ECG. The developers knew that the original PPA was not bankable. They decided to close out the negotiations and bring in other investors and lenders of international stature to the table to help bolster their case for bankability requirements. AFC acquired a controlling interest in the project in 2010 and was able to make progress in critical areas of PPA bankability shortly after it became involved. While one major hurdle was overcome, another one loomed. Given that Cenpower was Ghana’s first project financed IPP, there was limited institutional expertise available within ECG to assess and respond to the developers’ requirements. With the assistance of USAID, an independent financial and legal advisor was appointed to advise ECG and other parties in the government. This move was to have profound implications in negotiations. For example, some cardinal lender requirements, such as requests for liquidity and government support, which had been regarded as excessive and unnecessary by the ECG previously, could be projected in a context of international best practice for bankability. On the heels of this, substantive progress was made on negotiating a bankable PPA and a Government Consent and Support Agreement (GCSA) to backstop ECG’s obligations. Over the next two years, an amended PPA and GCSA were negotiated between ECG, the government and the developers. The second version of the PPA, the bankable 47

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version, was finally signed in 2012, five years after the signing of the first MOU.

structure that was unprecedented for ECG’s typical requirements.

GOING BEYOND THE CLASSROOM

He recalls an incident that illustrates the institution’s growing confidence in their negotiating skills. He was informed, on a public holiday, that some lenders had arrived and wanted to meet with the ECG team. Assuming that this was an informal meeting, he and a few colleagues, casually dressed, turned up at the Novotel Hotel in Accra – only to be confronted with a group of 40 businessmen in full, formal business attire.

This takes us back to the core of this article – how institutional capacity can be built in the doing. Keep in mind that project finance is a complex, interdisciplinary task of balancing and allocating risks. No project financier learns their trade in a classroom. A classroom helps, but risk allocation is learned through years of negotiation, reviewing reports and legal agreements, examining models and drawing on a wealth of precedent that informs legal, commercial, financial and technical decisions. During the early days of AFC’s involvement in Cenpower, these specialised capabilities were limited in certain Ghanaian public institutions. Ebenezer Baiden, trained as an energy economist and General Manager for Regulatory and Governmental Affairs at ECG, recalls the effects of working with Cenpower over this period: “We got to know the interests of various parties – lenders, the EPC contractor, the O&M contractor and how they view the project,” he says. Cenpower was a single legal entity, but numerous competing interests needed to be understood and balanced to negotiate a bankable PPA from the offtaker’s perspective. The whole process, he adds, “really helped ECG build legal, technical, operational and negotiating capacity” and understand “how to put the facts together.” He has no doubt that Cenpower contributed to the development of Ghana’s institutional capacity related to private investment in the power sector. Baiden says that the greatest lesson he learnt was how to draw on the human resources that existed within ECG to process the various requests, negotiate counterproposals and ultimately obtain internal approval. One of the most difficult challenges on ECG’s side was negotiating the liquidity support for Cenpower and securing internal approval for it. The liquidity support required significant commitment from the Bank of Ghana and a guarantee 2017 Africa Energy Yearbook

Undaunted, the ECG team proceeded with their presentation. The “suits” in full regalia on the other side of the table had not fazed them one bit. The upshot of the AFC’s attitude to take the bull by the horns and cross bridges when they came to them, in terms of institution capacity, was that the Cenpower project achieved financial close in December 2014. This was achieved after more than 10 years of development, hundreds of meetings and millions of dollars spent. This project is now nearing construction completion. That is only part of the story. Baiden reports that ECG has now executed more than 20 PPAs, and the institution is now able to negotiate PPAs and evaluate issues independently. Oliver Andrews the Executive Director and Chief Investment Officer at AFC, who was then the project director, recalls their meetings and describes Daniel Azu and Baiden as “formidable negotiators”. Developers and advisors who worked on the Cenpower project report similar progress on the developer’s side. Amandi, the second project financed IPP in Ghana, achieved financial close in late 2016 after less than five years of development. That project started negotiating a PPA in late 2012 and it was signed in 2013. The GCSA and PPA both followed a template established for Cenpower, and the PPA negotiation process was cut down from more than five years to one year.

AFC’s vision is to be the leading African institution in infrastructure financing on the continent. Ghana is completely different today. EleQtra recently negotiated a PPA for another Ghana power project in only three meetings held over three months. AFC’s vision is to be the leading African institution in infrastructure financing on the continent. The success of Cenpower, and more critically AFC’s approach, is a clear example of why we cannot achieve our vision if we wait for projects to achieve financial close and invest using plain vanilla debt and equity instruments. Funding is readily available for a bankable project, but a lot of patient and persistent development comes first. This development often includes patiently sensitising government parties on the complex world of project finance and attracting private capital. In the case of Cenpower, we achieved much more than financial close for a single project. By proactively and diligently working with multiple stakeholders, AFC was able to create capacity in key institutions that has driven and will continue to drive the transformation of the power sector in Ghana. * David Bowers is a Vice-President in the Investment Division at AFC.

Ebbe Hamilton, co-founder of eleQtra who has worked on Cenpower since 2005, says that developing IPPs in 49

In his Women’s Day series, Fred addresses the many roles of women in Ugandan society; the importance of women to society, as well as their many struggles, is shown through his narratives.” FRED MUTEBI

WOMEN’S DAY

Images submitted by Afriart gallery, Uganda

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2017 Africa Energy Yearbook

RENEWABLES INDEX Third Edition, March 2017 There is no shortage of positive signals for African renewables in this FARI edition … Initiatives that are poised to move forward seem to be more credible than earlier efforts, and there is certainly a variety – from large-scale, systemic programmes to incremental build-up based on long-term goals.

goal). Perhaps,by the next Edition, the Big Five will actually reach five entries from the many candidates in Honourable Mention and Countries to Watch . A reminder: FARI aims to index future opportunities where private investors and institutions may play a role, although purely public programmes are noted.

As always, it will be a question of careful structuring and execution in order that international capital and governmental support can be tapped (hopefully linked with an ever-greater role for local capital – the long-term

Please note that arrows indicate a country’s movement from a previous position/category on the index. Side facing arrows mean a country has not changed position from the previous edition of the publication.

Further information on previous rankings see www.fieldstoneafrica.com/FARI

The Big 5 3. Zambia

1. Morocco

initiatives that push Zambia up into the Big Five for the first time.

Algeria Egypt

Whether the programme opens the door to further private

Mali Mali

Sudan

development or is

Erit re

Nigeria

n er oo m

largest facility in East Africa. Further Development Bank

Democratic Republic of Congo

by the regulatory authorities and utility co-operation provide

projects are progressing that aim to spread the drought risk from currently

Tanzania

centralised production region. Angola Zambia Zambia

The opportunities are assisted

Namibia

Botswana

biq

am oz Zimbabwe M

support is pushing forward medium-sized hydro projects. The relatively straightforward processing of such initiatives

Kenya Kenya

Malawi

Gabon

renewable generation by 2020. The 10MW solar plant built in Uganda since the last FARI is (somewhat amazingly) the

in itself, remains a vexing question. In addition, several hydro

Uganda

2. Uganda Uganda continues to implement its plan for 1 500MW of

viewed as an end

Ethiopia

Co ng

Côte D’Ivoire

Sierra Leone

Scaling Solar is just one of the

o cccco rroo Moo M

Ghana

Morocco continues to pioneer in renewable base load in Africa with its commitment to CSP. The scaling effect has brought down the CSP power cost, although it remains expensive compared to standard PV (up to five times as Senegal high). Bearing this cost seems Guinea necessary in order to realise the ambitious 2020 renewable generation goals. Further rounds might see the CSP price fall even more.

by an experienced counterparty utility and more transparent regulation and approval processes.

South Africa

a strong example.

… (Fitfully) Waking Giant: South Africa To predict what will happen next in the lapsed leader of FARI is not possible, hence South Africa continues to get a category of its own. If one were only to read its Independent Resource Plan in current form, South Africa would rocket back to the top as the plan calls for more than 1, 000MW a year for the next several years. To add to that impression, Eskom has acknowledged the Government’s desire to sign additional PPAs with renewable producers and seems ready to do so. However, the utility is wily and is now trying to play old coal plants to be decommissioned against additional renewables and threatening to call in the Government guarantee provisions for existing IPPs. How this will end might be clearer in the coming months, but for now we must be pleased that the small IPPs have been fast-tracked and the (too) long-outstanding Round 4 bids seem likely to be greenlighted. What happens next is an open question. For previous Edition see www.fieldstoneafrica.com/FARI

Countries to Watch

Honourable Mention

Cameroon’s utility, ENEO, is seeking partners for development of 20MW of solar generation, to be sited in the northern part of the country. This promises to Erit be a template for further rea development.

Algeria Egypt

Mali Mali

Sudan

Senegal

Nigeria n

Ethiopia m er oo

Cameroon Cameroon

Gabon

Uganda

Kenya Kenya

Democratic Republic of Congo Tanzania

Angola Zambia Zambia

as ca

Namibia

buiqe biq m aam oozz M Zimbabwe M

Botswana

M ad ag

Ethiopia Ethiopia has taken its own initiative in developing thousands of MW of hydro power, paid for in part by national subscription. Looking forward, Ethiopia has been looking to establish an IPP programme for PV and geothermal, which continues to make slow steady progress. Centralised decision making and broad investor interest leave domestic peace as the big issue.

Malawi

Ivory Coast

Co ng o

Sierra Leone

Ghana

Guinea The first round of tenders, which propose a 43% stake for Côte D’Ivoire international investors in projects, is scheduled for April. Preliminary review suggests the proposed terms will need to be revisited if this programme is to truly draw broad international participation.

Algeria Algeria has proposed a monumental 4, 000MW programme to utilise the country’s enormous solar potential.

o cccco rroo Moo M

Madagascar (new) is actively evaluating solar, hydro and wind, and soliciting assistance in developing a programme; IFC is active in driving the first projects forward. The size and need of the country suggest a future private sector role is possible.

Mozambique (new) has signed a 25MW PPA for solar in conjunction with Norfund. Once the current financial situation is cleared with the International Monetary Fund (IMF), there is room to move forward on a range of projects.

South Africa

Nigeria The Nigerian solar programme seems thus far to be a serious initiative that may yield several projects of scale. Considering the macro-economic headwinds in the country, this programme stands out as a sign of what can be done by mobilising international interest and establishing reasonable terms. Success depends on an identifiable set of system reforms.

Egypt Egypt’s aspiration for further development of its programme has suffered from recent currency deregulation. The battle to not denominate in dollars is key, but the devaluation of currency in this case has led to an exodus of international investors. Senegal Senegal has made significant progress in the past year, commissioning a 20MW PV at the end of last year and signing a wind project of the same size. There are significant national goals – but, more importantly, evidence of progress. Ivory Coast Ivory Coast joins the list with its advanced plans related to biomass and seven major hydro projects, including a 275MW project in construction phase. Kenya Kenya has issued up to seven licences for PV projects after years of sorting through the 3, 000 original renewable submissions. Completing these licensed projects will come down to reinforcing the form of the Government support letter currently offered and confirm a big bet on the country by the private sector.

Best Intentions (Not Best Results) FARI also needs to make note of plans that do not work in order to be a useful tool. Tanzania – which is rightly praised for its anti-corruption drive – has tried a very aggressive tactic to keep its electricity prices low: simply do so in the face of all economic evidence to the contrary. This has meant firing the Head of its Utility, rolling back planned price increases and abrogating an existing PPA. These measures might seem to make short-term sense in a country striving to develop industry with low-cost power, but not reflecting true costs sends a chilling effect to all participants in the market. Hopefully, this is recognized by the next FARI editon.

For previous Edition see www.fieldstoneafrica.com/FARI

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Fieldstone Africa’s Renewable Index

– Facilitating Investment in the Sector Jason Harlan, CEO, Fieldstone Africa Jason Harlan is Chief Executive Officer of Fieldstone Africa. He has 25 years’ experience in energy and infrastructure as a finance and project attorney, a developer, a utility executive and an investment banker. He has been engaged in the African energy sector and Fieldstone since 2002.

Can you briefly tell us about Fieldstone Africa and its involvement in the continental renewable sector? Fieldstone Africa is the leading independent investment bank and financial service provider in the energy and infrastructure sectors in Africa. Over the past twenty years, we have transacted over USD12bn in energy deals on the African continent. We advise developers, governments, public and private financial institutions and investors from Asia, North America and Europe as well as an everincreasing number of local investors. The percentage of our overall activities involving renewable energy has steadily increased in the last five years. The appetite for renewables in Africa is 54

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logical, given their more digestible sizing, expedited timing and the external financial support available. This means that this trend is likely to continue. Our role stretches beyond project completion. Renewable assets need to be optimised even after being completed. These assets will best be gathered in portfolios held by the lowest cost capital and operated according to international best practices. Fieldstone Africa has been and will be involved in both these aspects in the secondary market. Finally, through its affiliate, Fieldstone Africa Investment Resources (FAIR), Fieldstone Africa is a vehicle to provide DFIs and other sponsors with a full tool kit to move forward those projects that have the potential but get stuck in the development process.

Fieldstone pioneered an index known as the Fieldstone Africa Renewable Index. How does it work and what is its focus? The Fieldstone Africa Renewable Index (FARI) is in its third edition and is meant to measure the comparative standing of the national markets. This index is designed as a guide for practitioners or private investors and looks at the regulatory framework, the political context and the systemic limitations for renewable projects. In other words, this index helps pinpoint locations where projects involving nonstate debt or equity can be implemented in the near future.

South Africa has occupied its own category for the last two editions of the index, Sleeping Giant, and (Fitfully) Waking Giant. Kindly explain. When FARI was introduced, South Africa was the leading country on the continent as many renewable energy projects were in the execution phase and a track record had been established. It was a success not only as a key to supporting a system recovering from load shedding, but also as the greatest foreign direct investment programme 2017 Africa Energy Yearbook

since the end of Apartheid. Since 2011, South Africa has experienced the investment of approximately R196bn in the renewable energy sector. In the last year, the country has experienced delays with the signing of projects which have already been “won” as well as bids that have been offered but not yet fully assessed in the Renewable Energy Independent Power Producers Procurement Programme. This has led to uncertainty in the market and has resulted in a wait-and-see attitude by investors. Some of these investors have opted not to wait and have gone off to find other projects for investment. Since authoring the Index at the end of March, other political considerations have further compromised any hope for near-term clarity. It should be noted that renewable energy projects are comparatively transparent because of their size. These renewable projects do not suffer from “project leakage”, as it is artfully known, in the way bigger energy generation projects might. Ironically, this may be a competitive disadvantage.

What is the potential for the growth of renewable energy in Africa, and what are the challenges? Countries have to recognise that an energy mix, including renewables, makes sense today and potentially, on account of advancing battery technology, will make even more sense in the future. There are many challenges to the growth of renewable energy in Africa – such as entrenched utility companies with a desire to continue to control their local market and a lack of awareness of the advantages of renewable energy production. Another challenge is the general wish to pursue gigantic non-renewable projects which often suit state sponsors and foreign funders in terms of their image. None of these factors will block renewable energy development, which continues to become cheaper to implement as technology develops and proves as more fit-for-purpose for many African economies. It is a fair

guess that most new energy generation throughout the African continent will use renewables despite the challenges, with a healthy mix of gas and other thermal generation.

How do major economies in Africa compare to other countries elsewhere in terms of their appetite for changing their energy mix to renewable energy? In Africa, the move to renewables is often not about actually getting energy generation on line for the first time, as opposed to displacing old thermal generation. The characteristics of renewables – faster, able to be sized at various levels, technically simpler to implement – mean that establishing such projects to expand access to electricity often makes sense. Battery technology is likely to make renewable generation uninterruptable on an economic basis on the medium term. At that point, every completed renewable project is going to look like a very inexpensive solution compared to alternatives. Fortunately, many mega-projects are more contemplated than completed.

What is your comment about the skills required for the industry on the continent, and the issue of establishing manufacturing capacity for materials needed? A renewable programme should be an opportunity for a country to create related employment and industry. One must do so without belabouring the production cost so as to make the electricity produced too expensive. Clever models have been designed. It is a great misfortune that the South African programme which was pointed in this direction has now been interrupted. These kinds of detailed requirements usually have to evolve over time, but the opportunity to engage local people and local capital should be key to any programme. 55

My work engages in the realistic presentation of the lives of the common man and his heritage. The underlying intention is to tell stories about my experiences and the lives of people that I have metâ&#x20AC;Ś It is important to note the advancement of electricity because it marks a new era of technological and social advancement of humans and is now a part of our daily livesâ&#x20AC;? OCOM ADONIAS

OMURIA & LOKOL

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Fit for Safeguarding Investment in your Project Nicky Crawford, Partner, ERM Nicky Crawford is a Partner at ERM based in London. With 17 years’ experience in Environmental and Social Impact Assessments, Ms Crawford, who has an academic background in Chemical Process Engineering, is responsible for ERM UK’s Power Sector work in Africa. Nicky has extensive experience in managing environmental and social risks for major capital projects. Within the Power Sector, Nicky has worked in various fields including renewables (solar, wind and hydro), CCGT, biomass, coal, energy from waste, underground gas storage, CCS (carbon capture and storage) and transmission lines.

Shana Westfall, ESHIA Service Lead, ERM Shana Westfall is the ESHIA Service Lead for ERM’s Northern Europe business unit, providing technical leadership on impact assessments to meet international finance requirements. In addition to her expertise in delivering fit-for-finance impact assessments, she also provides environment and social due diligence support to clients seeking to give or secure international finance. Over her 15 year career at ERM, she has predominately worked within the oil and gas, and power sectors. Her most recent power sector experience in Africa includes providing support to both thermal and renewable power projects seeking international finance.

2017 Africa Energy Yearbook

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The Environmental and Social Impact Assessment (ESIA) is typically the first step developers take in demonstrating how they have identified and will be managing environmental and social risks. With energy demands continuing to increase across Africa, interest in power projects, particularly renewables, remains high with international developers and investors. Despite environmental, social and governance (ESG) risks being addressed much earlier on in the project lifecycle than ever before, ESG risks often delay and, in some cases, derail financing of proposed projects. To successfully navigate this process and secure funds, it is essential that projects demonstrate from an ESG perspective that they are ‘fit for finance’. project is considered ‘fit for finance’ when its ESG risks are well understood and when effective measures are in place to mitigate and/or manage these risks to an acceptable level for financiers. ‘We have seen an increase in the focus on management of Environmental and Social risks by mainstream investors over the last 2017 Africa Energy Yearbook

few years; and in particular an increased attention on climate change and climate finance opportunities. We see the early management of E&S risks as integral to our business decisions.’ Georges Beukering, Head of Investor Relations & Business Development, Climate Fund Managers The Environmental and Social Impact Assessment (ESIA) is typically the first step developers take in demonstrating how they have identified and will be managing

environmental and social risks. However, it is at this stage that many projects fail because of the assumption that the ESIA needed by regulators to secure a permit through the national process will be largely sufficient to meet lender needs. Unfortunately, this is very rarely the case and results in increased development costs and delays to project schedules. When an ESIA is not aligned with international standards for project finance (e.g. the IFC’s Performance Standards), potential investors 59

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of a ‘red flags assessment’ or an early-stage due diligence. The table below illustrates the most common high risk ESG issues for various power projects. (Note: this is not an exhaustive list, as different projects will have different sensitivities.)

will, as part of their due diligence process, identify this as a gap. Financiers will then often require that a more comprehensive ESIA be prepared to fully characterise the ESG risks, a process that can delay financial close by as long as one year in some cases. ‘Overlooking E&S issues could have massive impacts in terms of costs and time.’ Tina Costas, Director, Norton Rose Fulbright Inc. Whilst vital to any project, fulfilling the local ESIA requirements is not always the best first step for projects seeking international finance. Instead, the local ESIA should be undertaken in parallel with the international ESIA to ensure that the scope is ‘fit for finance’. Typical gaps in content between a national and an international ESIA are the assessment of social impacts, the scope of environmental and social baseline studies (e.g. duration of bird surveys and the seasonality of biodiversity surveys), stakeholder engagement, and economic and physical resettlement. Recently, ERM facilitated three panel events in the United Kingdom and South Africa as a forum for project developers and financiers to openly discuss ESG challenges and how to best achieve this ‘fit for finance’ status. Across all three events, there were two main themes that emerged in discussion again and again: • start early when it comes to considering ESG issues; and • don’t underestimate the importance and complexity of social issues. 60

THE IMPORTANCE OF ACTING EARLY

As with many things in life, acting early is the key to success when it comes to managing ESG issues in order to secure international finance. Drawing from ERM’s own insights, client interactions and the opinions given by several of the financiers and developers who attended ERM’s recent events, there are a number of actions project developers should take from an ESG perspective to make financing as easy (and fast) as possible, including: Perform early screening of potential high risk ESG issues. This could be in the form

Integrate consideration of potential environmental and social impacts into early design decisions so that impacts can be avoided or minimised where feasible. International best practice should be applied where applicable at the design phase (e.g. compliance with the World Bank EHS Guidelines). It is also important to note that international finance standards also require developers to demonstrate in the ESIA how environmental and social considerations have been included in the alternatives selection process (e.g. routing, siting, and technology selection). Engage with potential lenders early. This dialogue helps avoid unwanted surprises and is important to reassure lending institutions throughout the process that ESG issues are being robustly managed. This can also be an opportunity to discuss risks and realistic mitigation measures. Engage a consultancy that is familiar with international finance requirements early in the process. The consultancy can review the available documentation and conduct early screening and provide input on risks and potential mitigation at the earliest stages of a project.

Type of Power Project

Most Common High Risk ESG Issues

Thermal

• Air quality • Physical and/or economic resettlement for land owners and land users • Noise

Wind

• Biodiversity (in particular birds and bats) • Noise • Physical and/or economic resettlement for land owners and land users

Solar PV

• Physical and/or economic resettlement for land owners and land users • Waste management (disposal of waste panels)

Hydro

• Physical and/or economic resettlement for land owners and land users • Biodiversity (from the dam and inundation area) • Environmental flow and fisheries

Associated infrastructure • Physical and/or economic resettlement for land - Transmission lines, gas owners and land users pipelines, access roads

2017 Africa Energy Yearbook

Examining a Bulb, represents all the cultural and economic potential and energy the continent has but which should be handled with care.â&#x20AC;? ERMIAS EKUBE

EXAMINING A BULB Image submitted by the artist ERMIAS EKUBE Charcoal on Paper 145cm x 70cm 2017 Africa Energy Yearbook

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By considering ESG issues early in the process, a risk-based approach can be taken to prioritise management of key impacts (i.e. before financial close) and provide a clear framework of tasks to address potential impacts in stages. DO NOT UNDERESTIMATE THE IMPORTANCE (OR COMPLEXITY) OF SOCIAL ISSUES

People are seldom straightforward and this means that measuring social impacts is often complex, making the full understanding and management of

People are seldom straightforward and this means that measuring social impacts is often complex, making the full understanding and management of social risks, prior to financial close, a real challenge. social risks, prior to financial close, a real challenge. This is exacerbated by the fact that social impacts are often excluded from consideration in many of the national EIA processes in Africa. As a result, unless a project proactively incorporates international finance requirements early in the process, as advocated previously, significant additional work on the assessment of social impacts is often needed to supplement a national EIA. To further raise the stakes, as illustrated in the table on the previous page, social issues can often present some of the highest ESG risks to a project (e.g.

African AFRICAN BUSINESS

Liaise with governmental stakeholders early to discuss key differences between national requirements and lender requirements, to agree on an approach to bridge these gaps. There are a number of areas where there are often key differences between these requirements, including the extent and nature of stakeholder engagement and compensation measures when dealing with physical or economic resettlement.

BUSINESS

physical and economic resettlement, and community conflict associated with physical environmental changes to air quality, noise emissions and water supply). Social issues can make or break a development; on one hand they can stop a project dead in its tracks, and on the other hand, good social management can de-risk a project and generate value in the eyes of potential investors. Below are several key recommendations for project developers on how to de-risk projects for social issues and avoid related delays in financing:

S P E C I A L R E P O R T: TICAD VI

RESOURCES: D R C â&#x20AC;&#x2122;s n e w m i n i n g l a w T E C H N O L O GY: Africa pioneers the use of drones PERSPECTIVE: A r e l o c a l c o n t e n t p o l i c i e s w o r k i n g?

NAW

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Work to build trust with local communities at the outset. Good stakeholder engagement should start early. Once trust with stakeholders is lost, it is difficult to regain. It should be noted that social impact assessments need to include the community’s consideration of perceived impacts, since these can often pose a very real social risk to projects. The only way to identify these risks is by engaging stakeholders early in the impact assessment process. Note that projects seeking international finance should have a Stakeholder Engagement Plan (SEP) in place to document what engagement has been/will be conducted, and how it will be undertaken (e.g. culturally appropriate, inclusive). It is essential to understand any potential impacts on people’s livelihoods since these can pose a high ESG risk and will require a significant amount of management. If land take is required for the development, the following should be considered: • Who are the current land owners and how will they be impacted? • Is land ownership clearly documented? Note that in many parts of Africa this may not be the case (e.g. community/ tribal ownership of land). • Are there any other users of the land who are dependent on the land to support their livelihoods? Note that this can include informal or even illegal use of the land. • Any compensation will need to be in line with international finance standards (e.g. IFC’s Performance Standard 5), so it is important

to understand how the national compensation process may differ. Note that there may be a requirement to ‘top-up’ national compensation. • Remember that just because the land has been allocated to the project by the government, this does not automatically mean that any government-led resettlement meets international requirements. Determine if the project will have the potential to affect any indigenous peoples. If this is a possibility, the stakeholder engagement process, and indeed the social impact assessment, will trigger additional requirements under the international finance standards (IFC Performance Standard 7) and will introduce an added layer of complexity. Potential impacts on indigenous peoples also pose an increased reputational risk and NGOs are likely to focus their attention on the development. Do not underestimate the capacity or influence of local NGOs. NGOs have access to project information, permits and licenses and can be adept at identifying non-compliances. They can place considerable pressure on project developers, thereby increasing the risk of reputational damage. Additionally, with the increased role of social media in society, international NGOs often back local NGOs as part of targeted campaigns (as demonstrated by the social media backlash against the North Dakota Pipeline). This means that small, local NGOs often receive guidance and resources from the larger, international

Do not underestimate the capacity or influence of local NGOs. NGOs have access to project information, permits and licenses and can be adept at identifying non-compliances. They can place considerable pressure on project developers, thereby increasing the risk of reputational damage. 2017 Africa Energy Yearbook

NGOs. Additionally, potential local ESG issues are more likely to be communicated to an international audience, thereby increasing the reputational risks both for a developer and their financiers. Appoint the right Community Liaison Officer (CLO). This is a key decision in helping to manage local project risks effectively. A local individual with knowledge of international standards/protocols and hands-on experience in stakeholder engagement is ideal for this role. Ensure that a robust Environmental Social Management System (ESMS) will be in place for construction and operation. From a social perspective, it is essential that this system also includes procedures and resources to manage social impacts, any labour working condition issues and community grievances. DO NOT FORGET ABOUT THE RELATED INFRASTRUCTURE

The installation of supporting infrastructure needed for a power development is something that is often overlooked when conducting a national EIA. Common examples include transmission lines, substations, access roads and pipelines. If these are essential to the project and would not exist without the project, they are considered ‘associated facilities’ and need to be considered as part of the scope for the international ESIA, even if they are not directly funded by the project. CONCLUSION

By following the recommendations given above, project developers can help derisk their projects, making them ‘fit for finance’ from an ESG perspective. This will increase the likelihood of securing international financing and receiving the funds more quickly. ERM has heard from numerous speakers at previous Africa Energy Forums that whilst there is plenty of money for investment, there are not enough ‘bankable’ projects. With so many power projects in Africa competing to secure financing, managing your ESG risks properly can make the difference between a successful development and one that never gets off the ground. 63

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YEARBOOK PROFILE PIECE DR MATEUS MAGALA, CHAIRMAN OF THE BOARD OF DIRECTORS, EDM MOZAMBIQUE Mateus is the Chairman and CEO of Electricity of Mozambique (EDM). Before this appointment, Mateus worked at the African Development Bank as the Resident Representative of the African Development Bank for Zimbabwe. He is an economist and engineer by training with extensive experience in both public and private organisations where he developed expertise in strategy development and advice, economic and financial analysis, analytics, infrastructure development and financing and value chain management. He recently led the development of the African Development Bank’s first Ten Year Strategy for 2013-2022.

Dr Magala, it’s so great to have you with us! Obviously EnergyNet’s partnership with Mozambique has grown from strength to strength over the last 14 years. What message would you like to provide international investors with this year? First of all, I would like to thank you for the opportunity to share with you some thoughts on such important matters of our generation Like Africa, Mozambique is on the rise; it has a fascinating narrative to tell about how it is universalising and democratising energy. It is leading an energy revolution that is full of opportunities. Currently, Mozambique is one of the most active players in the regional market and we believe market integration will bring more premium value opportunities for all. With the recent commissioning of CTRG (175MW), Gigawatt (120 MW), Kuvaninga (40MW), Mavuzi and Chicamba (96 MW) and a nearfuture implementation of medium and large scale generation such as Temane (400MW), Mphanda Nkuwa (1,500MW), Cahora Bassa North Bank (1,245MW), Lupata (600MW), Boroma (400MW), and with the regional transmission backbone (STE), Mozambique can, in the medium term, become the lowest-cost regional generation HUB. Hence, Mozambique can significantly contribute to the

reduction of energy poverty and the promotion of industrialisation not only in Mozambique but in the region.

We are currently liaising with a number of governments about their forthcoming objectives; what are EDMs ‘must achieve’ goals for the next five years? EDM has prepared a short to long-term investment plan to the tune of 8-10 billion USD over the next 15 years, which also responds to the government vision and ambition to be an enabler of the industrialisation of the country and an instrument for inclusion. For the next five years, we must accomplish the total rehabilitation of degrading transmission and distribution infrastructure for the whole country. This programme will be implemented over the course of the next two to three years. The focus is on 9 projects dedicated to the rehabilitation of the transmission network (104 MUSD), as well as 4 projects rehabilitating the distribution networks of key cities (59 MUSD). Studies are also on-going for the purpose of installing additional 117MW of emergency/backup power at various load centres’ throughout the country. Projected additional costs for these facilities are 91.4MUSD. The total emergency programme is estimated at 227MUSD. We will also implement a stabilisation programme to ensure better quality of supply to demand loads across the country. It is expected that

projects in this category will be implemented over the next four years. There are 11 projects in this category (111.6MUSD) and they were initially described as Short Term Priority Projects (STIP). 11 transmission projects (180.7MUSD), 6 distribution projects (132MUSD), as well as 3 generation projects, have now been included under Short term category. The generation projects include a 100MW gas-fired power station for Maputo City. Most of these projects will strengthen existing networks and generation capacity as well as some redundancy on the system to enable industrial demanding load. In anticipation of the growth and leadership role that EDM wants to play in the region, we can expect about 3,614.80 MUSD in investment to expand the infrastructure in particular to industrial hubs as well as to provide/ consolidate redundancy in the system to accommodate domestic and industrial load growth. There are a total of 20 projects involved in the expansion and improvement to the national grid, as well as 8 projects for new generation totalling 400MW from gas-fired, solar and hydro plants. All these and other investments within this period and beyond will be captured in the Integrated Master Plan that is being developed and expected to be published towards the end of 2017. Last but not least, in this period we seek to deliver a new EDM, with a new corporate image and a workforce of the future that is up to the challenges of

2017 Africa Energy Yearbook

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the 21st century. Access is expected to be 40-45% and gender balance up to 28% from the current 18% position.

Could you please briefly discuss EDMâ&#x20AC;&#x2122;s plans for a sustainable energy mix, with a specific focus on gas and renewables? As noted earlier, EDM is developing an Integrated Master Plan with funding from JICA (the Japanese International Cooperation Agency). This Master Plan will provide the optimal energy mix and the least cost transmission investment plan. For the next 5 years gas will be a determinant factor to increase generation capacity in Mozambique. It is expected that an additional 660MW from gas will be added by 2022. Furthermore, EDM is developing two solar photovoltaic plants in Mocuba and Metoro in the centre and north of Mozambique respectively. Other potential hydro generation projects are under feasibility study, namely Tsate (50MW), LĂşrio II (120MW), Mugeba (100 MW), Serra Mutelele (50MW), Muenezi (21MW) and Mavuzi II (8 MW). In addition, a 120MW wind farm in Namaacha is on the drawing board. In addition and in this context, the most critical structural on-going project is the Temane 400MW gas-fired plant project based on a PPP model. EDM and SASOL on a partnership are developing the business plan and legal and financial structuring of the project. This project is expected to come into operation by end of 2021. Mozambique is a country with abundant and diverse energy resources as illustrated in the picture below, and we rely on energy source diversification and on increasing development of renewables as the current stance for our competitive positioning. It is not by chance that we have recently created a Directorate for Renewable Energy and Energy Efficiency. This is a substantive position to ensure that our growth path is green and sustainable.

2017 Africa Energy Yearbook

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We are discussing transmission development again at this yearâ&#x20AC;&#x2122;s AEF. In the last two years there have been a number of EAC and SADC projects that have gained traction. How much investment is EDM putting into transmission and distribution over the next ten years? And what should investors be thinking about when the impacts of those networks start to increase demand? The picture bellow illustrates the strategic investment profile:

EDM is investing around USD4 billion in transmissions and around USD2.5 billion in distribution projects...

EDM is investing around USD4 billion in transmissions and around USD2.5 billion in distribution projects to ensure energy security i.e. (availability, reliability and affordability) to domestic and industrial customers.

2017 Africa Energy Yearbook

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The Government of Mozambique has defined four areas of concentration with energy being the top priority alongside agricultures, infrastructure and tourism. Lastly, please tell investors what they should be excited about in the coming year from Mozambique.

and reward investments, efforts and returns.

I would like to assure the investors that Mozambique is a country not only with abundant energy resources but also with open policies that protect

The Government of Mozambique has defined four areas of concentration with energy being the top priority alongside agricultures, infrastructure and tourism.

Mozambique is also geographically well located for export to Africa, Asia and Europe.

I would like to highlight that through the interconnections, Mozambique will have two power generation hubs connected through a HVAC infrastructure, namely Palma with gas generation in the North, and Tete with Hydro and Coal generation in the Central West.

2017 Africa Energy Yearbook

MozambiqueÂ´s location is in itself a natural comparative that can be transformed into a winning competitive advantage for investors and business in general. To promote industrial development, the government has established a set of incentives including free of taxes economic zones and relaxed charges on investments. With regards to political stability, Mozambique has a track-record of conducting free and fair elections in more than 25 years which makes it a very political and economically stable country. Finally, I would like to highlight that through the interconnections, Mozambique will have two power generation hubs connected through a HVAC infrastructure, namely Palma with gas generation in the North, and Tete with Hydro and Coal generation in the Central West. The interconnections with the Southern African Power Pool will make available competitive power resources to more than 300 million people in Southern Africa. Mozambique is a very attractive place to make a perpetual â&#x20AC;&#x2DC;killingâ&#x20AC;&#x2122; for energy businesses as Africa transforms itself into a modern and developed society. The UNDP says that by 2100, one in every four citizens of the world will be in Africa. For us this represents a limitless opportunity for the energy business if quality jobs and living standards are to be created to the growing numbers of consumers on the continent. This is the essence of the demographic dividend; it simply brings opportunities for those who bet on the future.

