Participating countries

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Regional Workshop on Renewable Energy ECOWAS
Regional Centre for Renewable Energy and Energy
Efficiency Mahama Kappiah ECOWAS
Commission
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Presentation Outline

1. Preamble.
2. Context.
3. Energy Situation in the ECOWAS.
4. Barriers to the REEE sectors.
5. Aims and Objectives of the Center.
6. Objectives, activities and outcomes.
7. Funding and logistics.
8. Roadmap

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1. Preamble

• The ECOWAS Energy policy of 1982
• ECOWAS Energy protocol, 2002
• The ECOWAS white Paper 2006
• Council of Ministers meeting of November 2007
• ECOWAS Conference on Peace and Security in
  Ouagadougou 12 November 2007.
• Ouagadougou Declaration need to Establish a
  Regional Center for Renewable Energy and Energy
  Efficiency in ECOWAS region.
• Austrian Minister for European Affairs in charge
  of Development Cooperation pledged support to the
  proposed Center.
• President of ECOWAS Commission requested UNIDO to
  assist in the design of the Center.

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2. Context socio-economic

• Total population of 262million and projected to
  reach 320 million by 2015 2.65 growth rate.
• Region has 40 of population in SSA.
• Nigeria, Ghana and Cote DIvoire 60
  population.
• Rapid rural to urban migration that population in
  urban areas is expected to change from 43 to 50
  in 10 years.
• Semi-arid Sahelien in the north and tropical
  climates along coastal south.

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2. Context (contd) poverty levels

• 44 of population lives on less than 1US/day
  and is increasing
• 13 countries are LDCs HIPC.
• Income inequalities within and between
  countries.
• Very low levels of access to basic social
  services.
• Economic growth is fragile not match poverty
  levels.
• Agriculture is the main economic activity.
• Studies project that most countries are not
  schedule to meet the MDGs by 2015

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3. Energy Situation

• Significant but unevenly distributed energy
  resources
• 23,000MW potential with only 16 exploited.
  Located on 5 countries.
• Nigeria has 98 proven resources of crude oil,
  natural gas.
• Biomass, mainly in traditional forms, accounts
  for over 80 of energy consumed.
• Very low energy consumption rates in the world
• 4 of global population but accounts for 1.7 of
  total global energy consumption.
• Per capita electricity consumption is 88kWh
  continental average 563 kWh
• Per capita final energy consumption is 454 Kgoe
  global average 1145 Kgoe
• Per capita primary energy production in 915 Kgoe
  world average of 1163Kgoe
• Low access to energy services.
• Household access to electricity services is about
  20. ( 40 urban 6-8 rural).
• No decentralized energy systems.
• Access to modern fuels in rural areas is very
  low.
• Energy for domestic purposes is mainly from
  biomass and access to LPG and kerosene 5.

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3. Energy Situation (contd.)

• Heavy dependence on oil commercial energy.
• 60 of electricity generation capacity from
  oil. ( in some countries like Gambia, Guinea
  Bissau and Liberia it is 100)
• Recent high oil prices have stifled economic
  growth.
• Little coordination between sectors.
• Energy is a cross-sectoral issue hence the need
  for coordinated activities
• Electricity Sector faces several challenges.
• Power sector reforms have not been able to
  increase efficiency, attract private sector
  investment and ODA in the sector.
• Lack of capital for expansion and maintenance
  and rehabilitation projects have led to increase
  malfunctions and inefficiencies.
• Non cost reflective tariffs that are adopted to
  protect the poor affect financial standing of
  utilities.
• Lack of skilled personnel in utilities and
  government institutions.

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3. Energy Situation (contd.)

• Renewable energy resources unexploited.
• Biomass energy largely used in its traditional
  forms.
• Average insolation of 5-6 kWh/m2 per day
  throughout the year.
• Wind energy resources along the coast and desert
  zones.
• Small hydro potential largely unexploited
• Notable projects underway to promote biofuels
• Energy efficiency not prioritized
• Lack of political will to promote energy
  efficiency.
• Policy statements have not been operationalised.
• Urgent need to increase energy efficiency in
  industry for competitiveness and in other sectors
  to reduce costs.
• Increased regional approaches in the energy
  sector
• West African Power Pool - WAPP
• West African Gas pipeline WAGP
• The regional policy for increase access to energy
  services.

