UNFCCC Workshop on Climate Change Mitigation Renewables Initiatives in Africa - Selected Case Studies of Mitigation by Stephen Karekezi African Energy Policy Research Network (AFREPREN) [email protected] www.afrepren.org.
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UNFCCC Workshop on Climate Change Mitigation Renewables Initiatives in Africa - Selected Case Studies of Mitigation by Stephen Karekezi African Energy Policy Research Network (AFREPREN) [email protected] www.afrepren.org Renewed Interest in Renewables in Africa Increasing oil prices & pressure on convertible currency reserves ($40/barrel) $ Attractive job generation (unemployment/under employment rates 50-60%), technological development & enterprise creation potential of renewables Jobs - Biomass and Conventional Energy Forms Sector Person-years per TWh Nuclear 75 Natural gas 250 Petroleum 260 Offshore oil 265 Coal 370 Wood energy 1,000 Ethanol (from sugarcane) 4,000 Source: Goldemberg, 2003 Renewed Interest in Renewables in Africa Rio Conference/Climate Change Convention Johannesburg WSSD Conference Bonn 2004 Renewables Conference Decision makers rarely want to be 1st, prefer to be 2nd or even better, 3rd Growing importance of renewables in industrialized countries such as Austria, Germany (renewable energy industry has over 100,000 employees), Iceland and Denmark Success stories in selected African countries (Kenya & Mauritius) Geothermal - Kenya Large potential along the great Rift Valley (9,000MW - hot water/steam option only) Significant exploitation, largely in Kenya Large potential for grid-connected electricity generation from geothermal in Ethiopia, Tanzania and Uganda Country Installed Capacity (MW) Estimated Geothermal Potential (MW) Geothermal potential as % of current installed capacity 1,156 2,000 173 % Ethiopia 506 1,000 198 % Uganda 317 Tanzania Total for east and horn of Africa 835 450 No accurate estimate 142 % No accurate estimate 2,907 3,450 119 % Kenya Geothermal Energy Use Country Potential Generation in MW Exploited MW Exploited geothermal electricity generation as % of installed capacity Kenya 2,000 121 10.4 Ethiopia 1,000 2 0.4 Uganda 450 - - Source: BCSE, 2003. Limitations of Geothermal • Region-specific: Not available in all regions but non-hot water/steam option available throughout the world • High up-front drilling costs - equivalent to that of oil wells but lower risk • Cost competitive - least cost power development option for Kenya and cost even lower if heat application included Benefits of Geothermal • Security of supply - Close to 100% availability: Not affected by climatic changes such as drought & strengthens system balance • Recent drought in Kenya, Tanzania and Ethiopia led to 8 hour power cuts resulting in close to 1% drop in GDP • Attractive heat applications potential - Reduces poverty through rural jobs and enterprise creation • Technology development - Kenya offering technical support to neighboring countries & in a few cases participated in technical missions to industrialized countries • Equitable negotiation - Geothermal industry composed of small to medium sized companies which allows developing Governments to negotiate equitable arrangements Co-generation: Mauritius Combined Heat and Power (CHP) Substantial potential in agro & forest-based industries, e.g. sugar, paper and pulp, wood and rice industries Most sugar industries currently practicing co-generation for own use Grid-connected co-generation not widespread in the region Power Generation - Mauritius 40% Successful in Mauritius (40% of power supply of which 25% bagasse) Promising developments in Uganda, Kenya and Tanzania Sugar Industry 60% Others Limitations of Co-generation • Intermittent biomass feedstock - Can be addressed through dual-fuel boilers • Fixing price of co-generated power - Need pro-active and balanced Government or regulatory intervention to fix price agreeable to key stakeholders • Need a robust agro or forest industry: However, cogeneration can improve viability of agro or forest industry Benefits of Co-generation Cost-competitive - combined cost of heat & electricity very low Local resource and strengthens system balance- security of supply and enhances rural energy service Reduces in poverty - attractive job generation (at the sugar cane plantation level) and enterprise creation potential (local technology development) Can lead to equitable sharing of benefits: Mauritius case Incremental and modular - can start small (1 or 2MW investment to 50-70MW installations) which lowers initial risks and facilitates local participation Potential (Low Case): Bagasse-Based Cogeneration (% of current installed power generation capacity) 16 14 12 10 8 6 4 2 Ethiopia Kenya Tanzania Uganda 0 Self Sustaining Small Scale Renewable Industry: <1% of Electricity Bill Units Assem Manufs Bio-fuel improved stoves 7,000 - 10,000 7 – 10 Water pumps 5,000 – 6,000 3–4 Solar water heaters 4,000 – 5,000 5–7 Digestors 300 – 500 5–7 Wind-pumps 150 – 200 3–4 Small hydro units 50 - 100 2-3 Abundant Renewable Energy Resources in Africa Solar Wind 5-6 kWh/m2 3-5 m/s (higher in south & north coastal areas) Biomass Geothermal (hot water) Hydro (Small) Extensive 9000MW Extensive Key Challenge • Articulate a convincing policy case for renewables aimed at Ministries of Finance, Ministries of Energy & Utilities Focus on technological and economically proven renewables with near-term tangible benefits Energy security vis a vis fluctuating oil prices and drought related hydro shortages Enterprise creation Jobs Local technological development • Exploit existing and planned climate-related financing opportunities