Policy Dialogue Conference
The Role of Renewable Energy for Poverty Alleviation and
Sustainable Development in
A contribution to the dialogue
between EU and
European Union Energy Initiative - EUEI
22 – 24 June 2005
Dar es Salaam, Tanzania
Moevenpick Royal Palm Hotel
JW Meeting Notes
· Raise awareness among high level decision makers on the potential of renewable energy in poverty alleviation and in improving access to energy services.
· Provide inspiration and background information for policymakers, investors and service providers.
Preliminary Conference Programme
08:00 – 09:00 Conference Registration
09:00 – 09:15 Welcome Address
09:15 – 09:30 Welcome Address by the Tanzanian Host Organisation
Estomih N. Sawe, Executive Director TaTEDO
09:30 – 09:45 The
EC Project ‘Partners for
Rainer Janssen, ‘Partners for Africa’ Project Co-ordinator, WIP,
Dirk Pottier, European Commission, DG RTD - INCO
09:45 – 10:00 Introductory Presentation on the EU Energy Initiative on Poverty Eradication and Sustainable Development (EUEI)
of the EUEI (
Presentation of on-going energy policy initiatives and strategies with a focus on access to energy and the role of renewable energy
Chairs: Estomih N. Sawe, TaTEDO and Dr. Rainer Janssen, WIP
Electricity consumption per capita = 84kWh/yr
Woody biomass consumption per capita = c. 1m3 or about 183 kgOe
Overall energy consumption per capita = 700 kgOe/yr
Biomass – 33.5 Mha of forest with 23.8 Mha production and 9,7 Mha protection / catchment forest
annual sustainable yield = 24.5 Mm3 (stacked vol e.g. fresh weight).
15 Mt of crop residues
1.1 Mt forest residues
Animal waste: 17.5 M cattle, 12,5 M goats and 3.5 M sheep (1998 census)
Average wind speed is 3m/s but there are areas with annual average of >5m/s
Average solar insolation is 218 kWm2
Transport consumes 40% of the petroleum based energy
>50% of population lives below the poverty line with 35.7% are unable to access all the basic needs.
Firewood accounts for about 40% of cooking energy in peri-urban areas.
Charcoal is the most common fuel in urban areas.
90% of energy consumption is supplied by biomass.
See table comparing rich vs poor consumption of energy.
- poor use about 35% of their income on energy (Kerosene and charcoal dominate)
- the non-poor use about 15% of income on energy.
‘We consider modern energy is having electricity’
Only the tourist regions are able to provide over 10% of households with grid electricity. The Pwani region which surrounds Dar is only 6% covered whilst Dar is about 55%.
Specific objectives of national energy policy:
- to exploit the hydro
- to develop utilise natural gas and coal resources
- to step up petroleum exploration activities.
- to reduce deforestation through the efficient use of biomass
- to develop other renewables
The parliament has approved the establishment of the Renewable Energy Agency:
- project identification and planning
- project facilitation
- technical assistance to project developers
Rural Energy Fund
- funding will come from government subventions
- donor funds
- levies from the generation or sales of energy products including electricity and petroleum goods
- contributions from other sources, and;
- interest on REF account.
Options to alleviation energy poverty based on energy policy:
- rural electrification
- energy efficiency
- promotion of appropriate (environmentally sound) energy technologies (e.g. clean gas and coal)
- agro forestry with multipurpose tree growing (especially biofuel trees).
Provided more detail on how to go about this;
in new policy it is clearly stated that any project must be subject to an Environmental Impact Assessment.
The strategy is not fully developed and needs further interaction with stakeholders.
Guliano Grassi – should consider how to establish an industry association to help with implementation.
Peter Helm- how to generate funds- ans: 5 or 6 years ago had generated a fund for ESCROWs based on a levy which was not used. TanRoads already charges 50shillings on each litre of fuel sold c.f. a total cost for fuel of about Sh1000 per litre. This mechanism is now well established and so generating funds through sur-charges is unlikely to run into trouble.
In electrification will have a mechanism to generate the funds to pay for the costs of connection.
10:30 – 11:00 Coffee Break
(Director Renewable Energy) Department of Minerals and
Opened Energy Dev Corp in CEF (2004)
Opened Designated National Authority 2005 (in DME)
Will work with the South African Bureau of Standards
(SABS) e.g. new standard on biodiesel and solar water heaters. Have bought a test rig from
White Paper on Renewable Energy Policy (2003) has set a target of 10TWh by 2013 to be produced mainly from biomass, wind, solar and small-scale hydro plus others.
- this is the equivalent of 4% of the estimated electricity demand of 41 539 MW in 2013.
- 1.4 Bl of diesel (14% of 1 years consumption) replaced with biodiesel.
- additional to the existing 9% of biomass consumption
The funding is based on the once off capital subsidies. This mechanism was chosen because did not want to encumber the treasury with long term financial drains.
Will have an open tender for a once-off capital subsidy. This approach also allows Government to determine for each budgetary cycle the extent to which it is willing to support renewable energy in forthcoming years.
R14.2M has been made available for 3 years.
Balance of funding through the carbon funding e.g. PCF, CDM…
The Petroleum Products Amendment:
- it will be a condition of a manufacturing licence or a wholesale licence, as the case may be, that the licence…. standards important
World Bank Funding
WB is positioning itself as a ‘knowledge bank’ and not a lending institution.
Are taking an exponential growth approach to renewables.