The eggs represent the fragility and uncertainty of life during the migration processâ&#x20AC;? ERMIAS EKUBE 68

2017 Africa Energy Yearbook

EGGS TO BE EXAMINED Image submitted by the artist ERMIAS EKUBE Charcoal on Paper 145cm x 185cm 2017 Africa Energy Yearbook

This collection depicts Liberia after the deadly Ebola virus outbreak that caused so much devastation in the country. It must be mentioned that during the crisis, physical contact was prohibited. This collection highlights the effects of the crisis as well as celebrating the return of human-tohuman contactâ&#x20AC;? LESLIE LUMEH

2017 Africa Energy Yearbook

LIBERIAN HANDSHAKE RETURNS Image submitted by the artist LESLIE LUMEH Acrylic on Canvas 20.5cm x 30.5cm

2017 Africa Energy Yearbook

The works in this thoughtprovoking exhibition are heavily inspired by recent elections in Uganda. In “Voices Heard” Kigozi moves away from seemingly innocent subjects to more explicit topics, to stimulate debate and emotions through his art.” DAVID KIGOZI

THE VERDICT STANDS ACRYLIC ON CANVAS Recycled Plastics 115cm x 105cm 72

Images submitted by Afriart gallery, Uganda

2017 Africa Energy Yearbook

POWER PROJECTS

Featured Power Projects

If you’d like to add your project to this selection or update your listing, please drop us a line at AEF@energynet.co.uk ANGOLA Project Name: Lomaum Dam Hydroelectric Power Plant Angola Type of project: Renewable Power Description: Lomaum Dam Hydroelectric Power Plant Angola is located at Ganda, Benguela, Angola. This Hydro Power Plant has a design capacity of 35 MWe. It has 3 unit(s). The first unit was commissioned in 1964. It is operated by Empresa Nacional de Electricidade de Angola (E.N.E.). Source: http://globalenergyobservatory.org/geoid/4066 Fuel Source: Hydro | Generation Capacity (MGW): 35 | Offtaker: Utility | Project Status: Completed

Project Name: Futila Thermal Power Plant Type of project: Conventional Power Description: Consists of two 35 MW gas turbines. The project scope also included the refurbishment of a substation in the city of Cabinda as part of the double circuit 60 kV and 30 kV distribution lines needed to transport the electricity to end users. Source: http://www.isoluxcorsan.com/en/project/thermal-power-plant-in-futila-angola.html Fuel Source: Gas | Generation Capacity (MGW): 70 | Offtaker: Utility | Project Status: Completed Project Name: Luachimo dam Type of project: Renewable Power Description: Contract signed in 2014 for Dam’s rehabilitation, increasing its capacity to 24 MW. This will be the first refurbishment to take place on the dam in all its decades of operation. Source: http://www.efacec.pt/PresentationLayer/efacec_press_01.aspx?tipo=4&area=1&idioma=2&id=496 Fuel Source: Hydro | Generation Capacity (MGW): 9 | Offtaker: Utility | Project Status: Completed

BOTSWANA Project Name: Morupule B power station Type of project: Conventional Power Description: In October 2009 the World Bank’s Board of Executive Directors approved a US$136.4 million loan for the the Morupule B project and also approved a Partial Credit Guarantee of US$242.7 million of commercial bank financing for the project. In a media release the World Bank stated that “the financing will help secure a reliable electricity supply for the country’s economic growth and poverty reduction programs. Financing will also help Botswana prepare a robust low-carbon growth strategy (consistent with the current Tenth National Development Plan: 2009-2016), strengthen management skills in the power sector, and establish a new, independent electricity regulator. Source: http://www.sourcewatch.org/index.php/Morupule_B_Power_Station Budget Size (USD): 100 – 500m | Fuel Source: Coal | Generation Capacity (MGW): 600 | Investors & Development Partners: World Bank Offtaker: Utility | Project Status: Completed

2017 Africa Energy Yearbook

POWER PROJECTS

BURKINA FASO Project Name: Zagtouli Plant Type of project: Renewable Power Description: Burkina Faso will start the construction of the Zagtouli solar plant, one of the largest photovoltaic solar power plants in sub-Saharan Africa, with an investment of about 46 billion CFA francs, APA learns Wednesday from the Department of energy.The now completed overall funding is provided by the European Investment Bank (CFAF 15 billion), the French Development Agency (FCFA 14.7 billion) and the EU (16.3 billion FCFA). Situated on a site of about 60 hectares located in Zagtouli, near the capital, the power plant (with a capacity of 33 MW) â€œwill, at completion, bring viable and realistic solutions to the challenges in the field of energy, especially in the electricity sub-sector, and will help reduce costs and increase the reliability of electricity supply and further open the way for other solar energy projects in the countryâ€, according to the Burkina Faso authorities. As a landlocked country with few financial resources to invest in energy infrastructure, Burkina Faso is characterized by heavy dependence on energy. Source: http://en.starafrica.com/news/bfaso-secures-46bn-fcfa-for-to-build-solar-plant.html Budget Size (USD): 26m | Fuel Source: Solar | Generation Capacity (MGW): 33 | Investors & Development Partners: European Investment Bank (CFAF), the French Development Agency | Offtaker: Utility | Project Status: Under Construction Project Name: Burkina Scatec Solar PV Park Type of project: Renewable Power Description: Burkina Faso is commencing construction work on a 33-MW solar photovoltaic (PV) power facility in the northern part of the West African nation, news agency APA reported on Wednesday, quoting the Department of Energy. The XOF-46-billion (USD 78.2m/EUR 70m) project will be implemented with XOF 15 million in financing from the European Investment Bank (EIB), XOF 14.7 million from the French Development Agency and XOF 16.3 million from the European Union (EU). EIB announced it would lend the above-mentioned sum in September 2014. The plant will be built at Zagtouli on the outskirts of Ouagadougou, the African country’s capital city. National electric utility SONABEL will operate the solar park once it is completed. Nearly half of Burkina Faso’s current power needs are met with imports from Ivory Coast and Ghana, the report mentions. Source: http://renewables.seenews.com/news/solar-park-of-33-mw-in-burkina-faso-enters-construction-phase-report-518383 Budget Size (USD): 78m | Fuel Source: Solar | Generation Capacity (MGW): 33 | Investors & Development Partners: Scatec Solar | Offtaker: Utility Project Status: Under Construction

CONGO (KINSHASA) Project Name: Inga 3 Type of project: Renewable Power Description: With support from the World Bank, the Democratic Republic of Congo (DRC) has proposed to develop Inga 3 on the Congo River. The project will consist of a dam and a 4,500MW hydroelectric plant at Inga Falls. Inga 3 comes as the first phase of the construction of the Grand Inga hydropower project, located 225 km from Kinshasa, and 60 km upstream of the mouth of the Congo into the Atlantic Ocean. Once completed, the final project would have a generation capacity of 40,000 MW. Source: http://www.internationalrivers.org/campaigns/the-inga-3-hydropower-project Budget Size (USD): 1Bn+ | Fuel Source: Hydro | Generation Capacity (MGW): 40 000 | Investors & Development Partners: World Bank Offtaker: Utility | Project Status: Out to Tender

EGYPT Project Name: Helwan South Power Project Type of project: Conventional Power Description: South Helwan project is designed to include 3x650 MW supercritical steam thermal power plant for interconnection to the National Unified Power System (NUPS) through the new 500 KV GIS Switchyard facility. The power block comprises three identical Rankine cycle turbine generator units, each with a nominal rated capacity of 650 MW. The units are capable of generating rated capacity using natural gas, residual (mazout) oil, or a combination of both. The three-unit plant arrangement includes an enclosed turbine building, an open boiler structure, a common control room, and all associated structures and facilities. Source: http://www.pgesco.com/south-helwan-supercritical-power-plant-3x650-mw/ Budget Size (USD): 500 – 1Bn | Fuel Source: Gas | Generation Capacity (MGW): 1 950 | Investors & Development Partners: AfDB Offtaker: Utility | Project Status: Under Construction Project Name: Philadelphia Solar 50 MW PV project Type of project: Renewable Power Description: Jordanian PV developer and manufacturer Philadelphia Solar has signed a memorandum of understanting with Egypt’s New and Renewable Energy Authority (NREA) to build a 50 MW-ac PV plant as part of the first wave of projects offered by the Egyptian government under its feed-in tariff (FiT) program. Source: http://www.pv-magazine.com/news/details/beitrag/egypt--philadelphia-signs-50-mw-agreement-_100018667/#axzz3YcBarhXo Fuel Source: Solar | Generation Capacity (MGW): 50 | Investors & Development Partners: Philadelphia Solar, Egypt’s New and Renewable Energy Authority (NREA), Egyptian Electricity Transmission Company (EETC) | Offtaker: Utility | Project Status: Feasability

2017 Africa Energy Yearbook

POWER PROJECTS

ETHIOPIA Project Name: Ashegoda Wind Farm Type of project: Renewable Power Description: Billed as the biggest wind farm in sub-Saharan Africa, the Ashegoda wind farm features 84 hi-tech wind turbines and is capable of producing around 400m KWh per year. It is located in Tigray state, about 475 miles north of Addis Ababa. The government of Ethiopia hopes that projects such as these will drive forward the country’s plans to become a renewable energy leader, achieving a climate-resilient economy by 2025. The farm has a generation capacity of 120 MW. Source: http://www.justmeans.com/blogs/africas-biggest-wind-farm-is-operating-in-ethiopia Budget Size (USD): 100 – 500m | Fuel Source: Wind | Generation Capacity (MGW): 120 | Investors & Development Partners: Vergnet Project Status: Completed Project Name: Tekezé Dam Type of project: Renewable Power Description: Completed in February 2009, this 300 MW hydropower plant cost $360million, which was $136 million over budget. Ethiopia’s largest public works project, at 188 metres (617 ft) the Tekezé Dam was also Africa’s largest arch dam. EEPCO teamed up with China National Water Resources & Hydropower Engineering Corporation (CWHEC) to complete the project. Contractors & consulting services were provided by: CWGSC&B, PB K&D and Howard Humphreys (engineering)Harza Engineering (consultancy). Source: http://en.wikipedia.org/wiki/Tekez%C3%A9_Dam Budget Size (USD): 100 – 500m | Fuel Source: Hydro | Generation Capacity (MGW): 300 | Investors & Development Partners: EEPCO, China National Water Resources, Hydropower Engineering Corporation (CWHEC) CWGSC&B, PB, K&D, Howard Humphreys Harza Engineering Offtaker: Utility | Project Status: Completed Project Name: Corbetti Geothermal Project Type of project: Renewable Power Description: This will be the first independent power project in Ethiopia’s history. The $4 billion 1,000 megawatt Corbetti geothermal plant will be built in two 500 megawatt stages over 8-10 years and when it comes online, will be Africa’s largest geothermal facility. Source; http://oilprice.com/Alternative-Energy/Geothermal-Energy/Ethiopia-to-Build-Africas-Largest-Geothermal-Plant.html Budget Size (USD): 1Bn+ | Fuel Source: Geothermal | Generation Capacity (MGW): 500 | Offtaker: Utility Project Status: Under Construction Project Name: Gibe Hydropower III Type of project: Renewable Power Description: The project will feed the national grid and increase regional interconnectivity, increasing the generation capacity of Ethiopia by 234 per cent. As of January 2015, according to Ethiopia Electric Power, the US$1.8 billion project was 88% completed, and the first two generators are expected to be commissioned in June 2015. Once completed, the dam is expected to supply about half of its power to Ethiopia and export the other half to Kenya (500 MW), Sudan (200 MW) and Djibouti (200 MW). Source: http://en.wikipedia.org/wiki/Gilgel_Gibe_III_Dam Budget Size (USD): 1Bn+ | Fuel Source: Hydro | Generation Capacity (MGW): 1 870 | Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

GHANA Project Name: Ayitepa Wind Farm Type of project: Renewable Power Description: Set to become Ghana’s first utility-scale wind farm, the Ayitepa project could power up to 10% of the country’s electricity demand when fully operational and is expected to start construction this year. Source: http://www.prnewswire.com/news-releases/mainstream-renewable-power-signs-deal-to-build-and-operate-ghanas-first-utility-scale-windfarm-275093541.htm Budget Size (USD): 500 – 1Bn | Fuel Source: Wind | Generation Capacity (MGW): 225 | Offtaker: Utility | Project Status: Out to Tender Project Name: Kpone Independent Power Plant (KIPP) project Type of project: Conventional Power Description: When it comes on stream in 2017, the KIPP project will be the largest private IPP in the country, accounting for approximately 10% of Ghana’s total installed capacity and approximately 20% of its available thermal generation capacity. As a Combined Cycle Gas Turbine (‘CCGT’) plant, it will be amongst Ghana’s most fuel-efficient thermal power stations. Once in production, KIPP will be become a critical base-load component in meeting Ghana’s growing electricity demand. Source: http://www.businesswire.com/news/home/20141003005027/en/Cenpower-announces-financial-close-900-MM-project#.VTYeDCFVhBc” Budget Size (USD): 500 – 1Bn | Fuel Source: Gas | Generation Capacity (MGW): 350 | Investors & Development Partners: InfraCo, Sumitomo Corporation, Rand Merchant Bank, Nedbank, Standard Bank, FMO, African Infrastructure Investment Fund | Offtaker: Utility Project Status: Final Phase Project Name: Nzema solar (PV) power plant Type of project: Renewable Power Description: Once completed it will be one of the biggest in the world. It will increase Ghana’s current generating capacity by 6% and will meet 20% of the government’s target of generating 10% of its electricity from renewable sources by 2020. Scheduled for completion mid-2015. Source: http://www.blue-energyco.com/africas-largest-solar-pv-power-plant/ Budget Size (USD): 100 – 500m | Fuel Source: Solar | Generation Capacity (MGW):155 | Offtaker: Utility Project Status: Under Construction Project Name: LNG facility for GNPC Type of project: Conventional Power Description: Micoperi and Quantum Power have reached an agreement on the Engineering, Procurement and Construction (EPC) for the Tema liquefied natural gas (LNG) import, storage, regasification and delivery facility. The Tema LNG Facility would provide the Ghana National Petroleum Corporation (GNPC), in its capacity as National Gas Aggregator, with the ability to secure competitively priced LNG. Source: https://www.ghanabusinessnews.com/2016/03/12/micoperi-and-quantum-power-to-construct-lng-facility-for-gnpc/ Budget Size (USD): 500m | Fuel Source: Gas | Generation Capacity (MGW): 2000 | Offtaker: Industrial Investors & Development Partners: Micoperi and Quantum Power | Project Status: Out to Tender

2017 Africa Energy Yearbook

POWER PROJECTS

KENYA Project Name: Olkaria II Geothermal Power Station Type of project: Renewable Power Description: The facility is located in Hell’s Gate National Park, on the eastern edge of the Eastern Rift Valley, approximately 88 kilometres (55 mi), southeast of the city of Nakuru. Olkaria II went on-stream in 2003 when Kenya Electricity Generating Company (KENGEN) commissioned two 35MW units manufactured and installed by Mitsubishi Heavy Industries (MHI). In 2010, a third unit of 35MW capacity was installed, bringing the total capacity to 105 Megawatts.[4] The project was co-financed by the World Bank, the European Investment Bank, KfW of Germany and KenGen. Designed and constructed with an advantage of newer technology, this state-of-the-art plant is highly efficient in steam utilization. It works on single flash plant cycle with a steam consumption of 7.5 t/h/MW. The turbines are single flow six stage condensing with direct contact spray jet condenser. The power generated is transmitted to the national grid via 220 kv double circuit line. Source: http://en.wikipedia.org/wiki/Olkaria_II_Geothermal_Power_Station Budget Size (USD): 100 – 500m | Fuel Source: Geothermal | Generation Capacity (MGW):105 | Investors & Development Partners: World Bank, the European Investment Bank, KfW of Germany and KenGen | Project Status: Completed Project Name: Lake Turkana Wind Power Type of project: Renewable Power The Lake Turkana Wind Project will eventually deliver 300 MW of power to the national grid using a wind resource in Northwest Kenya near Lake Turkana. Costing a massive Ksh76 billion (EUR623 million), the project will be the largest single private investment in Kenya’s history. The project is expected to be fully operational by 2016, by which time it will produce the first initial 100 MW, with the rest of the capacity due to be achieved within 32 months.The importation of fuel for thermal power generation has cost Kenya an estimated $150 million-annually, which will now be saved if the Turkana Wind Project is to prove successful. Source: http://www.skyscrapercity.com/showthread.php?t=922856&page=7 Budget Size (USD): 500 – 1Bn | Fuel Source: Wind | Generation Capacity (MGW): 300 | Project Status: Under Construction Project Name: Lamu coal fired power plant Type of project: Conventional Power Description: The power station is a proposed 981.5 Megawatt coal-fired thermal electricity-generating plant, to be built in Lamu County, Kenya. Construction is expected to begin in September 2015 and last approximately 21 months. Once constructed, it will become the largest single power station in Kenya. The power generated will be evacuated from the power plant to Nairobi, the country’s capital via a new 520 kilometres (320 mi), 400kV electricity transmission line. In the initial years, the power station will utilize imported coal, mainly from South Africa and later convert to locally sourced coal from the Mui Basin in Kitui County. Source: http://en.wikipedia.org/wiki/Lamu_Coal_Power_Station Fuel Source: Coal | Generation Capacity (MGW): 1 000 | Investors & Development Partners: Gulf Energy, Centum Investment, Sichuan Electric Power and Design & Consulting Company, Sichuan No.3 Electric Power Construction Company, CHD Power Plant Operation | Offtaker: Utility Project Status: Out to Tender Project Name: 50 MW Wind Farm in Kajiado Type of project: Renewable Power Description: Kipeto Energy’s Kajiado-based wind-power project has gathered pace after it awarded a Chinese firm the multi-billion contract to construct the plant. China Machinery Engineering Corporation clinched the Sh22.6 billion contract for the engineering design, procurement and construction (EPC) of the wind farm that is set to generate 100 megawatts (MW). The project, one of the largest US foreign direct investments in Kenya, will be completed within two years from the date of commissioning which was not disclosed. “The company, as the EPC general contractor, will be responsible for the design, supply, civil engineering and construction, installation, training, commissioning, technical services and other works of the Project on a turnkey basis. The contract value amounts to $221 million (Sh22.6 billion),” said the firm in regulatory filings. Source: http://www.businessdailyafrica.com/China-firm-wins-Sh22-6bn-tender-to-build-Kipeto/-/539552/3053024/-/jcxuv5z/-/index.html Budget Size (USD): 221m | Fuel Source: Wind | Generation Capacity (MGW): 100 | Investors & Development Partners: China Machinery Engineering Corporation – EPC, GE | Offtaker: Utility | Project Status: Under Construction Project Name: Kipeto Wind Farm Type of project: Renewable Power Description: GE Africa is partnering with Kipeto Energy to build a 100MW Kipeto wind farm in Kenya’s Kajiado County. GE will be the sole equipment supplier for the project, to be located some 50km from Nairobi. The $155m contract includes supplying 60 GE 1.7MW 103 wind turbines, as well as a 15-year service agreement. Shareholders in Kipeto Energy include Africa Infrastructure Investment Managers, Craftskills Wind Energy International Limited, International Finance Corporation and the Maasai community of Kipeto. The project will be financed by the Overseas Private Investment Corporation, the US government’s development finance institute, as sole lender to the project and part of the Power Africa Initiative. Source: http://renews.biz/92464/ge-wins-100mw-deal-in-kenya/ Budget Size (USD): 221m | Fuel Source: Wind | Generation Capacity (MGW): 100 | Investors & Development Partners: hina Machinery Engineering Corp -EPC, GE Africa, Kipeto Energy, Overseas Private Investment Corporation | Offtaker: Utility | Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

KENYA Project Name: 400MW Wind Power Farm in Meru Type of project: Renewable Power Description: Kenya Electricity Generating Company (KenGen) said the Meru Wind Farm Project initial phase has a completion date of December 2017 and is expected to be among the largest wind farms in the country. A Feasibility Study showed that there is enough wind resources to develop up to 400 MW in phases from the area Source: http://www.coastweek.com/3827-Kenya-plans-to-develop-biggest-wind-power-farm-project.htm Budget Size (USD): 270m | Fuel Source: Wind | Generation Capacity (MGW): 400 | Offtaker: Utility | Investors & development partners: KenGen, French Development Agency (AfD), German Development Bank (KfW) | Project Status: Under Construction Project Name: High Voltage Direct Current Converter Substation in Suswa Type of project: Conventional Power Description: In a consortium with Siemens, Isolux Corsan has been selected to design, build and install High voltage direct current (HVDC) equipment between Ethiopia and Kenya. The project will provide a reliable connection of both countries’ electrical grids, improving the use of generation resources in the area. The total value of the project, financed by the World Bank and the African Development Bank, is worth approximately $450 million. The HVDC bipole will have a capacity of 2,000 megawatts (MW) and will link two converter stations in Suswa (Kenya) and Sodo (Ethiopia) with a 1,000 kilometers-long DC power line. Under terms of the consortium agreement, Siemens will supply the complete HVDC core technology, while Isolux Corsan will be responsible for the construction, installation and equipment in the converter and AC substations. The order was placed by the Ethiopian Electric Power Corporation (EEPCO) and the Kenya Electricity Transmission Co. Ltd. (KETRACO).The project will improve the exchange of energy between both countries increasing power availability at both ends, covering the power needs for the future development of the areas. Source: http://www.prnewswire.com/news-releases/siemens-isolux-corsan-consortium-wins-450-m-hvdc-contract-in-ethiopia-and-kenya-537131621.html Budget Size (USD): 450m | Fuel Source: HVDC | Generation Capacity (MGW): 2000 | Offtaker: Utility | Investors & development partners: Siemens-Isolux Corsan Consortium | Project Status: Under Construction Project Name: Menengai Power Line Type of project: Renewable Power Description: The transmission line which is to connect the Menengai geothermal station to the national power grid will be completed in the next two months, Kenya Power Transmission Company in charge of construction announced. The 12.6km line will convey 105MW of energy from the plant to the grid. The project includes, among others, the construction of 132kV sub-station in Menengai and the extension of the Soilo sub-station. ¨Power generated will be relayed to these two units. The firm said it has finished construction of the power line, and completed 80% of works related to both sub-stations. Works have been estimated at $7.9 million. Source: http://www.thinkgeoenergy.com/transmission-lines-being-finalized-for-menengai-geothermal-project/ Budget Size (USD): 7.9m | Fuel Source: Geothermal | Generation Capacity (MGW): 105 | Offtaker: Industrial | Investors & development partners: The Kenya Electricity Transmission Company | Project Status: Under Construction Project Name: Hyacinth Biogas Power Plant at Lake Victoria Shore Type of project: Conventional Power Description: The 2.5 billion biogas power plant on the shores of Lake Victoria will be fuelled by the invasive water hyacinth weed. The biogas produced from fermenting the hyacinth will be combusted to produce electricity, which will be fed to the national grid. “The plant is expected to generate 35 megawatts (MW) of electricity through 8MW batches each and one 3MW batch,” Thika Way said in filings to the National Environment Management Authority (Nema). Source: http://www.businessdailyafrica.com/Corporate-News/-/539550/2868722/-/t6q37mz/-/index.html Budget Size (USD): 24m | Fuel Source: Gas | Generation Capacity (MGW): 35 | Offtaker: Utility | Investors & development partners: Thika Way Investments EnviTec Biogas AG | Project Status: Under Construction Project Name: Solar Power Project in Kenya Type of project: Renewable Power Description: The Rural Electrification Authority (REA) has approved a loan of US$118mn to fund a 55MW solar power project in Garissa County, Kenya. Expected to be the largest solar power station in Africa, the plant is estimated to power about 625,000 homes. The plant is to be constructed by the Chinese government following an agreement with the Kenyan Government. Construction is expected to commence by July this year. According to the media, in 2015 the Chinese government announced that it would construct the plant following an agreement with the Kenyan government. Source: http://www.africanreview.com/energy-a-power/renewables/us-118-mn-solar-power-project-given-green-light-in-kenya Budget Size (USD): 1.2bn | Fuel Source: Solar | Generation Capacity (MGW): 55 | Offtaker: Utility | Project Status: Out to Tender Project Name: 80 MW Solar Power Plants in Eldoret Type of project: Renewable Power Description: Construction of two solar power plants with a combined capacity of 80 megawatts started at the end of 2016. The two proposed projects -Solienke and Cedata -- will be based in Eldoret, each with an output of 40 megawatts. Fuel Source: Solar | Generation Capacity (MGW): 80 | Offtaker: Utility | Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

MALAWI Project Name: Kapichira Power Station Type of project: Renewable Power Description: The Kapichira Power Station is a hydroelectric power plant on the Shire River in Malawi. It has been designed for an eventual power generating capacity of 128 megawatts (172,000 hp), enough to power over 86,000 homes[1] with 4 x 32 megawatts (43,000 hp) generating sets, however in Phase 1 only 2 x 32 MW generating sets were installed, with civil structures constructed for the later addition of the remaining two units. Phase I of the power station was officially opened in September 2000. Each unit operates at a nominal head of 54 metres (177 ft) and discharge of 67 cubic metres per second (2,400 cu ft/s).[2] Source: http://en.wikipedia.org/wiki/Kapichira_Hydroelectric_Power_Station Fuel Source: Hydro | Generation Capacity (MGW): 64 | Offtaker: Utility | Project Status: Completed

MALI Project Name: Kita project Type of project: Renewable Power Description: Kita is a photovoltaic project with a capacity of 50 MW, making it not only the largest solar energy production project in West Africa to date, but also a major response to a public interest issue: with just 38% of homes connected, Mali will have to substantially increase its electrical capacity to support its economic growth. And this is something of which the country is well aware: in February 2013, the Ministry of Energy and Water signed a memorandum of understanding with the R20 to accompany the development of its electricity production capacity for a total output of around 160 MW, including 50 MW in Kita. In June 2013, the R20 decided to entrust the development and running of this project portfolio to Akuo Energy. Source: http://www.akuoenergy.com/fileadmin/media/pdf/news/CP_AKE_KITA_VENG.pdf Fuel Source: Solar | Generation Capacity (MGW): 50 | Investors & development partners: Akuo Energy | Offtaker: Utility | Project Status: Under Construction? Project Name: Mali Scatec Solar PV Park Type of project: Renewable Power Description: Norwegian power producer Scatec Solar has signed an agreement to build West Africa’s first large utility-scale solar power plant in southeast Mali. The build-own-operate agreement for the 33MW solar project was signed between Scatec Solar, Mali’s Ministry of Energy and Water and Electricité du Mali (EDM), the country’s electricity utility. The project will be developed in partnership with IFC InfraVentures and the local developer Africa Power 1. The agreement includes a power purchase agreement (PPA) between EDM and Segou Solaire SA, the local project company controlled by Scatec Solar, for the delivery of solar power over the next 25 years. The PPA with EDM is complemented by a concession contract with the government of Mali that grants Segou Solaire a license to operate. Source: http://www.africanreview.com/energy-a-power/renewables/scatec-solar-to-build-large-scale-solar-plant-in-mali Budget Size (USD): 57m | Fuel Source: Solar | Generation Capacity (MGW): 33 | Investors & development partners: Scatec Solar Offtaker: Utility | Project Status: Under Construction

MOROCCO Project Name: Ouarzazate Solar Power Station (OSPS) Type of project: Renewable Power Description: Ouarzazate Solar Power Station (OSPS) is a solar power complex located in the Souss-Massa-Drâa area in Morocco, 10 km from Ouarzazate town, in Ghessat rural council area. The entire Solar Project is planned to produce 580 MW at peak when finished and is being built in three phases and in four parts. Total project expected to cost $9 billion. The plant will be able to store solar energy in the form of heated molten salt, allowing for production of electricity into the night. Phase 1 comes with a full-load molten salt storage capacity of 3 hours. The planned Phase 2 (Noor 2 and 3 plants), due to open in 2017 and 2018 will store energy for up to eight hours.[3] It will cover an area of 2,500 hectares (6,178 acres). Budget Size (USD): 9bn | Fuel Source: Solar | Generation Capacity (MGW): 580 | Investors & development partners: ACWA Power Ouarzazate, a consortium of ACWA Power, the Moroccan Agency for Solar Energy (Masen), Aries and TSK | Offtaker: Industrial | Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

MOZAMBIQUE Project Name: Ressano Garcia Power Station Type of project: Conventional Power Description: After two years under construction, Electricidade de Mozambique (EdM) and Sasol opened the Ressana Garcia Power Plant, a 180MW natural gas power station at the end of August 2014. The power station will have 18 gas turbines once fully operational. Although the power plant is expected to ease power shortages in the region, EDM admitted that the state utility still requires more than US$1 billion investment into power infrastucture to adequately meet Mozambique’s energy needs.*EDM own 51% of the Ressano Garcia power station and the rest is owned by SASOL. Ressano Garcia power station is the second gas-fired power station at Ressano Garcia. The first one belonged to the Aggreko company, which is a power company based in Scotland. The Aggreko power is sold to EDM and to the South African and Namibian power utilities, Eskom and NamPower. Source: *http://www.esi-africa.com/mozambiques-180mw-gas-power-station-opens-doors/ Budget Size (USD): 100 – 500m | Fuel Source: Gas | Generation Capacity (MGW): 180 | Investors & development partners: EDM, Sasol Offtaker: Utility | Project Status: Completed Project Name: Mphanda Nkuwa Hydropower Plant Type of project: Renewable Power Mphanda Nkuwa Hydropower Plant is a project with strong national relevance which is going to contribute to the social and economical development of Mozambique and help supplying the energy deficit that the Southern African Development Community (SADC) region is facing. Located on Zambezi River, between Cahora Bassa and Tete, this hydropower plant will have an annual generation of about 8.600 GW/per year. The Mphanda Nkuwa hydropower plant site, including the reservoir that is going to be created, will comprise Chiúta, Changara, Cahora Bassa and Marávia districts. A large percentage of power produced by the hydropower plant is going to support the electrification and development of Mozambique, benefiting the population and its economical activities. The surplus will be exported, reinforcing the role of Mozambique in the regional framework of energy integration, enabling additional revenues that will help to balance the foreign trade of the country. Another benefit of the Mphanda Nkuwa Hydropower Plant will be the contribution to the feasibility of CESUL – power transmission line that will connect the Centre of Mozambique to the South – through the power production based on a renewable resource. Source: http://www.hmnk.co.mz/en Budget Size (USD): 1Bn+ | Fuel Source: Hydro | Generation Capacity (MGW):1 500 | Project Status: Under Construction Project Name: Moatize IPP Type of project: Conventional Power Description: Moatize IPP is a coal-fired power station located in the Tete province of Mozambique and owned by ACWA Power Moatize Termoelectrica SA The project will have a generation capacity of 300MW, 80% of which will be kept by ACWA, and the rest to be sold back to EDM to feed into the grid. The project is being developed on a BOOT (build, own, operate and transfer) basis, and will become the only coal-fired power plant in the country. CWA’s main shareholders are the Saudi Group Acwa Power, Vale and the Japanese firm Mitsui. The project is due to be completed in the last quarter of 2016. Source: http://www.acwapower.com/project/16/moatize-ipp.html Budget Size (USD): 500 – 1Bn | Fuel Source: Coal | Generation Capacity (MGW): 300 | Offtaker: Captive Power Investors & development partners: ACWA Power | Offtaker: Utility Project Status: Under Construction Project Name: Ncondezi Power Project Type of project: Conventional Power Ncondezi plans to develop Mozambique’s first coal fired power plant on the Ncondezi Project area in the Tete Province. This follows the conclusion of both a Mine and Power DFS which confirmed that a large scale, long life, open pit thermal coal mine and integrated power plant is technically and economically viable. This large scale project will be developed in phases, starting with a 300MW integrated mine and power plant (“”300MW Project””), expanding ultimately to an 1800MW power plant. The Power DFS was conducted by Parsons Brinckerhoff and independently reviewed by STEAG, one of Germany’s largest electricity producers, from an operator’s perspective. The power plant will be located about 90kms away from the local transmission network. Construction is planned for 2015, with the power plant targeting commissioning in H2 2017 and commercial operations in H1 2018. The 300MW project is closely aligned to the Mozambican Government’s stated objective of accelerating the electrification of the country and expanding access to electricity. Currently only 20% of the country is electrified. The power plant will help Mozambique maximise the potential of its resources in country and will be an important contributor to Mozambique’s future development. Read more: Source: http://www.ncondezicoal.com/power-project.aspx Fuel Source: Coal | Generation Capacity (MGW): 300 | Project Status: Out to Tender

2017 Africa Energy Yearbook

POWER PROJECTS

NAMIBIA Project Name: Ruacana Power Station Type of project: Renewable Power Description: The Ruacana Power Station is a hydroelectric power plant near Ruacana in northwest Namibia, not distant from the Angola border. The first three 80 MW Francis turbine-generators were commissioned in 1978 and the fourth Francis turbine-generator at 90 MW was commissioned on 5 April 2012. Source: http://en.wikipedia.org/wiki/Ruacana_Power_Station Budget Size (USD): 100 – 500m | Fuel Source: Hydro | Generation Capacity (MGW): 330 | Offtaker: Utility | Project Status: Completed

Project Name: Xaris 250MW Gas Power Project Type of project: Conventional Power Description: Xaris Energy Namibia is gearing up to build a 300 MW of gas power capacity behind Dune 7 near Walvis Bay, Namibia, after having won the N$4 billion NamPower tender to construct the plant. Environmental permits are still pending. The plant will run on imported LNG and is considered as a short-term critical energy supply project until the Namibia’s Kudu gas power project starts up in 2018. Source; http://gastopowerjournal.com/home/itemlist/tag/NamPower#axzz3Y7gQJn9i Budget Size (USD): 20 – 100m | Fuel Source: Gas | Generation Capacity (MGW): 250 | Investors & Development Partners: Xaris Energy Offtaker: Utility | Project Status: Under Construction Project Name: Arandis Power plant Type of project: Conventional Power Description: Plant will be 120 MW Heavy Fuel Oil (HFO) and 50 MW Solar Hybrid Power Station. The negotiations on the power plant were temporarily suspended by NamPower in June 2014, pending the latter’s completion of its tender for another 250MW power station in Walvis Bay. Arandis Power spent N$40 million to complete the full bankable feasibility study, including full EIA clearance, construction and operations’ contracts and fuel supply agreements, amongst others. Currently, Namibia imports more than 60% of its electricity needs from neighbouring countries. Source: http://www.namibian.com.na/indexx.php?archive_id=133383&page_type=archive_story_detail&page=1 Budget Size (USD): 20 – 100m | Fuel Source: Oil | Generation Capacity (MGW): 120 | Investors & Development Partners: Arandis Power Offtaker: Utility | Project Status: Under Construction Project Name: Kudu Power Project Type of project: Conventional Power Description: Development of the Kudu gas field and construction of an 800 MW combined cycle natural gas-fired power station at Oranjemund. When completed, the power station will feed Namibian and South African power grids. The project will be developed by NamPower, a national energy company of Namibia. The Kudu Power Station will be the first Combined Cycle Gas Turbine power station of this size in Southern Africa and is expected to be commissioned by end of 2017. Sources: http://www.nampower.com.na/Page.aspx?p=215 | http://en.wikipedia.org/wiki/Kudu_Power_Project Fuel Source: Gas | 800 | Generation Capacity (MGW): 3 | Offtaker: Utility | Project Status: Under Construction Project Name: Wind Farm Type of project: Renewable Power Description: French wind energy company Innovent, stated that through its subsidiary InnoSun, it plans to construct a 150 to 500MW wind farm in Tsau//Khaeb national park, located in the south-west of Namibia Source: http://www.esi-africa.com/news/nambia-to-sign-a-mou-with-innosun-for-a-150-to-500mw-wind-farm/ Fuel Source: Wind | Generation Capacity (MGW): 150-500 | Investors & Development Partners: InnoSun | Offtaker: Industrial Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

