Africa-EU Renewable Energy Cooperation Programme (RECP) A European Platform for Private Sector Investments in Africa s RE Markets Alexander Huppertz
Background I: Demand and Market Volume in Africa SSA: 13% of the world s population, but only 4% of its energy demand Since 2000 energy use has risen by 45% Only 290 out of 915 million people have access to electricity 80% rely on traditional use of solid biomass, mainly fuelwood, for cooking Modern renewables account for less than 2% of the primary energy mix Annual (private!) investment in the range of double-digit billion US$ is required per year to meet Africa s energy needs Enormous challenge = huge opportunities! $1.0bn $0.0bn $0.2bn $0.5bn $0.2bn $0.3bn $2.0bn $1.4bn $6.8bn $6.5bn $3.1bn $5.2bn Other clean energy Geothermal Small hydro Wind Solar 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 New Investment in Clean energy in Sub-Saharan Africa 2004-15 ($bn); Source: Bloomberg New Energy Finance 2
Background II: Key Market Segments for RE in Africa Large / Meso- scale on-grid (IPP) Ticket size: Key regulations: XX-XXX US$m (meso: X-XX US$) PPA (FiT) Off-Grid (Mini-Grids) Ticket size: Key regulations: 0.X-X US$m (bundled X-XX US$m) Licences, Tariffs, Grid-connection standards Small on-grid (captive power) Ticket size: Key regulations: 0.X-X US$m (bundled X-XX US$m) FiT / Net-Metering Off-Grid (Standalone Systems) Ticket size: Key regulations: X-XX US$m ( bundled ) Standards, Import Tax / Duties 3
What is the RECP? The RECP is a African-European platform for promoting renewable energy market development and investment in Africa Funded by the European Commission, the Netherlands, Germany, Austria and Finland 4
How can the RECP provide support? Match-Making Events in Africa and Europe Successful Access to Financing Well structured and accessible Market Information Identifying Project Opportunities in Partner Countries Project preparation support and access to financial support + complementary policy advisory + support to skills development and innovation 5
How can the RECP provide support? Access to market information Web-based market briefings introducing the political and economic situation, the electricity sector and the RE potential Market Studies with how-to -information, providing an in-depth analysis of a certain market segment (e.g. Captive-Power/Self-Consumption in Nigeria) Project scouting: through in-country partners, and consultants Information events: workshops that introduce certain markets (or segments) presentations or panels; organized through partners 6
How can the RECP provide support? Access to potential business partners and project opportunities RECP matchmaking events help you identify your next project/partner: Meet technology suppliers, project developers, service providers from Europe Meet potential clients and business partners from African markets Meet potential financiers More than 15 events in preparation, both in Africa and Europe, for 2016 and 2017 Events are organized standalone or attached to other events, through partners (African and European industry associations or equivalent), with structured matchmaking sessions 7
How can the RECP provide support? Information on Financing Opportunities RECP s finance database helps you identify sources of funding: Information on more than 50 individual sources of funding; currently gathering data on funds Initial risk-mitigation instruments included, to be expanded Inclusion of local banks is planned 8
How can the RECP provide support? Advisory to Project Developers: the Finance Catalyst Provides advisory support to project developers on project development, structuring and access to finance ( bankability TA ) Cooperation ( two-way-street ) with existing financing instruments (ElectriFI, REPP, SEFA, and many others): feeding into as well as upstream referral Delivered through a team of highly experienced professionals Standardized and fair access procedure through an intake on the RECP website Time budget of up to 100 hours per project (deviations possible) 9
Initial Results Finance Catalyst is supporting projects in accessing finance since August 2016. First 7-months of operation resulted already in over 130 applications! Applications by Market Segment Applications by Technology 80 60 40 Small Hydro 10 Other 28 PV 52 20 0 IPP Mini-Grids SHS Other Biogas 12 Biomass 14 SHS 15 Clear need in the market for this type of early-stage project preparation support! 10
Initial Results Access to Finance II Strong interface with ElectriFi established Very close collaboration on working and management level between ElectriFi and RECP Finance Catalyst. Mutual referral system in place. Close exchange facilitates targeted advisory from Finance Catalyst Team towards feeding into ElectriFi. Additional interfaces established with: EEP DEG REPP Energy Access Ventures SEFA Et. Al. FMO RECP services are bridging the gap between projects and finance! 11
How can the services and products be accessed? Countries, Partners and Access The RECP operates in depth in six African countries (Nigeria, Rwanda, Uganda; Senegal, Zambia and Mozambique in preparation) We cooperate with and implement through a network of partners, both in-country as well as global or European industry associations Information and support services are accessible through www.africa-eu-renewables.org 12
Thank you for your attention! Suggestions & Feedback always welcome! www.africa-eu-renewables.org Contact: Alexander Huppertz, alexander.huppertz@euei-pdf.org
EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) Flexible European Technical Assistance instrument promoting sustainable energy for equitable development Services: donor coordination support, political dialogue, policy advice, private sector promotion Studies and Resources, e.g. Mini-Grid Policy Toolkit Building Energy Access Markets Low Cost Grid Electrification Etc. www.euei-pdf.org Bonn 6 March 2017 page 14
AEEP Mapping of Initiatives Goal: support coordination between donors, access to information for all stakeholders Objective: provide analytical framework for orientation, map all relevant initiatives in Africa Methodology: public sources, expert consultation, validation with initiatives directly Findings: 58 ongoing initiatives, ~5bn USD in 2013 Available at: http://www.euei-pdf.org 06.03.2017 Seite 15