- see table put up showing the predicted progress of renewable energy over the next 5 years for each sector in terms of projects approved.
- SA is a member and needs to
o Regulatory / policy requirement
o Gobal / target
o Incentive level / schedule (capital grants and 30% duty reduction on transport fuels)
IEA projections – ethanol currently provides about 2.8% of global petroleum consumption- check units.
RSA are not looking at ‘obligations’ because are worried about additionality e.g. access to CDM.
- will review this in 2008.
- see graph of renewable electricity production costs – cost supply curve for Landfill gas, biomass e.g. bagasse, hydro, solar thermal.
Are looking closely at biodiesel and bio-ethanol.
Are aiming at producing a ‘Biofuels Accord’. Have set fuel standards. Plant oils tested to standard.
Pricing model is being developed
Biodiesel is not a complex technology.
Are also interested in bioethanol gel as a substitute for cooking and lighting. Are carrying out tests to look at the efficiencies of stoves to ensure that ethanol stoves make up for reduced energy content with higher efficiency.
- 58 Ml of bio-ethanol – 0.5% of gasoline or 7% of paraffin market
- -surplus sugar (exports) would provide 6% of gasoline and 81% of domestic paraffin (IP) market.
- Is a large lobby group looking at using maize for the production of ethanol but is being considered as a short term.
Biomass and coal
DME has not looked biomass with coal in conventional power generation
SA is not well endowed with biomass
would support if sustainable
Most attractive options are bagasse cogen and waste residues from the paper and pulp industry.
SASOL did a test to gassify some biomass in one of their gasifiers. Although it worked in that it didn’t cause an major problems.
12:00 The Current Review Process
Mulasikwanda (Oscar Kalumiana), Ministry of Energy and Water Development,
Energy policy was established formally in 1994. Now it is under review in order to:
- engage with private sector
- engage with stakeholders
Are now working on the Implementation Strategy.
Draft policy will now be submitted to the Ministry of Justice and then await cabinet approval.
In the new policy the concept of promoting biofuels has been included.
Both biodiesel and bioethanol are included, particularly for the removal of lead. LPG and gelfuel have also now been included.
Also includes cross-cutting issues, including, poverty, gender, HIV/AIDs, …
‘World oil price is alarming and could jeopardise the whole economy.’
12:00 – 12:30 Policy and Strategy of the Senegalese Government for the Energy Sector
Wade, Ministry of Energy and Mines,
More than 70% of the population ‘deal with agriculture’
Total energy consumption – 1.416 MTOE
56% biomass, 38% petroleum- have 3MWe installed PV (10 000 solar home systems which is run by private sector and is run on a fee-for-service basis; and 11 100kWpe power stations- these projects are just starting. Are currently training technicians after commissioning a private operator). For 2 years this system is running well and so the fee is assumed to be sufficient to cover the running costs.
Beginning to manufacture adequate RE equipment e.g. PV mills.
The water sector is also being privatised and will only be provided on a fee-for-service basis using local (from the village) private operators.
In rural areas 80% of energy is supplied from Kerosene (must be excluding biomass).
Women are the main users of household energy with most women carrying 20kg wood 5km per day.
Renewable Energy Resources:
solar radiation – 5.8 kWh per day/m2
Also has a large wind potential with the coastline (300km) offering…
Also, large potential for hydro power.
Are currently drawing up their national poverty reduction strategy paper (PRSP)
Have established a Rural Electrification Agency.
- Market arrangement towards public private initiatives
- The concept of PREMS (Projects energetiques Multisecoriel- multi-sector energy projects) and the launch of CIMEs (committee intersectoriel pour la synergie entre l’energie et les autres Secterurs Strategiques).
National Strategy for the Development of Renewable Energy for Poverty Alleviation.
Strong emphasis on MDGs.
Have carried out a survey of rural households and their ability and willingness to pay for electricity. Are planning to use this information to set tariffs for each ‘concession’.
- also want to find a solution to help rural inhabitants to get into the monthly payment mentality.
- how to develop a mechanism to bridge the gap between the cost of electricity and the ability to pay.
Are now around 12% installed capacity in rural areas.
GTZ representative asked question about the
cost-benefit analysis e.g. ‘how is
Have good experience in the use of biomass for improving cooking and now have a Gelfuel project in the NE based around a sugar mill. This mill has agreed to produce ethanol for gelfuel.
12:30 – 14:00 Lunch Break
14:30 Development of Sustainable
Rural Energy Strategies at District Level in
Estomih N. Sawe, TaTEDO, Tanzania
- ‘biomass resources in rural areas are being depleted fast’
Mainly a re-hash of the presentation by Ngosi Mwihava given above.
Despite international growth in political commitment there is very little happening on the ground. There is a need for action at the local level.
15:00 The Global Network on
Energy for Sustainable Development (GNESD) - Energy, Development and
Environment issues in
Mwakasonda, Energy Research Centre (ERC),
Type II initiative from WSSD. GNESD is facilitated by the UNEP Resource Centre at Risoe.
Have two objectives:
Energy for poverty alleviation:
Market-oriented reforms have had neutral or adverse impacts on the poor.
Power sector reforms need an explicitly pro-poor dimension otherwise electrification of the poor is forgotten.
There is a lack of good data.
- need to protect (ring-fence) financing for electrification of the poor
- sequencing of reforms: preferably electrify the poor first, then privatise (or in parallel)
- If possible make sure that the poor are represented in key decision making bodies.