NIGERIA Project Name: Aba Power Station (IPP) Type of project: Conventional Power Description: Simple cycle gas turbine – a private integrated power project being built by Geometric Power Systems.The Aba IPP is the first independent and integrated power utility in Nigeria, which comprises a 141 MW gas fired power plant, a 27km gas pipeline, and a distribution utility, within a ringfenced distribution network. It is an embedded electricity facility designed to generate and distribute its own electricity. The Project is presently owned by the Project Developer/Sponsor: Geometric Power Limited, Aba Power Limited, and other investors. Sources: http://en.wikipedia.org/wiki/List_of_power_stations_in_Nigeria | http://geometricpower.com/projects/aba-phase-i Fuel Source: Gas | Generation Capacity (MGW): 140 | Investors & Development Partners: Aba Power | Offtaker: Captive Power Project Status: Completed Project Name: Azura Edo IPP Type of project: Conventional Power Description: The Azura-Edo Independent Power Plant (“”IPP””) is a 450 MW gas-fired open cycle power plant located in the North Eastern outskirts of Benin City in Edo, Nigeria (“”the Project””). As of July 2013, the plant is estimated to cost around US$[654] million, and to achieve commercial operations by late 2016. Source: https://ifcndd.ifc.org/ifcext/spiwebsite1.nsf/78e3b305216fcdba85257a8b0075079d/ab51ac85a5858ab985257bdd006499d7?opendocument Budget Size (USD): 500 – 1Bn | Fuel Source: Gas | Generation Capacity (MGW): 450 | Investors & Development Partners: Nigerian Bulk Electricity Trading PLC, Federal Government of Nigeria (FGN), International Finance Corporation, FMO | Offtaker: Utility | Project Status: Under Construction Project Name: 700 MW Hydro Electricity Plant in Zungeru Type of project: Renewable Power Description: The project will provide power generation, flood protection and water for irrigation. It includes a roller-concrete compacted dam (90 meters in height and 1,090 meters in length), an intake tower and diversion tunnel, underground powerhouse, power transmission lines and access roads. Officials hope the Zungeru plant will help alleviate the country’s massive energy deficit, where blackouts are a near daily occurrence and much of the population relies on diesel generators. Zungeru is one of several hydro projects that are part of Nigeria’s Renewable Energy Master Plan (REMP) proposed in 2006. REMP seeks to increase the supply of renewable electricity – including wind, solar, biomass and small hydro – from 13% of total electricity generation in 2015 to 23% in 2025 and 36% by 2030, according to the Nigerian government. According to Alstom, AHC is Alstom’s largest hydropower industrial site worldwide and during the past 20 years it has accumulated a 20% market share of the total Chinese installed capacity of large hydro equipment. Source: http://www.hydroworld.com/articles/2015/07/ahc-to-supply-us-78-million-in-equipment-to-nigerian-700-mw-zungeru-hydroelectric-project.html Budget Size (USD): 1.3bn | Fuel Source: Hydro | Generation Capacity (MGW): 700 | Investors & Development Partners: CNEEC-Sinohydro, AHC | Offtaker: Industrial | Project Status: Under Construction Project Name: CT Nigeria 70-MW solar farm Type of project: Renewable Power Description: Communication Towers (Nigeria) Ltd, or CT Nigeria, plans to construct a 70-MW photovoltaic (PV) power plant in the state of Plateau, National Mirror said Monday. The solar project is expected to require a total investment of more than USD 150 million (EUR 131.7m). The output of the solar farm, which is estimated to be enough to power Plateau and some of its neighbouring states, will be fed to the National Grid and will be sold to the Federal Government. The firm expects to initiate works at the site by the end of 2016 with completion seen within 18 months, the report says. Budget Size (USD): 150m | Fuel Source: Solar | Generation Capacity (MGW): 70 | Investors & Development Partners: CT Cosmos Nigeria, Siemens | Offtaker: Industrial | Project Status: Under Construction Project Name: Photovoltaic Power Plant in Kano Type of project: Renewable Power Description: Dangote Group, Alhaji Aliko Dangote, has disclosed the plan to establish power plants in Kano and Abuja as part of a policy to develop power infrastructure in Nigeria. He made this disclosure at the 38th Convocation lecture of the Ahmadu Bello University, Zaria, on Friday. Dangote said the project was part of the company’s $5billion joint venture agreement with Black Rhino Group, a subsidiary of the Black Stone Group to develop a power infrastructure in Africa. This, he said, would go a long way to boost power generation in the country. “We are also furthering a new ground by investing in two 554Km, 3 billion square cubic meter feet gas offshore pipeline project, the first indigenous owned undersea gas pipelinethat will supply gas to industries and power plants and it would be run from Bonny through Gas fields,’’ he said. In order to make Nigeria self sufficient in Sugar produc tion, Dangote said plans were underway to cultivate over 260, 000 hectares of sugar plantation to produced 20 million metric tons of cane and 2 million metric tons of sugar. Source: https://www.today.ng/news/national/73399/dangote-to-establish-power-plant-in-kano-abuja Budget Size (USD): 10bn | Fuel Source: Solar | Generation Capacity (MGW): 500 | Investors & Development Partners: Dangote/Black Rhino Group | Offtaker: Utility | Project Status: Under Construction

2017 Africa Energy Yearbook

POWER PROJECTS

NIGERIA Project Name: Oma Power Project Type of project: Conventional Power Description: General Electric Co. and Daewoo Engineering & Construction Co. will start building the gas-fired plant in Okija in Anambra state, close to the southeastern commercial centers of Onitsha and Nnewi, as soon as the company seals the financing deal. Starting from an initial 495 megawatts, the plant is expected to run at its full capacity of 1,500 megawatts by 2020, according to Umeh. Geometric’s Oma Power project has been progressing quickly and, with General Electric (GE) as co-developer, it may beat the Okija project to financial close.The project is located in Abia State and will be developed in three phases, with the first phase comprising a 500MW simple-cycle plant using GE Frame 9 turbines which Geometric expects to be supplying the grid by late 2017. However, the project has had some difficulty securing gas supply, and financing is dependent on GE’s commitment. Fuel Source: Gas | Generation Capacity (MGW): 1500 | Investors & Development Partners: Geometric Power, General Electric Co., Daewoo Engineering & Construction Co | Offtaker: Utility | Project Status: Under Construction Project Name: 500MW Coal-fired Power Plant in Enugu Type of project: Conventional Power Description: The Enugu State government signed a Memorandum of Understanding (MoU) with India’s Essar Group for a coal-fired power station in June, 2011. According to the Guardian: “The agreement is aimed at exploring the abandoned large deposits of coal in the state for the purpose of electricity generation.” The station will use coal sourced from mines in the state to generate power.[1] There has been no news of the project by Essar since the announcement, and it may have become the Enugu Coal Project by Geometric Power, a power company in Nigeria. According to the company’s website (2014), the Enugu project would begin as 500 MW and expand to 1,000 MW, and provide power to the national grid.[2] However, there is little information about the project outside of the Geometric Power’s website, and it appears to be shelved. In March 2015 the Nigerian government signed an MoU with One Nation Energy Limited to set up a 500MW power plant in Enugu state, using the state’s coal. Source: http://www.sourcewatch.org/index.php/Enugu_power_station Fuel Source: Coal | Generation Capacity (MGW): 500 | Investors & Development Partners: Geometric Power, One Nation Energy Platform Offtaker: Utility | Project Status: Out to tender Project Name: Clean energy project in Onono Type of project: Renewable Power Description: The unveiling of the solar project took place in Onono-Anam community in Anambra state. Nigeria is presently rocked with controversies surrounding electricity tariffs for those connected to the national grid. Therefore the development is a welcome relief to the community as the 24KW mini-grid project will ensure every home in the community has access to solar power. Source: http://venturesafrica.com/boi-onono-anam-solar/ Fuel Source: Solar | Generation Capacity (MGW): 24 | Investors & Development Partners: Nigeria Bank of Industry (BOI) | Offtaker: Utility Project Status: Completed Project Name: The ABIBA solar power Type of project: Renewable Power Description: Dubai-based Access Infra Africa signed a joint development agreement for a 50-MW solar power plant in Nigeria. The company will partner with Nigeria-based Quaint Global Energy Solutions, an affiliate of Quaint energy USA, over the development of the ABIBA on-grid solar utility plant to be situated on 150 hectares of the Manchok Ranch in Manchok, Kaduna State. The site is approximately 2.5 hours from the Nigerian capital city, Abuja. Access Infra Africa, which is the joint investment vehicle of Dubai-based solar developer Access Power MEA and French firm Eren Developpement SAS, announced at the start of the year, it plans to invest USD 500 million (EUR 465m) in developing renewable energy projects in Africa over the next three years. The Nigerian initiative is estimated to cost about USD 100 million and Access Infra Africa is to contribute the bulk of the at least 30% equity portion of the investment, according to a Reuters report on the matter. Quaint has already received a USD 1.3 million grant from the US Trade and Development Agency for ABIBA. The ABIBA plant is expected to be built in the next two years but the partners are yet to secure a power purchase agreement before starting to look for project finance. Source: http://renewables.seenews.com/news/access-infra-africa-buys-into-50-mw-nigerian-solar-project-501164 Budget Size (USD): 100m | Fuel Source: Solar | Generation Capacity (MGW): 50 | Investors & Development Partners: Quaint Global Energy Solutions Nigeria Limited, Access Infra | Offtaker: Industrial | Project Status: Under Construction

RWANDA Project Name: Nyabarongo hydropower project Type of project: Renewable Power Description: Nyabarongo Power Station is a hydropower plant in Rwanda, completed in October 2014, with a commissioning date in November 2014. At an estimated cost of US$110 million, the planned capacity installation will be 28 MW. The project involves a dam, with run of river design, across the River Mwogo, one of the tributaries of Nyabarongo River. Source: http://en.wikipedia.org/wiki/Nyabarongo_Power_Station Budget Size (USD): 20 – 100m | Fuel Source: Hydro | Generation Capacity (MGW): 28 | Investors & Development Partners: Export-Import Bank of India, Bharat Heavy Electricals Ltd. (BHEL), Angelique International Ltd | Offtaker: Utility | Project Status: Completed

2017 Africa Energy Yearbook

POWER PROJECTS

SOUTH AFRICA Project Name: Sere Wind Farm Type of project: Renewable Power Description: One of the largest wind-farms in Southern Africa. The project is estimated to cost R2.689 billion ($375 million). “Sere is Eskom’s first large-scale renewable energy project and forms part of our commitment to renewable energy and reducing our carbon footprint,” said the acting chief executive officer, Brian Molefe. Source: http://en.wikipedia.org/wiki/Sere_Wind_Farm | Source: http://www.southafrica.info/business/economy/infrastructure/sere-210415.htm# VUD9TyFVhBc Budget Size (USD): 100 – 500m | Fuel Source: Wind | Generation Capacity (MGW): 100 | Offtaker: Utility | Project Status: Completed Project Name: Grootvlei Power Station Type of project: Conventional Power Description: The first of Grootvlei’s six units was commissioned in 1969. In 1989 three units were mothballed and in 1990 the other three followed. Due to the power crisis being experienced in South Africa, Eskom decided to return the station to service. By 2008 two of Grootvlei’s units were back online, providing 585MW to the national grid.[2] Grootvlei’s units 5 and 6 were the first test facilities for dry cooling in South Africa. Unit 6 has an indirect dry cooling system. The station consists of six 200 megawatts (270,000 hp) units for a total installed capacity of 1,200 megawatts (1,600,000 hp). Design efficiency at rated Turbine Maximum Continuous Rating is 32.90%. Source: http://en.wikipedia.org/wiki/Grootvlei_Power_Station Budget Size (USD): 1Bn+ | Fuel Source: Coal | Offtaker: Utility | Project Status: Completed Project Name: 75MW Solar Photovoltaic Solar Capital De Aar (Pty) Ltd facility Type of project: Renewable Power Description: Cape Town renewable energy company Solar Capital says its 75-MW, R2.1-billion photovoltaic (PV) project in De Aar, in the Northern Cape, is the ‘first phase’ of what could eventually evolve to become a 300 MW solar farm. Print Send to Friend 3 0 The project has been named along with 27 other projects as among the Department of Energy’s (DoE’s) initial batch of preferred bidders for its renewables independent power producer procurement programme. Altogether a total of 18 solar PV ventures have been listed, with the De Aar project emerging as the largest such development, along with the Kathu solar energy facility, which also has a proposed nameplate capacity of 75 MW. Source: http://www.engineeringnews.co.za/article/solar-capital-says-75-mw-de-aar-project-is-first-phase-2011-12-12 Budget Size (USD): 1Bn+ | Fuel Source: Solar | Generation Capacity (MGW): 75 | Investors & Development Partners: South Africa Mainstream Renewable Power De Aar PV (Pty) Ltd | Offtaker: Utility | Project Status: Out to Tender Project Name: Kusile Power Station Project Type of project: Conventional Power Description: The Kusile power station project, which is located near the existing Kendal power station, in the Nkangala district of Mpumalanga, will comprise six units, each rated at an 800 MW installed capacity for a total capacity of 4 800 MW. Once completed, Kusile will be the fourth-largest coalfired power station in the world. The Kusile project will include a power station precinct, power station buildings, administrative buildings (control buildings and buildings for medical and security purposes), roads and a high-voltage yard. Source: http://www.eskom.co.za/Whatweredoing/NewBuild/Pages/Kusile_Power_Station.aspx Budget Size (USD):1Bn+ | Generation Capacity (MGW): 4 800 | Project Status: Under Construction Project Name: Medupi Power Station Project Type of project: Conventional Power Description: Medupi has achieved a significant stage in its construction by the synchronisation of its 1st unit (Unit 6) on 2 March 2015 to the National grid. Within the next three to six months, South Africa will see Medupi unit 6’s full potential of 794MW being fed into the South African national grid. While Unit 6 is the first of Medupi’s six units, it should be noted that all required auxiliary services for the entire power station are ready to ensure that Medupi’s total output of 4 764MW is fully synchronised to the South African power grid upon completion and full comissioning. Source: http://www.eskom.co.za/Whatweredoing/NewBuild/MedupiPowerStation/Pages/Medupi_Power_Station_Project.aspx Budget Size (USD):1Bn+ | Fuel Source: Coal | Generation Capacity (MGW): 4 764 | Investors & Development Partners: African Development Bank (AfDB), World Bank | Offtaker: Utility | Project Status: Construction Project Name: Solar George Airport Type of project: Renewable Power Description: South Africa opened its first solar airport which is located halfway between Cape Town and Port Elizabeth and will meet 41% of its energy demand from a brand new 200 square meter solar power plant built on its grounds.The facility officially launched in February 2016, has 3,000 photovoltaic modules and will gradually increase capacity to deliver 750Kw power when it reaches full production. Budget Size (USD): 1m | Fuel Source: Solar | Generation Capacity (MGW): 47 | Investors & Development Partners: ACSA, Eskom | Offtaker: Industrial | Project Status: Completed

2017 Africa Energy Yearbook

POWER PROJECTS

SOUTH AFRICA Project Name: Solar Farm Type of project: Renewable Power Description: The industrial-size solar farm to be build in built in South Africa in 2017, has been awarded to the China-based JA Solar and two South African partners, Solar Capital and Black Enterprise Empowerment (BEE). The farm which will use JA Solar’s P310 W high efficiency multi-crystalline silicon modules, is part of the Renewable Energy Independent Power Producer Procurement Program (REIPP), which was started by the South African government in 2011 in order to increase the use of renewable power. Source: http://www.pddnet.com/news/2016/02/86mw-award-continues-solar-energy-project-south-africa Fuel Source: Solar | Generation Capacity (MGW): 86 | Investors & Development Partners: JA Solar Holdings Co (Chinese), Solar Capital (SA), Black Enterprise Empowerment (BEE)- (SA) | Offtaker: Industrial | Project Status: Confirmed but construction to start in 2017??

TANZANIA Project Name: Songo Songo Type of project: Conventional Power Description: The Songo Songo gas field is located on and offshore Songo Songo island, about 15km from the Tanzanian mainland and 200km south of the commercial capital, Dar es Salaam. The project serves two onshore and three offshore natural gas wells at the island, the gas from the wells being piped to a plant on the island.* The discovery well, Songo Songo-1, was drilled in l974 by AGIP, now a subsidiary of Italian oil and gas multinational Eni SpA. Source: *http://www.offshore-technology.com/projects/songosongo/ Budget Size (USD): 100 – 500m | Fuel Source: Gas | Generation Capacity (MGW): 115 | Investors & Development Partners: AES, CDC Group Plc, Tanzania Electric Supply Company (TANESCO), Tanzania Petroleum Development Corporation (TPDC), World Bank Offtaker: Industrial | Project Status: Completed Project Name: Mwanza Power Plant Type of project: Conventional Power Description: Semco Maritime A/S entered an agreement to supply a 60 megawatt power plant with TANESCO. Built near the second largest city in Tanzania, Mwanza, to ensure the power supply of an area in the north eastern corner of the country. This project is Semco Maritime’s first major energy project in Africa – Africa is one of our major focus areas, since there is a great need for energy in order to create economic growth. Source: http://www.semcomaritime.com/new-order-for-power-plant-in-tanzania.html Budget Size (USD): 20 – 100m | Fuel Source: Oil | Generation Capacity (MGW): 60 | Investors & Development Partners: Semco Maritime Offtaker: Utility | Project Status: Completed

Project Name: Ngaka Thermal Coal Project Type of project: Conventional Power Description: This Mine-mouth CTP project is being developed by Tancoal Energy, a JV established by Australia’s Intra Energy (70%) and the NDC (30%) in Apr 2008. Intra signed an MoU with TANESCO on 12th March to develop and operate. Facility will supply Songea region via 132kV line and link in to the Makambako-Songea national grid connection. After completion, the 153bn/- project is expected to connect more than 13,000 people with power around the Ntunduwaro, Ruanda, Paradiso, Amani and Makoro regions. It is expected that TanCoal will generate over 80 million US dollars in revenue to the government from the mine. In addition, it would generate royalties (23 million USD) plus revenue from stamp duty, VAT and other taxes.* Source: *http://allafrica.com/stories/201405290841.html Fuel Source: Coal | Generation Capacity (MGW): 600 | Investors & Development Partners: Tancoal | Offtaker: Industrial Project Status: Under Construction

Project Name: Ubungo Gas plant Type of project: Conventional Power Description: Owned and operated by Songas, the Ubongo Gas Plant is using locally available Songo Songo natural gas as a source of fuel. The Plant is installed with twelve generating units each with a capacity of 8.73MW totaling an installed capacity of 104 MW. The available capacity for twelve generating units is 102.5 MW. The Plant is interconnected with the National Grid through Ubungo National Grid Substation. Owing to severe droughts in Tanzania from 2003-2005, TANESCO was granted a government loan to finance the power project and meet the demand for power caused by the droughts. Fuel Source: Gas | Generation Capacity (MGW): 102 | Investors & Development Partners: Lahmeyer International, Tanzania Electric Supply Company (TANESCO) | Offtaker: Utility | Project Status: Completed

2017 Africa Energy Yearbook

POWER PROJECTS

UGANDA Project Name: Tororo Thermal Power Station Type of project: Captive Power Description: Uganda’s only locally owned IPP, Tororo Thermal Power Station is owned and operated by Electro-Maxx Limited, a private energy provider in Uganda, who built the power plant at an estimated cost of US$60 million. In August 2012, Ugandan print media reported that the power station was in the process of upgrading the plant’s capacity to 80 MW, at an estimated cost of US$60 million (UGX:148 billion). The upgrade was expected to be complete by September 2012.[7] The actual upgrade however was from 20MW to 70MW. The upgrade was completed in October 2012 and the plant’s maximum rated capacity is 70MW (16.4MW from the old plant running Niigata Engines and a further 53MW from the new plant with Sulzer engines).[citation needed] Upon commissioning of the plant, Electro-Maxx became the first indigenous independent power producer in Africa for power plants with capacity greater than 20 Megawatts.[1] The power plant is currently licensed by the Electricity Regulatory Authority (ERA) to provide up to 50MW to the national power grid. Source: http://en.wikipedia.org/wiki/Tororo_Thermal_Power_Station Budget Size (USD): 20 – 100m | Fuel Source: Oil | Generation Capacity (MGW): 70 | Investors & Development Partners: Stanbic Bank Uganda Utility | Project Status: Completed

Project Name: Soroti solar PV project Type of project: Renewable Power This ground-breaking $18 million solar power plant in Soroti, eastern Uganda, is expected to generate 10MW and is being developed by Access Power Company, a United Arab Emirates-based company. It is expected to be operational and connected to the national grid by July 2016 providing electricity to about 40,000 homes. Spanish engineering firm, TSK Group, are carrying out construction after being awarded the Engineering Procurement and Construction contract. Source: http://www.busiweek.com/index1.php?Ctp=2&pI=4955&pLv=3&srI=53&spI=20&cI=11 Budget Size (USD): 18m | Fuel Source: Solar | Generation Capacity (MGW): 10 | Investors & Development Partners: Access Power Companydeveloper TSK Group- EPC | Offtaker: Utility | Project Status: Under Construction

ZAMBIA Project Name: Maamba power station Type of project: Conventional Power A mine-mouth, 300MW Coal Fired Power Plant (CFPP) is being established at Maamba.The capacity will be increased to 600MW in the second phase, depending on the build-up of demand for power in the region. this will be Zambia’s first IPP coal power station in 50 years. The first 150 MW Unit was scheduled to be completed by October 2014, and the second 150 MW Unit was scheduled to be completed by January 2015. The capacity may be increased to 600MW in the second phase, depending on demand for power in the region. The 300 MW plant is planned for operation by 2016. Source: http://www.maambacoal.com/power.htm Budget Size (USD): 500 – 1Bn | Fuel Source: Coal | Generation Capacity (MGW): 300 | Offtaker: Utility | Project Status: Under Construction

Project Name: Kariba North Bank Power Station Extension Type of project: Renewable Power Description: Expanding the capacity of the existing Kariba North Bank Power Station, one of the three major hydropower stations in Zambia. Raising capacity from 600 MW to 720 MW. Source: http://en.wikipedia.org/wiki/Kariba_Dam Fuel Source: Hydro | Generation Capacity (MGW): 360 | Investors & Development Partners: China Exim Bank, Development Bank of Southern Africa (DBSA) | Offtaker: Utility | Project Status: Completed

Project Name: Kabompo Gorge Hydroelectric Project Type of project: Renewable Power Description: Copperbelt Energy proposes to develop a 40 MW hydroelectric power generation scheme at Kabompo Gorge in the Solwezi and Mwinilunga Districts of Zambia. The project would be a greenfield hydroelectric power station through limited project finance. Source: http://cecinvestor.com/kabompo-gorge-hydroelectric-project/ Fuel Source: Hydro | Generation Capacity (MGW): 40 | Investors and development partners: Copperbelt Energy | Offtaker: Utility Project Status: Out to Tender

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2018 Africa Energy Yearbook.

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2017 Africa Energy Yearbook

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2017 Africa Energy Yearbook

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STRATEGIES FOR SUCCESS

2017 Africa Energy Yearbook

STRATEGIES FOR SUCCESS

YEARBOOK PROFILE PIECE RECIPIENT OF THE 2017 LIFETIME ACHIEVEMENT AWARD HON. DR. NKOSAZANA DLAMINI – ZUMA, FORMER CHAIRPERSON, AFRICAN UNION COMMISSION Dr. Nkosazana Dlamini Zuma served as Chairperson of the African Union Commission from 2012 to March 2017, the first woman to occupy this position in the 50 year history of the OAU/AU. Under her leadership at the African Union, the continental organisation shifted from its primary focus on peace and security, to driving continental integration and economic and social transformation. During her tenure, the AU adopted a 50 year vision, Agenda 2063 towards an integrated, peaceful, prosperous and people centred continent. Agenda 2063 built on previous continental framework such as the Lagos Plan of Action, Abuja Treaty and the New Partnership for African Development (NEPAD), along with the national development plans of at least 33 African member states. The continental agenda prioritises agriculture and agro-processing, infrastructure development, manufacturing and economic diversification, democracy and peace, the empowerment of youth and women, all underpinned by an African skills revolution. Agenda 2063 also incorporated the various sectorial frameworks of Africa, including the Programme for Infrastructure Development in Africa (PIDA). Before being elected to the AU Commission, Dr. Nkosazana Dlamini Zuma served as Minister in a post -Apartheid South Africa in various capacities, as Minister of Health from 1994 to 1999, as Foreign Minister from 1999-2009 and as Minister of Home Affairs/Interior from 2009 until her election to the AU Commission in 2012.

Your Excellency – you are honoured at the Africa Energy Forum for your inspirational leadership across the continent of Africa, culminating in your Chairmanship of the African Union. How does it feel to be back in Copenhagen receiving this award which honours your career and leadership path, promoting a sustainable energy market and the elevation of women in leadership roles? I have fond memories of Copenhagen and engaging on issues of common interest. I am also honoured to be considered for the award, not only as vindication that Africa can make progress in tackling its energy backlog, using technology, integration and smart partnerships. This award is also an acknowledgement of the work and support of and by African and other women during my four and a half years at the helm of the AU. 2017 Africa Energy Yearbook

Under your AU Leadership you presided over the ‘Agenda 2063’ policy framework which carries aspirations for Africa including; a peaceful and secure Africa; a strong united and influential global player and a more deeply integrated continent. What role should international partners such as Denmark, Sweden and Portugal play to support these objectives?

This is obviously the Africa ‘Energy’ Forum and therefore focuses on energy projects, energy access and economic growth. Throughout your career you have championed a sustainable approach to energy development and the importance of ‘African resources, by Africans for Africans’. why is now such an important time to promote gender equality?

In all engagements with our partners, the AU would like to work with them on the Agenda 2063 priorities - agriculture, infrastructure, industrialisation, education, science and technology, as well as building a peaceful Africa. Denmark, Sweden and Portugal as countries each have expertise in one area of these areas, for example Portugal and the blue oceans economy. In bilateral relations with the AU these should be explored to forward Agenda 2063.

Firstly, energy is critical to all aspects of social development and growth; from education and healthcare to the need to have affordable energy to power factories, businesses and households. Secondly, it is a key gender issue because too many women spend too much time struggling to find sources of energy that are often inefficient and unhealthy. Making energy accessible and affordable will free women’s time for other productive activities. 91

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STRATEGIES FOR SUCCESS

Based on the ‘Agenda 2063’ framework and with a focus specifically on South Africa within the context of SADC, what vision do you have for a regionally integrated future? Given the sheer size of the continent, the AU Constitutive Act recognises Regional Economic Communities as the building blocks of integration and development. They provide opportunities for scale. For example, RECs are driving regional energy pools, to gather resources and create large energy markets for generation, transmission and distribution.

Before taking the Chair of the AU you worked as Foreign Minister for South Africa, brokering among many others, international trade deals with the Nordic States. Only last month you addressed NEPAD on a number of key issues including Africa’s underutilised coastal resources and you referenced Norway as an example of what Africa can achieve. Why do you think the Nordic States have been so successful in implementing a regional cooperation programme which has promoted gender equality and delivered the world’s most efficient energy mix, drawing on all resources and technologies? Nordic countries, with their social model, have resulted in greater equality, not only gender equality, but also awareness of our responsibility towards the planet and future generations. These issues seem to form the basis of the values that they share, making cooperation easier. I would also imagine pursuing and maintaining 2017 Africa Energy Yearbook

a progressive social model, when the rest of Europe may be going in a different direction, forces them to work together. This is an important lesson for Africa. Many of our 55 Member states are very small and on their own, the policy space is often limited. But working together we can achieve more, as shown by the Nordics. You mentioned the blue oceans economy that we are working on together with Norway. Although Africa’s oceanic space is much larger than its terrestrial surface, it has not been considered as part of African development. Instead, it’s been used by others. Agenda 2063, therefore, identifies the blue economy as a new frontier for Africa. Countries are working together to ensure African involvement in shipping and shipbuilding, in deep sea mining, and in logistics as well as the protection of our oceans and their ecosystems. We can only catch up if we work together. We already have organisations such as the Women in Maritime Africa, which include women interested in the sector, as well as the African Shipowners Association, and we look forward to building partnerships with countries on these programmes.

Energy access is the backbone of any country’s ability to promote social and economic development and industrial growth, which realises higher basic wages, increased standards of living and life expectancy. As a Presidential nominee of South Africa, what policy frameworks will you look to implement should your nomination be successful? The process of nominations for the ANC in South Africa is not open yet, so it’s still early days. As a South African, I am very proud of what we have achieved in the area of energy since the transition to democracy in 1994. For example, household access to electricity has increased from 34 per cent in 1990 to 84 per cent and rising in 2011 (the time of our last national census). In 2004, as part of our anti-poverty programme, we introduced minimum

Many of our 55 Member states are very small and on their own, the policy space is often limited. free basic electricity to all households. This expanded provision to households, coupled with economic growth, saw severe strains on electricity generation, in terms of investment. South Africa is addressing this at the moment with the construction of new generation capacity and greater investments in renewables. For me, the key to future policy is to ensure an adequate energy mix. As a country, we have plenty of sun and wind, this is certainly a growth area, but we need the regulations to facilitate the growth of the renewable sector. Secondly, South Africa is part of the regional energy pool with SADC and has a number of on-going cross border projects, e.g. with Lesotho on hydro, Mozambique with gas, and DRC hydro through the Grand Inga project. We must strengthen the regional pool so that we contribute towards greater access for the whole region.

As a final message, and considering your significant past achievements promoting international cooperation with foreign governments, what message do you wish to give these governments and investors looking to builder deeper more, sustainable partnerships with South Africa? The African continent, including South Africa, is an expanding hub of growth in the global economy. With a growing, urbanising and youthful population, including a growing middle class, the return on investments and the future looks bright. 93

STRATEGIES FOR SUCCESS

2017 Africa Energy Yearbook

STRATEGIES FOR SUCCESS

Henry Asklar, Chief Executive Officer, Globeleq For more than 25 years, Henry has specialised in investments in power markets. This includes the development, acquisition and financing of independent power projects in the United States and Latin America. Since starting his career as an engineer with the US Navy, Henry has held senior roles in various energy-related businesses including AES Corporation, US FERC and private equity funds focused on energy infrastructure. Prior to joining Globeleq, Henry provided specialised consulting services to Fortune 100 and other major companies, private equity funds and development finance institutions focusing on Africa.

Leadership – the key to solving Africa’s electricity shortage Closer to home, South Africa achieved amazing results with its Renewable Energy IPP Procurement Program (REIPPPP) quickly adding 2,800 MW of new generation with sharply declining electricity prices.

2017 Africa Energy Yearbook

e have been hearing the same thing for many years; the fundamental solution to Africa’s electricity shortage is a strong regulatory framework with cost recovery tariffs that support long-term private investments in the electricity sector. If so many people are asking the same thing, why is it not happening? There are many examples throughout the world where private capital has been mobilised to add significant amounts of new electric generation capacity to a large complex grid. Mexico, for example, added more than 5,000 MW of new generation capacity utilising the IPP model between 1995 and 2003. These highly efficient IPP projects came in on-time and on-budget, providing much-needed reliable and economical electricity to support a fast-growing economy. While much can be written as to how all this occurred, two key factors standout as critical:

1. The government’s resolve and commitment to effectively utilise and implement a long-term, cost-effective IPP model. 2. The government’s decision to work with only highly qualified reliable companies with proven track records of executing IPP projects. These companies had the depth, breadth, operational and financial capabilities to be long-term reliable partners. Companies that could provide a track record of project financing, constructing and operating utility scale IPP projects. Closer to home, South Africa achieved amazing results with its Renewable Energy IPP Procurement Program (REIPPPP) quickly adding 2,800 MW of new generation with sharply declining electricity prices. There are many reasons why the REIPPPP program was a success and many ways it could be adopted across the continent, but like the example of Mexico, the South African Government was committed to fully implement the IPP model. It had a very rigorous qualification

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process that screened out participants and projects that were of questionable ability. [Source: South Africa IPP website. www. ipp-projects.co.za] Unfortunately, South Africa’s electricity sector is again suffering. It struggles for clear direction because the government is distracted by a pull toward nuclear power and a resurgence of Eskom’s desire to build new power plants. Why have things gone so pear-shaped in the African electricity sector? Why did only one large utility scale IPP project reach financial close in 2016 in SubSaharan Africa despite all the financial resources being thrown at the problem over many years? What is the elusive missing ingredient? Sitting in London, a major financial capital of the world, the talk is always about money; a new funding vehicle to solve one problem, another tranche of capital to solve another problem. Slicing and dicing money into funds and vehicles seems to be the solution to any problem at hand. Financial experts are flying at 35,000 feet and wondering why the problem is not being solved – while Africa remains in the dark. So it seems it’s neither for the lack of money nor a lack of an effective model to implement. One of the groups I have worked for in the past, the AES Corporation, was founded in 1981 with zero MW and $1 million US dollars. It then grew to more than 40,000 MW in approximately 20 years. How did that happen? Whilst many of those MWs were acquired, many were built on greenfield and brownfield sites across the globe in places like China, Hawaii, Porto Rico, Argentina, Brazil, Kazakhstan, Cameroon, Nigeria, Tanzania, UK, Pakistan, Bangladesh to name a few, operating in more than 30 countries. Zero to 40,000 MW in 20 years! PreEnron, this was achieved because there was never a shortage of capital and the model was always the same – a reliable stream of cash flow that could be project financed. What made the difference? 2017 Africa Energy Yearbook

Unfortunately, South Africa’s electricity sector is again suffering. It struggles for clear direction because the government is distracted by a pull toward nuclear power and a resurgence of Eskom’s desire to build new power plants. Plain and simple: people and leadership. Highly motivated and competent teams of people, led by strong and competent leaders across a company, sharing in a simple singular vision – to provide cost-effective, sustainable electricity to power the economy. This same recipe was applied to the highly successful South African REIPPPP programme. This is the simple recipe necessary to power Africa’s growth.

The money is there and the model is clearly defined. What seems to be missing is highly qualified experienced teams of people working on cost-effective, sustainable projects within a wellresourced operating company, led by strong and competent leaders sharing a simple vision – to power Africa’s growth. These are not funds looking to deploy capital but rather robust and capable companies that develop, own and operate IPP plants for the long-term. I do not underestimate the importance of capital and funds supplied to companies and projects. Unfortunately, capital does not solve the problems on the ground, it is the teams of people working together that creates the solution and ultimately draws in the capital. Money people are important but they are not the people out front and therefore not the leaders who will solve the crisis. Nor should money people become backseat drivers by second guessing those on the ground solving the problems. So, what is leadership? The dictionary definition is simple but the idea is far more complex. Synonyms listed are administration and management but these are such different concepts from leadership. One definition of leadership is: ‘The activity of leading a group of people or an organisation or the ability to do this. Leadership involves: 1. Establishing a clear vision. 2. Sharing that vision with others so that they will follow willingly.