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4. Barriers to RE EE sectors

• Policy, Legal and regulatory frameworks
• Technology Transfer and Adaptation
• Low Capacity
• Low Awareness raising and advocacy
• Financing
• Lack of Institutional support

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4.1 Barriers to RE EE sectors

• Policy, Legal and regulatory frameworks.
• Some countries have developed comprehensive
  policies, laws and regulations but the challenges
  is in the operationalisation.
• Consequently, interest and investment from
  private sector has remain very low.
• Private sector has shunned large-scale
  grid-connected (gt1MW) RE peojects.
• No clear terms of engaging Independent Power
  Producers (IPP) feed in tariffs and technical
  specifications
• No model power purchase agreements (PPA) at
  national and regional levels.
• Business case for EE in all sectors is not made.
• Technology Transfer and Adaptation.
• Technology transfer efforts have not been based
  on meeting priority energy needs.
• Local manufacture of technologies is minimal
  ensuring quality and standards
• RD has tended to focus on prototype development,
  performance assessment at the expense of
  practical issues such as feasibility studies and
  policy and market research.
• More technology demonstration required for
  technologies like gasification.
• South-south and north-south cooperation
  frameworks can promote technology transfer.
• Partnerships are required to support technology
  acquisition and ownership.

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4.2 Barriers to RE EE sectors (contd)

• Capacity
• Policy makers, regulators and parliamentarians
  need capacity to formulate and implement policies
  that would create a level playing field for RE.
• Support institutions require capacity to
  effectively carryout their mandates.
• Market players such as project developers,
  financiers etc require capacity.
• Past capacity building initiatives employed a
  narrow set of tools like seminars, workshop that
  are not well integrated into actual project
  development and implementation. There is need to
  focus on practical training and learning-by-doing
  tools to include counterparting and twinning.
• Awareness raising and advocacy
• Lack of awareness about the potential benefits of
  REEE to the region.
• At policy makers level policies that are not
  supportive to REEE sectors.
• Private sector, project developers and financial
  institutions missed business opportunities.
• Consumers decisions are not based on energy
  considerations
• Lack of standards and performance labeling
  schemes results in inferior equipment and
  appliances flooding the local markets e.g.
  second-hand fridges, air conditioners etc

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4.3 Barriers to RE EE sectors (contd)

• Financing
• No credit and financing facilities that are
  suitable to RE EE projects.
• Financial services providers tend to cite market
  risks such as high transaction costs for small RE
  systems, uncertainties on resources base, price
  uncertainties etc.
• Project developers cannot prepare financing
  packages that respond to the needs of financiers
• Financial service providers need to widen their
  products to be able to finance REEE projects
• Public-private partnerships need to be employed
  to mitigate perceived and real risks.
• Carbon market opportunities have not been tapped.
• Institutional support
• Various projects have been implemented to promote
  REEE in the region.
• Once completed, there is reversal of some of the
  gains.
• There is need for instutionalized support to the
  development of REEE in the region.

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5. Aim of the Regional Center
Aim Promote renewable energy and energy
efficiency sectors in the ECOWAS/UEMOA region so
as to increase access to modern energy services
and enhance energy security to support
sustainable economic and social growth and reduce
negative environmental consequences of energy
production.
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5. Objectives of the Regional Center

• Four pillars/objectives
• Capacity building and awareness raising
• Research and Technology transfer
• Policy, legal and regulatory frameworks and
  quality assurance and
• Knowledge Management and advisory services.

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6. Objectives, activities and outcomes
Objective 1 Build capacity and raise awareness of key players in the REEE sectors
Expected Outcomes Key stakeholder have capacity and skill to develop and implement REEE projects and programmes. Citizens of the ECOWAS are aware and conscious of the possibilities and opportunities of using RE and energy conservation.
Activities Conduct integrated and real life project related training programmes for the following target groups high-level decision makers staff for national institutions, project developers, financial services providers, local manufacturers/SMEs, consumer organizations existing professional associations. Organize secondment activities (counterparting and twining) in priority areas. Develop curriculum of REEE for educational institutions and train their staff. Conduct targeted awareness raising and sensitization programmes that include seminars, coaching clinics, demonstration programmes and projects and provide decision support tools
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6. Objectives, activities and outcomes
Objective 2 Promote research and technology transfer
Expected Outcomes Research on renewable energy and energy efficiency policies, markets, technologies etc is carried out and findings are disseminated. Selected renewable energy and energy efficiency demonstration projects are implemented. Appropriate renewable energy and energy efficiency technologies are transferred among countries in the region and between the region and other regions.
Activities Initiate research/studies on renewable energy and energy efficiency policies, markets, technologies etc and disseminate findings. Conduct studies on renewable energy and energy efficiency success stories (and the not so successful cases) in the region and elsewhere and publish findings. Establish north-south and south-south cooperation frameworks with similar institutions to support the transfer of technologies, knowledge to the region. Identify and implement target demonstration projects and provide support to other countries to replicate and scale-up such projects. This entails developing investment projects based on lessons learnt.
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6. Objectives, activities and outcomes
Objective 3 Develop and operationalise supportive policy, legal and regulatory framework quality assurance
Expected Outcomes Policy, legal and regulatory frameworks for promoting renewable energy and energy efficiency sectors are established at national level and harmonized at regional level. Model power purchase agreement (PPA) are developed at country levels and harmonized at regional level. Renewable energy and energy efficiency equipment in the region meet agreed standards and all appliances in the region have performance labels. Increase in local manufacture of renewable energy and energy efficiency equipment.
Activities - Assist in the development of national and regional policies, laws and regulations that create a conducive environment for the promotion on RE EE sectors. -- Develop guidelines for engagement with IPPs for RE embedded power generation and model power purchase agreements (PPAs) at national and harmonize at regional level. - Develop and enforce regionally accepted standards of renewable energy equipment. - Develop and apply performance-labeling scheme for equipment used in the region and train local equipment manufactures to comply. - Train national renewable energy and energy efficiency related institutions to implement and enforce regional standards and equipment labeling scheme.
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Target Activities for 1st 3 years