RETS for poverty alleviation
- renewable energy is not high on the development agenda for developing countries:
- lack of coherent policies
- low stimulus for market establishment due to unattractive and unreliable conditions for private investors.
- RETs focus on residential rather than on productive uses – low impact on family income.
- lack of knowledge by potential users.
- there has generally been a fragmented approach with R&D characteristics carried out in isolation from other development challenges e.g. health, poverty, education and regional development.
The role of energy in achieving the MDGs.
See matrix he put up with each of the MDGs with the relevant energy needs for meeting them.
15:00 – 15:30 REEEP Southern African Secretariat
Mr Sibusiso Mimi, Renewable Energy and Energy Efficiency Partnership, AGAMA.
Partnership has two policy networks:
Key policies: Policy and regulations (see two points above), plus two others…
15:00 – 15:30 Alleviating Poverty through the Provision of Local Energy Sources
Parallax – Sustainable Development solutions,
See pdf of presentation: but also A4 handout.
- is this
the COOPENER project with Phil Mann? Includes
Started 1st June 2005 and will last 32 months
Funders- EU, DME, DST-
Focus on urban and peri-urban households
2 renewable energy centres.
Should be replicable in other southern African countries.
General process includes a ‘needs assessment’ by asking the stakeholders.
Have also developed an ‘exit strategy’ for continuation after the end of the project.
Some areas worked on include LPG/ kerosene safety
- 6 business plans under GVEP 1 with GVEP 2 to be developed.
What is the potential of renewable energy for poverty alleviation?
For anything to be sustainable, then it has to be commercially viable.
Local economic development.
RE not in isolation.
Financing- how to finance is the key question. E.g.
link to the environment (CDM). Public /
Private sector partnerships (need investment on both sides). Possibly learn from
Cost effective distribution (transport can be a killer quite literally). Integrated Energy Centres (IECs) is a method for decentralising the provision of energy services.
Share African experience (forum?)
Have seconded one of their directors to SA gov to work for GVEP. E&Co to help assess and provide business support. PACE (promoting access to carbon equity) how to bundle CDM projects.
Switch on energy services is based in KZN and provides a community service.
15:30 – 16:00 Coffee Break
Session 2: Best Practice actions (Part 1)
Chairs: to be invited
16:30 Cooking Energy in
Godfrey A. Sanga, TaTEDO, Tanzania
Typical consumption varies per capita from 11.5 to 49MJ/day for cooking energy.
Energy transition results in the consumption of modern fuels increasing and a decrease in consumption of cooking energy per capita. Resulting the ‘Energy Ladder’
Also change in fuel choice.
Dar project- (projector failed and so had to use the paper presented).
See section 2.0 of the paper (hardcopy A4)
Charcoal dominates the supply of fuel in Dar.
Also interesting iformation about cooking energy requirements in India
17:00 Employment Generation and
Poverty Alleviation through Wind Powered Water Pumping – A Private Sector
Bobs Harries Engineering Ltd.,
Family company is Kijito
3 or 4th generation Kenyan farming family.
Have developed a wind powered water pump over the last
30 years and was based on the Fraenkle machine (from
Have now sold about 350 turbines, mostly in
They make and build all the machines in their factory
With wind systems need very specific and careful planning but well implemented systems can pump from over 100m down.
Are developing wind speed maps. With low wind speed being 3m/s, medium 4m/s and high 5m/s.
Best wind regime is in Marsabit desert in
Have developed the wind pump to supply 50 to 80% of water needs.
Machines are designed so that a maximum of 10% fail over 25 years.
Make six different machines – costing (installed) – between KS0.5M to KS1.5M (KS80:US$). US$6k to US$18k.
17:30 Solar PV Rural
Electrification Lessons from
Mapako, Energy Research
pdf of presentation: - gave a comparison of the 4 PV projects BUN was involved
18:00 Renewable Energy for
Sustainable Development in
Dr. Salimata Wade, ENDA, Senegal
See pdf of presentation: This project is based on an agro-forestry approach linking food with energy (for cooking) and carb on sequestration.
Project is based in a prei-urban area. Possibly large rural area too along coastal zones.
It uses fast growing hedge rows to protect the field’s soils from wind-prone erosion and to encourage water penetration and reduce evapo-transpiration. The fields are irrigated using drip irrigation sytems using the underground water reserves present in this region.
Senegal is experiencing a continued drying of its climate. The first big drought hit the counry in 1972 and since then rainfall has been declining. (data shown from 1940 to present).
Now wood is coming from 600km to Dakar whereas 50 years ago it would come from 50km away.
Farmers now achieve average yields of 20t/ha and sometimes up to 50t/ha with for example tomatoes.
Senegal Agricole is a huge progamme designed by ENDA-Syspro which designed this project. This concept is now accepted by the government and will lead to the sequestration of some 4.5 million tronns of carbon over a five year period or 16.5 Mt CO2eq. This figure represents 5 times the annual GHG emissions from Senegal.
18:00 – 18:30 Small Capacity Bioenergy Complexes for Decentralised Energy Production in African Countries
Dr. Giuliano Grassi, European Biomass Industry Association (EUBIA)
See pdf of presentation:Gave a pre-talk on the inputs on bioenergy to G8.
- the input highlights the importance of bioenergy in development.
- need for standards for international trading
- bioenergy meets all the requirements for meeting the challenges of climate change and African development.
The Russian Fed has requested that the 2006 Intl
Biomass Energy Conference will be held in
Pelletisation is the critical technology.