One of the groups I have worked for in the past, the AES Corporation, was founded in 1981 with zero MW and $1 million US dollars. It then grew to more than 40,000 MW in approximately 20 years. 97

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Africa needs long-term financial and environmentally sustainable electricity to support its fast-growing economies. These economies are required to provide jobs and improve the standard of living for its people. 3. Providing the information, knowledge and methods to realise that vision. 4. Coordinating and balancing the conflicting interest of all members and stakeholders. A leader steps up in times of crisis, and is able to think and act creatively in difficult situations.’ [Source: businessdictionary. com] While leadership is very complex, we can see from the definition above that good leadership shows the way to a particular outcome. For us at Globeleq, this outcome is powering Africa’s growth and this in turn leads to economic growth, creates jobs and improves the lives of the many people in Africa. We have a crisis in Africa. Due to the lack of electricity, the economies of Africa are not producing the number of jobs required to employ the very young population. The lack of electricity significantly impacts the lives of millions of people throughout the continent. Leaders must step up and provide the direction necessary to resolve this crisis. The solution is clear and has been proven by many successful examples around the globe. The missing ingredient is leadership that brings people together and solves the problems. Where does this leadership need to come from? From all corners. We need presidents to ensure solving the electricity shortage is a top priority for their countries. Presidents need to appoint strong leaders in critical positions within their governments to spearhead efforts to work with the private sector. The key leaders of a country need to embrace a clear path forward and work with reliable parties able to deliver low-cost, 98

sustainable projects that will power the economy in the long run – not merely turn on the lights for a couple of years and then leave the sector bankrupt. The path needs to be based on a sustainable solution that will propel the economy forward and create the jobs and income necessary to foster social harmony. Sovereign leaders need to set the priorities of the country’s government but, even more important, they need to lead by example by focusing on the long-term economic solutions early in the process and not get distracted by unsustainable quick fixes that drain the government’s energy and finances. We need leaders from companies in the private sector to work with countries to achieve long-term sustainable solutions that will support economic growth rather than promote expensive quick-fix solutions. These only create the illusion of success, only to bankrupt the country’s electric sector and economy. They only hinder long-term sustainable job growth and real improvements in the standard of living for much of Africa’s people. Leadership provided by private companies can come in the form of solutions that are necessary to underpin long-term economic growth rather than a short-term turnaround on capital invested or next quarter’s sales targets. Leadership from the private sector cannot put short-term quarterly earnings ahead of longer-term, financially sustainable fixes required by a country’s electric sector and economy. Leadership from government Ministers is necessary to create the environment to support the long-term thinking and

investment horizon necessary to draw in the right private sector partner; a partner who is thinking about long-term, lowcost, environmentally and financially sustainable solutions. Ministers need to demonstrate leadership by embracing the global lessons learnt for building lowcost, sustainable sources of electricity. The lessons learnt in bringing lowcost, financially and environmentally sustainable electricity to supply the country’s economy are all well-known and proven. It is the Ministers who are required to implement these key lessons learnt in partnership with like-minded private sector companies that are investing in a country for the long-term. Africa needs long-term financial and environmentally sustainable electricity to support its fast-growing economies. These economies are required to provide jobs and improve the standard of living for its people. This will improve social stability and maintain a peaceful country. All the technical fixes required to solve these critical issues and relieve this crisis are well known and documented. The key ingredient for a sustainable solution is leadership. Leadership by the country’s Sovereign, leadership by the Ministers of a country, and leadership by CEOs and executives of companies in the private sector, all focusing on the long-term financial and sustainable solutions for a country through partnership. Leaders step up in times of crisis and solve problems. Africa needs more leaders to deliver low-cost, sustainable electricity necessary to power the economies of its different countries. The funds are there. The model is proven. Where are the leaders? 2017 Africa Energy Yearbook

CLOSE TOGETHER AGAIN Image submitted by the artist LESLIE LUMEH Acrylic on Canvas 50.8cm x 40.6cm 2017 Africa Energy Yearbook

The impacts of energy access in Africa have also been witnessed in many arts oriented fields. It impacts my daily work since I use a laptop, smart phone and camera, all of which are powered by energy and contribute significantly to the creation of my paintings and photographsâ&#x20AC;? OCOM ADONIAS

THE BRIGHT WASH

Images submitted by Afriart gallery, Uganda

OCOM ADONIAS Oil on Canvas 90cm x 70cm 100

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SEEING THE LIGHT – Embracing IPPs to solve Africa’s power deficit

Romain is responsible for originating and executing investments into infrastructure projects and companies across Africa. AIIM has been investing in the African infrastructure sector since 2000 with a track record extending across six African infrastructure funds. AIIM currently manages USD1.6bn in assets across the power, telecommunications and transport sectors with operations in East, West and Southern Africa. AIIM’s power portfolio extends across renewable energy and thermal power assets with a combined generation capacity of over 2,250 MW

ufficient access to energy is essential for Africa’s social and economic development; lack of power continues to limit GDP growth more than any other infrastructure sector. The International Energy Agency puts Africa’s installed electricity generating capacity at 196.2 gigawatts, just 3.1 per cent of the world’s total output in 2016. Six hundred million people in Sub-Saharan Africa (SSA), almost 60 102

per cent of the population, still have no source of modern energy. An estimated US$40.8bn a year is needed to address this issue; this is equal to 6.35 per cent of Africa’s GDP. To put that figure in perspective – between 1990 and 2013 investments in new power generation capacity totalled US$45.6bn. Not only does the continent’s power sector need to diversify and evolve if Africa is to meet its potential, sources of funding and procurement need to do so as well. 2017 Africa Energy Yearbook

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Romain Py, Head of Transactions, African Infrastructure Investment Managers (AIIM) Romain is responsible for creating and executing investments into infrastructure projects and companies across the African continent for AIIM’s infrastructure funds. The AIIM team manages circa USD1.6 billion across six infrastructure funds designed to invest in long-term institutional unlisted equity in African infrastructure projects. Romain has an in-depth knowledge of infrastructure sub-sectors and has led a number of key transactions in the UK, Australia and Spain. Romain was one of the founding members of the JPMorgan Infrastructure Investments Group. He also worked at HSBC and Société Générale, where he structured, negotiated and completed transactions in both advisory and arranging capacities across the EMEA region and the Americas. Romain is currently a non-executive Director on the Board of AIIM Hydroneo, a 50/50 joint venture between AIIM and Hydroneo Afrique - a wholly-owned subsidiary of MECAMIDI. Romain holds an M.Sc in Corporate Finance from EM Lyon Business School and an M.Sc in International Economics from ParisDauphine University.

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MIND YOUR STEPS RONEX AHIMBISIBWE Oil on Canvas 93cm x 85cm 104

Images submitted by Afriart gallery, Uganda

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GROWTH OF IPPS

Before the 1990s all major power generation in Africa was financed by public money, but this changed in the early 90s. The change was driven by poorly performing state utilities, lack of public funds combined with growing populations and an accelerating demand for power. Encouraged by the multilateral institutions, a number of countries embarked on power sector reforms, which began the advent of independent power projects (IPP). These power projects were predominately developed, constructed, operated and owned by the private sector and came with a longterm Power Purchasing Agreement (PPA). Roll forward 23 years, IPPs are increasingly adding to the various grids as a viable alternative to state-funded power generation. Cote d’Ivoire has led the way in bringing foreign investment into its electricity market. Since its launch in 1994 as the first IPP in Sub-Saharan Africa, the Ciprel power plant has been a success story from an economic and operational perspective. Without private investment, it’s questionable whether electricity would have continued to flow during a decade of political turmoil. This plant has demonstrated a solid track record and supported three extensions despite having to weather the civil unrest. The Ciprel plant’s success shows no sign of abating. With the addition of Ciprel IV, the plant will become Sub-Saharan

Africa’s largest IPP with a total capacity of 532 MW. Azito Energie, another Cote d’Ivoire IPP, operational since 1999 and now in phase three with a fourth and fifth phase in planning, has also successfully demonstrated that even during civil unrest, the bills were paid and the power flowed. Cote d’Ivoire has firmly set its sights on establishing itself as a regional energy hub and in support of this; the government has shown its ability to structure bankable PPAs, with transparent rules on how the independent power generators are to get paid. Some countries would do well to emulate this structure. Once Cote d’Ivoire had led the way, IPPs in Cameroon, Ghana, Kenya, Nigeria, Senegal, Tanzania and Uganda followed. These countries, along with South Africa, have the most extensive IPP experience in Sub-Saharan Africa. Senegal and Uganda in particular have worked hard to ensure their political and economic climate is conducive to investment. Nigeria’s Azura-Edo natural gas power project is another high-profile power project worthy of attention. This is not only because it will generate enough electricity to power 14 million homes once it is operational but also as it is the country’s first limited-recourse power project. Backing the US$900m project is a group of 20 debt and equity investors, including AIIM as a shareholder. The project’s contractual arrangements will

be used as a “template” for future IPPs, thus smoothing the way for accelerated implementation of other power projects. ELEMENTS FOR SUCCESSFUL IPPS

Over the last 17 years, AIIM has participated in the financing of a number of groundbreaking IPPs, such as South Africa’s Renewable Energy IPP Procurement Programme (REIPPP), Nigeria’s natural gas power project Azura-Edo, Ghana’s Cenpower Generation Company, Mali’s Albatros Energy and a Pan-African hydro power development platform. The landscape for IPPs has evolved rapidly. Two decades ago there were no independent energy regulators in Sub-Saharan Africa; now, 27 SSA countries have them. Given their complexity the requirements for successful IPPs are diverse, but the main contributing elements to IPP success can be summarised as follows: • A clear policy and regulatory framework with legislation properly implemented. There’s a body of thought suggesting that IPPs will work effectively only where there’s an unbundling of generation transmission and distribution. We don’t see the correlation between unbundling the power market structure and investment success as long as an efficient sustainable approach to the value chain is adopted. • Transparent oversight from a credible regulator with consistent and predictable regulation. A good

Senegal and Uganda in particular have worked hard to ensure their political and economic climate is conducive to investment.

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regulator is different from good regulation; the key is to focus on the quality of the regulation. There must be awareness that there may be cycles where the regulatory environment in the same country varies in effectiveness from time to time. The quality of the regulation is critical for ensuring there is a sustainable power sector, where tariffs are cost-reflective. Yes, independent and credible regulators are important but there are plenty of examples where they do not ensure success or where they may have been subject to political influence; also a risk incidentally in the power sector of the developed world.

• Effective and dynamic planning with well-communicated procurement practices and technical capabilities to manage complex contracts. South Africa has become one of the more experienced countries in SSA with its Renewable Energy IPP Procurement Programme followed by Uganda’s GETFiT programme. Effective planning is crucial as there are plenty of examples of problems occurring where expensive emergency supply is installed with haste to meet acute power shortages. • Robust contracts backed by secure revenue streams. While the credit worthiness of off-takers is vital, sustainability throughout the entire

The quality of the regulation is critical for ensuring there is a sustainable power sector, where tariffs are cost-reflective. 106

electricity value chain (particularly consistent metering and collection by domestic utilities) is also crucial for IPPs to be successful. Other crucial factors are competitive fuel contracts for the contract duration, hedge strategies for potential currency volatility and credit enhancement measures such as Sovereign Guarantees. RISKS AND CHALLENGES

No discussion about IPPs would be complete without reference to risk. Because alongside the perceived risks of investing in Africa (risks which, incidentally, tend to be seen as higher from the outside than by those who have already invested) are those actual investment risks commonly associated with developing countries, such as political, security, currency and commercial risk. Many of these risks can be mitigated and there is growing availability of political risk insurance, contingent business interruption insurance and other credit protection mechanisms provided by institutions such as the World Bank and MIGA. 2017 Africa Energy Yearbook

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where IPPs have been expensive and have led to higher costs it has occurred that the master planning phase has been bypassed in favour of a reliance on emergency power without proper procurement and contract negotiation. It is important to realise that it is the private sector that is taking on the performance and operational risk for the whole project life. Benin, Burkina Faso, Mali and Sierra Leone are the latest Sub-Saharan African countries to embrace IPPs but on average it does still take eight to ten years to bring a major IPP to financial close. We anticipate with a growing track record of successful precedents and a greater wisdom by private financiers on navigating the investment risks, in five years’ time major power projects will take as little as three to four years to close.

What is needed from the outset is a clear understanding of the actual size of a country’s grid, accurate supply and demand forecasts, timely initiation of procurement and clear clean energy and climate change policies. When it comes to risk, one size does not necessarily fit all and a common mistake made is to think of Africa in its entirety rather than as 54 individual countries. The risk also varies according to the nature of the project; a thermal project may have a different risk profile compared to a renewable energy project. Most thermal projects happen on government-owned land so the nature and level of community engagement will be different. Whatever the nature of the project, those in the evolving environment need to be aware of the benefits created for the greater good and a continuous programme of relationship building via local partners is required along with the adoption of community social policies. There is also a perception that IPPs can inflate the price of power. However, 2017 Africa Energy Yearbook

In Africa, unlike Malaysia and China where local IPPs dominate, foreign exchange risk is a key consideration. Morocco and South Africa both have local currency IPPs, but both have fairly strong local banking markets whereas elsewhere on the continent the local banking market often does not have the technical capacity or the ability to provide the long-tenor required. The Kingdom of Morocco’s third IPP, Energie Electrique de Tahaddart (EET), was almost entirely financed by local banks, and thus was relatively shielded from foreign currency risk. As debt often represents 70 per cent of the project costs, there is also a need to develop more long term debt funding options in local currencies, which would help to reduce forex risk exposure. However, for that to happen in a significant way, Africa’s pension funds

need to switch their attention from higher risk equity exposure to long-term infrastructure projects. One of the reasons Francophone West Africa is currently attracting the lion’s share of the investment capital is its adoption of a regional single currency system, the West African franc, currently used by 100 million people, which is pegged to the Euro thus providing a degree of stability. FUTURE OF IPPS

IPPs, along with funding from China, are the fastest growing source of finance for Africa’s power sector. To date, there are over 120 IPPs in 18 Sub-Saharan African countries, accounting for 13 per cent of the installed generation capacity. South Africa alone accounts for 62 per cent of those IPPs. This figure could and should be much higher, given the greater scope available for private sector involvement in Africa’s power projects and the continent would benefit from such investments. Sources of power generation should be diversified, and investors need to be technology agnostic because the impacts of climate change on resources cannot be underestimated. Renewable energy (RE) is very much part of the solution to meet Africa’s power needs, especially for well-endowed countries like Cameroon or the Sahel region. Excluding hydropower and biomass, renewables currently only represent 5.8 per cent of Africa’s installed generating capacity. What is needed from the outset is a clear understanding of the actual size of a country’s grid, accurate supply and demand forecasts, timely initiation of procurement and clear clean energy and climate change policies. There are some very exciting opportunities for IPPs on the continent, particularly in West Africa with at least seven West African countries closing IPPs in the last three years. Once there is a proven track record of successful IPPs, and there are established examples over time of rewards greatly outweighing the risks, only then will the interest in the opportunities provided through financing infrastructure grow. 107

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REALISING NIGERIA’S UNTAPPED SOLAR ENERGY POTENTIAL IN IMPROVING NIGERIA’S ENERGY MIX 108

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Dolapo Kukoyi, Partner, Detail Commercial Solicitors Dolapo Kukoyi heads the firm’s Power Practice and is recognised as one of the leading lawyers in Nigeria’s Power sector having worked for government agencies, regulators and private parties on various Power transactions. Her transactional experience includes advising the Central Bank of Nigeria and the Nigerian Electricity Regulatory Commission (NERC) on the 213 billion naira Intervention Fund for the Nigeria Electricity Supply Industry, and advising clients on the privatization of the Power Holding Company of Nigeria and National Integrated Power Project (NIPP) assets in the Nigerian Power sector. Dolapo also played an active role as a member of a core negotiating team nominated by the Disco Roundtable and Investor Group, (pressure groups created by bidders in the privatised Distribution Companies and the NIPP assets) to negotiate with the Nigerian Government and Regulators on issues common to them.

Ifedayo Adeoba, Senior Associate, Detail Commercial Solicitors Ifedayo Adeoba is a Senior Associate at Detail Commercial Solicitors and a core member of DETAIL’s Power practice. She is an industrious lawyer with broad and qualitative experience in various aspects of the law, including regulatory matters, which are integral to the Power practice. Her experience includes advising the Nigerian Electricity Regulatory Commission on the drafting of the Business Continuity Regulations; advising the Nigerian Energy Support Programme and NERC on a regulation for mini-grids; and advising Waltersmith Gas Company Ltd in developing a 40300MW Gas to Power Plant.

I. INTRODUCTION

With an estimate of 180 million people, Nigeria is currently faced with a huge electricity deficit; generating only about 4,000 MW1 from its total installed generation capacity of 13,308 MW2. This deficit has left many parts of the country without electricity, thereby impeding productivity and development. Given that 84 per cent of Nigeria’s installed power generation is dependent on gas3, one of the major reasons for the dwindling generation capacity can be attributed to the incessant 2017 Africa Energy Yearbook

gas issues (such as inadequate gas infrastructure and the vandalisation of gas pipelines). On the day of the 27 March 2017, the average power generated was 3,789 MWh, with the reported gas constraint at 2,145 MW. The power sector lost approximately N1, 062,000,000 on the above date due to these gas constraints.4 In view of these challenges, it has become imperative that the Nigerian Government diversify the nation’s energy mix and expedite the use of renewables to cater for Nigeria’s energy needs.

Bolaji Fasehun, Associate, Detail Commercial Solicitors Bolaji Fasehun is an Associate at DETAIL and a core member of DETAIL’s Power Practice. Bolaji is an astute lawyer, well versed in the legal aspects of the power sector with a passion for providing pragmatic solutions to clients. His transactional experience includes advising KANN Utility Company Limited on the $US 164 million financing for acquisition of equity in Abuja Electricity Distribution Company and advising PTRL Power 1 on a bid for an IPP Solution for Supply of power to Societe Anglogold Ashanti De Guinea.

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II. LEGAL FRAMEWORK FOR RENEWABLE ELECTRICITY GENERATION IN NIGERIA

A number of laws and policies relating to renewables have been passed by the Government. The table below sets out the existing laws and policies on the renewables framework: These policies and laws highlight the Government’s drive to ensure that renewables are incorporated in Nigeria’s energy mix. S/N

Name of Policy/ Legislation

Issuing Authority

Policy Directives

National Electric Power Policy (‘NEPP’) 2001

Electric Power Implementation Committee (‘EPIC’)

Approved by the Government. Outlines the framework for the power reform agenda. It targets a 10% renewable energy mix in the country by 2020.

Nigerian National Energy Policy 2003

EPIC

Approved by the Government. Emphasises the importance of renewables. However, no concrete targets for renewables were set.

Renewable Energy Master Plan (‘REMP’) 2005

Energy Commission of Nigeria (‘ECN’)

Not yet approved. Encourages the integration of renewables. REMP targets a 13% renewable energy mix in the country by 2015, 23% by 2025 and 36% by 2030.

Electric Power Sector Reform Act (‘EPSRA’) 2005

Federal Legislature

Passed as an Act of the National Assembly. Establishes the Rural Electrification Agency (‘REA’) to ensure the development of a rural electrification plan. It also advocates the use of renewables.

Renewable Energy Policy Guidelines (‘REPG’) 2006

Ministry of Power (‘MOP’)

Advocates for the development of offgrid independent renewables systems and establishes the Renewable Electricity Trust Fund (‘REF’) to accelerate renewables projects.

The Renewable Electricity Action Programme (‘REAP’) 2006

MOP

Sets out a roadmap for implementing the REPG and REF.

The National Biofuel Policy and Incentive 2007

Nigerian National Petroleum Company

Approved by the Government. Advocates the development of a national fuel ethanol industry and the gradual reduction of the nation’s dependency on gas.

The Roadmap for the Power Sector 2013

Presidential Task Force on Power

Highlights legal issues in the EPSRA, such as the silence of the EPSRA on renewable energy licensing despite the abundance of renewables in Nigeria. It recommends that the policies on the development of renewables for the power sector need to be clarified.

National Renewable Energy and Energy Efficiency Policy (‘NREEEP’) 2015

MOP

Approved by the Government with the aim of improving power generation through renewables by 2020 and consolidates the objectives of the documents listed in Nos 1-8 above.

10.

Rural Electrification Strategy and Implementation Plan (‘RESIP’) 2016

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Approved by the Government. Sets out the Government’s strategy to accomplish the goals established in the EPSRA and the Rural Electrification Policy.

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In December 2015, NERC passed the Feed-in Tariff for Renewable Energy Sourced Electricity in Nigeria (‘REFIT Regulations’) to provide a tariff framework for renewables to encourage investment ... III. RENEWABLE POWER GENERATION OPTIONS:

Renewable power generation options in Nigeria include solar, wind and biomass. Despite the availability to efficiently incorporate renewables into Nigeria’s energy mix, renewable energy penetration in Nigeria is still at its infancy. Among the renewables, solar energy presents an efficient avenue to increasing the energy generation capacity. Nigeria is blessed with a huge solar energy resource potential. On average, the country receives solar radiation at levels of approximately 19.8MJ/m² daily, with an estimated average of six sunshine hours per day. With these average solar radiation levels it would be possible to generate 1,850 x 103GWh of solar electricity per year if only one per cent of Nigeria’s land surface area of 923,773 km²5 was covered with solar modules. This is more than 100 times the country’s current actual generation capacity, making solar power particularly viable for the country’s energy strategy6.

(b) REFIT Tariff Framework: In December 2015, NERC passed the Feed-in Tariff for Renewable Energy Sourced Electricity in Nigeria (‘REFIT Regulations’) to provide a tariff framework for renewables to encourage investment and the utilisation of renewables to augment the conventional sources of power generation. FITs applicable to solar projects for 2016 as indicated in the REFIT Regulations7 consist of Capital Cost US$/MWh176.85 and Operations and Maintenance US$/ MWh0.15, making a total of US$/ MWh177.00. The FITs may be reviewed every three years. However, the current tariff at the time a Power Purchase Agreement (‘PPA’) is signed with a developer will be fixed for the term of such a PPA and the tariff review would only be applicable to new projects.

IV. SOLAR POWER GENERATION TARIFF FRAMEWORK.

Eligible solar projects under the REFIT Regulations are restricted to projects with a capacity of between 1 and 5 MW. This means that solar projects outside this threshold would not come under the REFIT Regulations. Note, however, that the effectiveness of the REFIT Regulations is yet to be tested as no developer has executed a PPA with Nigerian Bulk Electricity Trading Plc (‘NBET’) or the Distribution Companies (‘Discos’) on the basis of the REFIT Regulations.

(a) Multi-Year Tariff Order (‘MYTO’): With respect to on-grid solar generation, the tariff structure for renewables in Nigeria was originally provided for as a Feed-in Tariff (‘FIT’) under the Multi-Year Tariff Order 2 (effective between June 2012 and March 2015). The amendment of the MYTO 2.1 and MYTO 2015, however, does not provide for FITs.

(c) Other Solar Tariffs Outside the REFIT Regulations: Unsolicited bids for solar projects that are negotiated with NBET are excluded from the REFIT Regulations. Tariffs for projects not covered by the REFIT Regulations generally are to be agreed upon between the parties involved, subject to the approval of Nigerian Electricity Regulatory Commission

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It is also reported that, as at December 2016, none of the solar developers had been able to obtain Partial Risk Guarantees (‘PRGs’), which the Government was required to provide under the respective PPAs . This may undoubtedly affect the progress of the solar projects as the PRGs would be crucial to their reaching a financial close. (‘NERC’). Additionally, off-grid projects are excluded from the ambit of the REFIT Regulations8. The tariff structure for solar generation outside the REFIT Regulations is currently higher than that of many other African countries. For example, the price of US11.5 cents per kWh, agreed upon by the NBET for large front runner solar projects, compares favourably against the current price of 0.14 cents per kWh in South Africa, and 6 cents per kWh in Zambia. It is uncertain how the price of 11.5 cents per kWh was determined for the front runner solar PPAs, considering the cost of project development and financing. It is clear, however, that the front runner solar projects would require long-term financing to reach financial close. V.

STATUS OF SOLAR RENEWABLE PROJECTS IN NIGERIA

There are a number of solar projects currently being undertaken in Nigeria: (a) On-Grid Solar Projects NBET has recently executed solar PPAs with 14 developers, potentially adding about 1,125 MW to the grid. Some of these projects include: Nigeria Solar Capital Partners and ARM Harith’s 135 MW plant in Bauchi State valued 112

at US$200 million; the Pan Africa Solar project for the development of a 75 MW solar photovoltaic power project, located in Katsina State valued at US$146 million; and the Nova Scotia power project, worth US$150 million, being undertaken by CDIL and Scatec Solar for the development of an 80 MW plant in Jigawa State. It has been reported that 10 out of the 14 solar developers have posted a US$20,000/MW development security as security for the developer’s obligation to achieve financial close by the target closing date (which is six months after the execution of the PPAs or the long stop closing date as defined in the PPAs)9. The development security would be refunded to the developers if the target closing date is met, after which the developers will begin construction of the plants10. The construction work is expected to be completed within 12 to 18 months following financial close.11 It is also reported that, as at December 2016, none of the solar developers had been able to obtain Partial Risk Guarantees (‘PRGs’), which the Government was required to provide under the respective PPAs . This may undoubtedly affect the progress of the solar projects as the PRGs would be crucial to their reaching a financial close.

(b) Off-Grid Solar Projects A number of consumers are opting for solar stand-alone systems. For example, the Lagos State Government is developing a 5 MW Lagos Solar Project (in collaboration with the UK Department for International Development) for electrification of public schools and healthcare centres in Lagos State. Another stand-alone system with huge potential for off-grid solar generation is mini grids. NERC is currently deliberating Mini-Grid Regulations (‘MGRs’) on a draft. The aim of the MGRs is to ‘accelerate electrification in areas without an existing distribution network (‘unserved areas’) and areas with an existing but poorly electrified or non-functional distribution grid (“underserved areas”)’. The MGRs would apply where power from 100 kW up to 1 MW is generated. Mini grids could potentially increase access to electricity for rural areas as well as residential and commercial clusters with small energy requirements whilst providing an opportunity to deploy renewables. 13 Thus, solar developers can leverage the MGRs, benefitting from the economies of scale in supplying several consumers, given the scalability and ease of deployment of solar generation infrastructure. Nigeria has recently witnessed an influx of solar pay-as-you-go home systems. These off-grid solar-powered kits, consisting of a single rooftop solar panel and a large battery, are beginning to electrify rural homes by powering small appliances. The fact that most of these home systems can be used on a pay-as-you-go basis is a major selling point for customers as they only use what they can afford. These kits are replacing candles and diesel generators which are costly and have health/safety risks. In December 2013, Lumos was awarded a grant to develop a mobile-enabled energy service with MTN Nigeria with a focus on off-grid residential areas and small businesses. By May 2015, Lumos reached its 500-system goal for the pilot and sold over 3000 solar home systems14. The payas-you-go model is enabled by the use of 2017 Africa Energy Yearbook

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airtime credit and GSM-based machineto-machine connectivity to remotely control and monitor the system’s usage, billing and performance. In December 2016, Lumos announced that it had raised US$90 million in fundraising, the largest ever investment in the off-grid solar industry, comprising of US$50 million debt funding from Overseas Private Investment Corporation, the U.S. Government’s DFI, and US$40 million equity raised by a consortium led by Pembani Remgro Infrastructure Fund15. VI. KEY SUCCESS FACTORS FOR SOLAR PROJECTS IN NIGERIA

The prospects for solar power generation in Nigeria are quite high. Certain factors, however, would have to be addressed to attract investment in the sector: (a) Efficient Policy/Regulatory Framework: Investment in solar renewables relies heavily on policy-driven price subsidies or favourable regulation to compete with conventional energy sources. Policies have a role to play in mitigating investment risks and improving investor confidence. The ECN and the MOP all have renewable energy policies which are somewhat conflicting. There is a need to harmonise the numerous policy objectives and develop clearer policy statements and an enforceable regulatory framework (on both federal and state level) for renewable power solutions. Without clearly enacted laws, it is difficult to see how these policies can have an impact in the renewables sector. The policies, therefore, need to be implemented within the context of current realities. (b) Fiscal System: Countries with tax reliefs/incentives for solar renewables have a higher propensity of attracting investors. In India, the government provided capital support for setting up renewable projects, which in turn resulted in an investment of about US$14 billion16. The Nigerian Government should implement these incentives in the NREEEP, such as free custom duties for two years on the importation of equipment used in renewable projects and allowing 2017 Africa Energy Yearbook

developers access to soft low-interest loans from the REF for renewable projects to attract investment. (c) Tariff Regime: There is also the need for a cost-reflective tariff regime. The price per kWh for the front runner PPAs executed between the developers and NBET is US$0.115/ kWh. This tariff regime is relatively insufficient and does not guarantee return on investment when compared to other jurisdictions; for example, Germany where the tariff regime for a solar project is US$0.18/kWh. (d) Sector Liquidity Issues: With respect to on-grid power generation, the liquidity issue currently plaguing the sector has its impact on the attractiveness of on-grid solar investments. NBET has not shown itself to be a credible off-taker. In addition, from the way the market is structured, the Discos are not able to pay for the power supplied by the Generation Companies, resulting in huge debts across the value chain. This no doubt could dissuade investors to the extent that they might become wary of the possibility of the off-taker default on payment obligations.

(e) Improving the Transmission Infrastructure: While the Government seems to be concentrating efforts at improving generation capacity, it is important that correlative efforts are put in place to improve the capacity of the national grid to accept and transmit power generated from the solar generators. The current capacity of the grid is 5,500 MW. For on-grid solar project developers, the issues around the strengthening and reliability of the grid for evacuation of the power generated would be a key issue. VII. CONCLUSION

Solar is a major energy resource in Nigeria, given the high levels of solar radiation (particularly in northern Nigeria), which has potential to steadily increase the country’s power generation capacity. Therefore, the effective harnessing and utilisation of this abundant resource through using solar energy technologies to augment energy supply from natural gas would increase the availability of energy for socio-economic activities and hopefully lead to the realisation of Nigeria’s power generation target of 40,000 MW by 2020.

https://www.thisdaylive.com/index.php/2016/04/27/again-nationwide-power-generation-dropsby-1585-7mw-2/ 2 Nigerian Energy Support Programme: The Nigerian Energy Sector: An Overview with a Special Emphasis on Renewable Energy Sector. 3 Nigerian Energy Support Programme: The Nigerian Energy Sector: An Overview with a Special Emphasis on Renewable Energy Sector. 4 http://nesistats.org/index.html 5 IFC: Market Study for Promoting Energy Efficiency & Renewable Energy Investment in Nigeria Report 2016 6 IFC: Market Study for Promoting Energy Efficiency & Renewable Energy Investment in Nigeria Report 2016 7 Schedule 5 of the REFIT Regulations. 8 Section 6(b) of the REFIT Regulations. 9 http://www.nigeriaelectricityhub.com/2016/09/15/11-solar-ipps-post-development-security-tonbet/ 10 http://www.offgridnigeria.com/nigerias-first-large-scale-solar-projects-await-prg-months-afterbond-deposits/ 11 https://renewablesnow.com/news/nigeria-signs-ppas-for-975-mw-of-solar-power-531477/ 12 http://www.offgridnigeria.com/nigerias-first-large-scale-solar-projects-await-prg-months-afterbond-deposits/ 13 http://www.nigeriaelectricityhub.com/2017/02/15/a-bright-outlook-for-solar-mini-grid-regulationin-nigeria/ 14 http://www.gsma.com/mobilefordevelopment/programme/m4dutilities/lumos-pay-as-you-go-solarin-nigeria-with-mtn 15 http://www.prnewswire.com/news-releases/largest-ever-investment-in-off-grid-solar-lumos-globalraises-90-million-300371350.html 16 https://cleantechnica.com/2016/04/29/india-attracted-14-billion-renewable-energy-investment3-years/ 1

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Rentia van Tonder, Head: Power, Corporate and Investment Banking, Standard Bank After earning her BSc (Hons), Rentia joined ABSA bank and later completed her MBL (Masters in Business Leadership) and EDP (Executive Development Programme). She joined the Industrial Development Corporation (IDC), starting in the Economic Research department, and was later transferred to the office of the minister of Minerals and Energy as an advisor. She joined the IDC’s mining business unit when she returned in 2000. She was then promoted to Head: Wood & Paper Strategic business unit in 2003 and later Head: Green Industries. Rentia joined Standard Bank in 2014, with a focus on developing and implementing a new strategy for Standard Bank to be the leading funder of renewable and power projects in the African continent. She has recently taken on the role as Head: Power in Corporate and Investment Banking.

Africa requires flexible energy mix Diversified approach to generation and distribution will meet continent’s energy needs The rapid evolution of renewable energy technologies provides African governments with choices – and opportunities – for conceiving, developing and sustaining energy generation and distribution networks.

entia van Tonder, Head, Power at Standard Bank, believes that Africa’s rapidly developing economies will be best served by diversified and flexible energy supply and distribution networks. These, however, need to be built upon innovative funding options, ownership models and payment structures, which are all influenced by disruptive technologies.

