Energy

Energy (179)

Africa Investment Forum 2018: Energy Projects Across Africa Progressing

The just-concluded Africa Investment Forum successfully convened key stakeholders, and provided an unprecedented platform for effective dialogue to drive investments into the continent.

Running on the margins of the Forum, the Africa Energy Market Place (AEMP) progressed with country-specific discussions that began at the inaugural AEMP in July 2018 aimed at removing barriers to private sector investments in energy.

Noteworthy gains were realized in the energy sector as various expressions and letters of interest were signed for projects in Ethiopia, Ghana, Angola and Cameroon, signaling commitment to continued collaboration.

On 8 November, the Bank signed a Letter of Interest for a US$100 million blended finance facility for Ethiopia's Off-grid programme. The operation, co-financed by the Bank and the European Union, is intended to support the off-grid sector, in line with Ethiopia's National Electrification Plan targeting up to 5.7 million household connections by 2025.

Speaking at the signing, Bank President, Dr. Akinwumi Adesina, praised Ethiopia's efficient utilization of financial resources. Also present at the signing, Ethiopia's H.E. Sahle-Work Zewde reiterated Ethiopia's commitment to ensuring that funds are optimally utilized to develop the country.

The Bank and Aenergy signed a Letter of Interest to arrange US$ 500 million of development finance capital for the Electricity Company of Ghana (ECG) project. Standard Bank will arrange US$ 300 million of commercial banking finance, bringing the total amount to US$ 800 million. 

This amount will supplement the investments of Aenergy and its partners. Aenergy is an Angolan-based, Africa-focused energy sector investor, developer and operator who was selected through a tender process as the preferred bidder for ECG's distribution business.

"Utilities are pivotal in driving economic growth and transforming industry. We are very proud to be associated with Aenergy to drive this project which will have a major impact on the Ghanaian economy", said Amadou Hott, Bank Vice President Vice-President Power, Energy, Climate Change and Green Growth.

The Bank also signed an Expression of Interest with Aenergy for power generation projects in Angola and Cameroon with a combined power output of over 1000MW.

"We are really looking forward to working with the Bank on these strategically important projects and for the opportunity to contribute to the growth strategies of Angola and Cameroon," said Ricardo Machado, founder and CEO of Aenergy.

Other positive outcomes in the follow-up boardroom conversations included continued progress and clarity on regulatory and policy issues, tariffs, liquidity, and reforms to fast-track transactions and move pipeline projects towards completion.

The Africa Investment Forum (AfricaInvestmentForum.com) is an initiative of the African Development Bank organized in partnership with Africa Export-Import Bank, African Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank and Trade and Development Bank.

 

The innovative marketplace is dedicated to advancing projects to bankable stages, raising capital, and accelerating the financial closure of deals.

Trade & Development Bank, USAID Sign MoU To Power Africa

The Eastern and Southern African Trade and Development Bank (TDB) and USAID's Power Africa initiative have today signed a memorandum of understanding (MoU) that will finance power projects in 22 African countries.

The memorandum was signed at African Development Bank's inaugural Africa Investment Forum, where emphasis on investment is at the core of tens of transactions anticipated to take place.

At the signing, the Trade and Development Bank's President and Chief Executive, Mr. Admassu Tadesse, said, "TDB is very pleased to deepen its existing partnership with USAID in further support of the Power Africa Initiative, which resonates strongly with TDB's strategy and mandate. We are proud to count USAID among our growing number of cooperating trade and development finance partners in the US."

As a new entrant to the program this collaboration makes TDB the 18th development partner of the Power Africa initiative. This formalises an already existing relationship between Power Africa and TBD, which has been working together to finance the power sector, and will now further strengthen the commitment to powering Africa through local institutions.

The Senior Deputy Assistant Administrator of USAID's Africa Bureau, Mr. Ramsey Day, said, "we are excited to welcome TDB as our 18th development partner. We applaud the Bank's commitment to increase its exposure in the energy sector from its current 8% to 20% of its portfolio, the equivalent of bringing $400 million new dollars towards power sector financing".

At the plenary session, some of the key take away messages exemplified by this MoU signing were to scale up, speed up, and synergise the opportunities for investment at the Africa Investment Forum.

Moi International Airport To Be Solar Powered

UK-based solar company, Solarcentury has signed a contract with the International Civil Aviation Organization to install solar PV systems at Moi International Airport in Mombasa, Kenya. The 500kW solar PV system will generate 820,000 kWh per year and offset 1,300 tons of CO₂ annually. 