Micro-distilleries can be manufactured at the scale of 1 million to 10 million litres per year.
18:30 – 19:00 Small Hydro and Development – The Experience of ITDG
Sanchez, Intermediate Technology Development Group (ITDG),
See pdf of presentation: and A4 hardcopy.
Session 2: Best Practice actions (Part 2)
Chairs: to be invited
08:00 – 08:30 Sustainable Charcoal Production and Marketing in
www.esda.co.ke), Energy for Sustainable Development (ESD) AFRICA, Ltd.,
I Arrived late
State land needs to be allocated for sustainable charcoal production. Landowners are supportive of this model.
Buffer zones: for sustainable charcoal nee to introduce between protected forests and game reserves
Need to use more efficient charcoal kilns. At the moment they are at most 10% efficient.
Coffee producers are making charcoal and currently get more money from charcoal.
Fast growing trees are also being used.
Are working on standards and guidelines to establish a charcoal producers levy. ‘Charcoal producers are tired of corruption and so are ready to pay for the (proposed) levy’.
As long as charcoal is being produced poorly, even with demand side management , the environment will still be damaged.
GG- why not use agricultural residues for charcoal
production (as is happening in
200 000 people are involved in charcoal production in TZ [probably a similar number of people involved in the production of efficient stoves]
People prefer charcoal and because it is a private sector (small scale) activity, residues are unlikely to be used. [not sure if he understood Guiliano’s point which was that can make charcoal briquettes from residues].
There is a presidential decree banning the production of charcoal [but not the sale], so if city councils provide permits to sell the charcoal then all they need to do is get the charcoal to the market and this is where the corruption comes in.
The number of people using charcoal is increasing and so can’t just abandon using charcoal.
The minister of the environment is supporting a gradual switch from charcoal.
08:30 – 09:00 The Kakira Sugar Works Bagasse Cogeneration Project in
Nakhooda, (email@example.com) Kakira
Sugar Works (1985) Ltd., The Madhvani Group,
See pdf of presentation:See ppt presentation and A4 hardcopy.
This would make an excellent ‘policy case study’ for CARENSA.
Grow cane on 7500ha and another 3500 small holder farmers adding a further ??ha.
Produce power for irrigation and have steam prime movers for the mill tandems.
Generate about 600t of non-used bagasse (dry) per day. At the moment it is burnt in the field.
Presently use 20 bar boilers with some originating in the 1960s.
Presently generate about 4MWe.
Because of Amin the owners were forced to leave
Still by 0.7MWe per day for infrastructure.
Now want to:
Expand cane area under small-holder production to 10kha. Total small-holders will be 6000.
Mill capacity to 5000tpd?
Have now chosen a 60Bar boiler and a 20MW turbo-alternator with 7MW for 24h/d.
Government would not agree to 7MW for 24 hours per day but only for the 6 hours of peak demand.
But this meant that the plant would only be used at 25% capacity.
back to 20BAR boiler mainly in order to incinerate the bagasse. This at least reduced the emissions from the open field burning. This was credited under the GEF funding.
Need 5MW internal and 3MW for irrigation.
Gov would not accept the need to buy and sell power from the grid and therefore had the usual problems in that they would sell at base rate but would have to buy back at commercial rates.
Took 17 months from Sept 1992 to sign the power purchase agreement.
Utility did not understand the issues of a private power producer.
Government came back and said that they in fact needed more power.
Now have a 45Bar boiler and have bought a 3MW. Have now agreed to sell 10MW instead of 6MW but could go up to 16MW.
The new power house cost them US$1M which has the 3MW turbine and a new 16MW turbine. Will now be on-stream in 2006 but if had accepted the original proposal then would have been on-stream in 2001.
Also have 2.5MWe stand-by diesel generator.
Have a 10year power purchase agreement with a further 5 year option.
Government wants to buy electricity at 4.5?cents per kWh but he knows he can ‘sell’ the electricity to his other industries at less than he would have to buy it from the utility.
09:00 – 09:30 Social Development through Outgrowers, Schools and Hospitals - The Private Sector Kilombero Business Linkage Program
Also see pdf of presentation made by Kilombero reps
during field trip - below.
Also see pdf of presentation made by Kilombero reps during field trip - below.
Outgrower yields are in the region of 30 to 40 t/ha on the estate are looking at 60 to 80 t/ha.
Cane payments system linked to loan repayments e.g. the mill pays the grower via the bank, so the bank can intercept the payments against the loan.
Improved land tenure system- not fully implemented at the moment. The mill used GPS system coupled to aerial surveys to map the individual concessions precisely.
Illovo had to borrow the money required to help re-habilitate the farms on the international markets and so took the risk of currency fluctuations etc until the local banks were able to take over and change the loans to a shilling basis.
Outgrowers are targeted to increase cane production from 125k to 800kt/yr.
IFC funding was central to the success of the Kilombero Business Linkage Ltd. programme.
4200 ha up to 5400ha now with c. 3500 outgrowers.
Kilombero Sugar Company had an additional 800ha of land which they were willing to provide at ‘peppercorn’ rate to be provided into a Trust Farm. In 2004 about $50k surplus put back into the community which is mainly being used to develop the infrastructure. This fund is projected to increase to $200k in 2005.
In 1998 /99 outgrowers were delivering 72kt
2005/6 they will deliver 612150t. Need to check that this is outgrower produced and doesn’t include the estate cane.