Relying on only one source of energy can be limiting. For example, while certain African economies are well endowed with hydro power, having the majority of 116

the network reliant on a few major hydro-electric power plants can prove problematic in times of drought. Similarly, while many African countries have an abundant coal supply, clean coal-fired power plants are expensive and slow to develop. They also run 24/7 and cannot easily be ‘switched off’ during times of oversupply, lacking flexibility. With many African governments being signatories to COP21 agreements, coal is also a challenge in terms of meeting environmental commitments. Instead, many of the quick fix solutions that African countries are considering in order to develop their power supply are factoring into their thinking today. These include a whole stable of renewables – from wind, to solar and hydro – as well as new gas conversion technologies and off-grid solutions. These renewable energies have the advantage of being comparatively inexpensive to set up, are relatively quick to build and provide flexibility. Unlike large scale hydro or coal-fired projects, renewable energy generation or gas conversion projects can be smaller. Purpose-built renewable hybrid projects can, for example, supply power to targeted income and employment generating projects focussed on the rapid – and niche – development of key industries or infrastructures, like a critical port, industrial hubs or rural households far from the grid. For the foreseeable future, however, energy sources capable of maintaining base load capacity – like coal, gas and nuclear – will remain part of the equation. Today, African countries are able to deploy tried and tested funding and payment models. These, combined with well-developed renewables legislation, provide governments with a much wider 2017 Africa Energy Yearbook

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set of choices, including the leverage of local and global private capital in the funding, building and operation of energy infrastructure through public private partnerships, joint ownership schemes and profit share agreements. Renewable energy projects also appeal much more strongly to export credit agencies, development finance institutions and corporate sustainability mandates which, following COP21, have been increasingly reluctant to fund environmentally challenging coalgenerated power projects. All these developments are taking place at a time when domestic African capital markets are evolving and, importantly, deepening through the adoption of more progressive legislation. Accompanying these changes is the growth and effective leveraging of local pension fund industries combining with higher levels of local savings and investment. Global private capital is also increasingly targeting correctly structured African energy infrastructure opportunities. This rapid legislative and funding evolution is being complemented by new ideas in energy distribution, such as partly privatised distribution networks, or even small off-grid solutions designed to supply to the needs of remote rural areas in large countries with highly distributed populations. Standard Bank’s presence in 20 markets in Africa and their deep experience in assessing, advising, funding and structuring energy projects means that it is well placed to support the development of sustainable self-funding energy projects. Projects that demonstrate rational economies of scale, reach the right markets, and exhibit sustainable end-user payment participation, for example, will attract global capital. Over time this will increase the continent’s ability to fund and deliver energy. The important thing to take on board is that there is a wide range of policy, technology, capital, funding and project delivery options today. Being flexible in the choice, application and execution of these options will determine how successfully – and at 118

what price and pace – Africa meets its growing energy needs. Policymakers around the world rely on technical or financial knowledge and support. Similarly, most legislators need to assess the legal and compliance implications of a diversified energy generation and supply mix. Creating an enabling environment by partnering with various stakeholders that are able to combine global best practice of capital markets knowledge and reach with world-class project management and technical solutions will unlock Africa’s vast natural energy supply affordably over time. If energy supply challenges are to be avoided, planning that correctly informs those involved is required. For example, Zambia’s reliance on hydro energy, with limited supply from other energy sources, has in the current drought seen the country importing electricity from South Africa and Mozambique. Diversifying Zambia’s energy mix by harnessing the country’s abundant solar and coal resources would spread both the risk and cost of meeting Zambia’s energy needs. This can be achieved through the leveraging of foreign capital, private ownership, rational pricing, and user-pay fundamentals. This would also prevent the Zambian government from being solely responsible for supplying and paying for energy in times of shortage. Similarly, Namibia has a wonderful opportunity to harness abundant solar power in an economy currently relying heavily on imports. Japan provides a great example of how quickly, if correctly managed, even a slightly diversified energy mix can adapt in crisis. After the Fukushima disaster, all of Japan’s nuclear power stations were closed. The country was forced to rapidly increase the amount of power it generated from its gas and wind power stations. Moving quickly to construct diverse funding, ownership and payment structures, Japan was able to meet its national energy demand without any interruption in supply as it switched, seamlessly and instantly, from nuclear to gas and wind.

About Standard Bank South Africa The Standard Bank of South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group reported total assets of R1,95tn (about USD143bn) at 31 December 2016, while its market capitalisation was R246bn (USD18bn). In South Africa, Standard Bank provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. CIB delivers this comprehensive range of products and services relating to: investment banking, global markets, and global transactional products and services. Standard Bank’s CIB’s expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions. For further information, go to http://www.standardbank.co.za/cib

Given that many African economies do not yet need a huge amount of energy, meeting immediate energy needs with an appropriate combination of mixed renewables and base load supply should be achievable. Considering the diversity of natural and renewable sources of energy available on the continent along with the number of markets only just beginning serious energy infrastructure builds, proactive policymakers across the continent have a golden opportunity to build this kind of diversity and flexibility into Africa’s energy generation and supply grids. 2017 Africa Energy Yearbook

Generally, artists paint, writers write, singers sing and actors perform the realities of their time, be it good or bad. In my country, the lack of energy access is a severe problem. Through my artwork I am able to represent such problems as a means to raise awareness and inspire a sense of urgency for changeâ&#x20AC;? LESLIE LUMEH

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Flexible power strategies

need to power progress in Africa James Shepherd, Managing Director, Africa, Aggreko James Shepherd was born in Nigeria in 1972 as a child he lived in numerous countries. James joined Genko BV, a subsidiary of Aggreko, in Holland in 1991 as an apprentice. He has 24 yearsâ&#x20AC;&#x2122; continuous service with Aggreko. After his apprenticeship he worked as a site engineer in Sri Lanka in 1994 on the first power project for Aggreko culminating in him becoming regional commissioning engineer Middle East. With the formation of Aggreko International Power Projects in 1999, he was promoted to Central Operations Manager Aggreko International and was responsible for key functions such as the Service and Repair Centre, Base Operations, Fleet & Logistics, Stores & Commissioning & Project Management for Aggreko International. In 2005 James became Area Director for Aggreko Middle East responsible of all facets of the business. He was responsible for growing a substantially local business from $11 million to $156 million revenue through projects in Oman, KSA, Pakistan and Yemen Following a restructure of the International and Middle East, business James was appointed to the Aggreko International Board as Managing Director Southern and Eastern Asia in 2009 with the key aim to lead the team who integrated the acquisition of Cummins rental India into Aggreko. In 2010 he became Managing Director of Southern and Eastern Africa, Yemen and Pakistan. Securing and executing projects such as the football world cup in South Africa and the first interim cross border IPP for Eskom. He assumed the role as Managing Director of Southern and Eastern Africa, Yemen, Pakistan, Russia and Caspian in 2012 with revenues in excess of $300million and profits in excess of $120 million. In 2015 following a successful restructuring of the Russia and Caspian business he became the Managing Director - Aggreko Africa, relocating his family back to London, UK to take up the role which operates Pan Africa in 37 countries, with over 2GW of power on hire, 1100 staff and revenues in excess of $500 million.

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Africa is a continent of contrasts. It is currently home to ten of the world’s fastest growing economies, with many flourishing industries, decreasing child mortality and rising life expectancy. However, approximately 625 million Africans live without access to electricity, creating inequality across a range of socio-economic issues, such as access to healthcare and education hen it comes to energy, Africa’s challenge is not just about keeping the lights on from one day to the next but in many countries the focus is still on establishing initial electricity infrastructure. Improving access to affordable and reliable energy sources would also help eradicate some of the fundamental challenges and improve the competitiveness of many countries on the continent. However, this is no small task. The International Energy Agency has estimated that Sub-Saharan Africa will need capital investment of more than USD300bn to extend electricity access to everyone by 2030. This accounts for 64 per cent of the total funds required to achieve the goal of providing electricity to all people globally.

Similarly, solar energy is expected to play an increasing role as innovations in the solar-diesel hybrid generation continue to be developed. Finding a balance in reducing costs and improving reliability, all while reducing Africa’s reliance on fossil fuels, is something towards which utility companies are striving. Around 45 per cent of the 1.06 billion people without electricity in the world are in rural Africa. The Power Africa Initiative has recognised that to provide these areas with reliable, sustainable energy, a large grid system will need smaller frameworks to complement it. Its ‘Beyond the Grid’ sub-initiative is working with investors and facilitators across the continent to develop ‘offgrid and small-scale solutions’. This will help homes and businesses gain access to reliable and sustainable electricity.

Decentralised, distributed energy generation is the key to this initiative. Distributed electricity generation is also an attractive option for energy producers facing a replacement cycle of currently installed capacity alongside a very real need for increasing overall capacity. Additional power eliminates the need for additional transmission and consequently lowers the capital investment needed.

One third of the countries in Africa rely on hydropower as their main source of electricity. However, extreme and persisting drought means this is not always a reliable source of energy. The disruption of the energy supply affects the lives of citizens, industry productivity and the country’s economic growth.

Applying knowledge and innovations from developed countries could prove beneficial to the African continent. Countries with vast rural landscapes, such as Australia and some states in the US, face similar challenges of reaching communities at the end of a transmission line often hundreds of kilometers long.

Decentralised, distributed energy generation is the key to this initiative. Distributed electricity generation is also an attractive option for energy producers. 2017 Africa Energy Yearbook

Fuel accounts for the largest expense of energy generation. Securing cheaper sources such as heavy fuel oil (HFO), which are more readily accessible on the continent, will allow this investment to go further. As these towns and their populations grow, utility companies need to be able to reach capacity demands. These companies must provide access to electricity that will enable the continued growth and development of these rural areas. Off-grid solutions could become increasingly prevalent in Africa. It has been suggested that ‘mini-grids’, involving smaller renewable or fossil-fuel based plants or generators, could help to connect rural African communities. This will supply the people with energy before they are able to secure a wider grid connection. Distributed energy could be a stepping stone on the road toward integrated African power pools. These power pools can help increase access to electricity for those communities suffering from poor connectivity to the major African power grids. Regional power generation and interconnection projects can play a major role in improving the reliability of power access. Cross-border energy 121

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Only 1 per cent of the total electricity is traded within the Eastern and Central African Power Pools (EAPP & CAPP) compared to the Southern and Western African Power Pools (SAPP & WAPP), which trade at around 7 per cent. pool projects help to resolve issues with power shortages. In its report on regional power structure, the Infrastructure Consortium for Africa found that African energy pools are “experiencing concrete achievement in the process of implementing interconnection projects and generation projects with [a] regional dimension.” Among the many benefits of regional energy pools are reduced operational and maintenance costs and a reliable supply of power. They also provide a more economical source of emergency energy during unplanned or scheduled disruptions. However, it could be argued that the biggest advantage for the utility companies is the opportunity to trade power internationally and reap the commercial rewards. Cross-border power trading has the potential to reduce the cost of domestic energy, and increase GDP and economic growth. Regional energy trade would annually save an estimated USD5bn in emergency generation costs alone. However, some projects seem to be more successful than others. Only 1 per cent of the total electricity is traded within the Eastern and Central African Power Pools (EAPP & CAPP) compared to the Southern and Western African Power Pools (SAPP & WAPP), which trade at around 7 per cent. The Aggreko power plant at Gigawatt Park in Ressano Garcia in Mozambique has the capability for a total generation 122

output of 232 MW. In 2012 it was the realisation of a ground-breaking initiative to build the world’s first interim crossborder Independent Power Producer (IPP) project. It directly supplies the SAPP and now provides energy for three national utility companies in Mozambique. This project supplies energy to utility companies in Namibia, located more than 1,500 kilometres away

Cross-border power trading has the potential to reduce the cost of domestic energy, and increase GDP and economic growth. Regional energy trade would annually save an estimated USD5bn in emergency generation costs alone.

on the other side of the continent as well. This demonstrates the strength of the infrastructure in the SAPP. Last year we started working with a utility company in Zimbabwe to provide 200 MW to help overcome the country’s power shortages and the impact this has on the economy and its citizens. These shortages were caused by unreliable renewable energy infrastructure. This increased reliability allows the utility company to trade on the SAPP, which contributes to the national economy and helps it become self-sufficient. Insufficient transmission capacity is a hurdle that utility companies, particularly in the CAPP and EAPP, will need to overcome to be able to take advantage of the financial and practical benefits of power pool projects. The insufficient transmission capacity in these areas is likely a result of limited and aged infrastructure or extreme environments. Power pools are a valuable asset to the African power structure. As more challenges are resolved, these power pools will have the ability to transform the African power supply in the future. Even more so as new innovations in energy generation technology are brought to market. Investing in distributed energy generation technology and building on Africa’s power pool network now will improve access to affordable, reliable power in both rural and city environments. This will create significant economic benefits in the future. Cross-border power trading will contribute to GDP, industries will flourish and inequalities across key socioeconomic indictors will decrease. Limited investments contribute to a lack of adequate infrastructure and access to sustainable and cost-effective fuel sources. These have detrimental consequences for the national utility companies’ ability to provide its customers with access to reliable energy. This particularly is a problem across vast rural regions and challenging environments. As our digital world gets bigger, those countries without access to reliable, cost-effective power will fall further behind in their global socio-economic standings. 2017 Africa Energy Yearbook

My work is an instinctive spiritual response to my immediate surroundingsâ&#x20AC;? ISMAEL KATEREGGA

KIBUYE MARKET, MIDNIGHT

Images submitted by Afriart gallery, Uganda

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Omar Vajeth, Senior Transaction Advisor and Head of the Project Advisory Unit, Southern African Power Pool (SAPP) Omar Vajeth is currently the Senior Transaction Advisor and the Head of the Project Advisory Unit at the Southern African Power Pool, a new unit created with the sole purpose of advancing regional projects in SADC. Previously, he was Head of Power, Utilities and Infrastructure at Barclays Africa/Absa where he led the team’s expansion into Africa and into the South African Power market. During this time, he concluded transactions across Africa in technologies such as renewable energy, coal, hydro, gas, HFO. Following Barclays Africa, Omar has spent time working with international utilities and South African investors on the coal base load programme. He has also advised firms on Black Economic Empowerment (“BEE”) Private Equity Transactions in South Africa’s Power Sector. Prior to this, he worked at Eskom where he was the capital investment manager for the Transmission group. He has also worked at the National Electricity Regulator and Accenture. Omar holds MBA, law and B.Sc. Elec Eng degrees.

The Southern African region has been pursuing the expansion of interconnectors for a number of years. The primary objective of these interconnectors is to improve the trade of power between the countries in the region.

here has been limited success, though. In the recent past only one of these interconnectors was successfully completed, namely 2 nd DRC-ZAMBIA interconnector, which was completed by the public utility in the Democratic Republic of Congo (“DRC”), Société nationale d’électricité (“SNEL”), and the private transmission company, Copperbelt Energy Corporation (“CEC”). In an attempt to change this situation, the Southern African region is now poised with a number of initiatives currently underway under the Southern

Power capacity shortages in the region have made it difficult to develop business cases to justify the investments into transmission interconnector projects. Most projects were being premised on a possible South African off-take, with power plants being considered in many parts of the region. 2017 Africa Energy Yearbook

African Power Pool’s Project Advisory Unit (SAPP-PAU).1 The challenges that face the region could be attributed to a number of obstacles. A few key challenges amongst these are: 1) the lack of capacity in the region, leading to load shedding to secure the network operations; 2) funding constraints for early stage prefeasibility and feasibility work; 3) a lack of resources for the coordination and planning of projects on a regional basis; and 4) failure to structure deals for financing. Power capacity shortages in the region have made it difficult to develop business cases to justify the investments into transmission interconnector projects. Most projects were being premised on a possible South African off-take, with power plants being considered in many parts of the region. This has now changed, however. Eskom is now back in the market, promoting power exports outside South Africa. Recent long-term sales agreements with NamPower and BPC are reflective of Eskom’s new strategy and of a positive environment for the region. Other countries will fall in line to secure power deals with Eskom, including countries further north as they will have to take advantage of the low-cost supply from Eskom as compared to new power generation projects. The business case for 125

Art is not just a profession to me but my refuge and comfort...without it I seem lostâ&#x20AC;? RONEX AHIMBISIBWE 126

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securing supply from Eskom will be hard to ignore for the Southern African utilities. In summary, this is an extremely positive development that will provide further impetus for the development of power interconnectors between these countries. In recent times, there has been a recognition from donors and the wider development community that project preparation must be accelerated and driven towards bankability. Where funding has gone into public sector project preparation for regional projects, the preparation work largely focused on technical and environmental work with very little financing and legal structuring taking place. In many instances, repeat technical studies are undertaken since with the passing of time previous studies do become stale. In some instances, there have been attempts to outsource the entire project development work to a single external consultant, typically called a transaction advisor (TA). Experience has shown that the TA will have multiple subconsultants for various technical, legal, environmental and financial expertise. This arrangement not only provides utilities the option to shift accountability to consultants but also allows them limited control of the projects. The subconsultants are effectively directed by the TA instead of the utilities, causing objectives to become blurred. With this experience gained, the donors and development partners are now becoming more focused on assisting utilities in delivering these projects in a different manner. This includes strengthening the utilitiesâ&#x20AC;&#x2122; ability to coordinate, plan and deliver projects. With this recognition, funding has become increasingly available in recent times for public sector regional transmission interconnector project preparation.

The donors and the development partners have recognised the need for supporting the public sector utilities in delivering the projects without losing the utility accountability for these projects. As mentioned above, the lack of planning and coordinating for project preparation execution on a regional basis has hampered the projects from being developed. The lack of planning and coordinating has to be seen in light of sovereign priority projects versus regional projects. The donors and the development partners have recognised the need for supporting the public sector utilities in delivering the projects without losing the utility accountability for these projects. Various capacity-building efforts have been initiated to improve and upskill utility teams. Further support is now also being provided by the SAPP-PAU as this provides a platform to complement utility teams in delivering these projects. Whilst the engineering solutions and environmental studies have been completed, the financial and legal structuring work could be improved substantially. There have been attempts to try basic project finance techniques with the belief that a creditworthy offtaker may be sourced. Although this is theoretically possible, it has proven extremely difficult to achieve. There are good examples of financially closed projects in various other regions. Drawing from these projects, the quickest route for

There have been attempts to try basic project finance techniques with the belief that a creditworthy off-taker may be sourced. Although this is theoretically possible, it has proven extremely difficult to achieve. 2017 Africa Energy Yearbook

utilities to build these transmission lines across multiple countries is for utilities to each build their own countryâ&#x20AC;&#x2122;s portion of the lines. This strategy allows each utility the flexibility to raise funding the best way possible and avoid undue permitting, ownership and lender security challenges. This funding unlocks concessionary loans that are obtained via the government and will be the lowest cost debt available for the projects. In one possible arrangement, the financially stronger utilities could support financially weaker utilities for power trading until the debt is repaid. We believe that with innovation we can move projects closer to bankability much quicker. The complexity of building regional interconnectors is greater than building transmission lines in one country alone. Risk allocation, ownership, security for lenders, and varying country-specific issues have serious implications for projects and need to be resolved. Regional interconnectors do, however, have proven economic benefit. With the positively changing market environment in Southern Africa, the acceleration of the interconnectors is expected to become increasingly viable with a window of opportunity that has developed, allowing utilities to make full use of the supply agreements by increasing their ability to trade power.

The SAPP-PAU was created by the Southern African Power Pool with the assistance of an IDA World Bank Grant. The unit is based in Johannesburg and has only one objective of accelerating region transformational projects. It is fully established and is currently executing a number of projects in the region.

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YEARBOOK PROFILE PIECE H.E. HON. PIERRE ANATOLE MATUSILA, MINISTER OF ENERGY AND WATER RESOURCES, DEMOCRATIC REPUBLIC OF CONGO The main objectives of the Ministry of Energy and Water Resources are to develop and implement government policy in the energy sector (drinking water, electricity, renewable energy), prepare draft laws, decree-laws, Decrees and implementing decrees and to control the state owned companies and public services in the energy sector. The Honorable Dr. Pierre Anatole Matusila Malungeni was appointed Minister of Energy and Water Resources in December 2017. He holds a medical degree and a specialist diploma in radiology and medical imaging. Prior to joining the Ministry of Energy and Water Resources The Honorable Dr. Matusila was elected in 2011 for a five-year term of office to the National Assembly of the country as the elected National Deputy of the Central Kongo Province (Madimba Territory). He was a senator during the transition period from 2002 to 2006 that opened the country to his first democratic election. For 31 years The Honorable Dr. Matusila has been the Founder, Owner and Non-Executive Director of CKR / Dr.Matusila Corporation, one of the country’s largest radiology and medical imaging centers. He was successively Co-President-Elect of the National Conference on Human Rights in Kinshasa; Chairman of the Steering Committee of the National Campaign for Sustainable Peace in the Democratic Republic of the Congo (CNDP); A designated member of civil society in the preparatory committee of the International Dialogue in Cotonou and spokesperson of the active forces at the Inter-Congolese Dialogue (Gaborone, addis-abebas-nairobi, sun city and Pretoria).

The DRC is a member of three energy pools, namely Central Africa, East Africa and Southern Africa. With the richness of its hydroelectric potential and its strategic position, it already benefits from the advantages of regional cooperation. What are the obstacles preventing the DRC from achieving sustainable and long-term electricity production?

The DRC is a major player in external regional energy; how does it benefit from the regional collaboration DRC electricity sector?

In the southern part, the DRC’s interconnection to southern Africa was strengthened by the construction of new lines in Katanga and the renovation of the Inga-Kolwezi interconnection line. The hydroelectric project Luapula is being prepared between the DRC and Zambia.

There are three obstacles. The first is the lack of adequate planning for growth in electricity demand and the low level of investment mobilisation. Our second obstacle is the private sector’s disinterest in electrification activities, following the de facto monopoly exercised by the National Electricity Company (SNEL) in 1974 with the promulgation of Law No. 14/011 of 17 June 2014, which liberalised the sector. Finally, the dilapidation of existing power plants presents a challenge. The Government has set up a programme for the rehabilitation, extension and renovation of the national hydroelectric power station and related networks. Activities are under way, with the support of multilateral and bilateral technical and financial partners and public-private partnerships.

The DRC is a member of three energy pools, namely Central Africa, East Africa and Southern Africa. With the richness of its hydroelectric potential and its strategic position, it already benefits from the advantages of regional cooperation. For example, thanks to NEPAD, the DRC has benefited from AfDB funding which enabled it to carry out studies regarding the feasibility of Grand Inga and the associated electrical interconnection lines. In connection with the DRC’s interconnection with the other countries in the Eastern energy pool, work is underway on the construction of the new lines and associated posts, notably in the provinces of North Kivu and South Kivu.

The DRC has the potential for the largest hydroelectric site and the cheapest energy source on the African continent. Can you give us an update on the Grand Inga project?

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At the moment, we are in the process of finalising a bill that can specifically regulate “Grand Inga and associated lines” in order to make this project attractive to private investment. The Inga law is somewhat derogatory from the general provisions of the Electricity Act referred to before. The evaluation of the offers of candidate developers is in progress. 2017 Africa Energy Yearbook

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The recent NEPAD - IPPF grant to finance the Kolwezi - SOLWEZI interconnection project is an exciting development. How could this project affect the DRCâ&#x20AC;&#x2122;s food supply? The DRC is currently facing an unprecedented energy deficit. Currently, it imports a power of 100 MW from Zambia which is insufficient to meet the needs of the mining industry. This new line is already beneficial for the DRC as it strengthens the transit capacity between the DRC and southern Africa.

Finally, can you explain to our readers why the Africa Energy Forum is an important event for you to attend? It is a place of exchange of experiences and information on investment opportunities and developments on energy technologies. For the DRC, it is an opportunity to inform the public and private partners about the legal, regulatory and institutional framework favourable to private operators to invest in the electricity sector. It is totally liberalised, with a regulatory authority for the sector that enforces the rules. The country offers several opportunities for bargains in both urban and rural areas in the field of electrification.

The DRC is currently facing an unprecedented energy deficit. 2017 Africa Energy Yearbook

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Electricity Solutions: Amir Shaikh, Chief Legal Counsel (Head of Projects), African Legal Support Facility (ALSF) Amir Shaikh is Chief Legal Counsel (Head of Projects) at the African Legal Support Facility. He is responsible for the implementation of all of the ALSF’s technical legal assistance and capacity building projects delivered to the ALSF’s members. In addition to advising governments and assisting on resource mobilization, he oversees the projects team in the delivery of legal advice, the assessment of member country requests, and the selection of legal advisors. He provides technical legal support and assistance to numerous African governments on a wide spectrum of legal issues, including commercial creditor litigation and complex contract negotiations related to extractive resources and infrastructure sectors. Prior to joining the ALSF, Mr Shaikh was an attorney in the business litigation and corporate securities group at Thompson Hine LLP in New York where he provided legal advice and services to private clients on a wide range of litigation and securities issues. Mr. Shaikh is a member of the New York State Bar and admitted to practice in the United States District Court for the Southern District of New York and United States District Court for the Eastern District of New York. He holds a Juris Doctor (J.D.) from the George Washington University Law School, and a bachelors degree (B.Sc) in Public Policy and Management and a bachelors degree (B.Sc) in Gerontology from the University of Southern California.

Gadi Taj Ndahumba, Legal Counsel, African Legal Support Facility (ALSF) Gadi Taj Ndahumba is a Legal Counsel at the African Legal Support Facility (ALSF) where he provides technical legal support and assistance to numerous African governments for complex contract negotiations related to the energy and infrastructure sectors. He is currently involved in several projects on the continent which aim to solve the energy deficit of Sub-Saharan countries. Prior to joining the ALSF, Mr. Ndahumba was a financial services lawyer at McCarthy Tétrault LLP, a top-tier Canadian law firm, where he worked on project finance transactions in the energy, mining and infrastructure sectors, including several Public-Private Partnerships (PPPs). During his time at McCarthy, he advised financial institutions as well as leading renewable energy companies in transactions paving the way of the Canadian electricity market in its turn towards wind energy. Mr. Ndahumba holds a Double Degree of Civil Law (B.C.L.) and Common Law (LL.B.) from McGill University and has successfully passed Level I & II exams of the Chartered Financial Analyst (CFA) certification.

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Electricity storage solutions are maturing and can potentially transform the marketplace for renewable energy projects in Africa. For many countries on the continent, the lack of baseload capacity is often the reason for not considering renewable energy when seeking a short- to midterm solution to shortages in their electricity supply. As energy markets continue to drastically transform themselves through changes in technolog y, it is becoming more and more apparent that traditional constraints on electrical grids will soon become irrelevant. The question remains as to whether African governments and their state-owned utilities are preparing themselves for the revolution that electricity storage technologies will impose on conventionally structured energy markets.

n adequate regulatory and contractual approach as well as the buy-in of utility companies will be essential to enable these new technologies to accelerate the route towards energy sufficiency. 2017 Africa Energy Yearbook

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Storage

Regulatory and Legal Considerations for Utilities TRADITIONAL MODEL

Before exploring why energy storage will greatly affect the current model, it might be interesting to go back to the basics. Under the traditional model, utility companies seek to secure a constant source of power that, at the very least, matches the lowest point of their demand curve (the baseload). With only renewable energy such as wind or solar, this could prove to be quite challenging as the power generated will constantly fluctuate on hourly, daily and seasonal cycles. Even hydroelectric centrals, usually seen as a constant source of energy, can be affected by climate conditions. Therefore, thermal power

plants are often seen as a more practical option to address baseload needs. The variations in the energy supply also lead to technical issues. An optimal balance between demand and supply (the grid frequency) is essential to preserve the integrity of the electrical grid. However, the system frequency is much harder to regulate with intermittent sources of energy. For this very reason, solar power producers have actively sought ways to limit the impact of the fluctuation of their electricity production by striving to develop better performing batteries. Today, these batteries have the capacity to store power for up to half a day with limited energy loss and to release it almost instantly when

the system load increases. Even the new wind farm designs, which traditionally were not equipped with storage systems, have recently begun to include them in an attempt to smooth out the issues related to predictability, frequency and ramp control inherent to wind energy. ELECTRICITY STORAGE SOLUTIONS ARE UNDERWAY

Electricity storage remains a topic mostly discussed when it comes to battery equipment in the context of renewable energy projects. It is seldom put forward as a project in itself with the aim to improve a gridâ&#x20AC;&#x2122;s stability, reliability and resilience. The multiplicity of different electricity

Figure 1: Maturity of Energy Storage Technologies Source: International Energy Agency â&#x20AC;&#x201C; Energy Storage Technology Roadmap Report, OECD/IEA (2014

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storage technologies and the various benefits that each can bring are therefore often overlooked. The chart in Figure 1 shows several of these technologies and their development phases: The sum of these technologies will constitute total energy storage capacity of a system, which can be charged or discharged in response to increase or decrease of the grid frequency. This will enable it to remain within pre-set limits while limiting the loss of the energy surplus generated during peak production periods. It will also provide energy security/resiliency which is becoming more and more relevant with the rise of unstable weather conditions. Hence, the different intended capacities and discharge durations of the various technologies will allow them to contribute in multiple ways to the optimisation of overall electricity production (see Figure 2). The potential of these technologies leaves little doubt that at least some of them will become essential tools in designing electrical grids, featuring rapid response

The potential of these technologies leaves little doubt that they will become essential tools in designing electrical grids. and emission-free operations on one hand and seasonal storage capacity on the other. It will also allow early stage grids to ensure that their growth in supply capacity more closely tracks the pace of the growth in demand by avoiding the problem of under/over-capacity, which often occurs when opting for building capital-intensive baseload power plants instead of smaller renewable energy projects. REGULATORY FRAMEWORKS REQUIRED TO ADOPT ELECTRICITY STORAGE SOLUTIONS

So how do you incentivise the integration of energy storage into the electrical grid?

An adequate regulatory framework will be the key driver. Electricity storage systems are not currently provided for in most regulatory frameworks across the world (including in most developed countries). In many jurisdictions, a stand-alone electricity storage facility would be considered a generation asset. This is problematic because the storage system ultimately does not generate a net positive outflow of electricity, especially considering that there is always some level of energy loss during the storage process. Furthermore, the typical definition of a generation asset will rarely consider other potential contributions to the system, such

Figure 2: Power Requirement vs Discharge Duration for Select Applications

Source: International Energy Agency â&#x20AC;&#x201C; Energy Storage Technology Roadmap Report, OECD/IEA (2014)

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as delaying the consumption of the electricity produced during low demand periods. A new definition differentiating storage from generation is therefore likely to facilitate the deployment of storage technologies by considering it as an integral part of the electricity system. Another problem an energy storage system project is likely to face within current regulatory frameworks is that any applicable transmission tariff will normally be applied twice: during the charging phase and the discharging phase. Doubled charges do not take into account the function of the storage technology to balance the system. It may be appropriate, for example, to apply lower network fees for storage that better reflect its role in the electricity system. The regulatory framework should also prescribe the possible business models under which energy storage may be deployed. The cost and complexity of the technology suggest that there will be some advantages to have centralised energy storage systems owned and operated by independent energy storage providers (IESP) (similarly to the independent power producer (IPP) model). However, this is far from the only possible business model which can be used to increase the gridâ&#x20AC;&#x2122;s total storage capacity. Storage equipment can be located at generation, transmission, distribution and consumer levels. Hence, the energy legislation should be flexible enough to allow each of such models while providing utility companies with the means to protect the integrity of the grid. Finally, while it is probably too early to hope for standardised agreements, the regulatory framework should also provide some guidance for service agreements entered into with the IESPs. In cases where the legislation expressly grants the right to and conditions under which a power purchase agreement (PPA) may be entered, it is likely that similar legislative dispositions will be needed for IESP projects. An approach providing flexibility should be favoured as it is still not clear what legal structure will ensure maximum chances of bankability. 2017 Africa Energy Yearbook

CONTRACTUAL TOOLS

Contractual approaches are already being developed. For example, a demand response energy services agreement (DRESA) will set the terms under which the IESP will be compensated by the utility company. The compensation under this type of contracts is mainly driven by two factors: the storage system availability (capacity) and the actual demand response (DR) energy storage services provided (performance). The DRESA model also allows utility companies to deploy reliable DR assets without upfront capital expenditures and to optimise their distribution systems without necessarily owning and operating new storage assets. An alternative model is a demand charge shared savings agreement (DCSA) which provides a different payment structure based on a cost savings approach. Similar to the energy service companiesâ&#x20AC;&#x2122; model used to finance energy efficiency projects, the IESP will enter into an agreement directly with industrial consumers. The consumer and the IESP will agree contractually on how the storage technology and the load management software will be utilised during peak energy consumption to reduce demand charges. The payment stream of the project would therefore be based on a portion of the cost savings from tariffspecific demand charge reductions.

Many African governments and utilities will have a unique opportunity to rethink their approach to baseload.

These two contractual approaches have obvious shortcomings. The DRESA does not rely on any new revenue stream of the utility company, which will complicate bankability if there is any issue with credit worthiness. It will therefore be necessary to find ways to quantify the positive impact of the storage equipment on the overall profitability of the system to reassure the lenders of its financial viability. The DCSA, on the other hand, is not a sustainable model if applied on a large scale basis as it is bound to eliminate peak demand periods and therefore reduce tariff variations and cost-savings opportunities. While not the only solutions, the DRESA and DCSA show the range of possible models that can potentially be applied to storage systems and the necessity to have a flexible regulatory framework. PLANNING FOR THE FUTURE

It is true that several electricity storage technologies are still too expensive to be viable and others will need more time before being commercialised. However, as it was the case for renewable energy, the price of many of these technologies should rapidly decline through competitive innovation and economies of scale which are reducing design, production and material costs. Many African governments and utility companies will have a unique opportunity at the early stage of the conception of their national grids to rethink their approach to baseload and the over-all system capacity by creating the necessary conditions for the incorporation of storage systems. It will enable them to use a greater mix of energy sources and to significantly improve the efficiency of their electricity production. The daunting energy deficit of SubSaharan Africa will be solved, in part, through innovation. Energy storage technologies will be at the centre of the transformation of our conventionally structured energy markets and represent an opportunity for early stage electrical grids to lead the way towards fully optimised energy systems. The regulatory frameworks of African countries should anticipate and prepare the path for the changes to come. 133

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Faith Can, Vice President, Tekfen Construction, Turkey Education: Istanbul Technical University (ITU) Petroleum Engineering, B.Sc. 1989, M.Sc. 1994. Istanbul University International Management Programme (an MBA Certificate Programme) 1993. Career: Faith started his professional career in İGDAŞ (Greater İstanbul City Natural Gas Distribution Company) as a project engineer in 1990. Having worked four years in IGDAS, he then joined TEKFEN in 1994 where his first task was the development of a Project between Iraq and Turkey, the “Iraq – Turkey Natural Gas Export Project”. Mr Can has taken several international assignments in TEKFEN in countries such as Iraq, Russian Federation, Azerbaijan and Kazakhstan. He has also worked in Business Development, Tendering and Operations Departments. Mr Can was appointed as Dept. Vice President, Business Development in 2015. From January 2016, he was appointed as Vice President of Business Development

The legal issues around off-grid solutions and energy storage Morocco is home to about 75 per cent of all the phosphate reserves in the world and is one of the leaders in phosphate production, with 27 billion tonnes produced per year. Phosphate plays an essential role in Morocco’s economy through exports, ranking Morocco as the world’s largest phosphate exporter with a 28 per cent share in the global phosphate market. The OCP Group, founded in 1920, is an incumbent state organisation that has the responsibility of producing and exporting this vital mineral.