Jonny Andersen, Managing Director for Kenya Airports Authority said in a statement: “We are excited to be the premier airports authority in the region to have the solar PV system installed. The expected savings on electricity as well as the reduction in carbon emissions will contribute towards the efficient operations of Moi International Airport.” 

As part of the installation of the solar PV system, Solarcentury will also install airport gate electrification equipment consisting of a mobile electric-powered pre-conditioned air unit and an electric 400 Hz Ground Power Unit converter. 

The solar PV system will also power the gate equipment which, in turn, will supply pre-conditioned air and compatible electric power respectively to aircrafts docked at passenger boarding bridges.

africaoilandpower.com

Parliament’s COSASE To Grill Mutebile, Kasekende

The governor Bank of Uganda Emmanuel Tumusiime-Mutebile and his deputy Louis Kasekende are set to appear before Parliament’s Commissions, Statutory Authorities and State Enterprises (Cosase) inquiry today, Wednesday, October 31, 2018. 

The meeting, according to Daily Monitor newspaper, will see the two top central bank officials tasked to ‘explain the mismanagement of closed banks and dealings with external lawyers as unearthed by the Auditor General in his special audit report to Parliament.’

The two officials also answer queries raised by the Auditor General, Mr John Muwanga.The daily newspaper reports that the auditor general report ‘revealed weaknesses in the management of the Central Bank and questioned the governor and his team for the hitches in the closure of at least seven commercial banks.’

Bank of Uganda in October 2016 took over management of Crane Bank and accused the Ruparelia Group owned bank of being ‘significantly undercapitalised’ and ‘poses a systemic risk to the stability of the financial’. The central bank said ‘continuation of Crane Bank’s activities in its current form’ was ‘detrimental to the interests of its depositors.’

A year later it sold Crane Bank to dfcu bank for at Shs200b. Daily also reports that a whistle-blower also told Cosase that BoU officials wrote off Crane Bank loans amounting to Shs600b through unclear circumstances.

The auditor general queried BoU officials on the flaws in the closure of Teefe Bank (1993), International Credit Bank Ltd (1998), Greenland Bank (1999), The Co-operative Bank (1999), National Bank of Commerce (2012), Global Trust Bank (2014) and the sale of Crane Bank Ltd (CBL) to dfcu (2016). All the former directors of the above closed banks will also be cross-examined by the committee this week.

The governor and his team will also respond to queries regarding unaccounted for funds, missing land titles and customer loans that were inherited from closed banks and sold at an undervalued rate. The MPs led by Abdul Katuntu will also seek to open the veil on the disputed sale of Crane Bank to dfcu at Shs200b. The AG observed that the assets and liabilities of Crane Bank were sold without any valuation.

Pressure was further piled on BoU and dfcu Bank by 400 ex-employees of Crane Bank who yesterday sought audience with Speaker Rebecca Kadaga to present a petition demanding an investigation into a Purchase of Assets and Assumption of Liabilities (P&A) agreement that was signed between BoU and dfcu Bank without the knowledge of ex-Crane bank staff. The AG also queried this agreement. They are demanding Shs48b in terminal benefits.

Bet-city Donates Solar Panels To Secondary School

Kikagate seed secondary School, a government aided schools operating without electricity received an assortment of sola panel donation from Bet-city the company that brings you the Supa3 game.

The donation is meant to improve performance of students in the School. Students can now with the help of solar lighting for extra hours in the night.

Jamal Sultan the country manager at Bet-city, said that lack of adequate lighting critically undermines children’s ability to study in the evening and consequently constrains their performance in the classrooms. “In this digital era, lighting is ever more important for students living in rural regions to keep up with and compete with those in urban areas” said Jamal.

“Solar energy is an excellent alternative for fossil fuels like coal because it is practically emission free. With solar energy the danger of further damage to the environment is minimized” Jamal concluded.

World Bank Must Do More To Eradicate Energy Poverty In Africa, Say African Leaders

Speaking at the World Bank meeting in Bali this month Jim Yong Kim, the World Bank President, said that African leaders have approached him and said that they need more support to provide baseload power in their countries.

He said that these African leaders are telling him it is wrong for institutions like the World Bank to tell them they cannot use fossil fuels for baseload electricity.