In 2003, this outgrower programme was providing about $10M and it is now about $15M.
The Secondary School that was put in by Illovo is now going to be privatised to be run by the community.
In the near future will develop the cogen potential of the mill.
09:30 – 10:00 Poverty Reduction Potential of Energy Crop Production (Sweet Sorghum, Jatropha) for Liquid Biofuels
EU Sugar reform
stop using lead in petrol in southern
Recommendations: Sweet Sorghum
10:00 – 10:30 Coffee Break
Chairs: Prof. Yamba and Stephen
11:00 SIDA Cooperation on Rural Energy with
Kjell Larsson, Swedish International
Development Cooperation Agency (SIDA),
A new company has been contracted to carry out the payment collection process (Network Solutions?)
SIDA will continue to provide support for Tanzania Energy Centre (see presentation on 1st day am).
SIDA are not providing direct subsidies to PV but provide
‘facilitation’- need ESCO for Solar PV as in
PPP for hydro power development in TZ- small scale initiative with private farmer and small developer.
- PV Market development
- business development support to PV companies
- Solar network.
Songea Rural electrification project, southern TZ.
In order to extend the grid are looking at a balance between hydro power and the careful use of Nat. Gas.
Willingness to pay - TSh10k (US$10) per month is ‘quite reasonable for a household.’
11:00 – 11:30 CDM as Source of Financing for Renewable Energy Services
CDM is a complex instrument but they have learnt a great deal from implementing a couple of projects in 4 countries (now have 3 in RSA).
SSN were set up to establish two projects in each of
the following countries:
Poverty reduction focus now- but to facilitate this via GHG mitigation
Will work in the 4 original countries, plus
CDM project activity cycle:
They are currently at the Validation stage and not yet been implemented.
In two cases, validation has been completed or conditionally validated.
Mondi biomass avoids 122000 tCO2e/yr (valued at 7Euro per tCO2) and has a NPV for the CDM component which is greater than the CAPEX requirement.
See financing slide for the Kuyasa project – have carried out monitoring of insulated versus non-insulated housing and then the impact of using solar water heating.
- the CDM funding is only a small part of the total funding required of about R24M.
project has been validated and is the first project in
1. compliance (CERs)
2. Verified (VERS)
3. Offset (VERs – specific occasions e.g. a world summit)
4. Gold Stnadard (high quality CERS)
5. Incremental cost (GEF not market)
Prices have gone up from $3.5 per CER, bilateral procurements Euro 8/CER. VER can have a variety of prices.
Buyers are multiple and a spot market is still to come.
If you need funds you can sell CERs forward at discounted rates.
Underlying finance is the big issue.
Unfortunately, Sustainble Development is not monetised. (see ans to my question below).
To maximise benefits: choose your projects and your investors and time your transactions.
Guliano – what might be the benefits of shipping the biomass from Dg countries to Annex I countries. However, the question is more fundamental – do developing countries want to grow biomass for Developed world?
The sustainable development – gold standard used all three pillars to make sure that they were all not negative.
‘Development dividend’ – climate change community – how to do you give value to this. Willing to introduce me to the main thinkers in this area.
The Prototype Carbon Fund – have been critical of the fund. However, this fund has allowed the beginning of ‘deal flow’. The Durban Landfill example is a good example of how this was not very sensitive to the bottom-up issue. Mentioned the ‘Biofund’… The carbon funds have possibly played most of their role as the market is now establishing.
V good speaker on energy policy.
Have no real fossil fuel resources (have some natural gas reserves but are not commercial).
The major source of electricity supply is hydro- 60 to 85% of elec provision. Depends strongly on the water levels in the dams.
Diesel provides 53% of petroleum consumption. LPG and Kerosene…
Biomass and charcoal accounts for well of 97% of energy used for cooking in the rural area. LPG provides about 25% in urban areas.
Kerosene provides 82% of lighting in rural areas. (see graph).
Strategies for subsidising kerosene in rural areas led to people buying it all up and mixing it with transport diesel which led to a real shortage of kerosene in the rural areas!
The Self Help Electrification Programme (SHEP)
communities within 20km of existing 11/33KV grid lines acquire their own
Remote off-grid institutions an distant communities, strategy is to support the initial investment cost of solar PV systems.
In 2003, initiated a study on the productive uses of
electricity. Funded entirely from
There is a levy of USc0.06/l on gasoline, kerosene and … This is used help fund things like roads, ?
Rural electrification access has increased from 478 communities in 1990 to about 3500 in 2004 (65% access).
LPG consumption has increased from 5200t to 68000 t in 2004.
There is now 1.1MWp from PV in 2002
Lifeline fee of US$2 /? is paid by PV users and gov subsidises the rest.
Levies become unpopular with the rich minority in urban areas through the use of levies and therefore needs careful management.
Where levies are fixed in terms of absolute value it makes it difficult to increase in the future. It is better to use a percentage basis with automatic adjustment.
Average user price for electricity is about 7.8cents/unit. a 1.5% red levy = US$24.78M/yr
US15M can supply 14k rural homes with solar home systems and can maintain 50k homes or could establish 15MW wind turbine capacity.
Have established biogas digesters (household and village level) – the village level project which produced electricity does not make economic sense and so is not being replicated.
Energy in Electricity Supply Concession Schemes (Case study:
Dr. Amadou Sow, Agence Sénégalaise d'Electrification Rurale (ASER), Senegal
See pdf of presentation:In 2003 12.5% of rural households had access to an electricity service.
