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REN21 10 Years Report

23 01 renewables on the continent. In South Africa, the pressure to reduce CO2 emissions, the need to diversity energy supply due to supply shortages and the fast deployment possibility of renew- able energy projects are driving the renewable energy market. n RENEWABLE ENERGY POLICY DEVELOPMENT The policy framework across SSA is diverse with many different forms of FITs, bidding and direct subsidy programmes. In East Africa renewable energies play a vital role in the region’s socio-economic development. However, in order to successfully compete with often highly subsidised conventional electricity production, supportive frameworks are necessary. Renewable energy market creation requires the development of regulations. National and regional dialogues on sustainable energy futures are required in order to foster nations and regions development strategies and goals. Tanzania, for example, opened its elec- tricity market to independent power producers in 1992. Kenya introduced its Renewable Energy Feed-in Tariff (REFiT) policy in 2008. Changing rainfall patterns due to climate change—mak- ing hydropower less feasible—and a growing energy demand drove this process. South Africa moved away from the REFiT framework to a criteria-based bidding approach for proposals to finance, con- struct, operate, and maintain renewable energy generation facilities. Under this system, submitted proposal are evaluated and contracts assigned based on various criteria, including the potential for the creation of a local industry, job creation, black economic empowerment, and technology transfer. Three of the five proposed biding rounds have already occurred with the aim of procuring 6,724 MW of renewable capacity from independent power producers by 2016. By August 2014, 64 projects total- ling 3,916 MW are at various stages of development—financial close, construction, and initial operation—making South Africa the fastest growing renewable energy market on the continent in 2014. Competitive bidding was the chosen policy tool to help transition the South African economy from its current coal- based energy system to one that is composed of 17,800 MW of renewables by 2030. While the overall contribution of renewable energy has increased, there is still relatively modest progress in the area of decentralised renewable energy technologies such as small-scale, roof-top PV, and off-grid systems. West Africa also known as the ECOWAS regionii is composed of 15 Member States with a regional population of just over 334.6 million, representing approximately one-third of the sub-Saharan African population. Between 2000 and 2010, West Africa added an estimated 50 million people to the grid. However, in its 2030 energy scenarios, The ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) projects that without significant investment in expansion of electricity access, energy poverty will continue to have considerable negative consequences on regional economies and societies. Access to modern cooking fuels is also severely limited in ECOWAS Member States. Across the whole of SSA, the average share of national populations rely- ing on solid fuels for cooking is just over 79%; within ECOWAS, this figure rises to 85.7%. The positive correlation between energy access and human development has been widely noted. ECOWAS governments have recognised the limitations that energy poverty poses on development and have committed to improving access rates and reliability of modern energy services, notably by working with ECREEE to develop Action Plans for Renewable Energy and Energy Efficiency for each Member State by December 2014. n DEPLOYMENT OF RENEWABLES The deployment of wind technologies has grown since 2005 with the result that governments and the private sector have recog- nised its value. Examples of successful wind deployment include 110 MW installed in Ethiopia, 10 MW in Kenya with 500 MW in the pipeline and 50-100 MW of wind in the pipeline in Tanzania, Several wind projects in MENA countries as well as several suc- cessful bidding rounds in South Africa are also underway. The on-grid renewables development in SSA has been largely driven by FITs coupled with an increase in demand for electricity and the decreasing cost of wind technology. During the last couple of years, solar PV has started to be deployed in SSA, however still with limited scope compared to its vast potential. Development of “pico-solar” is bringing minimal power to the base of the energy pyramid. Ten years ago there were barely any solar PV installations; currently 100,000 new systems are being implemented annually. Geothermal energy is being deployed in Kenya, Tanzania and Ethiopia. Biomass still a central part of the SSA energy equation, however most of bioen- ergy used is traditional biomass with its related negative health and environmental impacts. n MILESTONES OF THE PAST DECADE Over the past decade renewable technologies on the African continent have matured, and have become reliable and cost competitive. The diversification of available capacity sizes and the modularity of the technology have made renewables a seri- ous player within the African energy debate. Countries as diverse as Morocco, South Africa and Ethiopia champion the develop- ment of wind power on the continent in order to expand a secure power supply and to reduce their dependence on a single fuel source; notably hydropower or fossil fuel. n MAIN CHALLENGES FOR RENEWABLES While the past decade brought many improvements in terms of renewable energy legislation, there are still many uncertainties across SSA. Lack of information on best practices about suc- cessful renewable policy schemes is a major barrier for renew- ables uptake in SSA. Without long-term planning security and bankable renewable energy schemes, financing also remains a main challenge. The relative long-term finance requirements for energy projects in terms of the pay-back period as well as the high interest rates in most SSAn countries represent major barri- ers for new project developers. There also needs to better collec- tive awareness about renewable energy finance, what it entails. ii) Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.

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