CP awarded Tekfen Construction a pipeline project that is designed to transport phosphate in slurry form. The Slurry Pipeline Project is a new innovative transportation project in Morocco’s phosphate industry that connects the mines in Khouribga to the 134

industrial port of Jorf Lasfar located on the Atlantic Ocean’s coast, a distance of 187 km. The pipeline alters the method of phosphate processing which comprises the extraction and treatment of phosphate, and upstream and downstream transportation. The main/primary pipeline starts from Khouribga and terminates at Jorf Lasfar 2017 Africa Energy Yearbook

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industrial platform and is currently the world’s longest pipeline which, with feeder pipelines, transports phosphate slurry a total distance of 235 km. The route of the pipeline was determined by considering the distance between population centres and restrictions of privately owned lands. In addition to the main line, there are 40 km feeder/ secondary pipelines connecting mines such as El Halassa and Daoui to Khouribga Head Station. After the phosphate is extracted, the grinded ore is washed with water that is fed from a 15,000 m3 water reservoir with a 36” transmission pipeline. The phosphate is prepared and enriched by a washing-crushing-floating process in storage tanks for hydro-transport. The phosphate pulp is then pumped at the pumping station by 4-serial connected centrifugal pumps. The pipeline was designed to foster the retention of phosphate’s natural moisture. When the phosphate slurry arrives at the Jorf Lasfar terminal, one slurry grade is sent to local acid plants while other slurry grades enter the filtration, drying and granulation process to be exported as a commodity. Engineering and construction teams working on this project integrated new technology, efficiency and sustainability into the phosphate handling process. These teams were chosen from among those who specialise in the sector to meet the strictest health, safety, and environmental requirements as well as the highest quality standards. The phosphate pulp concentration varies between 52 per cent and 68 per cent and mostly flows through natural gravity from an altitude of 775 m to 66 m. However, to overcome the uphill flow direction, the first 30 kilometres of the hydraulic profile gets the additional boost that it needs

from a pumping station installed at the beginning of the pipeline. This project was the first in the construction industry to use this kind of method. Furthermore, for excellent operation of the system, all materials and components are supplied in accordance with the highest standards and latest technologies which have been used to ensure and oversee these kinds of processes. The pipeline’s state-of-theart SCADA system makes it possible to instantly gather information on pressure, density, and flow in the system, enabling the team to foresee, identify and act on unexpected problems such as leakages. Another aspect of the project is the sustainability and efficiency of the process, which has been proven by Tekfen. Firstly, the former processing method of extracting, washing and crushing the phosphate ore, after which the pulp was sent by means of railway transportation, caused a great amount of phosphate losses. This decreased the efficiency and productivity of the process to a great extent. The railway transportation system has provided only 18 Mt/y transport capacity in recent years. The pipeline system, however, is designed to initially transport up to 30 Mt/y of subsequent phosphate grades, with the potential of increasing up to 38 Mt/y in the future. High logistics costs, high energy consumption and pollution are other major reasons that make the slurry pipeline a commercially and technically viable transport solution. Thanks to its eco-friendly design and operation, the slurry pipeline reduces almost 1.000.000 tons of CO2 emissions annually. Besides this, the drying and processing of phosphate adds a considerable amount to the afore-mentioned losses. The slurry pipeline effected a 90 per cent reduction

High logistics costs, high energy consumption and pollution are other major reasons that make the slurry pipeline a commercially and technically viable transport solution. 2017 Africa Energy Yearbook

of logistics costs. Savings of mineral losses are estimated to be at least 3 per cent, amounting to 700.000 tonnes per year, which approximately equals the current phosphate production of Togo. Secondly, before the implementation of the pipeline project, drying of phosphate in wash-plants for railway transport and its rehydration in the Jorf Lasfar site for processing consumed lots of water. The project created a radical change that saves 3 million m3 of clean water annually. Furthermore, the reuse of water injection to separate the different grades of phosphates and the geographic reallocation of water between Khouribga and Jorf Lasfar also minimises water consumption. As a result, the saving of this water volume allows the company to double its mining capacity and to triple its processing capacity. Overall, the pipeline project significantly increased the efficiency and productivity of the phosphate processing method of Morocco’s mining industry. Tekfen’s use of eco-friendly materials and its specialised workforce created the base for this achievement, providing an example for further projects in the region. An observation is that the current conventional production methods used on the African continent are mostly obsolete and inefficient. We firmly believe that Africa needs innovative solutions like the Slurry Pipeline Project to achieve sustainable growth. Investment in innovation requires commitment by regional governments, which will help them considerably in developing their region and will bring them success in the long term. 137

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A Global Actor in Renewable Energies and Sustainable Development Jorge Seguro Sanches, Secretary of State for Energy, Portugal Jorge Seguro Sanches was born in Penamacor on July 30, 1965. He has a degree in Law (legal sciences) from the Lusíada University of Lisbon, graduate degrees in Energy Law (2007) and Water Law (2012) from the University of Lisbon’s Law School. Completed the academic part of the Master in International Relations from the Lusíada University – Graduate in International Relations (2003). He was Chairman of the Board of Alentejo Litoral Local Health Unit, was inspector in the Inspectorate-General for Health Activities, in the General Secretariat of the Ministry of Economy and in the Inspectorate-General for Public Works, Transport and Communications. Was a Member of the Portuguese Parliament in the X and XI Legislatures, having been the rapporteur of the Ad Hoc Committee on the Monitoring of Energy Issues. Worked at Microsoft Portugal, at the Board of the Institute for the Management of the Citizen’s One-stop Shops (IGLC), and was Head of Office to the Secretary of State for Youth, to the Deputy-Secretary of State to the Prime Minister, to the Secretary of State for Parliamentarian Affairs, and to the Deputy-Minister to the Prime Minister. He was President of the Municipal Assembly of Penamacor in 2009-2014. He is Member of the Political Commission of the Socialist Party and a former member of the National Secretariat and the National Commission for Jurisdiction of the Socialist Party.

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In the last few years, we have seen a significant shift in the international agenda with an increasing focus on development and, more specifically, its sustainability.

he year 2015 stands as a remarkable example of this change. The global community first reached an agreement in Addis Ababa, with the Action Agenda on Financing for Development, and later in New York, where the 17 ambitious Sustainable Development Goals were adopted as a result of the most inclusive and participatory policy dialogue ever organised. In Paris, a comprehensive global agreement on climate change was also achieved; an agreement which we must all honour for the sake of our shared future.

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There is thus a framework in place, and now is the time for all the agreed policy commitments and their key deliverables to come into fruition through diligent and comprehensive partnerships with all the relevant stakeholders. Knowing that we face global challenges and threats today, which go far beyond national borders and require global solutions, we must do our utmost to deliver on our commitments by adapting to the level of ambition that this agenda entails. In fact, and despite their global reach, the implementation of the new agenda must

have its foundations on local, regional, national and international levels, by way of clear political commitments that overcome inertia. The 2030 Agenda urges us all to achieve worldwide eradication of poverty and the promotion of sustainable development â&#x20AC;&#x201C; with environmental sustainability at its forefront â&#x20AC;&#x201C; an extremely challenging transformational process which directs us to adopt a new vision of our relation to our planet, helping safeguard the needs of future generations through inclusive, sustainable and resilient policies and strategies. 141

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The promotion of renewable energy is something of which we in Portugal are proud of and will continue to pursue. Portugal, having had no significant domestic exploration of fossil resources, has applied to the electricity sector an ambitious and successful plan to promote renewable energies. A testimony to the plan’s success is that in May 2016 we achieved four consecutive days of electricity consumption wholly from renewable sources. Portugal is among the countries that have invested the most in renewable energies, with a growing incorporation of these sources in electricity production. By the end of 2016, Portugal had an installed capacity of 13,332 MW from renewable technologies, accounting for 68% of total production capacity, an increase of 70% over the period 2007–2016. Recognising the importance of the renewable energies sector, this effort is anchored on Portugal’s commitment to reach a 31% target of renewable energy sources added to the final energy consumption by 2020. More than 87% of this target has already been reached. The renewable energies sector has been subject to high technological development, especially in the field of photovoltaic solar energy. Nowadays, the amount of energy produced by photovoltaic solar power plants is already competing with the amount produced by conventional fossil fuel power plants. As a result of this evolution, the renewable energies policy promotes the

installation of new renewable energies capacity without feed-in tariffs and without subsidies that burden consumers. The policy seeks to disseminate in the Portuguese territory technologies with a significant degree of maturity, such as solar. In the last year, Portugal has authorised seven solar power stations without subsidies that will compete pricewise with existing plants already installed, but also with the production of fossil energy. There is already more than 400 MW of authorised energy and more than 2,000 MW with expressions of interest. Portugal advocates a sustainable energy model by promoting measures and technologies that allow energy efficiency gains and the use of renewable indigenous resources, ensuring a balanced energy mix and the necessary reinforcement of energy interconnections with the whole of Europe. However, an ambitious plan alone is not enough. There must be capacity to put the renewable energy we produce in the external markets that surround us, thus contributing to the security of Europe’s energy supply. Thus, Portugal supports the free flow of energy transmission without any barriers. The energy interconnection deployment is a crucial condition for the achievement of energy sustainability worldwide. The current bottleneck resulting from the lack of energy transmission infrastructures between the Iberian Peninsula and the rest of Europe is a barrier to the growth of renewable electricity.

The electricity interconnection foreseen between Portugal and Morocco will play a crucial role in the growth of renewable electricity. This strategic partnership between Morocco and Portugal will contribute to the integration of energy markets and the development of an ‘energy bridge’ between Europe and Africa. An agreement was already reached on the conditions for the launching of technical studies aimed at the construction of the electricity interconnection. It is imperative to create electricity trade mechanisms, ensuring the security of supply of other neighbouring regions and energy markets. Portugal also has an excellent infrastructure for the reception, storage and transportation of gas, and the Iberian Peninsula has over one third of Europe’s liquefied natural gas (LNG) import capacity. The Sines LNG terminal in the south of Portugal could serve as a gateway for natural gas in Europe as part of the planned reinforcement of natural gas interconnections between the Iberian Peninsula and the rest of Europe. Portugal could play a relevant role in the region’s energy future, creating an LNG hub from major LNG terminals such as Sines and existing and future LNG terminals along the coast of Europe and Africa. The African continent has historically been one of Portugal’s most important strategic options. Alongside the European Union, the community of Portuguese-speaking countries (CPLP) and the transatlantic relationship constitutes one of the fundamental axes of our foreign policy.

The renewable energies sector has been subject to high technological development, especially in the field of photovoltaic solar energy. Nowadays, the amount of energy produced by photovoltaic solar power plants is already competing with the amount produced by conventional fossil fuel power plants. 142

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Portugal supports the effective dynamisation of local economies by promoting inclusive economic growth and strengthening domestic activity. Portugal therefore encourages the development of a strategic partnership between European and African countries and between the EU and AU, contributing to the integration of energy markets and developing a real energy bridge between the two continents. Today, Africa faces a variety of vulnerabilities and challenges, detrimental to the sustainable development of the continent and its peoples. Collectively, every effort must be made to counteract this and to address the underlying root causes, the scope of which is not only diverse, but must also be addressed in a complementary and synergetic manner. The challenges posed by climate change, for example, are evident as it further handicaps agricultural production and depletes fishing stocks, contributing to the impoverishment of rural and coastal populations. In a way, it disenfranchises farmers, fishermen and the communities that depend on them; it de-structures economies, especially those of the most fragile countries. The impacts of climate change are wide-reaching, as it generates food insecurity, which often evolves into humanitarian crises, forced migrations, and even into conflicts over vital natural resources, such as access to agricultural land and water. Africa, however, at the same time has the ability to face these challenges. Working together, whether at the bilateral, regional or multilateral level, it is easier to find solutions and engage a wider network of actors, including the private sector with all its transformative potential. 2017 Africa Energy Yearbook

Portugal supports the effective dynamisation of local economies by promoting inclusive economic growth and strengthening domestic activity, and by the attraction of direct foreign investment that contributes to the increasing regional and global integration of African countries. Simultaneously, the promotion of good governance, democracy and the consolidation of the rule of law must always be in our sight. Portugal has been actively involved in bilateral cooperation in Africa, particularly in the Portuguese-speaking countries. Through projects in fields as diverse as agriculture, education, vocational training, healthcare or justice, we seek to contribute to the consolidation of political and institutional structures in a democratic context. With regard to the 2030 Agenda’s guidelines, Portugal has also been aligning its bilateral cooperation with partner countries with the commitments and approaches contained in the sustainable development goals. In doing so, we will continue to concentrate our efforts in countries most in need and on areas where we have a particular added value, such as education, health, capacity building and – of course – energy efficiency and the green economy. It is of paramount importance, however, that we fully grasp the scale of the task ahead. As the OECD’s development assistance committee (DAC) recognised last January in its report, A new DAC in a changing world: Setting a path for the future, the amount of funding necessary to implement the 2030 Agenda –

estimated around USD3.3–5.5tn per annum – far outweighs the USD135bn provided each year in the form of official development aid (ODA). Assistance through ODA and traditional forms of development cooperation, as well as the central role played by state cooperation agencies, cannot be expected to tackle alone the challenges we will be facing in the coming years. The gap in resources identified by the DAC can only be bridged by innovative forms of cooperation and funding. Both the Addis Ababa Action Agenda and the 2030 Agenda on Sustainable Energy have fully realised this need and defined a path which leads to the promotion of new partnerships, in which the private sector plays a paramount role. Only by making full use of all the mechanisms at our disposal, blending funds from different origins – international financial institutions (including Portuguese SOFID), regional funds, the private sector and domestic resources – and strengthening collaboration between donors, can we expect to reach the goals set out by the 2030 Agenda. In a world of limited resources, the new development paradigm contained in the 2030 Agenda requires innovative solutions, a more result-oriented approach and, first and foremost, a cooperative relationship between all actors. Providing cost-effective and environmentally sustainable energy while simultaneously meeting people’s expectations regarding their individual and collective standards of living is only one of the challenges we face, but one which shows how deeply intertwined the different facets of development are. With our private and public sectors’ expertise in the field of renewable energies, together with our deep alliance and fruitful relation with our African partners, Portugal stands firmly behind its international commitments towards the promotion of worldwide sustainable development. 143

To me, being an artist is being oneself.â&#x20AC;? IMSAEL KATEREGGA

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KIBUYE MARKET, MIDDAY

Images submitted by Afriart gallery, Uganda

ISMAEL KATEREGGA Acrylic on Canvas 123cm x 93cm 2017 Africa Energy Yearbook

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UNLOCKING THE

ENGIE is a global energy player and an expert operator in the three businesses of electricity, natural gas and energy services. The Group develops its businesses around a model based on responsible growth to take on the major challenges of energyâ&#x20AC;&#x2122;s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources.

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OF AFRICA The current energy needs in African countries are met by primarily using a mix of biomass and fossil fuels.

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round 1.2 billion people worldwide do not have access to energy, half of which are in Africa. According to the IEA report, 635 million people in Africa are without access to energy and this number is likely to reach 700 million by 2030 due to demographic growth. African governments and citizens as well as international public or private stakeholders are clearly aware of Africa’s developmental challenges and the need to act. The successful development of the energy sector will be one of the driving and determining forces in this whole process. The current energy needs in African countries are met by primarily using a mix of biomass and fossil fuels. The economic growth, rising domestic demand and rapid urbanisation – more than half of Africans are expected to live in cities by 2050 – are forcing African countries to turn to innovative solutions stimulating renewable energy and to focus on energy efficient initiatives.

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It is crucial that investments be made in the most cost-efficient technology, taking into account the local availability of RES (solar irradiation, water, wind, biomass, storage) and the local conditions. ACHIEVING UNIVERSAL ENERGY ACCESS IS AMONG THE MAJOR CHALLENGES AND OPPORTUNITIES THAT AFRICA IS FACING TODAY.

On-grid power generation capacity amounts to 160 GW on the African continent, which is equal to the installed 148

capacity of Germany, however, the African population is 15 times bigger. Moreover, frequent power outages, as a result of poor maintenance of power stations, decrease the amount of generation capacity which is actually available. IEA estimates that by 2040 the installed capacity in Africa will amount to 558

GW and one billion people will have gained access to electricity, 950 million of them in Sub-Saharan Africa. These figures mean that in 2040, due to demographic growth, 75 per cent of Sub-Saharan Africa will have no access to energy, compared to 50 per cent today. Energy consumption in Africa remains shockingly low. Ethiopia, with a population of 94 million consumes one third of the electricity used by Washington DC, which has a population of only 600,000. By 2030 the energy gap between Africa and other regions will still widen (*Lights, Power, Action – Africa Progress Panel). According to IRENA’s estimates for 2015– 2030, the generation, transmission and distribution infrastructure development 2017 Africa Energy Yearbook

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secures the investments in RES, both centralised and off-grid, and tariffs that are fully cost-reflective.

DECENTRALISED SOLUTIONS ARE FURTHER BRIDGING THE ENERGY GAP.

New technology in clean energy, combined with the most recent tools to manage energy demand and increase efficiency, will boost Africa’s low-carbon power development.

Future electrification will rely largely on mini-grids and Solar Home Systems. According to the IEA, more than half of the rural population without energy access are best supplied with power via mini-grids.

The renewable energy opportunity will create a significant increase in business activity for Africa. It will fuel industrial growth, lead energy market transformation, support lifestyle changes and rural community development, and encourage technology innovation. IMPROVING INVESTMENT ATTRACTIVENESS IS THE BEST WAY TO ACHIEVE LOCAL AND GLOBAL DEVELOPMENT GOALS AND DRIVE THE AFRICAN ENERGY TRANSFORMATION.

of Africa’s power sector will require, on average, a yearly investment of USD70bn. Renewable energy could account for two thirds of the total investment in generation capacity or up to USD32bn per year. Indeed, the structural decline in the production cost of renewable energy, particularly in wind and solar energy is good news. Investors look at renewable energy as a low risk and an attractive investment to add to their portfolio, provided that the Power Purchase agreements are solid. It is crucial that investments be made in the most cost-efficient technology, taking into account the local availability of RES (solar irradiation, water, wind, biomass, storage) and the local conditions. We need a market design that optimises and 2017 Africa Energy Yearbook

Africa is currently going through an energy revolution, moving towards a less carbon-intensive, more decentralised and more technologically advanced energy. Africa’s energy system is gradually transforming into a more dynamic, flexible and diverse configuration with different degrees of scalability. A number of positive signals are already there: the resources currently used are local and the proposed solutions are technically and economically viable. As such, the market is getting more attractive both for local and international solution providers and investors. The political will is there; on 22 April 2016, more than 40 African countries were among the 175 signatories of the Paris Agreement, proposing national contributions in the energy sector. Attracting private capital investment will be key. At a time of decreasing investment flows, budgetary constraints, low oil prices and low revenues, governments have limited alternatives but to use public finance to stimulate energy investments. If African governments can guarantee the establishment of strong institutional, legal and regulatory frameworks, investment appetite will grow, risks will be mitigated and costs of doing business reduced.

Of the 315 million people who will gain access to electricity in Africa’s rural areas by 2040, it is estimated that only 30 per cent will be connected to national grids. Historically, off-grid solutions were not profitable and were mainly used by NGOs. Grid extension is especially expensive in remote areas with a low population density, which is often the case in Africa. Government programmes, backed by foreign direct investments (FDIs), had no focus on the sustainability of systems over time. Fortunately, there have been some changes; advancement in technology gives a boost to decentralised power generation for isolated companies and rural villages. New business models, tailored for the economic disadvantaged, have been developed to make systems affordable with, for example, a pay-as-you-go business model. Mobile money has allowed virtual transactions for people without bank accounts, avoiding logistic costs and fraud-related payments. Off-grid technology and mini-grids are enabling technology that can serve as a gradual step-in on the energy ladder. This will deliver energy services to both households and companies with diverging needs and incomes. Africa is definitely at a turning point in developing access to energy. The Continent will need both centralised and decentralised energy solutions. As a baseload is required, the mix of solutions will depend on the progress of storage systems. The structural decline in the production costs of renewable energy makes it possible to tap into the vast resources of Africa. Improved 149

“VOICES HEARD” Let the nation testify to the words said; Promises coming to pass, or, excuse. Be it more votes than love be the judge; You voted, you spoke. Now! He who Reigns, you voted “Owamanyi akubisa negwolina-gwo” DAVID KIGOZI

I STILL KNOW YOU WON LAST TIME

Images submitted by Afriart gallery, Uganda

DAVID KIGOZI Acrylic on Canvas 78cm x 116cm

TOMORROW THE BOWL OF RICE

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technology, comprehensive centralised and decentralised legal frameworks, capex reduction, access to finance and integration of solutions in digital platforms will be decisive factors for Africa’s electrification. Africa can count on enthusiastic private players such as ENGIE. We want to bring the best of our technical, legal, financial and institutional skills, along with a local anchorage to Africa. We want to form and develop a long-term partnership-based approach with African communities, clients and governments. Our renewable energy installations in Morocco and South Africa (the 100 MW CSP Kathu installation, the 100 MW Aurora Wind park, the 21 MW photovoltaic plants Aurora and Vredendal, the 300 MW Wind Tarfaya project) demonstrate that development opportunities in Africa can be successful and sustainable. In the coming years, we will also focus on decentralised solutions to include remote communities as well as small businesses into the energy loop as quickly as possible. In 2016, ENGIE commissioned its first ‘PowerCorner’ 16 kW micro-grid unit in a remote village of Tanzania and plans to develop seven more sites in 2017. We plan to develop many similar units in the coming years. We are currently rolling out solar energy solutions for rural households in Senegal, Côte d’Ivoire and Cameroon as well. Improvement in energy efficiency and services is an important factor to meet the ever-increasing demand in Africa. ENGIE is expanding its range of products and services in this domain, linking it to its other core energy businesses. Unlocking Africa’s energy future is already well on its way. The ingredients are there and smart development plans and decisions will continuously have to be made to ensure Africa’s steady growth.

ENGIE has been present in Africa, operating in the fields of electricity, natural gas and services for over 50 years. ENGIE is also present through its solidarity investment fund, ‘ENGIE Rassembleurs d’Energies’, which invests in projects that supply access to sustainable energy for vulnerable populations. To learn more about ENGIE Africa, see www.engie-africa.com 2017 Africa Energy Yearbook

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Electrifying Africa through crowdsourced origination

Photo with thanks to Ghana Capital Partners

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Reda El Chaar, Executive Chairman, Access Power Reda is a Chartered Alternative Investment Analyst. Before founding Access, Reda worked for ACWA Power where he established and led the implementation of the renewable energy strategy. Prior to joining ACWA Power Reda held various positions at Unilever and Price Waterhouse Coopers. Reda has led a number of precedent setting projects that have served as guiding platforms for the wider adoption and implementation of renewable energy projects in several countries. He has also been involved in over 6,000 MW of power projects. Reda is passionate about bringing renewable energy projects into new unsaturated markets, where renewable energy is an economical alternative to conventional power.

I have repeatedly said that for Africa, in particular, the central barrier to progress around electrification is not a lack of money to fund projects. It is rather the lack of credible, bankable projects through which the money can be deployed.

hese projects are precisely where Africaâ&#x20AC;&#x2122;s amazing resource of entrepreneurship and i n n ova t i o n needs to come into play. Initiating viable power projects requires strong local knowledge, creative thinking and a certain degree of bravery. Developing the projects, making them bankable and constructing them takes collaboration and cooperation, and strong relationships across the global financing and technology supply chain. One way of developing projects in this new, more dynamic context is using crowdsourced origination. This concept aims to connect the creativity of local developers with a global network of expertise and financing capacity through a continually expanding competitive framework. Most notably, continual advances in technology are seeing investment switching to renewable energy sources like solar PV and wind power, and are now increasingly able to compete with hydrocarbons on a cost basis. These projects are typically

2017 Africa Energy Yearbook

modular with the ability to be scaled up and easily replicated if needed. They can plug in where grid capacity is available without needing massive new infrastructure investments. They can also operate beyond the existing network, for example using mini grids. This technology revolution is opening up new possibilities for development and energy access for those people previously out of reach. The evolution of a new kind of power market points to an exciting future. It requires companies and individuals to operate on a global level, with best-inclass technical skills combined with local knowledge and input. The parameters and pathway to renewable energy projects in Africa are not the same as in the developed world and need to embrace the full diversity of the continent to achieve the goal of electrification and economic empowerment. Crowdsourced origination is the key to this and has at its heart working on a networked basis. As the world becomes ever more connected, it is human relationships that are key â&#x20AC;&#x201C; this is the future. 153

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INTERVIEWS: ACF WINNERS

Access Power is currently in the third year of its crowdsourced origination competition, the Access Co-Development Facility (ACF). The ACF operates in conjunction with a series of partners, including multilateral financial institutions like the IFC and AfDB, development finance institutions like the Netherlands’ FMO and the UK’s Africa InfraCo, as well as the US’s OPIC and development initiatives such as the US’s Power Africa. The central pot offers USD7m to three projects in Africa, and the applications are open to anyone, anywhere. Beyond just the initial financing, the scheme gives local developers access to technical and financial expertise and a constantly developing universe of investors and technology providers. Each year, as word spreads, the number of applications to the ACF grows. The projects which are being developed are fostering innovation and the introduction of new technologies and combinations of technologies. The 2016 co-winner from Madagascar is a Hybrid Hydro and Solar project, for example unique at utility scale.

ACF WINNER 2016:

25 MW Hybrid Hydro Solar by Stucky Madagascar everywhere in rural and urban Africa. In Madagascar, the electrification rate is only 15.4%.

In your experience, is it difficult to access finance for renewable energy projects?

Antoine Dubas, Director, Stucky

Why do you think the ACF is so important? The ACF is important because it is prepared to take risks in this sector to support projects and because it acts as the developer. Most IFIs tend to spend too much money on studies to justify their projects (e.g. ‘least cost option study’, 154

‘strategic framework and development plans’, ‘update of previous updates of feasibility studies’), instead of going ahead and building! It is obvious that there is a demand and that any additional kWh will be consumed – and paid for. The proof of this is that people buy diesel and generators to produce 1kWh/ US0.5 to USD1 at 0.5 to 1 $ /kWh

Yes. Most investors would like to invest in small-sized projects but actually end up investing in projects of USD100m or more due to high development/due diligence costs, for instance. With renewable energy projects, nearly 100% of the cost is frontloaded and most projects are usually site dependent. Thermal plants, however, are cheap to install, can be done nearly anywhere, do not require complex studies, and usually manage to have the fuel cost as a ‘pass through’ in a Power Purchase Agreement (PPA): investors investing in thermal power plants take no risk on international fuel prices. Additionally, electricity tariffs are too low in many African countries to be sustainable (in most cases, thanks to the cheap production from old amortised hydro power plants) and cannot be increased for political reasons. 2017 Africa Energy Yearbook

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ACF WINNER 2016:

50 MW Solar project by Menatech Energy, Nigeria

World Future Energy Summit January 2017; signing of JDA (Ryan Kassis, Menatech, second from left)

We are very happy to have won and have the support of Access Power through its innovative ACF platform.

What has winning the ACF meant for your project?

What type of support does the ACF offer?

What stage is the project at now?

We are very happy to have won and have the support of Access Power. The ACF platform has breathed new life into the project, enabling us to leverage on larger technical and financial resources.

Technical support, financial structuring, development process management, funding for all third party development costs, and a clear exit route at financial close.

In January, we signed the Joint Development Agreement (JDA) with Access Power and EREN RE, and are now working on securing a PPA.

ACF WINNER 2015:

50 MW Solar ABIBA Quaint Solar, Nigeria At what stage is this project after winning the competition? It is anticipated that the project will reach financial close in late 2017 and that construction will commence in 2018.

What difference will this project make to Nigeria?

Access Quaint Engineer, Peter Ayinde, and Acting Managing Director/CEO, NBET

Please tell us a little about this project and why it is important The project will construct a groundmounted 50 MW solar PV plant on a 150 ha site at Manchok in Nigeria’s 2017 Africa Energy Yearbook

Kaduna State. The plant will supply much-needed clean power to Nigeria’s national grid. Built according to the highest international standards, ABIBA will be Kaduna State’s first privately developed renewable power facility and its first solar project.

Once completed, this solar power plant will generate 82,500 MWh of clean electricity, enough to satisfy the daytime requirement of over 200,000 Nigerian households. In spite of Nigeria’s large oil reserves and strong economic growth in recent years, around 93 million Nigerians still lack access to modern electricity. Solar power is of particular interest given Nigeria’s high solar irradiation levels and the falling cost of solar panels. 155

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Dr Alex Money, Programme Director, Smith School of Enterprise and the Environment, University of Oxford, UK Alex Money is a research and teaching fellow at the University of Oxford. A former fund manager, he has over 15 years of practitioner experience in investment and industry. Alex is a programme director at Oxford’s Smith School of Enterprise and the Environment, where his research interests include corporate water strategy, infrastructure, investment, renewables and development. He focuses on the opportunities for empirical research to bridge knowledge gaps between academia and industry. Alex also teaches on Oxford’s undergraduate, postgraduate and MBA programmes, and is the director of a technology company that is backed by the University’s seed fund. He received his master’s and doctoral degrees from the University of Oxford.

The opportunities for renewables to unlock value through digital inclusion 156

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The seventeen Sustainable Development Goals (SDGs) set out some 169 targets to be achieved in the next thirteen years. The goals do not lack ambition, and it is perhaps not surprising that pockets of scepticism already exist regarding their achievability. However, the SDGs are an important statement of intent. To the degree that they help to mobilise policy, finance, and widen stakeholder participation, they represent a highly visible platform on which commitments can be made, and progress monitored.

ut perhaps even more importantly, the goals themselves provide an opportunity to reexamine our approach to aligning efforts with objectives, the nature of synergies and the inherently multidimensional nature of development. For example, it is almost impossible to imagine how progress on No Poverty (Goal 1) could be made without progress on Decent Work and Economic Growth (Goal 8). Similar interdependencies exist across the SDGs, for instance progress on Zero Hunger (Goal 2) will almost by definition lead to progress on Good Health and Wellbeing (Goal 3), while better Quality Education (Goal 4) appears to be a prerequisite for driving Reduced Inequality (Goal 10). This raises some interesting questions for all stakeholders engaging with the SDGs. Given the limited time and resource budgets available, what activities offer the greatest efficacy of effort? Or more simply, where can I get the most bang for a buck? This is the approach that we are taking for a new project that I am leading at the Smith School of Enterprise and the Environment at the University of Oxford. The project, called ‘Making Light Work’, focuses on the IFC’s Scaling Solar programme, where we

consider the innovative potential of this model to deliver utility-scale solarpowered electricity in sub-Saharan Africa. The project will look at the conditions that are necessary for this model to succeed at scale. In addition, we are interested in exploring some of the ways in which progress that is made through this initiative on SDG 7 (Affordable and Clean Energy) can lead to incremental progress on other sustainable development goals. We are particularly interested in understanding the value that a reliable electricity supply can unlock through digital inclusion and the knowledge economy in terms of SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities). Making Light Work (MLW) has three objectives. First, to establish whether there are a generalisable set of conditions that must be met for utility-scale urban solar programmes to succeed, at scale, in sub-Saharan Africa. Scaling Solar brings together a suite of IFC and World Bank services to offer a ‘one-stop shop’ for client countries, most of which are eligible for development assistance. The objective of the Scaling Solar programme is ‘to make privately funded grid-connected solar projects operational within two years and at competitive tariffs’. Zambia is host

We are particularly interested in understanding the value that a reliable electricity supply can unlock through digital inclusion and the knowledge economy in terms of SDG 8. 2017 Africa Energy Yearbook

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to Scaling Solar’s pilot implementation, and the facility is due to be operational in the next year. My project’s timeline – running through to March 2018 – is well suited both to identifying success factors before the installation becomes operational and subsequently testing these factors against observable evidence. Scaling Solar has already scheduled further implementations in Senegal and Madagascar in 2017/18, and we intend for the outputs from our work in Zambia to be widely disseminated to help support new and emerging initiatives underway. Our second objective is to identify specific and observable relationships between a more reliable electricity supply, economic prosperity, and the creation of social and cultural capital. The implications of intermittency in the context of a developing country (i.e. urban grid connections that offer unpredictable, irregular or sporadic access to electricity) are different to issues such as cost or accessibility. And yet, this is a markedly under-researched area in academic, policy and practitioner literature. Zambia is currently reliant on hydroelectric power to meet its energy requirements. The country has faced rolling brown-outs due to load-shedding on the grid. These have been particularly acute in the recent dry seasons, due to drought conditions and critically low levels of water in the Kariba Dam and other reservoirs. Intermittent electricity supply presents particular challenges of uncertainty and anxiety – from the maintenance of critical hospital equipment in hospitals, through to effective participation in the digital economy. A combination of greater urbanisation and population growth will likely place severe strain on urban infrastructure in sub-Saharan Africa in the next decade. Exploring the potential for solar power to contribute to reliability of supply – an inversion of the traditional critique of renewables as being intermittent and unreliable – is a core element of this research project. Our third objective is to consider the extent to which energy security delivers greater empowerment for individuals, communities, enterprises and civic society. Electricity generation and distribution is a monopoly industry in 158

much of SSA. If successful, the Scaling Solar programme will likely lead to more competitive domestic energy markets. MLW is interested in exploring the greater agency that this might bring. The transformation of internet connectivity across SSA in recent years has been accompanied by various predictions of a productivity revolution as the knowledge economy expands. That this growth has yet to substantively materialise is often attributed to energy insecurity, for example only 22% of Zambia’s population currently has access to electricity. MLW will test the hypothesis – through the lens of SSA’s knowledge economy – that greater access to energy drives a virtuous cycle of development, empowerment and wellbeing. It is important to note that while there is no universal definition of what the knowledge economy is, the term can be used to distinguish between traditional SSA economies where, for example, agriculture, mining and industry account for the bulk of output, to economies that emphasise production and use of knowledge. In these systems, academic institutions and companies engaging in research and development provide important foundations, as do those who apply this knowledge through their work, for example in systems engineering and software development. The productivity opportunities created by these actors then percolate across traditional sectors of the economy, creating new value. An example of this innovation in SSA abound is M-Pesa, which is now used across many industries as a method of secure and reliable mobile financial transfer. However, underpinning any broad-based knowledge economy is the requirement of sufficient ICT hardware, software, systems and processes. These need energy that is accessible, affordable, functional and reliable. Given SSA’s energy challenges, it is not surprising that its knowledge economy is relatively immature. The lack of infrastructure helps explain why, for example, international longdistance phone call rates to, from and between SSA countries remain some of the highest in the world. Internet access, speed and penetration has 2017 Africa Energy Yearbook

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As my colleagues at the Oxford Internet Institute (OII) point out, in recent times there have been radical changes to SSAâ&#x20AC;&#x2122;s international connectivity. correspondingly lagged other developed and developing regions. However, as my colleagues at the Oxford Internet Institute (OII) point out, in recent times there have been radical changes to SSAâ&#x20AC;&#x2122;s international connectivity. A global network of submarine fibre optic cables now connects most continents. It may come as some surprise that the third most connected country (after the USA and the UK) on the planet is Senegal. Most of the existing southern Atlantic cables land here, although Nigeria is also emerging as a contender as new cables are laid. Other cables will soon connect Latin America with Angola and South Africa as well. The conditions are therefore set for greater connectivity in SSA, and this

is reflected in the increased uptake of digital services: there are now about one hundred million internet users in the region. However, this still represents a low penetration of the current population. And while there are some seven hundred million mobile phone users, the valueadded connectivity characterised by the knowledge economy (e.g. the number of smartphone users) is still very low. A core hypothesis of our MLW project is that once the electricity that is needed to power ICT hardware, software, systems and processes becomes more accessible, affordable, functional and reliable, then the opportunities for digital inclusion in SSA through the knowledge economy

will expand exponentially. This has profound implications for economic growth, innovation and sustainability that are key to the SDGs. Investment into the power sector therefore yields both first and second order benefits that we are still in the early stages of quantifying. For example, how big could the knowledge economy be in Africa, if sustainably generated electricity were freely available and at a low cost? What is the value of this knowledge economy to the public and private sector, as well as to civic society? Are there models that can capture the downstream value that will be created from the infrastructure tomorrow, to lower the risk of investment in energy infrastructure today? We believe these are fundamentally interesting and important questions to the many stakeholders that are engaging with the issues of energy in Africa. Our work is at a relatively early stage, but we look forward to sharing our findings with any interested party. If you would like further information, or if you are interested in getting involved with our project, please get in touch.