8 PV plants are being installed (from 1 to 40 kW capacity)
2684 public lighting systems
PV installations for 662 community systems.
The new Senegalese objectives are to expand rural electrification and a large number of PV installations (need to see the presentation to get the details.)
New energy law (No 98-29, 14Apr 1998) which allowed for the liberalisation of the electricity sector.
Poverty alleviation is a ‘major implementing axis’.
12:30 – 13:30 Lunch Break
13:30 – 14:00 Innovative Approaches in current World Bank Energy Portfolio for African countries
Pablo Rosenthal-Brendel, The World Bank
African strategy of WB:
1. facilitate energy inclusion in the PRSP and outcomes-based CAS.
2. include in PRSCs and other programmatic lending instruments. more emphasis on analytical work to inform-interventions. SILs to be used as platforms to prepare institutions and policies
3. leverage cross-sectoral linkages to achieve country-level outcomes
3. actively promote cooperation with development partners to scale up both programs and impact.
5. Develop more robust measures/indicators of outputs on country results
Learning from experience and innovative approaches
through ESMAP and through RPTES and GVEP
Public Private partnership and Multi-sectoral partnerships need to be brought together.
14:30 African Rural Energy
Entrepreneurship Development (AREED) Initiative in
See Biomass Energy Tanzania ltd example.
Showed a couple of examples of AREED sponsored projects
14:30 – 15:00 Africa Development Bank Activities
Alois Mhlanga, ADB
Private sector- biomass, wind and ?? are the key sectors considered.
Overveiw of the FINESSE programme and funding allocated so far.
- presentation was a bit rushed.
North Africa has obtained 20times the amount of
funding c.f. other regions of
ans: the bank can only operate from national requests and so this represents the nature of the national requests for funding that have been received.
Question: much of the funding seems to have been spent on raising capacity and awareness in ADB- is there a way for groups to approach the bank or should they await the ADB to come knocking?
ans: will carry out specific country assessment plans. First convincing the ADB task managers that renewable energy has a role to play in development.
question: Senelwa- why is only 5% of the funding supplied to biomass energy when 90% of the continents energy comes from biomass- why are we biased against what we use?
ans: don’t find biomass in the PRSBs or even renewables… Are now working in ADB to try to get renewables into the PRSBs or CDBs.
Instruments and Tools to support SMEs and Project Developers from the
Sustainable Energy Sector in
Volker Krauth, BASE, Germany
15:00 – 15:30 Opportunities offered by the European Commission, including the proposed ‘Energy Facility’ and other Instruments
EUEI or the EC Delegation in
The EUEI is not a legal framework that has been well defined- it is only a political declaration and emerged from a statement from the previous head of the commission, Mr Prodi.
DG-Res- A EU priority research area opened up to research
‘Time is ripe for a major EU investment in delivering the WSSD commitments particularly in energy.’
In response the commission suggests and ACP-EU Energy Facility based on the following principles:
Activity Area 1: delivery of energy services
Immediate follow-up- there are chances for immediate follow-up for: further development of specific proposals and partnerships for EUEI pipeline e.g. through SIDA for TZ – see presentation above.
May be operational in late 2005, and by early 2006 there will be calls for proposals emerging, although all still being worked out. Budget on Forests in Developing Countries.
Include energy in the 10th EDF (from 2008).
Developing countries should respond
15:30 – 16:00 Coffee Break
Session 4: The way forward…
This session will exchange views and look forward, with a focus on the following topics:
· Stimulation of public-private partnerships for the delivery of energy services for poverty alleviation, including the role of renewable energy
16:45 SADC Policy Concept on Farming for Energy for Better Livelihoods in
Stefan de Keyser (t.b.c.), SADC,
Ten Reasons to Farm for Energy:
Why Kigoma for first project in TZ- this area has 6500 ha of palm in the country and the TZ gov has also had focus on development activities in this area.
Why did they also choose sunflower which is used for human food? Sunflower is being used to provide interim oil supplies before the palm reaches maturity and can supply sufficient oil in about 3 to 5 years.
TZ government is providing some help.
Price of Jatropha oil is currently on the market at about TSh2000 c.f. the price of diesel which is currently less than TSh1000 per litre?
Chairs: Stanford Mwakasonda, Maria Morales
16:00 – 16:15 Introductory Statement
16:15 – 16:45 Introductory Statement
Bioenergy and Sustainability: Measurements and Markets
16:45 – 18:00 Discussion Round – The Way Forward…
Moderators: Dr. Jeremy Woods,
Aim for 4 or 5 policy recommendations.
II. A pan-African evaluation of policy options is needed to assess which policies work and which don’t
III. Practical recommendations: encourage capital subsidies – discourage running cost subsidies
IV. Governments should prefer renewable energy options where possible
V Update PRSPs (Poverty Reduction Strategy Papers) to include renewable energy / bioenergy specifically….
VI. establish national level stakeholder platforms
2. Areas emerging from the presentations and discussions:
- cross-subsidies (transparent pricing structure)
- use of levies on fossil fuels – not on fixed price basis (must be percentage basis)
o where is this money managed?
- Exclusive focus on technology neutrality is dangerous and can’t be reconciled with incentives.
- incentives and signals (particularly long term) are very important
o need to bridge the gap between the real price of provision and the ability/willingness to pay – in Ghana don’t subsidise the end user but the means of getting the energy to the users.
