The Imperative of Overcoming Energy Poverty in Africa: an Action Plan e-Parliament Energy Hearings Kenya, 18-19 November, 2006 Paivi Koljonen, World Bank

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The Imperative of Overcoming Energy Poverty in
Africaan Action Plane-Parliament Energy
HearingsKenya, 18-19 November, 2006Paivi
Koljonen, World Bank
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Africa lags behind on energy access because of
country and donor constraints

• 500 million in sub-Saharan Africa lack access to
  electricity
• Governments limited will and capacity to roll
  out access programs
• Sub-optimal policies, regulation and planning
• Operational limitations weak capacity
• Inadequate donor response
• Ad hoc interventions, driven by donor priorities
• Financing inadequate and unpredictable

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The near-term crisis compounds the challenge

• Electricity supply shortages reducing GDP growth
  by up to 4 p.a.
• Natural causes such as drought
• High oil prices
• Degraded systems emerging from conflict
• In parallel with long-term response, a package of
  measures over 3-4 year timeline needed
• Emergency generation measures
• Rehabilitate systems improve management
  efficiency

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An Action Plan for Energy Access in Africa
Objectives
5 Implementation Tracks

1. Increase coverage for enterprises households
   via electrification programs
2. Enhance generation capacity, including via
   regional projects
3. Provision of energy services for key public
   facilities such as schools and clinics
4. Equip unconnected households with affordable,
   modern lighting
5. Push for cleaner, sustainable cooking heating
   technologies

Electricity for Growth
Powering the MDGs
Meet Basic Needs
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Success will require effective partnerships

• Country Ownership
• Costed, realistic scale-up plans
• Credible self-financing commitments
• A strategic - not prescriptive - approach that
  enables a range of outcomes

• Donor Commitment
• Programmatic, co-ordinated sector-wide approach
• Champion regional approach
• Scaled up, more predictable funding 2 billion
  to 4 billion p.a.
• Build client capacity to achieve results

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realized via a flexible sector syndication
approach
Government sponsors preparation, advised by a
lead syndicator
Prospectus presents credible investment plan for
scale-up, over 6-8 year time-frame
Syndicator works with donors private sector to
fill financing gap
Prospectus
Government as syndication sponsor
Targets



Investment Requirements
Lead syndicator
Capacity-building
Financing Plan
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We now need to move forward on several fronts

1. Build donor support for the new approach
2. Demonstrate country ownership commitment
3. Address the near-term crisis
4. Start work on the sector syndications,
   emphasising regional integration

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Summary

• Business-as-usual ? Africa will continue to lag
  behind in energy access
• A higher level of commitment from donors and
  countries, working together, is needed
• Sector syndication a flexible approach to
  scaling up, building on rigorous sector plans
• Need to contain the near-term crisis in parallel

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The Imperative of Overcoming Energy Poverty in
Africaan Action Plane-Parliament Energy
HearingsKenya, 18-19 November, 2006Paivi
Koljonen, World Bank