Strategic Study on Wind Energy Development in Africa

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Strategic Study on Wind Energy Development in
Africa

• Presented by Mr. Louis Robert,
  MPMVice-president, Helimax EnergyPresented
  toAfrican Development Bank (AfDB)Tunis Wind
  Energy ConferenceOctober 28th, 2004

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Outline

• Helimax in a few words
• Wind Energy in the World
• Presentation of the wind energy study
• Background and Overall objective
• Methodology
• Results and conclusions of the reports
• Recommendations

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Helimax in a few Words

• Leading wind energy consulting company in Canada
• Projects/mandates in 9 of the 10 Canadian
  provinces / in 20 countries
• Multidisciplinary team dedicated to wind energy.
  Among our team
• 6 scientists including 4 meteorologists
• 11 engineers (various disciplines)
• 2 masters in project management
• 2 economists and specialists in the environment
• 3 support staff (administration and accounting)
• Presence nationally and internationally
• Québec 30
• Canada (outside Québec) 40
• International 30

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Wind Energy in the World

• Wind energy is clean, community friendly, and
  renewable.
• Wind Turbine Generator (WTG) is a proven and
  reliable technology.
• Approximately 40,000 megawatts (MW) of wind
  installed worldwide by the end of 2003.
• Wind farms in operation in 52 countries by the
  end of 2003.
• Average annual growth rate of about 32 over the
  past 10 years.

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Wind Energy in the World

• Investments on the order of US 10 billion in
  2003.
• Increasingly competitive with conventional
  generation due to ongoing reduction in price per
  kWh produced.
• Major players in the energy and financing sectors
  have become involved.
• Wind is no longer a marginal source of energy.

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Wind Energy in the World
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Background and Overall Objective of the Study

• Commissioned by African Development Bank
  (AfDB)
• Supported by Canadian International
  Development Agency (CIDA)
• Performed by Helimax Energy Inc.
• The overall objective of the Study was to promote
  investments in wind energy projects in Africa.

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Methodology

• The methodology was divided into 5 steps
• Wind mapping of Africa continent (53 countries)
  at a resolution of 50 km.
• B. Analysis of institutional and regulatory
  framework of countries with high wind energy
  potential

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Methodology (Contd)

• C. Technical, economic, social and environmental
  analysis of countries with high wind energy
  potential
• D. Development of a strategic plan for wind
  energy deployment in Africa.
• E. Search for financial partners interested in
  investing in wind energy projects in Africa.

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A. Meso-scale Wind Mapping of Africa

• Wind map produced using Helimaxs expertise with
  MC2-WEST.
• WEST stands for Wind Energy Simulation Toolkit.
• Dynamic, 3-Dimensional Atmospheric Model
  developed by Environment Canada, based on MC2.
• Sources of information NCEP/NCAR,
  Retscreen-NASA, Helimax knowledge, wind atlas,
  publically available information, pressure
  pattern, topographical maps.

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A. Meso-scale Wind Mapping of Africa

• CONCLUSION report A
• 15 countries endowed with excellent wind resource
• Southern Africa South Africa, Lesotho,
  Madagascar, Mauritius
• Eastern Africa Djibouti, Eritrea, Seychelles,
  Somalia
• North Africa Algeria, Egypt, Morocco, Tunisia
• West Africa Cape Verde, Mauritania
• Central Africa Chad

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B-C. Analysis of the country situations

• Analysis of the 15 countries endowed with high
  wind energy potential
• From a policy, institutional, legislative, and
  regulatory point of view
• From a technical, economic, social, and
  environmental point of view
• CONCLUSION reports B C
• the 15 countries can be grouped based on the
  similarities of their national situations

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B.-C. Similar country situations
Group 2 South Africa Algeria Egypt
Group 1 Morocco Tunisia
SIMILARITIES Policy in favour of wind energy Legal/regulatory framework in place Rapid growth of the electricity demand Wind farms up and running, others under dev. Fossil fuel imports
SIMILARITIES Abundant fossil fuel Cheap electricity generation cost Huge emission reduction potential Strong interest from various stakeholders Capacity to establish a new industry and create jobs
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B.-C. Similar country situations
Group 3 Cape Verde Eritrea Madagascar Mauritania Somalia
Group 4 Djibouti Lesotho Mauritius Seychelles Chad
SIMILARITIES Interest in wind energy Need to extend the supply of electricity to not served population Small scale projects in remote areas or connected to small local grid Investments restrictions
SIMILARITIES Not yet taken a stance Possible environmental constraints (cyclone) Possible other sources of energy more appropriate Geothermal, Djibouti Hydro, Lesotho Photovoltaic, Chad Bio-combustibles, Mauritius/Seychelles
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FIRST DISCUSSION PERIOD

• Questions?
• Commentaires / comments?
• Suggestions?

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D. Identification of the main barriers

• Legal and regulatory
• Lack of framework promoting private investment
• Lack of framework promoting wind power production
• Economic and Financial
• Incremental cost of wind energy
• Exacting financing conditions because of the risk
• Technical
• Limited knowledge of both the national wind
  resource and the electrical grid features
• Lack of wind power projects portfolio
• Lack of information and training
• Limited knowledge of wind energy, lack of
  qualified people, little experience in IPP, lack
  of experience sharing and coordination

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D. Profitability of large scale wind power
projects
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D. Strategic Plan 2005-2010

• Objective 1
• Implementation of the required conditions for the
  development of wind energy.
• Design and implementation of adequate
  institutional and regulatory framework,
  specifically to favour private development
• Production of wind maps of high resolution
• Study of electrical grid integration
• National capacity building in all aspects
  relating to wind
• Development of demonstration projects
• Promotion of wind energy to pertinent
  institutions.

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D. Strategic Plan 2005-2010

• Objective 2
• Implementation of viable commercial wind energy
  projects.
• Raising the interest of private sponsors and
  other potential investors in wind energy
  opportunities in Africa
• Mobilizing required funds for project preparation
• Performing feasibility studies and developing
  most promising wind energy projects
• Financing and implementing two or three wind
  power projects totaling an installed capacity of
  140 MW in Africa leading countries

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Recommendations

• It is recommended that the AfDB
• Keep promoting wind energy projects as one of its
  focus areas of action during the period
  2005-2010.
• Focus its action on a limited number of countries
  showing a different situations such as
• Tunisia, Morocco, South Africa
• Mauritania, Madagascar, Cape Verde, Mauritius,
  Eritrea
• Others,
• Selection criteria
• Excellent wind resource
• Mix of large scale and small scale projects
• Mix of advanced and less advanced countries with
  regard to wind energy
• Potential of greenhouse gas emission reductions
• One or two countries showing industrial capacity
  to implement a manufacturing plant

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Recommendations

• Address the needs of rural areas through the
  development of small wind energy (hybrid) systems
  for remote areas and small local grids.
• Address the needs of urban areas through the
  development of grid-connected utility scale wind
  farms.
• Develop a close collaboration with the most
  interested financial/institutional/governmental
  partners.
• Develop a close collaboration with one or two
  sponsor/IPPs developer that will show the highest
  interest.

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Recommendations

• Support, on a country by country basis, the
  design and the financing of specific wind energy
  programme/projects to be started in 2005 in the
  target countries.
• Confirm the collaboration with the most
  interested partners and secure part of the
  required funds to launch/pursue wind/ energy
  programmes/projects in 2005.

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SECOND DISCUSSION PERIOD

• Questions?
• Commentaires / comments?
• Recommandations / recommendations?