Speaking in Bali, Kim said that leaders across the developing world are telling him: "You've come to us in Africa who have put almost none of the carbon in the air and you can tell us we can't have baseload electricity,”

“You're outraged by climate change, we have almost no responsibility for putting the carbon in the air and yet you're telling us we can't develop and have baseload energy because we can't use a single drop of fossil fuel for our own energy needs. And I can tell you, when I hear that from our leaders, from people in industry, in places like Africa, it's compelling to me."

An estimated 1.1 billion people – 14% of the global population – do not have access to electricity according to the International Energy Agency. The World Bank has announced it will not fund upstream oil and gas projects from 2019 onwards, which follows a similar ban on coal financing.

Kim added at the Bali meeting: "We feel that you have to listen to the social justice arguments from people from poor countries who have not put any of the carbon in the air and want to have baseload."

It was reported in May by Bloomberg that climate talks organized by the United Nations ended with "developing countries demanding more clarity from their richer counterparts on when a promised package of $100 billion in finance will materialize". The piece said that "developing nations want more detail on what money is coming before signing up to the Paris rules".

In late 2017 Standard and Poor's released a report questioning questioning where $100 billion would come from, citing a need for many countries to increase budgets and debt burdens to finance their pledges.

The report by Standard and Poor's said: "In our view, it is very unlikely that governments would be willing, or able, to risk deteriorating their creditworthiness by stretching their budgets and debt burdens to fund the implementation costs."

Togolese, Eranove Group Sign Agreement For 65MW Electricity Plant

Under the high patronage of His Excellency Faure Essozimna Gnassingbé, President of the Togolese Republic, the Minister of Mines and Energy, Marc Dèdèriwè Ably-Bidamon, and the Director General of the pan-African industrial group Eranove, Marc Albérola, signed on 23 October a power generation concession agreement for the design, financing, construction, commissioning, operation and maintenance of the Kékéli Efficient Power plant (Kékéli meaning "aurora" in the Mina language), which will be located in the Lomé port area.

This project follows a competitive dialogue launched in January 2018. It includes the participation of Siemens, which wishes to be actively involved in the electrification efforts of the Togolese Republic, and will provide the turbines, technology and maintenance services for the power plant. The construction will be carried out by the Spanish group Grupo TSK (EPC).

As for the financing to be mobilized in CFA francs, the West African Development Bank (BOAD) and the pan-African banking group Oragroup will be the lead partners. The Eranove group will develop, operate and maintain this plant, which will eventually be operated and managed by Togolese people.

With an installed capacity of 65 MW, the Kékéli Efficient Power gas plant will use combined cycle technology. The technology makes it possible to produce more electricity without extra gas consumption while limiting CO2 emissions into the atmosphere, thereby contributing to electricity production that respects the sector's economic and financial balance and the environment.

According to Mr. Marc Dèdèriwè Ably-Bidamon, Togo's Minister of Mines and Power, the structuring and strategic project is in line with the dual will of his Excellency Mr. Faure Essozimna Gnassingbé and the Government to promote the national economy and cope with the ever-increasing demand for electrical power.

The Minister also says that the plant will be at the service of the development of the entire Togo development and provide extra electrical power for some 263,000 Togolese households.

Developing the Kékéli Efficient Power plant in Togo is also an important step in the growth of the pan-African industrial group Eranove. Eranove already operates 1,247 MW of generating capacity and is currently developing projects aiming to bring 1,000 MW to the continent's service.

"We are very happy and extremely proud to contribute in designing the national strategy and implementing the National Development Plan by developing the new electricity production unit alongside the Togolese Republic, and we thank the country's authorities for their trust.

Thanks to its recognized expertise and African roots, Eranove Group constantly strives to develop structuring, efficient and adapted projects for the continent. In order to ensure a successful quality public/private partnership, we have assembled an innovative pan-African financing mechanism denominated exclusively in CFA francs (a first for an Independent Electricity Producer in Africa) mobilized by regional institutions, as well as by renowned pan-European technical partners with Eranove, Siemens and TSK. The project is a perfect illustration of the model we want to promote in order to meet the challenge of access to electricity and water in Africa", says Marc Albérola, CEO of Eranove Group.