2.2 Industry (stakeholder) forums
- how to establish and how to set standards (quality control v. imp)
- How to get the understanding that the basis for evaluation has changed dramatically over the last 12-24 months
- oil prices will get increasing volatile and are unlikely to fall below $35/bbl. Gas same story.
- Coal- how to reconcile with environmental reality (Climate Change)- need to compare ‘clean coal’ prices with renewable energy prices unless countries want to base their economic plans on an unsustainable footing.
costs versus running costs – environmental pricing (essential if sustainability
is to be incentivised). How to
incentivise innovation (huge potential for
2.4 End users
- Energy efficiency (also for suppliers)
- Stakeholder involvement – very important with bioenergy
18:00 – 18:30 Policy Dialogue Conference - Summary and Conclusion
The participation in the Technical Tour organised in the framework of the Partners for
Africa Policy Dialogue Conference in
Technical Tour: Visit of the Kilombero Business Linkage Program (KBLP) implemented by the Kilomero Sugar Company Ltd. (KSCL)
Time: 08:00 – 15:00
Location: Kilombero Sugar Company Ltd., Kidatu
Illovo Sugar Ltd.
This technical tour will serve to gain insight in the
KBLP which has assisted outgrowers and SME service providers, and thereby
provided support for social development within the remote and poor Kilombero region of
Kilombero Business Linkage Program
The Kilombero Sugar Company Ltd (KSCL), the largest
sugar manufacturer in
In line with Government strategies and the national sugar development program, KSC has begun developing a strong Outgrower community that will be self-sustaining and will ultimately supply up to 1 million tonnes of sugar-cane to KSCL to support their planned expansion from 72,000 tonnes to 200,000 tonnes of sugar by the year 2010. US$ 2.7 million of the social investment has been in Outgrower development through technical and financial support and infrastructure development.
The Government of Tanzania has a progressive approach to the development of the Agricultural sector, recognising its importance within the Tanzanian economy in the plight to eradicate poverty within the country.
The recently published Sugar Act and the formation of
the Sugar Board support and promote initiatives incorporating the development
of the local communities as a partnership with major investors into the sugar
industry to underpin the national plan for
To facilitate this community and industry growth, KSC has identified a number of business linkage programs that will help in the development of local SMEs and to create sustainable development and business opportunities for the local community in the region and support the development of the Outgrower community in line with the opportunities created by the investment and expansion program of KSC.
EU Energy Initiative for Poverty Eradication and Sustainable Development
In order to respond to the unmet needs for energy services to meet the Millennium Development Goals, the European Union developed the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI). The Initiative was launched at the World Summit on Sustainable Development (WSSD) in September 2002. It demonstrates the commitment of EU Member States and The European Commission to supporting improved access to sustainable energy services for poverty alleviation in developing countries. Through the Initiative, the EU proposes to work with developing countries towards creating the necessary conditions in the energy sector to achieve their national economic, social and environmental objectives, and address poverty issues, in particular by maximising energy efficiency, including the more efficient use of fossil fuels and traditional biomass, and increasing the use of renewable energy.
Activities implemented under the Initiative are driven by the needs and priorities of the participating developing countries. The EC and EU Member States invite developing countries and other stakeholders to become part of the Initiative and to participate in the further development and implementation of partnerships at the national and regional level. By creating partnerships that focus on energy and poverty, the Initiative aims to:
· raise political awareness among high level decision makers
· clarify and promote the need for energy services for poverty reduction and sustainable development
· stimulate coherence and synergy of energy related activities
· attract new resources (capital, technology, human resources), e.g. from the private sector and civil society.
More information on the EU Energy Initiative is available at the web site www.euei.org.
In this action, the
consortium has a high level of expertise and high quality contacts in
Sub-Saharan Africa and
· WIP-ETA Consortium (WEC), Germany/Italy. (Co-ordinator)
These players lend particular strength to this project through their experience in the coordination of the global energy and development networks:
· LAMNET (www.bioenergy-lamnet.org)
· CARENSA (www.carensa.net)
· Sparknet (www.sparknet.info)
These networks deal with local, national and international energy and development issues. These interdisciplinary networks support international dialogue and action fora, bringing together key actors and stakeholders from the energy, biomass and development sectors.
The African consortium members are highly experienced and have an established reputation in the fields of renewable energy and development from a wide range of past projects and collaborations. They are:
WIP – Rainer Janssen / Maurice Pigaht, firstname.lastname@example.org /email@example.com
ETA – Silvia Vivarelli, firstname.lastname@example.org
ITDG – Teodoro Sanchez, Teodoro.Sanchez@itdg.org.uk
SEI – Francis Johnson / Maria Morales, email@example.com / firstname.lastname@example.org
ILLOVO – Denis Tomlinson, email@example.com
ENDA – Salimata Wade, firstname.lastname@example.org / email@example.com
- one of the reasons why biofuels may not feature strongly in the papers. These papers originate from the funders who have different priorities.
- there is a need to look critically as to what mechanism is required and what happens on the ground.
- used the mobile phone market as an example and that policy should not limit what should happen on the ground
- the PRSP and the CAS comes only from the originating countries
- the donors recompiled the PRSPs but did not alter the content.
- only those organisations dealing in energy see that energy is related to poverty.
- the previous PRSP did not mention energy for TZ. The new PRSP does mention energy as a priority
- now working on document on high impact technologies and how energy can help achieve the MDGs
Cheikh Wade (Senegalese)
- the problem is that the paper is not managed by the minister in charge of energy
- WB have organised a meeting to sensitise the government to the energy issues.