• Equip Centre with relevant tool and equipment to
  carry capacity development programme for relevant
  renewable energy technologies
• Develop a Capacity Building Program and carry out
  Capacity building for various stakeholders for
  rapid market penetration of renewable and energy
  efficiency
• Carry out RE Resource Assessment and Develop maps
  and atlases for various RE resources to provide
  information on the quantity, quality,
  distribution, utilization and commercial
  feasibility of relevant RE applications for
  decision making on investments
• Develop appropriate regional policy frameworks
  and quality assurance standards to promote
  renewable energy and energy efficiency in member
  states
• Develop a web-based knowledge management services
  and products

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Target Activities for 1st 3 years

• Implement Multi cylinder Biomass Briquetting
  Project
• Implement Non-Grid Hybrid Wind Energy Project to
  demonstrate the viability of the hybrid system to
  boost rural electrification program and promote
  sustainable development in the region
• Implement a Solar Photovoltaic Project to
  demonstrate the viabiliy of solar PV applications
  in household, commercial, industrial,
  agricultural and institutional sectors to promote
  sustainable development in the region
• Implement a solar thermal project
• Develop Community-based Improved Wood Burning
  Stoves Program
• Implement a Compact Fluorescent Lamp (CFL)
  Projects in at Least three Member States

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Partners

• CIEMAT- Technical Partnership through the support
  of AECID
• ADA- Institutional support for the operation of
  Centre
• ECOWAS Commission- Institutional support for the
  operation of Centre
• EBID- through ABREF
• EU
• Germany
• France
• USA

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7. INSTITUTIONAL LOCATION STAFFING

• Effective use of resources and speedy
  establishment.
• Possible institutions to consider include ESP,
  CERER, EIER-ETSHER, EMIG Energy Centre-
  KNUST, KITE.

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7. INSTITUTIONAL LOCATION STAFFING

• Core Staff of the Center
• 2 Renewable Energy Expert.
• Energy Efficiency Expert.
• Biomass Expert
• Energy policy and research experts.
• Training and information/communication expert.
• Administrative and secretarial support staff
• Other Staff of the Center
• Technical Assistants and Seconded staff
• Project Staff to be hired on the
  project/programmes to be implemented.

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7. INSTITUTIONAL LOCATION STAFFING

• Steering Committee.
• To be chaired by the Director of the Center and
  meet twice a year.
• Composed of representatives of ECOWAS Member
  States, renewable energy institutions and staff
  of the Center.
• Review work progress and workplan of the Center
  and recommend to the Executive Board the for
  approval.
• To meet physically at least once every year
• Executive Board
• To be chaired by high-level representative of
  ECOWAS (Commissioner for infrastructure/Environmen
  t) with Director of the Center as secretary.
• Composed of 2 high-level representatives from
  partners (e.g. AECID/CIEMAT, ADA/UNIDO, EBID) and
  selected energy experts from the region and to
  meet annually.
• Highest decision-making authority of the Center
  and to decide on strategic issues for the Center
  such as activities, funding etc.
• Recommend to the ECOWAS Commission and Energy
  Ministers relevant policies and regulation to
  promote the widespread application of RE
  technologies in the subrgion

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Mile stones

• Oct 2008 Draft Report prepared and reviewed by
  committee comprising ECOWAS, UEMOA, AU, EU,
  UNIDO, SADC, etc
• Oct 2008 Report appraised by technical experts of
  ECOWAS/UEMOA MS
• Oct 2008 Resolution adopted by 9th Meeting of
  ECOWAS Energy Ministers on establishment of
  Centre
• Dec 2008 Council Regulation Adopted on
  establishment of Centre
• Dec 2008 Supplementary Act adopted by Authority
  of Heads of State on establishment of Centre and
  its location in Cape Verde

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10. Roadmap
April-2009- Liaise with the Gov. of CV to
provide Office accommodation and Logistics May
2009 Finalise preparatory activities and
Business plan for centre June 2009 Finalise
Technical cooperation Agreement with AECID and
CIEMAT June 2009- Sign grant agreement with the
gov. of Austria July 2009- launch Center and
commence operation