2 FLOWERS

Images submitted by Afriart gallery, Uganda

RONEX AHIMBISIBWE Mixed Media on Canvas 70cm x 80cm

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Power Technology Providersâ&#x20AC;&#x2122; Directory

Photo with thanks to BioTherm Energy

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Conventional thermal Power

A.E.Z S r.l. Crespellano, Itlay Any Up to 2000kVA Beatrice Tassi 39051739099 beatrice.tassi@aezitaly.com www.aezitaly.com

Altaaqa Global Dubai, UAE Rental Power Plant Gas, Diesel, Dual Fuel 10 MW to 500 MW Southern Africa, Eastern Africa, North Africa, Central Africa, West Africa, Middle East Robert Bagatsing Marketing Manager +971 56 1749505 rbagatsing@altaaqaglobal.com www.altaaqaglobal.com

2017 Africa Energy Yearbook

Bruno S.r.l. Grottaminarda, Italy Perkins, Cummins, John Deere, Volvo, Honda Diesel 2-2000kVA 0390825 421005 export@brunogenerators.it www.brunogenerators.it

Autogen Technologies Incorporated County Tyrone, Northern Ireland Open-set, sound attenuated, standard or be-spoke generators Diesel 10kVA-4MW 00442 887747500 sales@autogen-technologies.com www.autogen-technologies.com

C Woermann GmbH & Co.KG Hamburg, Germany Prime and Standby Deutz engines Water and air-cooled 10-2000kVA Ghana, Nigeria, Angola 04940 3281110 info@c-woermann.de www.c-woermann.com

Balton CP Ltd Watford, UK High speed reciprocating engines Diesel 5kVA- 2,000kVA Ghana, Kenya, Nigeria, Rwanda, Senegal 00441923 228999 tk@baltoncp.com www.baltoncp.com

Barloworld Power Boksburg, South Africa Diesel and Gas Diesel/Gas 4kW - 16MW South Africa, Angola, Namibia, Mozambique, Botswana, Zambia, Malawi AksaJenerator Sanayi A.S Graeme De Villiers Istanbul, Turkey Assistant General Manager Portable, marine auxiliary and Onan marine (011) 898 0000 gensets gdv@barloworldpower.com Diesel/Gas www.barloworldpower.com Up to 2,500kVA Algeria, Nigeria 090212 4786666 export@aska.com.tr Bredenoord Handelsmy www.aksa.com.tr Apeldoorn, The Netherlands Diesel 5-2000kVA 31553018501 Ascot International hm.schimmel@bredenoord.com Gela, Italy www.bredenoord.com Single/ dual-use gensets Diesel 10-1500kVA 0390933 913003 Briggs & Stratton Corperation www.ascot-italia.it Dubai, U.A.E Portable, home and standby generators Diesel 7-45kW Atlas Copco Ghana Ltd Algeria, Angola, Botswana, Egypt, Ethiopia Accra, Ghana 97142994944 Portable gensets bascodxb@emirates.net.ae Diesel www.briggsandstratton.com 12-1250kVA Ghana

Broadcrown Ltd Stafford, UK High and medium speed reciprocating engines Diesel/Gas 6kVA-30MVA Angola, Cote dâ&#x20AC;&#x2122;Ivoire, Ethiopia, Ghana, Kenya 0044188 9272200 info@broadcrown.co.uk www.broadcrown.com

Atlas Copco Portable Air Ltd Aartselaar, Belgium Portable compressors and generators Diesel 12-1250kVA Angola, Botswana, Congo. D.R, Egypt, Kenya Elsie Vestraets 3234506117 elsie.vestraets@be.atlascopco.com www.atlascopco.com

Company: AEM Head Office: Dessau, Germany Type of generator: Customized synchronous and asynchronous generators for all kinds of application Fuel: Size: Up to 5 MVA List 5 top countries of operation: Worldwide Contact: Reiner Storch Position: CEO/Head of Sales Department Telephone: +49 340 203-210 Email: r.storch@aemdessau.de Website: www.aemdessau.de

Calsion Power System Co. Ltd Dangguan City, China MTU, Cummins, Volvo, Leroy Somer Diesel 20kw-3,000kw 086769 22713999 angelo@calsion.cn www.calsion.cn Caterpillar Electric Power Illinois, USA Any Diesel, gas, FHO Any Across Africa Robert Rankin Tertiary Manager AME, Electric Power Projects 41 22 849 4758 cat_power@cat.com www.cat-electricpower.com

Caterpillar Power Generation Systems 13105 NW Freeway, Suite910 Houston, Texas USA Medium speed diesel engines and equipment, turnkey diesel power plants Up to 150MW Heavy fuel oil, diesel oil, liquid bio fuels, natural gas Diesel engines from 1 to 14MW, gas engines upto 10MW Cape Verde, Guinea Conakry, Mali, Mauritania, Burkina Faso Sven Kluge Sales Manager Kluge_Sven@cat.com www.catpowerplants.com

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4 years [Em]powering the Next Generation EnergyNet is celebrating 4 years of the Student Engagement Initiative (ESEI), shining a light on the innovation and commitment of Africa’s students. ESEI was established due to the need to promote human capital development and job creation across Africa’s power and energy sectors. ESEI focuses on 3 key principles: • Law • Engineering • Finance EnergyNet works in collaboration with the ESEI Leadership Committee, our partners, Aggreko and Norton Rose Fulbright, as well as some of Africa’s top universities to support academically gifted students in the continent – Africa’s leaders of tomorrow. We invite you to support this transformative initiative, powering the next generation.

“I am student currently enrolled in the Law Bachelors degree at Eduardo Mondlane University. I am a chairperson of the supervisory board of the association of Law students at UEM. The ESEI programme will be a great opportunity for me to meet inﬂuential leaders, network and make strategic links.” erta fa B Lati onio t n A ela dam Zan tudent S 7 201

“The ESEI programme played an important part in helping me to pursue my research in renewable energy as, during this programme, I learnt a lot about the latest developments in the energy sector in various countries around the world. AEF 2015 was a great opportunity for me to learn that there is still much to be done in the renewable energy sector, especially in developing countries where access to energy is often an issue. It was a fantastic Deep experience.” ti Cha 2015

Lead Engineering Partner:

rita Stude r nt

Lead Legal Partner:

“I am now the Co-founder and current Managing Director of Equatorial Energies. In 2015, I was an ESEI student, attending the AEF. The exposure to the energy world enabled me to identify key issues in the industry that I strive to solve with my organisation. AEF allowed me to interact with leaders in energy; the interaction with the private and public sector helped diversify my knowledge on energy matters.” o Gaith Kevin tudent s 5 1 20

Associates:

For more information please contact: Ana Nicolaou, Ana.nicolaou@energynet.co.uk, +44 (0)20 7384 8226 www.student-engagement-initiative.com

310050_10ESEI_Spex 310050_10ESEI_Spex 310050_10ESEI_Spex 310050_10ESEI_Spex 310050_10ESEI_Spex 310050_10ESEI_Spex Brochure_A4_10pp_2016_v7.indd Brochure_A4_10pp_2016_v7.indd Brochure_A4_10pp_2016_v7.indd Brochure_A4_10pp_2016_v7.indd Brochure_A4_10pp_2016_v7.indd Brochure_A4_10pp_2016_v7.indd 1 11 1 1 1

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Clarke Energy Liverpool, UK Gas engines for combined heat and power Natural gas, biogas, landfill gas, sewage gas, coal bed methane, furnace gas 0.3-10MW Algeria, Nigeria, Tunisia, South Africa, Tanzania Alex Marshall Group Marketing and Compliance Director +44 (0)151 546 4446 alex.marshall@clarke-energy.com www.clarke-energy.com Coelmo S.r.l Acerra, Italy Industrial, Marine and Building Site gensets Diesel/Gas 3-3,000kVA 039081 8039731 sales@coelmo.it www.coelmo.it

Compagnia Technica Motori S.p.A Cesano Boscone, Italy Gensets powered by Mitsubishi and Volta Penta Diesel Engines Diesel 85-3,800kVA 03902 450581 ctm@ctm.it www.ctm.it

Cummins Power Generation Minneapolis Cummins Diesel/Gaz Up to 3.5MW Angola, Mozambique, Nigeria, South Africa, Libya Alaa Abdul Samad Business Development manager Tel. 971566865926 alaa.abdulsamad@cummins.com Cummins.com DEUTZ DIESELPOWER Johannesburg, South Africa 3 phase Diesel 30 - 1000kVA South Africa Steven Moss Sales Support 0027 11 923 0692 steven@deutz.co.za www.deutz.co.za

Doosan Škoda Power s.r.o. Pilsen, Czech Republic Steam Turbine Gas/Fosil/Biomass/Nuclear/Solar Up to 400 MW/Up to 800 MW/Up to 400 MW/ Up to 1200 MW/Up to 120 MW Egypt, Algeria, Morocco, Poland, Germany, India, Chile, Turkey Michal Košacký CFO 420 378 185 407 michal.kosacky@doosan.com www.doosanskoda.com

2017 Africa Energy Yearbook

31/03/2016 31/03/2016 31/03/2016 31/03/2016 13:02 31/03/2016 31/03/2016 13:02 13:0213:0213:02 13:02

31/03/2016 13:02

Dresser-Rand (Guascor Power) Zumaia, Spain Internal combustion engines (1,200 - 1,500 1,800 rpm) Propane, Associated Petroleum Gas, Flare Gas from Oil Fields, Rich Natural Gas, Natural Gas, Animal Manure and Biomass Biogas, Landfill and Waste Water Treatment/Sewage Biogas, Syngas, Gas from Tyre Processing, Dual Fuel (NatgasDiesel) and Diesel 250 - 1200 eKW Nigeria, Egypt, South Africa, Mozambique, Tunisia and Middle East Countries for Oil & Gas Applications (Flare Gas) Samuel García Baquerín Africa - Area Manager +34 943865200 sgbaquerin@dresser-rand.com www.dresser-rand/guascorpower.com

Elcos S.r.l. Grumello, Italy Diesel/Gas 1-3,000kVA Andrea Doddi 039 0372 7233313 andrea.doddi@elcos.net www.elcos.net

Energy Warehouse Africa CC. Gauteng, South Africa Lovol and Volvo engines Diesel/ gas 15-500kVA 02711 918 7000 deon@energywa.co.za

Eurosystems S.p.A Divisione Filippini Gruppi Elettrogeni Boretto, Italy Deutz, Perkins, Cummins, Iveco and Lombardini Diesel/Gas 2-2000kVA Morocco, Nigeria, Tunisia Fernanda Antunes 039 0522 688 141 fernanda.antunes@filippini.org www.filippini.org

GE Energy USA Steam, heavy-duty gas or aeroderivative gas turbines Air-cooled, hydrogen-cooled, liquid-cooled Up to 191 MVA Global http://www.ge-energy.com/contact.jsp http://www.ge-energy.com/index.jsp

GE Transportation Erie, PA, USA Reciprocating Engine Diesel 1Mw-5Mw South Africa, Algeria, Nigeria, Angola, Egypt David Zimmerman Global Sales Manager 859 360 3759 dave.zimmerman@ge.com Gemap 2 S.r.l. Caraglio, Italy Iveco Fit- Lomborini-Perkins-Scania Gasoline, Gasoil, Gas 1-2000kW 0390171 619744 gemap2@gemap2.com www.gemap2.com Genmac S.r.l. Gualtieri, Italy Various Diesel/Gas 2kW-1000kVA 039 0522 222311 info@genmac.it www.genmac.it

Geopower Africa Lanseria, South Africa Coelmo Diesel < 3MVA South Africa, Mozambique, Zambia, Botswana, Zimbabwe Howard Ramsden Director +27 (0)73 672 2502 howard.ramsden@terrapower.co.za www. geopowerafrica.co.za

FG Wilson (Engineering) Ltd Belfast, Northern Ireland Open and enclosed generating sets Diesel/gas 6.8-2,200kVA Ghaddar Machinery Co. Across Africa Sidon, Lebanon 004428 90495000 Perkins, Leroy Somer engines sales@fgwilson.com Diesel www.FGWilson.com/Africa Nigeria 09617 220 000 info@ghaddar.com www.ghaddar.com G&J Technical Servixes Ltd Obetsebi Lamptey Circle, Ghana Perkins, Scania and Mitsubishi engines Diesel Green Power Systems S r.l. 10-2500kVA Caprazzino di Sassocorvaro, Italy Ghana Range of manufacturers 0233 300 689178 Diesel/ gas gjtech4u.com.gh Up to 2200kVA www.gjtechghana.com 03907 227 26411 giovanni@greenpowergen.com www.greenpowergen.com

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Our portfolio

North & West

World

East & Southern

Our upcoming meetings in 2017/18 include: POWERING AFRICA: NIGERIA 20-22 September 2017 | Abuja The Annual

20-22 September 2017

Hilton Transcorp, Abuja

20-22 SEPTEMBER NIGERIA

28-29 SEPTEMBER COLOMBIA

The 6th annual Powering Africa: Nigeria meeting will focus on investment strategies, bringing together Nigeria’s electricity supply industry, local finance institutions, IPP and NIPP investors, power developers and international financiers to release capital in Nigeria’s power sector.

www.poweringafrica-nigeria.com

ENERGY INFRASTRUCTURE

23-25 JANUARY TANZANIA

The Growing Economies: Pacific Alliance Energy Forum gathers the country members of the Pacific Alliance – Colombia, Mexico, Peru and Chile – to further the group’s evolving energy agenda increasing regional engagement.

The 2nd Africa Energy Forum: Off the Grid meeting will come once again to Dar es Salaam from 23-25 January 2018 to focus on the topical issues concerning rolling out off-grid projects across Africa, and build on the outcomes of the first successful off grid Summit in December 2016.

www.pacificalliancegrowingeconomies.com

As a follow on from the hugely successful South Africa: Gas Options meeting, the International Gas Co-operaton Summit (IGCS) will focus on South Africa’s potential for gas procurement, distribution and utilisation nationally, regionally and globally, while integrating the GAS IPP programme with South Africa’s broader economic strategy for energy.

LATIN AMERICA & CARIBBEAN GAS OPTIONS 16-17 November 2017 | Panama City GAS OPTIONS

PA N A M A C I T Y GROWING ECONOMIES SERIES

16-17 NOVEMBER PANAMA

23-25 JANUARY TANZANIA

The Latin America & Caribbean Gas Options (LACGO) gathers some of the most exciting Latin American and Caribbean gas markets to address the future of gas for power in the region.

www.lac-gasoptionsgrowingeconomies.com

29 November 2017

Four Seasons – Marrakech

The Morocco: Gas Options – North & West Africa meeting will provide future stakeholders in Morocco’s procurement programme a platform to engage with the government and national utility annually in an open forum.

www.morocco-gasoptions.com 29-30 NOVEMBER MOROCCO

AFRICA RENEWABLE ENERGY FORUM 30 November-1 December 2017 | Marrakech Following the first Africa Renewable Energy Forum in November 2016, an officially endorsed side meeting of COP22, this meeting will once again focus specifically on renewable energy for African development to ensure the outcomes of COP are delivered. 30 NOVEMBER1 DECEMBER MOROCCO

www.africa-renewable-energy-forum.com

www.aef-offgrid.com

REGIONAL ENERGY CO-OPERATION SUMMIT 29-31 January 2018 | Abidjan 29-31 January 2018

SOFITEL IVOIRE – ABIDJAN

29-31 JANUARY CÔTE D'IVOIRE

The Regional Energy Co-operation Summit focuses on energy, infrastructure and the financing of projects in West Africa. The Summit will address opportunities for crossborder co-operation and regional integration, unlocking West Africa’s investments in energy and infrastructure.

www.regional-energy-cooperationsummit.com POWERING AFRICA: SUMMIT 8-9 March 2018 | Washington DC

The 4th Annual

S U M M I T

8-9 MARCH USA

MOROCCO: GAS OPTIONS 29-30 November 2017 | Marrakech GAS OPTIONS

www.poweringafrica-tanzania.com AEF: OFF THE GRID 23-25 January 2018 | Dar es Salaam

www.igcs-sa.com

LATIN AMERICA & CARIBBEAN

The East Africa Energy & Infrastructure Summit is a platform to discuss the region’s potential to attract private investment and encourage the development of IPPs. The meeting will also explore opportunities for regional collaboration within the East African region.

PACIFIC ALLIANCE ENERGY FORUM 28-29 September 2017 | Cartagena

INTERNATIONAL GAS COOPERATION SUMMIT 3-5 October 2017 | Durban

3-5 OCTOBER SOUTH AFRICA

EAST AFRICA ENERGY & INFRASTRUCTURE SUMMIT 23-25 January 2018 | Dar es Salaam

Held in Washington DC each year, the 4th annual Powering Africa: Summit is a global platform to showcase power, trade and infrastructure investment opportunities across Africa, engaging investors from North America and around to world to form partnerships and move projects forward.

www.poweringafrica-summit.com

AFRICA ENERGY FORUM 2018 25-28 June 2018 | Secret Location 20TH ANNIVERSARY

25-28 JUNE SECRET LOCATION

The Africa Energy Forum’s 20th anniversary will take place in 2018, celebrating 20 years of projects, partnerships and investment into Africa’s power sector. Join us for the biggest industry meet of the year at a secret location yet to be revealed.

www.africa-energy-forum.com

Our team spend over 220 days a year travelling to meet stakeholders across Africa, so relationships and investor insights are both our business and our passion.

For information on sponsoring, speaking and attending our meetings, please contact Amy Offord on +44 (0)20 7384 8068 or email marketing@energynet.co.uk

WWW.ENERGYNET.CO.UK

DIRECTORY

Greenheart Energy (Pty) Ltd London, United Kingdom Any Diesel, Biodiesel, HFO, Gas +1 MVA South Africa, Kenya, Namibia, Angola Mike Eyre Director +44 (0) 7802 437389 mike@greenheart.co.uk www.greenheartenergy.co.za

Grupos Electrogenos Gesan S.A Zaragoza, Spain Honda, Vanguard, Perkins, Volvo, Mitsubishi, MTU Water and air-cooled diesel and gas 2-3100kVA 034902 110316 info@gesan.com www.gesan.com

GUASCOR POWER Zumaia, Spain High Speed Reciprocating internal combustion engines Natural Gas, Biogas, Diesel 250 - 1200 eKW Nigeria, Egypt, South Africa, Mozambique, Marroco Samuel García Baquerín Africa - Area Manager +34 943865200 sgbaquerin@guascor.com www.guascorpower.com

HATZ Motorenfabrik Ruhstorf, Germany Mono and multi-cylinder engines Diesel 2.2kVA-60kW Algeria, Burkina Faso, Cameroon, Cote d’Ivoire, Egypt 0049 8531 3190 marketing@hatz-diesel.de www.hatz-diesel.de

HIMOINSA San Javier, Murcia Spain Portable, professional, heavy Diesel/Gas Diesel/Gas 3 - 3000 KVA 8KW - 3,5 MW Angola, Lybia, Mozambique, Sudafrica, Argelia, Equatorial Guinea Guillermo Elum Sales And Marketing Director +34 968191128 elum@himoinsa.com www.himoinsa.com

HIMOINSA Murcia , Spain Generator Sets and lighting tower Diesel and gas 3 KvA up to 3000 KvA Spain, UK, China, India and France Maria Garrido Marketing and Events Producer +34 968191128 mgarridop@himoinsa.com www.himoinsa.com

2017 Africa Energy Yearbook

Iberdrola Ingenieria y Construccion Madrid, Spain CCGT (Supplier) Gas >100 MW North Africa, Central Africa, Southern Africa Miguel Garagorri Business Development +34913833180 mgmi@iberdrola.es www.iberdrolaingenieria.com

Jubaili Bros (Engineering) Ltd. Lagos, Nigeria Perkins, Leroy Somer and FG Wilson engines Diesel 10-2200kVA +234 12710 9559 jb.ikeja@jubailibros.com www.jubailibos.com

Khatib Machinery Company-KMCO Iberdrola Ingenieria y Construccion Madrid, Spain FV Power Plant >15 MW North Africa, Central Africa, Southern Africa Miguel Garagorri Business Development +34913833180 mgmi@iberdrola.es www.iberdrolaingenieria.com

Beirut, Lebanon Perkins, Cummins, Lister and Volvo Diesel 9-2000kVA Angola Nabil El Atat 961 1 451452 info@kmco.com.lb www.kmcolb.com

IMS Cape Western Cape, SA Perkins, Cummins, MTU, Scania, Volvo Diesel 10-3000kVA +27 21 507 7200 bmccracken@ims.zest.co.za www.zest.co.za/ims

Kirloskar Oil Engines Ltd. Pune, India Air and water-cooled Diesel 15-600kVA Ethiopia, Kenya, Nigeria, SA, Tanzania Milind Panadare +9120 25810341 milind.panadare@kirloskar.com www.kirloskar.com

Interpower International Ltd. Pickering, UK Range of manufacturers Diesel 4-4000kVA 01751 476103 info@interpower.co.uk

Kohler Power Systems France EPA-compliant generator sets Diesel 5-3250kW Angola 0033149 178300 powersystems.emea@kohler.com www.kohlerpowersystems.com

JCB Power Products Ltd. Staffordshire, UK Singler and three phase, open and canopy Diesel/gas 8-2700kVA Algeria, Angola, Botswana, Kenya,Nigeria 18895 590312 generator.sales@jcb.com www.jcbgenerators.com

Laser Industries S.r.l. Unipersonale Pederobba, Italy Single units, parallel and cogeneration power plants Diesel/gas/HFO Up to 3000kVA 0039 0423 688135 export@laserindustries.it www.laserindustries.it

JMP Developments Essex, UK low hour, ex-standby generators Diesel/gas/FHO up to 2500kVA 1799 599209 jmpdvmt@aol.com John Deere Power Systems France 3,4,5 and 6 cylinders Diesel 21-460kW Angola, Egypt, Morocco, Nigeria, SA +33238 826119 jdengine@johndeere.com www.johndeere.com/gendrive

Lister Petter Ltd. Gloucestershire, UK Open or canopied, 50 and 60Hz Diesel 208-150kVA 0044 1453 544141 sales@lister-petter.co.uk www.lister-petter.co.uk

M.R.M. International Generators Ltd. Suffolk, UK Cummins, Perkins, John Deere, Lister, Volvo, MTU, Scandia and Caterpillar Diesel 2-5000kVA 0044 1473 310000 generators@mrmint.co.uk www.mrmint.co.uk

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Mahindra Powerol Mumbai, India Diesel Up to 500kVA Congo R.D., Gabon. Kenya, Niger, Tanzania 009122 6648 3824 www.mahindrapowerol.com

MAN Diesel & Turbo Augsburg, Germany 35/44G, 51/60G Gas Sizes 13,975mm x 4,540mm x 3,845mm, 18,558mm x 6,530mm x4,700mm Europe, Africa, USA, Saudi Arabia, Asia Michael Masters Sales Engineer, Power Plant +61 2 8874 0729 michael.masters@au.man.eu www.mandieselturbo.com.au

Mantrac Ghana Ltd Accra, Ghana High speed and medium speed reciprocating engines Diesel, Gas, HFO 5-12,000 kVA Ghana Walid Fakhry Power systems division manager +233 (0) 244 324880 fokontoh@mantracghana.com www.mantracpowersystems.com

Mantrac Kenya Ltd Nairobi, Kenya Caterpillar Diesel, Gas, HFO 5-12,000 kVA Kenya Ken Kamau Sales Manger +254 20 530903 ext. : 5204 kkamau@mantrackenya.com www.mantracpowersystems.com Mantrac Nigeria Limited Lagos, Nigeria High speed and medium speed reciprocating engines Diesel & gas 7kVA to 14,000 kVA Nigeria, Ghana, Tanzania, Kenya, Uganda Hicham Alkareemy General Sales Manager .+2348160000441 HAlkareemy@mantracnigeria.com www.mantracnigeria.com Mantrac Sierra Leone Ltd Freetown, Sierra Leone High speed and medium speed reciprocating engines Diesel/gas/HFO 5-12,000 kVA Sierra Leone Sahr Kpakima Sales Engineer +232 22 223317 skpakima@mantrac-sl.com www.mantracpowersystems.com

166

Marelli Motori S.p.A Pramac Lifter Afrique SARL Arzignano, Italy Dakar, Senegal Prime, Hydro/marine, diesel/gas/water Portable/stationary Diesel/gas Diesel 10-8000 kVA 1-3000 kVA South Africa Angola, Cameroon, Congo D.R, Cote dâ&#x20AC;&#x2122;Ivoire, +39 0444 479 711 Nigeria sales@marellimotori.com +221 33869 3121 www.marellimotori.com afrique@pramac.com www.pramac.com Metallwarenfabrik Gemmingen GmbH Gemmingen, Germany Honda, Briggs & Stratton, Mitsubishi, Deutz Diesel/gas 205-500 kVA Nigeria +49 7267 806 158 hoerdt@metallwarenfabrik.com www.din-stromerzeuger.de Mikano International Ltd. Ikeja, Nigeria Basic and sound-proof Diesel/gas 9-5000 kVA Niger +2341 4602 1405 info@mikano-intl.com www.mikano-intl.com MODIL Maputo, Mozambique Diesel 15 to 1000 kVA Filipe Barbedo Manager +258 823013490 filipe@tdm.co.mz MWM GmbH Mannheim, Germany 400-4300 kW Germany, Spain, Russia, China, India, Turkey 496213840 info@mwm.net www.mwm.net

Prime & Standby Generators Cape Town, RSA Cummins, MTU, Volvo Lister, Deutz, Perkins, John Deere Diesel 5 kVa to 10 MW South Africa, Angola, Namibia, Nigeria, Mozambique Gareth Greenlees Director (+27) 21 9339560 gareth@greenbro.co.za www.greenbro.co.za

PW Power Systems Glastonbury, CT USA Aero-Derivatice Gas Turbines Natural Gas or Diesel Fuel 25 to 120 MW USA, Algeria, Venzuela, China, Argentina Vic Abrahamian Area Sales Director +972 50 5511210 Info@pwps.com www.pwps.com

Radiant Engineering FZC Shariah, UAE Perkins, Cummins, Lister Petter engines Diesel 5-2,000kVA 07916 5 574426/50 8260902 sales@radianteng.net www.radianteng.net

Pelican Engineering Co. Ltd. W. Yorkshire, UK Rolls Royce Open, canopy, container sets London, United Kingdom Diesel/gas 40-2750 kVA Andrew Beadle +44 1924 227722 General Sales Manager Africa/Middle East gensets@pelican-eng.co.uk +44 123 425 1057 www.pelican-eng.co.uk andy.beadle@rolls-royce.com www.rolls-royce.com Power Link Machine (Shanghai) Co. Ltd. Shanghai, China Perkins, Cummins, Powerlink Diesel 10-2000 kVA Applications suitable for harsh outdoor conditions 08621 5785485 info@powerlink.cn www.powerlinkgenset.com Powersource Projects Ltd. Surrey, UK Diesel 7.5-2000 kVA +44 1428 684980 sales@power-source-pro.co.uk www.power-source-pro.co.uk

Saccal Enterprises Beirut, Lebanon Perkins, Deitz, Lister ans Cummins engines Diesel Up to 2,000kVA Across Africa +961 1 700370 gm@saccal.com.lb www.saccal.com

Sakr Power S.a.L. Jbeil, Lebanon High/medium speec reciprocating engines Diesel 11-5300kVA Nigeria, Sudan +961 9 442000 sales@sakr.com www.sakr.com 2017 Africa Energy Yearbook

DIRECTORY

Siemens Johannesburg, South Africa Gas turbine Oil and gas 5-50MW Sweden, Norway,Germany, India, China Kiran Abraham Business Unit Manager - Industrial Power +27-11-652-2858 kiran.abraham@siemens.com www.siemens.com/africa

Steinmüller Engineering GmbH Gummersbach, Germany Steam Generator Municipal Waste and biomass Up to 100 MWth South Africa Jens Köster Head of Waste to Energy Department +49 2261 789 50 620 jens.koester@siemens.com www.steinmueller-engineering.com

SDMO Johannesburg Johannesburg, South Africa 800, 1200, 1500, 3000 rpm Petrol, Gasoil, Gas 1 up to 3000 kVA Nigeria, Senegal, South Africa, Angola, Kenya David Raison Southern Africa Sales Manager RSA +27 83 233 5561 - FR(roaming) +33 631 59 47 01 david.raison@sdmo.com www.sdmo.com

Siemens Johannesburg, South Africa Gas turbine, Steam Turbine oil and gas 25MVA- 1.270MVA Southern Africa + East Africa Ute Redecker Head of Siemens Energy +27 (11) 652 2072 Ute.Redecker@siemens.com www.siemens.com/africa

Steinmüller Engineering GmbH Gummersbach, Germany Steam Generator Biomass Up to 100 MWth South Africa Jens Köster Head of Waste to Energy Department +49 2261 789 50 620 jens.koester@siemens.com www.steinmueller-engineering.com

SDMO Nigeria Lagos, Nigeria 1200, 1500, 3000 rpm Gasoil, Gas 1 up to 3000 kva Daniel Roudaut West African Sales Manager +234 805 6666 444 daniel.roudaut@sdmo.com www.sdmo.com

Siemens Offenbach a.M., Germany Oil and gas Gas turbines from 150 up to 340 MW, Power Plants in open cycle, combined cycle, cogeneration, etc. Across Africa Marcus Nelle VP Sales +49 (69) 8072349 marcus.nelle@siemens.com www.siemens.com

Steinmüller Engineering GmbH Gummersbach, Germany Firing Systems for Large Steam Generators Refinery Residues (Heavy Oils), Low calorific gases Up to 400 MWel South Africa Hans-Ulrich Thierbach Head of Firing Systems / Boilers +49 2261 789 50 393 hans.thierbach@siemens.com www.steinmueller-engineering.com

Siemens Brussels, Belgium Oil and gas Gas turbines from 5 up to 340 MW, steam turbines from 0.5MW up to 1900 MW. Power Plants in open cycle, combined cycle, cogeneration, etc. West Central Africa Habib Benfarhat Director Business Development +32 2536 2267 habib.benfarhat@siemens.com www.siemens.com

Sterling Generators Pvt. Ltd. Sharjah, UAE Power plant turnkeys Diesel 30-3000kVA +971 50 9436981 sales@sterlinggenint.com www.sterlinggenerators.com

SDMO Alger Alger, Algeria 1200, 1500, 3000 rpm Gasoil, Gas 1 up to 3000 kVA Jean-Jacques Gunnec Northern Africa Sales Manager +231 21 68 12 12 jean-jacques.guennec@sdmo.com www.sdmo.com

SDMO Industries Brest, France Gensets and power plants Diesel, Petrol, Gas, Heavy fuel from 1kVA to 5MW France, Russia, Algeria, South Africa, Nigeria Patrick Le Guen Export Director +33 298 41 41 41 patrick.leguen@sdmo.com www.sdmo.com

Semco Maritime Esbjerg, Denmark All Diesel, HFO, Crude and Gas 20-200MW Africa, Central America, Middle East Jacob Rikard Nielsen Regional Sales Manager +971 50 88 21 439 jarni@semcomaritime.com www.semcomaritime.com

Siemens Johannesburg, South Africa Steam turbine Steam 0.1-250MW Germany, Czech Republic, India, Spain, China Kiran Abraham Business Unit Manager - Industrial Power 0027-11-652-2858 kiran.abraham@siemens.com www.siemens.com/africa

2017 Africa Energy Yearbook

Sojitz Corporation Tokyo, Japan IPP Developer Any (hydro, renewable, fossil fuel etc) Any KSA, Oman, Ghana, Nigeria, RSA Takatsune Hirayama Deputy General Manager +44 20 7337 7943 hirayama.takatsune@sojitz.com www.sojitz.com

Smith Power Equipment Gauteng, South Africa Silent/ultra silent Diesel 10-85kVA Across Africa +271 1284 2000 mail@smithpower.co.za www.smithpower.co.za

T.W. Generators Ltd. Hertfordshire, UK New and used reciprocating engines Diesel 10-1250kVA +44 1296 668420 sales@twgenerators.co.uk www.twgenerators.co.uk

Tecnogen S.p.A. Pontenure, Italy Diesel 2-2000kVA +390 52351 2440 export@tecnogen.com www.tecnogen.com

Teskan Generator Istanbul, Turkey Diesel/gas/marine 9-330kVA Kenya +902 16312 0550 info@teksanggenerator.com www.teksangenerator.com

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TOTALSUPPORT LTD Portharcourt - Nigeria MicroTurbine Natrual gas, propane, low-btu gas, diesel, kerosine 30-2000KW Nigeria, Kenya, Cameroon, Ghana, Uganda Ubani Nkaginieme CEO +234 8035055005 ubani@totalsupportenergy.com www.totalsupportenergy.com

Tessari Energia S.p.A. Padova, Italy Diesel 4-3000kVA +390 49828 5240 exportsales@tessarienergia.it www.tessarienergia.it

Toshiba Tokyo, Japan Synchronous Fossil Any Egypt, South Africa Hiromi Nagano Group Manager

GABA LANDING (SERPIA)

Unatrac Ltd Slough, UK Caterpillar Diesel, Gas, HFO 5-12,000kVA Egypt, Nigeria, Ghana, Sierra Leone, Kenya, Tanzania, Uganda Bill Haxworth Sales Manger +44 1753695555 powersystems@unatrac.com www.unatrac.com

Vibropower (UK) Ltd. Peterborough, UK Diesel 27-2200kVA Keith Wall +44 1733 230010 keithwall@vibropower.com www.vibropower.com

Visa S.p.A. Fontanelle, Italy Diesel Up to 2,000kVA Algeria, Morocco, South Africa, Tanzania +390 42250 9102 visa@visa.it www.visa.it

Westac Power Ltd. Aldershot, UK Diesel, natural gas, LPG Up to 2565kVA +44 1252 785170 rtanner@westac.co.uk www.westac.co.uk

Images submitted by Afriart gallery, Uganda

ISMAEL KATEREGGA Acrylic on Canvas 123cm x 93cm 168

2017 Africa Energy Yearbook

DIRECTORY

Temporary power Company: Advanced Diesel Engineering Head Office: Pontfract, U.K Type of generator: Silent generators for primary, standby and emergency power Fuel: Diesel Size: 15-3300kVA List 5 top countries of operation: Contact: G Attley Position: CEO/Head of Sales Department Telephone: +44 1977 608111 Email: g.attley@adeltd.co.uk Website: www.adeltd.co.uk Aggreko International Dubai, UAE Power gensets Diesel/gas/HFO 20 kVA up to 1250 kVA Across Africa James Shepherd Managing Director - Southern East Africa +971-4-8086200 james.shepherd@aggreko.ae http://africa.aggreko.com

Aggreko International Dubai, UAE Container Power gensets Diesel 500 kVA up to 1250 kVA Across Africa Robin James Business Development Director +971-4-8086200 robin.james@aggreko.ae

2017 Africa Energy Yearbook

Barloworld Energia Mozambique Maputo, Mozambique Standby Generators Diesel/gas/HFO 9,5kVA - 100MW Mozambique Joao Ferreira Country Manager, Power +258 84 477 5780 jferreira@barloworld-moz.com

Barloworld Namibia Walvis Bay, Namibia Standby Generators Diesel/gas/HFO 30kVA - 100MW Namibia Warrick Gibbens Snr. Project Manager +2711 898 0280 wgibbens@barloworldpower.com

Barloworld Power Zambia Kitwe, Zambia Standby Generators Diesel/gas/HFO 30kVA - 100MW Zambia Arne Thorkildsen Power Manager +26021 2211311 athorkildsen@barlows.com.zm

Barloworld Power Boksburg Boksburg, South Africa Standby Generators Diesel/Gas/HFO 13kVA- 16MW South Africa, Angola, Namibia, Botswana, Zambia Andy Strombeck General Sales Manager - Turnkey +2711 898 0232 astrombeck@barloworldpower.com