Backed by its leading shareholder Emerging Capital Partners (ECP), a pan-African leader in private equity raising $3 billion of assets dedicated to the African continent, Eranove Group is developing numerous projects in Côte d'Ivoire, Gabon, Madagascar, and Mali

EnergyWeek Morocco To Welcome 400 Energy Decision-Makers

EnergyWeek Morocco will take place from 14-15th November in Marrakech. The event is a platform for decision-makers in the energy sector to discuss the progress of regional power projects in North & West Africa.

Two separate investment meetings will be hosted within this week - the 3rd annual Africa Renewable Energy Forum to explore opportunities for gas and renewable energy project development.

The event is endorsed by the Ministries of Energy of Morocco, Burkina Faso, Ghana, Gabon, Liberia, Mali,  Mauritania and Sierra Leone with the support of leading Moroccan organisations ONEE, ONHYM,  MASEN and AMEE, as well as lead private sector companies BP, Cheniere, Fieldstone, Skypower, ENGIE, Wartsila, Acwa Power, Ibvogt and Larsen & Toubro.

The rise of renewables across Africa

Recent estimates from IRENA indicated US$32 billion is required each year from 2015 to 2030 to fully exploit Africa's renewable energy potential.  With many North & West African countries harbouring significant untapped natural resources, a vast potential exists for the continued development of an investment in renewable power projects.

Ambitious goals have been set by governments to increase renewable energy generation, such as Morocco's targets of achieving 52% clean energy from sources such as solar and wind by 2030, or Nigeria's vision of renewables accounting for 10% total energy consumption by 2025.

Milestone projects are now driving forward this momentum, such as Morocco's 580MW Noor Ouarzazate IV power station, scheduled to be fully commissioned by October 2018, or Senegal's 29 MW Senergy 1 solar PV plant – currently the largest solar farm in West Africa.

The future of gas in Africa

With gas widely considered the most affordable and clean base-load energy source, new discoveries in the gas sector are stimulating sector growth and infrastructure development, paving the way for the emergence of new players such as Senegal and Mauritania.

With African countries, both importing and exporting gas, the development of regional projects is set to benefit both gas producing and non-producing countries by supporting industrial and economic development.

Uganda Targets Geothermal Development Of Up To 100 Mw By 2025

Earlier this month during a mining conference, the Ugandan government highlighted the status and ambition for geothermal energy development.

But despite the considered geothermal potential, challenges remain in the development and utilisation of the resources. Now the government shows its ambition to develop up to 100 MW in geothermal power generation capacity in the country, as reported by Afrik21. The geothermal resource potential is estimated at 1,500 MW. 

With its ongoing economic growth, the country sees increasing energy demand. The Ugandan Ministry of Energy and Mineral Development is reporting that electricity demand has been growing on average of 8% per year.  Currently, the overall power generation capacity is at 893 MW. 

So while geothermal energy could be a key source for electricity generation and counter the over-reliance on hydropower and thermal power, the government has announced a target of at least 100 MW of geothermal power generation capacity to be developed by 2025. With private developers engaged in exploration and some drilling being carried out, this is seen as possible. 

“The government’s objective is to develop geothermal energy to complement hydropower and other energy sources to meet Uganda’s energy demand in a healthy environment,” Godfrey Bahati, of the Department of Geothermal Resources, recently told the Geological Survey and Mines Directorate at the Ugandan Ministry of Energy and Mineral Development. The country has identified 24 geothermal sites in the regions of Kibiro, Panyimur, Buranga and Katwe; all in the east of the country.

These areas have already seen some surface explorations and several private developers are in line for development on specific sites. Gids Consult Ltd, has a geothermal license in Buranga and plans the development of up to 100 MW, with a development cost estimated at $42 million (which likely refers to a smaller scale initial development only). 

Moto Geothermal Projekt Limited has secured a 28.1 km2 geothermal license in Ihimbo in Rukungiri District. The company plans to develop a 20 MW project having already secured support from Asigma Energy Fund, the energy wing of Asigma Capital, a Ugandan investment fund. 

Bantu Energy Limited holds a geothermal licence in the Panyigoro area. The Ugandan subsidiary of the Canadian company Bantu Energy Inc. is already active in the country’s oil and gas sector. 

Uganda is one of the East African countries with strong geothermal potential. The real challenge is obviously in exploitation, but the government is now showing its ambition which is to produce 100 MW of the renewable energy by 2025.

Thanks to the great Rift Valley in East Africa, several countries in the region have enormous geothermal potential, often untapped. This is the case in Uganda, which is in great need of energy to support economic growth and keep industries running.