- Parallax – wants avoid point 4 (don’t say shoulds and where possibles)
- point 2 – talks about pan African options – assessment of implementation that is actually going on. Find the successes and replicate this
- Financing: infrastructure has to be financed e.g. should talk about matching private sector investments with public / national financing / and international financing
- takes govs to influence the role of renewable energy in policy
- should get this for a specifically for ministers
- issue of perception of the ownership of the PRSPs and even the energy policy
- policy making process should be locally funded so that it is owned by the country
- important to bring government into these for a
- need to find a way to move forward if the gov doesn’t want to come
- petroleum and electricity has taken over the current agenda. But when talk to the private sector they really would like to be involved in biofuels. E.g. the Mumias sugar mill would really like to develop their ethanol plant but gov doesn’t want to listen.
- the PRSPs don’t really mention energy and may be difficult to change this.
- If go to WB there are other pockets for funding but changing a government document will be difficult.
How to involve the Government
Brett Dawson (DME RSA)
- would like to see a policy decision is a formal partnership between African governments
- why don’t we use our own machines in the form of plants e.g. agriculture
Maurice Pigat (WIP)
- how to lobby government is not easy and is very different between the different countries
- another way is to deliver this statement from the PfA network.
- encourage the demonstration of the different technology chains e.g. identify the typical technologies that could be useful for most of the country
- negotiate a private public partnership
Maria Morales (SEI)
- each of the sectors need energy e.g. education, health, but do these sectors know how much energy is required
is available and is already on the point of use- why can’t the governments of
- gave up on policy a long time ago – its just a shopping list
- we are playing into the wrong corner – we need to tax fossil fuels more.
- are competing with a powerful lobby e.g. the oil industry
- perhaps the best way forward is to look at it from the service angle
- plea to focus on learning
- organisation of BEC (Biomass Exporting Countries)
- we have a lot of land and know how to grow crops
- how to get the half a billion people plus. Up to 70% of land is lying idle which with a little push, people are going in a growing acacia which is growing better than the alternatives
Enning Folger? (Tanesco)
- first look at the production of energy and then find the demand
- Transport is a basic sector which needs energy also agricultural processing
- there is an opportunity to use the funds that are going to be made available through the debt relief
to broaden the range of crops that can be used by biofuels. The minister for agriculture in
James Ngeleja (National Environment Management Council)
- the TZ PRSP has managed to bring the issue of energy into them.
Wisdom Ahiataku-Togobo (Ghana Ministry of Energy)
- donors could insist on a share of renewables in whatever they fund
Dean Cooper (Parallax)
- say to G8 that Africa and Climate Change are happening right now and need to look at renewable energy as a tool for addressing this – in fact climate change was happening yesterday (Bond…)
- implementation is the way to achieve this without
Nakhooda (Kakira Sugar
-Check on the poverty alleviation debt relief –
- this could be part of the mechanism
Michael Mulasikwanda (Zambian Dept. Energy)
- if the ministry of energy is required to submit a section into the PRSP it would need to make a consultation process
from the experience in
Pablo Rosenthal-Brendel (World Bank)
- WB cannot even give the impression of imposing conditions on its funding or will be an outcry
- need to develop interest in government and develop win-win solution e.g. what does the ministry of finance want
- when talking of small isolated communities then are talking of small schemes
- The example of the Ugandan sugar mill trying to negotiate to sell power to the utility. This is because there is not a proper legal framework
- Rural energy requires the adjustment of the legal framework to allow entrepreneurs to get into the business
- Capacity building
- lots of examples of affordable and reliable technologies and projects
Cheikh Wade (Senegalese Min of Enegy and Mines)
- Energy can not be a sector for the PRSPs – it can be a catalyst for all of the MDGs
- suggest that we look at platforms to share experiences on all aspects of renewable energy
- how do we share information
· technologies such as wind, solar (PV and thermal) and biomass energy need support to gain sufficient market share to become economically self-sustaining.
· to this end, it is important that the African countries develop realistic but challenging targets for implementation of renewable energy systems,
· a clear framework is required to ensure that the setting of these targets is multi-technology, fair, transparent and sustainable,
· establish a multi-national African mechanism to efficiently share experience on good practice, policies and successful implementation / projects.
· the international trade in value-added biofuels will require the development and implementation of internationally recognised standards and regulation systems,
· international mechanisms for this already exist e.g. IEA Task 40 and international assurance schemes for fair trade, quality assurance and sustainability assurance (e.g. ISEAL, FSC, etc) and must be exploited for the development of a sustainable bioenergy sector.
· freed from current constraints, it is estimated by a number of authoritative sources that African agriculture could provide a very significant share of the future world’s energy without competing with food production or exploiting land in protected areas.
· in fact, it is believed that the production of energy from the land would raise food production too.
1st draft comments from:
 Energy from biomass (such as electricity, heat and transport fuels (bioethanol, biodiesel and biogas)) requires special attention because of the large share of the energy markets that could be supplied, but also the inherent linkages between the production of biomass for energy, land use and rural development. Bioenergy could play a central role in rural poverty alleviation.
[JW1]affordable? I think this argument needs to be strengthened- MP
[JW2]I think this point is important and should come earlier
[JW3]I think you need to seperate us more clearly from the past failures of turning Afrikan countries into agricultural (food) exporters
[JW4]A brave statement which needs strengthening