BIA Brussels, Belgium Diesel 8KvA> Mauritiana, DRC Cedric Leturcq General Manager +3210471544 cle@biaoverseas.com www.biaoverseas.com

Barloworld Power Botswana Gabarone, Botswana Standby Generators Diesel/Gas/HFO 22kVA - 100MW Botswana Marius McAslin Power Manager +267 395 1781 MMcAslin@barloworld-equipment.com

Aggreko International Dubai, UAE Gas Power Gensets Gas 1375 kVA Across Africa Andy Walker Head of Business Development Mining Global +971506252240,00 andy.walker@aggreko.ae APR Energy Jacksonville, FL USA Dual-fuel Mobile Gas Turbines, Diesel Power Modules, Natural Gas Power Modules Dual-fuel / Diesel / Gas 1.5-30 MW Angola, Libya, Botswana, Gabon, Senegal Ranjit Singh Managing Director of Europe, Middle East & Africa +971 52 888.8172 +1 904 223 2278 Ranjit.Singh@aprenergy.com www.aprenergy.com

Barloworld Energia Luanda, Angola Standby Generators Diesel/gas/HFO 30kVA - 100MW Angola Orlando Ferrao Operations Manager +244 222460220 oferrao@barloworld-angola.com

Barloworld Power Johannesburg Johannesburg, SA Standby Generators Diesel/gas/HFO 30kVA - 700kVA South Africa Shane Cadles Retail Sales Manager +2711 898 0240 Scadles@barloworld-equipment.com www.barloworldpowersystems.co.za

Barloworld Power Malawi Lilongwe, Malawi Standby Generators Diesel/Gas/HFO 11kVA - 800MW Malawi Patrick Khamula Power Manager +265 1870666 Pkhamula@barloworld-malawi.com

Car & General (Kenya) Ltd Nairobi Cummins Diesel 8 Kva > Kenya, Uganda, Ethiopia, Tanzania Seychelles, Rwanda, Burundi B.S. Balaji General Manager - Engineering +254 2 0554500 bsbalaji@cargen.com www.cargen.com

Caterpillar Electric Power Illinois, USA Any Diesel/gas, HFO Any Across Africa Robert Rankin Territory Manager AME, Electric Power Projects +41 22 849 4785 cat_power@cat.com www.cat-electricpower.com

CTBV LtĂŠe Port Louis - Mauritius Thermal power generator Bagass and coal 2 turbines. Each one is 35.5 MW Mauritius Geoffroy Mattlinger Director +2304226563 gmattlinger@ctbv.net

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Cummins Africa RDO Johannesburg Cummins Diesel, Gas 1000 kVA> Satish Jayaram Business Development Director - Power Projects Africa +27 11 844 7800/7816 satish.jayaram@cummins.com www.cumminspower.com www.cummins.com

Cummins Ghana Ltd Accra Cummins Diesel 8 kVA> Ghana, Liberia, Sierra Leone Meshach Kwegyir-Aggrey CPG Leader +233544334788 meshach.kwegyir-aggrey@cummins.com www.cumminspower.com www.cummins.com Cummins South Africa (Pty) Ltd Johannesburg Cummins Diesel 8 kVA> Southern Africa Johan Joubert General Manager - Power Generation +27 11 321 8733 johan.joubert@cummins.com www.cumminspower.com

Cummins West Africa Ltd Lagos Cummins Diesel 8 kVA> Nigeria Koullis Schizas General Manager +234 807 899 0161 koullis.schizas@cummins.com www.cumminswestafricaltd.com

Genrent International Nicosia, Cyrpus We use: (1) Gas and Diesel Gensets; (2) Gas turbines Diesel/gas/HFO Gensets: 250KW - 2 MW Turbines: 25/50 MW Brazil, Chile, Nigeria, Angola, Poland Hana-Muriel Dr. Setteboun VP Business Development & Finance +972-3-9720500 hanas@fkgen.com www.genrent-international.com

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GE Transportation Erie, PA, USA Reciprocating Engine Diesel 1Mw-5Mw South Africa, Algeria, Nigeria, Angola, Egypt David Zimmerman Global Sales Manager 859 360 3759 dave.zimmerman@ge.com

Mantrac Sierra Leone Ltd Freetown, Sierra Leone Caterpillar Diesel/gas/HFO 5-12,000kVA Sierra Leone Sahr Kpakima Sales Engineer +232 22 223317 skpakima@mantrac-sl.com www.mantracpowersystems.com

Jozi Power Limited Johannesburg, South Africa Reciprocating Engine Diesel Fleet of 1MW containerised gensets South Africa, Sierra Leone, Liberia, Namibia and Tanzania Leslie Dann Director +27 072 386 4315 leslie.dann@jozipower.com www.jozipower.com

Mantrac Tanzania Ltd Dar es Salaam, Tanzania Caterpillar Diesel/gas/HFO 5-12,000kVA Tanzania James Serre Sales Manager +255 0222 860 160 ext.: 5204 jserre@mantractanzania.com mantracpowersystems.com

Mantrac Egypt Cairo, Egypt Caterpillar Diesel/gas/HFO 5-12,000kVA Egypt Magdy Sawiris Sales Manager +2 02 300 4049 msawiris@mantrac.com.eg mantracpowersystems.com

Mantrac Uganda Ltd Kampala, Uganda Caterpillar Diesel/gas/HFO 5-12,000kVA Uganda Ali Rajab Sales Manager +254 414 304 135 arajab@mantracuganda.com mantracpowersystems.com

Mantrac Ghana Ltd Accra, Ghana Caterpillar Diesel, Gas, HFO 5-12,000kVA Ghana Felix Ofosu Kontoh Sales Manager +233 (0) 244 324880 fokontoh@mantracghana.com mantracpowersystems.com

Mantrac Kenya Ltd Nairobi, Kenya Caterpillar Diesel/gas/HFO 5-12,000kVA Kenya Ken Kamau Sales Manger +254 20 530903 ext. : 5204 kkamau@mantrackenya.com mantracpowersystems.com

Moçambique Diesel-Eléctrica Maputo, Moçambique Himoinsa Diesel from 7Kva to 2000Kva Mozambique, RSA Miguel Silva Managing Director +258 82 3036170 msilva@dieselelectrica.co.mz NEP (UK) Ltd. Surrey, UK Prime, power and standby opensets and canopies Diesel/gas 5-2500kVA UAE, KSA, Egypt, Egypt, Oman Paul Barter Int. Sales Manager +44 1932 242 242 info@nep-uk.com www.nep-uk.com

Mantrac Nigeria Ltd Lagos, Nigeria Caterpillar Diesel 500kVA to 2500kVA Nigeria, Ghana, Tanzania, Kenya, Uganda Tony Papau Project Manager .+2348060401050 Tpapai@mantracnigeria.com www.mantracnigeria.com

Prime & Standby Generators Cape Town, RSA Cummins, MTU, Volto Lister, Deutz, Perkins, John Deere Diesel 5 kVa to 10MW South Africa, Namibia, Angola, Nigeria, Mozambique Gareth Greenlees Director (+27) 21 9339560 gareth@greenbro.co.za www.greenbro.co.za

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Ruf GmbH & Co. KG Zaisertshofen, Germany Manufacturerer of briquetting systems Andreas Jessberger Sales Manager 08268/ 90 90-20 info@brikettieren.de www.brikettieren.de

Photo with thanks to Gigawatt Global

Rural World Resources International Bamenda, Cameroon Gas engine, Producer Gas, biogas < 100KW Cameroon Dr. Matt Fombong Director +237 99827697 ruralworldresources@yahoo.com

SDMO Johannesburg Johannesburg, South Africa 800, 1200, 1500, 3000 rpm Petrol, Gasoil, Gas 1 up to 3000 kva Nigeria, Senegal, South Africa, Angola, Kenya David Raison Southern Africa Sales Manager RSA +27 83 233 5561 - FR(roaming) +33 631 59 47 01 david.raison@sdmo.com www.sdmo.com Semco Maritime Esbjerg, Denmark All Diesel/gas/HFO/crude 20-200MW Africa, Central America, Middel East Jacob Rikard Nielsen Regional Sales Manager +971 50 88 21 439 jarni@semcomaritime.com www.semcomaritime.com

Unatrac Ltd Slough, UK Caterpillar Diesel/gas/HFO 5-12,000kVA Egypt, Nigeria, Ghana, Sierra Leone, Kenya Bill Haxworth Sales Manger +44 1753695555 powersystems@unatrac.com unatracpowersystems.com Christophe Jacquin Managing Director 33-160-158115 christophe.jacquin@aggreko.fr Willem Schoeman General Manager, Southern Africa 28 072 386 4315 willem.schoeman@jozipower.com www.yy-md.com

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Energy Photo of the Year: 2016 Photographic Excellence Winner: ORASCOM

Energy Photo of the Year: 2016 Social Impact Winner: We Care Solar

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Wind power Greenheart Energy (Pty) Ltd London, United Kingdom 1.25 MW South Africa, Kenya, Namibia, Angola Mike Eyre Director +44 (0) 7802 437389 mike@greenheart.co.uk www.greenheartenergy.co.za

Company: ALSTOM Head Office: Barcelona, Spain Type of generator: Size: 1.67 to 3MW List 5 top countries of operation: Contact: Laurene Hommet Position: Sales department, Alstom Wind Telephone: +34 93 489 09 38 Email: laurene.hommet@power.alstom.com Website: www.power.alstom.com Ammonit Berlin, Germany Wind turbines and accessories South Africa, Kenya, Europe Henner Schienitzk +49-30-6003188-0 hs@ammonit.com www.ammonit.com

Bergey Windpower Norman, OK USA 1kW, 7.5kW, 10kW Kenya, South Africa, Angola, Morocco, and Tunisia Scott Merrick Sales/Customer Service (405) 364-4212 smerrick@bergey.com www.bergey.com

El Sewedy Cables Cairo, Egypt 1.65 MW, 2.5 MW Amr Abdoun Sales Director +202 2690 43 11 a.abdoun@elsewedy.com www.elsewedy.com

Fortis Wind Energy Hoogkerk, The Netherlands 800W, 1.4kW, 5kW 10kW Mocambique, Mauritania, Kenya, Maroc Johan Kuikman General Manager +31 (0) 50 5515 666 info@fortiswindenergy.com www.fortiswindenergy.com

GE Energy Frankfurt, Germany +49 (0) 69 45 09 09 110 martin.reuther@ge.com

Goldwind Africa Cape Town, South Africa Permenant magnet direct drive wind turbines 1.5MW and 2.5MW South Africa Daniel Kurylo Director +27(0) 71 2095030 danielkurylo@goldwindafrica.com www.goldwindglobal.com

2017 Africa Energy Yearbook

Terra Wind Energy Lanseria, South Africa 2.5 megawatt South Africa, Mozambique, Zambia, Botswana, Zimbabwe Howard Ramsden Director +27 (0)73 672 2502 howard.ramsden@terrapower.co.za www. terrapower.co.za

Iberdrola Ingenieria y Construccion Madrid, Spain Wind FarmSupplier >50 MW North Africa, Central Africa, Southern Africa Miguel Garagorri Business Development +34913833180 mgmi@iberdrola.es www.iberdrolaingenieria.com

The Wind Factory International BV Amsterdam, The Netherlands 600W, 1,4kW, 5,8kW, 10kW, 80kW, 250kW, 900kW Kenya, Madagascar, Tanzania, Gambia, South Africa Pieter Klimp Managing Director +31-203422137 info@thewindfactory.com www.thewindfactory.com

Selam Awassa Business Group PLC Hawassa, Ethiopia 0-2kW Ethiopia, East African Region Atkelt Girmay General Manager +251916581694 selamabg@ethionet.et www.selamawassa.org

VERGNET Ormes - France from 200 kW to 1 MW (Wind Diesel Systems) Ethiopia, Nigeria, Kenya, Angola, Mauritiana Leopold Faye Sales Manager .+33 238 52 39 70 l.faye@verget.fr www.vergnet.fr

Semco Maritime Esbjerg, Denmark All Africa, Central America, Middel East, Jacob Rikard Nielsen Regional Sales Manager +971 50 88 21 439 jarni@semcomaritime.com www.semcomaritime.com Siemens Munich, Germany 2.3 MW -3.6 MW South Africa, Nigeria, Tunisia, Morocco, Algeria, Kenya Alain De Cat Sector Cluster Lead +234 (1) 4480220 alain.de_cat@siemens.com www.siemens.com/africa

superwind GmbH 50321 Bruehl / Germany 350 W Morocco, RSA Klaus Krieger Director kk@superwind.com www.superwind.com

Vestas Madrid, Spain Any Present in 70 countries on 5 continents Lance Marram Vice President Business Development +34 91 362 83 79 9379 +34 610 506 850 (Mobile) africaenergyforum@vestas.com www.vestas.com Melissa Lyras Business Development +34 91 362 8425 +34 664 301 110 (Mobile) Winglette Harrismith, South Africa 3kW Hans van Eeden Chief Engineer +270 58622 1838 info@winglette.com www.winglette.com African Windpower Cape Town, South Africa AWP 3.7 Namibia, Uganda +27 84 4444118 wtdist@mweb.co.za www.africanwindpower.com Suzlon Wind Energy S.A. (Pty) Ltd Pune, India Asia, Australia, Europe, South Africa, South America Silas Zimu CEO 011 784-7768 Silas.Zimu@suzlon.com www.suzlon.com

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Hydropower OSSBERGER GmbH+ Co Otto-Rieder-Str. 7, 91781 Weissenburg, Germany 5 kW up to 3,3 MW Rwanda, Angola, Cameroon, South Africa Mr. Helmut Erdmannsdörfer MD Hydro +49 (0) 9141 977 0 he@ossberger.de www.ossberger.de

Company: AEM Head Office: Dessau, Germany Unit size: Up to 5 MW/MVA List 5 top countries of operation: Worldwide Contact: Reiner Storch Position: CEO/Head of Sales Department Telephone: +49 340 203-210 Email: r.storch@aemdessau.de Website: www.aemdessau.de ANDRITZ HYDRO GmbH. Vienna, Austria 1 to 800 MW Austria, Germany, Canada, India, China Jens Päutz Head of Marketing & Communications +43/50805-52675 jens.paeutz@andritz.com www.andritz.com

Rural World Resources International Bamenda, Cameroon <100KW Cameroon Dr. Matt Fombong Director 237 99827697 ruralworldresources@yahoo.com

Gilbert Gilkes and Gordon Ltd Kendal, UK Hydro Turbines and Ancillery equipment Hydro Up to 20MW UK, North America, Africa, Sri Lanka, Japan Andrew Eaton Hydro Sales Engineer +44 1539 720028

Končar - Generators and Motors Inc. Zagreb, Croatia Up to 400 MVA; 25kV Ethiopia, Morocco, Guinea, Tanzania, Nigeria Roko Bodulic Sales Manager +385 1366 7495 +94 77 3500424 (Mobile) rbodulic@koncar-gim.hr www.koncar-gim.hr

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Entec St. Gallen - Switzerland Up to 250 kW Indonesia, Nepal, Vietnam, Laos, UK, Switzerland Martin Boelli Sales Manager +41 (0) 71 228 10 20 info@entec.ch www.entec.ch

Greenheart Energy (Pty) Ltd London, United Kingdom 1.25 mW South Africa, Kenya, Namibia, Angola Mike Eyre Director +44 (0) 7802 437389 mike@greenheart.co.uk www.greenheartenergy.co.za

Toshiba Tokyo, JPN Any Egypt, South Africa, Kenya Hiromi Nagano Group Manager, Business Strategy & Planning Div. Power Systems Company hiromi.nagano@toshiba.co.jp www3.toshiba.co.jp/power/index3.htm Tsega Mekonnen General Metal and Machining Works PLE Addis Abeba, Ethiopia 0-50kW Ethiopia, East African Region Tsega Legesse Owner +251911454528 tsega_l@yahoo.com

Sea Power International AB Stockholm, Sweden Ethiopia Inge Pettersson CEO +46 850586541 info@seapowerinternational.se www.seapowerinternational.se Siemens Munich, Germany All sizes can be offered depending on project South Africa, Nigeria, Tunisia, Morocco, Algeria Ute Meinikheim Sector Cluster Lead +234 (1) 4480220 ute.menikheim@siemens.com www.siemens.com/africa

Telemenia Ltd. Airpoert City, Israel Depends on specific turbines. We install Pelton and Francis turbines Albania, Ethiopia, Cote d’Ivoire, Uganda Hana-Muriel Dr. Setteboun VP Business Development & Finance +972-3-9720500 hanas@fkgen.com www.genrent-international.com VS TURBO (PVT) LTD Head Office - Colombo, Sri Lanka 1 - 25 MW Uganda, Kenya Udaya Siriwardena Plant Manager +94 11 2533444 (Head Office) nishan@v-s-hydro.com www.v-s-hydro.com

Semco Maritime Esbjerg, Denmark All Africa, Central America, Middel East Jacob Rikard Nielsen Regional Sales Manager +971 50 88 21 439 jarni@semcomaritime.com www.semcomaritime.com

Selam Awassa Business Group PLC Awassa, Ethiopia 0-300kW Ethiopia, East African Region Atkelt Girmay Technical Manager +251911649994 selamabg@ethionet.et www.selamawassa.org Telemenia Ltd. Airpoert City, Israel Depends on specific turbines. We install Pelton and Francis turbines Albania, Ethiopia, Cote d’Ivoire, Uganda Hana-Muriel Dr. Setteboun VP Business Development & Finance +972-3-9720500 hanas@fkgen.com www.genrent-international.com

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Solar power Company: AEG Power Solutions Head Office: Cape Town, South Africa Unit description: Solar Inverters, Power Controllers Unit size: 3,000 - 9,000 Liter/day (200 Wp/unit) 5 top countries of operation: Contact: Trevor De Vries Position: Managing Director Telephone: +27 21 555 8100 Email: trevor.de-vries(@)aegps.com Website: www.aegps.com/en altEnergy Western Cape, South Africa Supplies a range of solar energy solutions for domestic use Clinton Howes +27(0)23 626 5654 clinton@altenergy.co.za www.altenergy.co.za

AUTARCON GmbH Kassel, Germany Solar PV driven pumping and treatment stations for the decentral supply of drinking water 3,000 - 9,000 Liter/day (200 Wp/unit) Ghana, Gambia, Namibia, Brazil, India Philipp Otter Project Coordinator +49 (0) 561 5061 868 92 otter@autarcon.com www.autarcon.com BOSCH Solar Energy South Africa Midrand, South Africa Solar Photovoltaic (Bosch brand) Custom-made (no limit), off-grid, on-grid and mini-grid South Africa, Namibia, Botswana, Mozambique, Angola Andreas Wagner Sales Manager +27 82 922 6187 andreas.wagner@za.bosch.com www.bosch-solarenergy.com

BOSCH Thermotechnology South Africa Midrand, South Africa Solar Thermal (Bosch brand) 150, 200, 300 L and large-scale applications South Africa, Namibia, Botswana, Mozambique, Mauritius Eduardo Gouveia Sales Manager +27 72 597 7753 eduardo.gouveia@za.bosch.com www.bosch-thermotechnology.com FK Generators and Equipment Airpoert City, Israel PV panels 240-280 Wp per panel Brazil, Namibia,Chile, Albania, Israel Hana-Muriel VP Business Development & Finance +972-3-9720500 hanas@fkgen.com www.fk-generators.co.il

2017 Africa Energy Yearbook

FLABEG Holding GmbH NĂźmberg, Germany Solar mirrors for concentrated solar power and concentrated photovoltaics Up to 2GW Egypt, Morocco, China, USA, India Thomas Deinlein Head of Marketing & Communication +49 911 96456 245 Thomas.deinlein@flabeg.com www.flabeg.com

PRECIMA (Junkers) Casablanca, Morocco Solar Thermal (Junkers brand) 150, 200, 300 L Morocco Khalid Berrada Director +212 5 22 35 05 08 contact@precima.ma www.precima.ma

Fraunhofer Institute for Solar Energy Systems Freiburg, Germany Egypt, Namibia Dr. Matthias Vetter Head of Department +49 (0) 761/4588-5600 matthias.vetter@ise.fraunhofer.de

Scatec Solar Oslo, Norway PV - Development, EPC and IPP 100p South Africa-West Africa-USA -Japan-Europe Terje Osmundsen Senior VP +47 95 92 62 77 terje.osmundsen@scatecsolar.com www.scatecsolar.com

Isofoton South Africa Photovoltaic modules, cells, Isokit solar, HCPV, Isotracker Power output ranges between 150 and 260W contact@isofoton.com www.isofoton.com/en/index-en Juwi Holding AG WĂśrrstadt in Germany International development of renewable energy projects (wind, solar) Germany; subsidiaries in 14 countries amongst them South Africa +49. (0)6732. 96 57 - 0 kontakt@juwi.de www.juwi.com KG Electric Johannesburg, South Africa Solar PV panels, Solar water pumps, inverters and control equipment 27 11 7083530 info@kgelectric.co.za www.kgelectric.co.za MAG Switzerland Schaffhausen, Switzerland Solar module manufacturing lines Sebastian Haupt Technology Manager Solar +41 526313347 sebastian.haupt@mag-ias.com www.mag-ias.com MAGE Solar Ravensburg, Germany photovoltaic system components: Modules, mounting systems, inverters +49 (0)751 / 560 17-0 info@magesolar.de Molar Solar Systems Duisburg, Germany Photovoltaics +49(0)203-75 99 98-0 info@mola-solar-systems.com www.mola-solar-systems.com

SMA Solar Niestetal, Germany Solar Inverter, Off-Grid Inverter, Wind Energy Inverter, Fuel Cell Inverter, Backup Systems Off-grid systems up to 300 kW Michael Wollny Director Business Development Off-Grid Solutions +49 561 9522 4122 Michael.Wollny@SMA.de www.sma.de Soitec Freiburg, Germany Concentrating Photovoltaic (CPV) power plants 28.1 kWP per system for utility-scale power plants US, South Africa, North Africa, Italy, France +49 (0)761-2141080 contact-solar@soitec.com www.soitec.com

Solarkiosk Berlin, Germany Autonomous business solar units for off-grid areas Across Africa Andreas Spiess CEO +49 (30) 4401 3309 www.solarkiosk.eu/?page_id=20 www.solarkiosk.eu Solarspring Freiburg, Germany Solar Driven (PV and Solar Thermal) water treatment systems for off-grid use Tunisia, Egypt, Namibia, Morocco, India Marcel Wieghaus Chief Executive Officer +49 (0)761/6105082 contact@solarspring.de www.solarspring.de

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Sovello GmbH Bitterfeld-Wolfen, Germany Photovoltaics 180 MW Nominal capacity per year (300MW planned) Germany, Italy, Spain, UK, France Sylvia Schmenk Director Sales +49 3494 6664 0 info@sovello.com www.sovello.com

STENDO s.r.l. Rome - Italy Consulence Italy UK Israel South Africa Stefano Cecutta Owner +390695945492 stefano@stendo.com www.stendo.com

Solar Power Africa South Africa Solar panels, inverters, solar trackers, charge controllers +27 (0)11 070 7577 info@spafrica.co.za

Semco Maritime Esbjerg, Denmark All 20-200MW Africa, Central America, Middel East Jacob Rikard Nielsen Regional Sales Manager +971 50 88 21 439 jarni@semcomaritime.com www.semcomaritime.com Setsolar Cape Town, South Africa Photovoltaic modules, system components, solar water heating +21 535 1794

SunPower San Jose, USA High efficiency PV solar solutions for residential, commercial and ground applications USA, Japan, Italy, Germany, South Africa François Le Ny Director of Utility & Power Plants Key Accounts, EMEA +33 6 73 28 39 70 francois.leny@sunpowercorp.com

YANDALUX GmbH Hamburg, Germany PV plants and components, solar home systems, solar powered pumps, solar telecom shelters, telephone kiosks, village power plants, hybrid plants Alexander Sipua Director African Affairs +49-40-25309890 info@yandalux.com www.yandalux.com

DEVELOPERS SPONSORING THE AFRICA ENERGY FORUM IN 2017 Company: Access Power Head Office: Dubai, United Arab Emirates Project completed: Uganda, Soroti 10MW Projects in development: 1500 MW across Africa and Asia at different levels of development Uganda, Egypt, Nigeria, Zambia, Madagascar Contact: Ana Parker Position: Communications Manager Telephone: +971543033647 Email: aparker@access-power.com Website: www.access-power.com/

Globeleq London, UK Completed Projects: 1,237 MW of Power Projects in operation Projects in development: Approximately 2,000 MW in development in Sub-Saharan Africa Cote d’Ivoire, Cameroon, Tanzania, S. Africa, Kenya Mike Scholey CFO / COO +44 (0)203 823 5500 www.globeleq.com

Building Energy Milano, Italy Kathu Solar PV, South Africa, 81 MW, Iowa Onshore Wind, USA, 30 MW and Asola Solar PV, Italy, 4 MW Approximately 3000 MW in Development including Solar PV, Onshore Wind, Biomass and Small Scale Hydro. South Africa, Italy, USA and Uganda Maria Grazia Tiballi Marketing & Communication +39 024 952 7730 m.tiballi@buildingenergy.it www.buildingenergy.it

Joule Africa London, UK Projects in development: Bumbuna II (Sierra Leone), a 143MW Hydropower project; and Kpep (Cameroon), a 484MW hydropower project Sierra Leone, Cameroon Paul Kunert CEO +44 (0) 2074997985 office@jouleafrica.com www.jouleafrica.com

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Lekela Advisors Limited London, UK Completed Projects: South Africa Noupoort Wind Farm (80MW) Projects in Development: Egypt, FIT Wind (50MW), Ghana, Aiyitepa, wind (225MW), Senegal, Taiba N’Diaye, wind (158MW) South Africa Isobel James Vice President HR +44 (0)203 301 6287 isobel.james@lekela.com www.lekela.com Mainstream Renewable Power Dublin, Ireland Completed Projects: Noupoort Winf Plant (80MW), Droogfontein Solar PV Plant (50MW) Projects in Development: Ghana (225MW) Ayitepa Wind Project, Senegal (158MW) -Taiba N’Diaye Wind Project S. Africa, Ghana, Senegal, Egypt Linda Thompson Head of Business Development +27 (0)21 657 4040 linda.thompson@mainstreamrp.com www.mainstreamrp.com

2017 Africa Energy Yearbook

ARTISTS

ARTISTS’ PROFILES Independent Artists ERMIAS EKUBE Born in 1970 in Addis-Ababa, he completed his primary and secondary education in Ethiopia. Ermias Ekube is an Eritrean painter, sculptor, engraver and poet, who currently lives and works in Västervik, Sweden. After completing his studies at the Addis Ababa University School of Fine Arts and Design, he began experimenting with different techniques in painting and 3D work. Currently, he is focused on realist portraiture. He is particularly interested in capturing the suffering and strength that certain African faces can express. His paintings, engravings and sculptures have been shown in several solo and group exhibitions, in Africa and Europe. In 1994, he cofounded the Asmara School of Fine Arts in Eritrea, where he taught painting for a year. He continued his teaching career within the Asmara Teacher Training Institute from 1997 to 2000, and set up several workshops and classes for young artists, including a course devoted to engraving techniques. In 2011, he also assisted in the development of books for integratedarts education for both primary and secondary schools. From 2007 to 2009, he participated, as founding member, in the Eritrean Film Rating Committee.

LESLIE LUMEH Leslie Lumeh was born in Dambala, Cape Mount County in Liberia. He is a self-taught professional who has made remarkable strides in his career as an artist, illustrator, cartoonist and teacher. After the civil war erupted in Liberia in 1989, Leslie moved to the Ivory Coast, where he spent nearly a decade living in Abidjan. Today this celebrated Liberian is a regional presence in West Africa, having contributed to a number of creative projects launched in Ivory Coast, Sierra Leone and Gabon. Returning to his native Liberia in 2005, Leslie has continued to be innovative in all the artistic disciplines, opening and operating his Art of the Heart art gallery in 2008, a first of its kind in the capital city. He then moved on to establish the Liberian Visual Arts Academy (LivArts) in 2010. The school’s programmes currently provide free art education to Liberian youths of all ages, with the support from several sponsors. On his style, Lumeh has stated that he takes his inspiration to paint from scenes in the daily lives of Liberians from all walks of life. His unique creation of suggestive imagery is neither exact nor precise yet provides all necessary elements for the viewer to know exactly what is presented. This approach has been described by critics as somewhat romantic. For what appears to be a simple mode of execution, on closer examination, reveals an intricate mastery of colour and design, coupled with subtlety and dexterity in his brush and palette knife technique.

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THE ARTISTS RENEWABLES REVOLUTION

AFRIART GALLERY WITH SPECIAL THANKS TO ENERGYNET’S ARTS: ENERGY PARTNER Afriart Gallery is a leading contemporary art gallery situated in Kampala, Uganda. The artists represented by the gallery are at the forefront of Kampala’s artistic community and are responsible for the transformation of Uganda’s art landscape.

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ISMAEL KATEREGGA Born and raised in Kampala 1980, Ismael completed a Bachelor’s degree in 2005, in Industrial and Fine Art (BIFA-Hons) from Margaret Trowell School of Art , Makerere University, Kampala, Uganda. During his days at University, he recalls having trouble with his tutors over limited freedom of expression, “To me, being an artist is being oneself.” He gains his inspiration from the daily activities from the streets of Kampala, beaches and boats on lake Victoria and animals. Although his style renders less detail, his strength lies in forms, controlled light and perspective. To date, he has made a mark on the Art scene both locally and internationally. His work graces the walls of many corporate and private collectors.

DAVID KIGOZI David was born in Kampala in 1975 and studied art at ITEK, Kyambogo, Uganda. He has been exhibiting since 1998 and his work has been shown in group and solo exhibitions in Uganda, Kenya, Tanzania, Australia and Germany. David was a participant in the East African Biennale 2005. In 2007 he was commissioned to sculpt a monument in copper outside the parliament building for the visit of HRH Queen Elizabeth II for the CHOGM in Uganda. Kigozi gains his inspiration from day to day life and from memories of his childhood; the games he played, the activities held. He uses chickens and other animals frequently in a symbolic way. He notes what we can learn from animals and birds especially from the absence of greed and selfishness. “I am empowered to cover complementary issues of our very present time. Events prevail that ought to be documented; my duty is to record happenings that provoke reaction and debate. My images should serve to complement the written records of the many writers”. David Kigozi

RONEX AHIMBISIBWE Ronex Ahimbisibwe is a semi-abstract multi-media artist who is rapidly developing into one of Uganda’s most celebrated artists. His artworks include paintings, sculptures, woodcut prints, digital art, photography, and mixed media installations. Ronex experiments with a wide variety of techniques and materials, while attempting to answer questions about methods and materials and the effects of texture on one’s perception. Ronex does not shy away from addressing themes that are controversial in Ugandan society. His visual journey entails studio research in a quest to discover his own capabilities, strength and doubts by tapping into the magic of the subconscious. Ronex is driven by one question, WHAT IF? What if he did this and that? What would be the outcome? He enjoys being surprised by the process and reversal of known truths.

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ARTISTS

FRED MUTEBI Ugandan artist Fred Mutebi uses a vibrant array of colors to create beautiful woodcut prints that depict stories about Africa or that portray images indigenous to the African environment. He is a master of the “multi-color progressive reduction method” of woodcut printmaking. The image is meticulously carved onto a wood plate, rolled with colored ink, and then registered onto a surface. The process is repeated five to six times on the same wood plate with different colors to complete the final image. At each stage, the colors transition from lightest to darkest. This particular technique of woodcut printmaking destroys the wood plate in the process. Carefully carved images and patterns are eventually removed in later stages to acquire the desired final print. As an artist and teacher, he believes that it is paramount that art should be used to inform people about global challenges. He strongly feels that it is extremely important to reach as many people as possible with art that relates with their issues, especially the youth of Uganda. Mutebi is very active in rural development in Uganda. Proceeds from the sales of his artwork are used to fund several community based initiatives.

OCOM ADONIAS The figurative artist and photographer Ocom Adonias, was born in Kireka in 1989. In 2013 he graduated from Margaret Trowell School of Industrial and Fine Arts at Makerere University as a water colour major. The education at this school greatly influenced him as he learnt about the art and language movement of great artists such as George Kyeyune and Taga Nuwagaba. Currently painting from Karewu Art Studio, he is working majorly in oils, watercolour and some other medium such as acrylics. His work engages in the realistic presentation of the lives of the common man and his heritage. The underlying intention is to tell stories about his experiences and the lives of people that he has met. His interest in the common man has led to current artistic research about his heritage and to the founding of his latest painting series “Karamoja Teso,” a project which is aiming to research and conserve the heritage. His work can be seen in Afriart Gallery and Diani Beach Art Gallery.

COLLIN SEKAJUGO Collin is a self-taught Ugandan-Rwandan artist born 1980 in Masaka, Uganda. In 2007 Collin Sekajugo, following artistic study tours around Africa, returned to Rwanda with a mission to “USE ART TO CHANGE LIVES.” Two years later, Collin founded and directed the first contemporary art centre in Rwanda, Ivuka Arts Kigali. An ambitious arts space, Ivuka Arts is committed to building community through the arts by providing promising young artists the skills, platform, and exposure to blossom as Rwanda’s next generation of successful artists, cultural entrepreneurs and ambassadors. While Collin continues to participate in various international artists’ workshops and residences, his work has always been a reflection of his social conscience; focusing on the link between art and community, especially on the desire for social transformation in Africa. He is inspired by perceptions and attitudes that influence social discord. 180

2017 Africa Energy Yearbook

Hydropower for Africa Renewable and sustainable energy for the future Morocco Matmata Ahmed El Hansali El Borj Tanafnit Ahmed El Hansali Daurat

Mali Manantali

Algeria Mansouriah Darguinah Tunisia Sidi Salem

Egypt New Naga Hammadi Aswan Assiut Ethiopia Beles Gilgel Gibe

Burkina Faso Bagre

Uganda Nalubaale Kenya Kiira Kindaruma Masinga-Dam

Guinea Garafiri Cote d’Ivoire Ayame Taabo San Pedro

Ghana Akosombo Kpong

Malawi Tedzani 1-3 Wovwe Nkula A

Togo Nangbeto Nigeria Kainji 11/12, 5/6 Shiroro Jebba Cameroon Edéa I-III Song Loulou Congo Djoué Democratic Republic of Congo Inga II Ruzizi I Ruzizi II Nzilo Angola Zongo Cambambe Bukavu Lauca Sebeya Matala Koni

Gabon Kinguele

Namibia Ruacana

Mozambique Mawusi Corumana Madagascar Mandraka Andekaleka Zambia Victoria Falls Kariba North Zimbabwe San Isidro Kariba South

South Africa Steenbras Drakensberg Vanderkloof

ANDRITZ HYDRO is a global supplier

We have a passion for Africa: with a

of electromechanical equipment and

market presence for over 100 years,

services (“from water-to-wire”) for

ANDRITZ HYDRO has supplied or refur-

hydropower plants. With over 175

bished around 50 % of Africa’s installed

years of experience and more than

hydropower capacity - large hydro, service

31,600 turbines installed, we are a

and rehabilitation and small hydro.

market leader for hydraulic power

We focus on the best solution – “from

generation.

water-to-wire”.

contact-hydro@andritz.com www.andritz.com/hydro

Tanzania Lower Kihansi Pangani Falls II

Lesotho Muela Mantsonyane I & II