According to the Ugandan Ministry of Energy and Mineral Development, electricity needs are growing by an average of 8% each year. The country’s production capacity is currently capped at 893 MW, while, according to the same source, Uganda has a geothermal potential of 1,500 MW…

Its massive exploitation could double the country’s installed capacity and diversify the energy mix, which currently reveals an over-reliance on hydroelectricity and thermal power plants.

However, the Ugandan government has not yet reached that point. It has set a target of at least 100 MW of production by 2025 and could succeed since several private producers are already carrying out drilling in several regions.

Several private producers in the race

“The government’s objective is to develop geothermal energy to complement hydropower and other energy sources to meet Uganda’s energy demand in a healthy environment,” Godfrey Bahati, of the Department of Geothermal Resources, recently told the Geological Survey and Mines Directorate at the Ugandan Ministry of Energy and Mineral Development. The government actually takes the issue very seriously as 24 geothermal sites have already been identified.

They are located in the regions of Kibiro, Panyimur, Buranga and Katwe; all in the east of the country. These territories have already been the subject of surface exploration. Several private producers of geothermal energy are already positioning themselves on certain sites.

Like Gids Consult Ltd, which is already very involved in environmental protection issues in Kenya and is licensed in the Buranga production area. The company plans to build a 100 MW geothermal power plant on the site. The cost of the project is estimated at $42 million.

Moto Geothermal Projekt Limited has also obtained a license to use geothermal energy at the 28.1 km2 Ihimbo site in Rukungiri District. The company would like to build a power plant with a capacity of 20 MW and has already received support from Asigma Energy Fund, the energy wing of Asigma Capital, a Ugandan investment fund.

Bantu Energy Limited holds a licence in the Panyigoro area. The Ugandan subsidiary of the Canadian company Bantu Energy Inc. is already active in the country’s oil and gas sector.

Egypt Turns To Renewable Energy To Meet Electricity Needs

Egypt has the potential to generate up to 53 per cent of its electricity from renewable sources by 2030, according to a new report by the International Renewable Energy Agency (IRENA).

The Renewable Energy Outlook: Egypt report, released at a high-level conference in Cairo today in the presence of Egyptian government officials and regional decision makers, finds that pursuing higher shares of renewable energy could reduce the country's energy bill by up to USD 900 million annually in 2030.

Renewables could cost-effectively provide up to a quarter of Egypt's total final energy supply in 2030, per the analysis. Achieving the higher targets would, however, require investment in renewables to grow from USD 2.5 billion per year based on today's policies to USD 6.5 billion per year.

Under current plans, Egypt aims to source 20 per cent of its electricity from renewables by 2022, rising to 42 per cent by 2035. Total installed capacity of renewables in the country today amounts to 3.7 gigawatts (GW).

"This analysis offers the Egyptian energy sector a roadmap, building on current ambitions and plans, to enhance our position as an energy hub connecting Europe, Asia and Africa," said H.E. Dr. Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy.

"Job creation, economic development and the growth of local manufacturing capabilities are at the heart of our renewables programme, and with the support of IRENA we can pursue our plans to grow the country's installed capacity base through smart policies, and the latest renewable technologies."

Egypt can draw on an abundance of renewable energy resources to achieve higher shares of hydropower, wind, solar and biomass. To capitalise on this, the report suggests that national policy makers may benefit from periodically re-evaluating the long-term energy strategy to reflect rapid advances in renewable energy technology and falling renewable power generation costs.

"Remarkable cost reductions in renewable energy in recent years are encouraging governments all over the world to rethink energy strategies so as to better reflect the new economics of renewables," said Mr. Adnan Z. Amin, IRENA Director-General.

"Egypt's renewable energy potential is vast and the Government has now moved decisively to accelerate its deployment. The Benban solar complex with its impressive scale reflects this new momentum."

"Building on these achievements, Egypt has the opportunity to further raise its ambition which entails substantially increased investments," continued Mr. Amin. "Attracting these investments requires stable policy frameworks and a streamlined regulatory environment that provides clarity and certainty for investors. Investments in renewable energy not only help to meet rising energy demand but they can also contribute to fostering economic growth, creating employment and developing local manufacturing."

 

 

 

The report was prepared by IRENA in close collaboration with Egypt's Ministry of Electricity and Renewable Energy, and the New and Renewable Energy Authority.

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