Publications Lights, Power, Action: Electrifying Africa

LIGHTS POWER ACTION: ELECTRIFYING AFRICA LIGHTS, POWER, ACTION 2 ELECTRIFYING AFRICA CONTENTS 6 ACKNOWLEDGEMENTS 9 FOREWORD BY KOFI ANNAN 14 INTRODUCTION 22 PART I: OFF-GRID SOLAR – CLIMBING THE POWER LADDER • Solar products offer an energy ladder • Solar home systems: Powering families • Box 1: Rwanda national off-grid programme • Box 2: “Impact investors” bring solar energy to African homes • Advancing access beyond the home 43 PART II: MINI-GRIDS – SERVING “THE MISSING MIDDLE” • Mini-grid models • Box 3: Africa can learn from mini-grid experience in Asia and America • Accelerating mini-grid development 60 PART III: MENDING AND EXTENDING THE GRID • National grids are failing Africans • Making power sector reforms work for all • Box 4: In Côte d’Ivoire and South Africa, reforms encounter success and challenges • Box 5: Coal’s future in Africa • Unleashing Africa’s renewable power potential • Box 6: African Renewable Energy Initiative: Creating energy systems for the future • Transmission and distribution – the weak link • Special Section: Preventing electricity losses and theft • Box 7: The Grand Inga Dam – promises and pitfalls • Regional power trade could transform Africa • Getting the finances right: Making power sustainable 94 PART IV: POLICY INSIGHTS 100 REFERENCES 107 END NOTES 3 LIGHTS, POWER, ACTION ABOUT THE AFRICA PROGRESS PANEL KOFI ANNAN MICHEL CAMDESSUS PETER EIGEN BOB GELDOF GRAÇA MACHEL STRIVE MASIYIWA OLUSEGUN OBASANJO LINAH MOHOHLO ROBERT RUBIN TIDJANE THIAM The Africa Progress Panel consists of ten distinguished members give them a formidable capability to access the individuals from the private and public sectors who worlds of politics, business, diplomacy and civil society at advocate for equitable and sustainable development the highest levels, globally and in Africa. As a result, the for Africa. Kofi Annan, former Secretary-General of the Panel functions in a unique policy space with the ability to United Nations and Nobel laureate, chairs the Africa influence diverse decision-makers. Progress Panel and is closely involved in its day-to-day work. The other Panel members are Michel Camdessus, The Panel builds coalitions to leverage and broker Peter Eigen, Bob Geldof, Graça Machel, Strive Masiyiwa, knowledge and to convene decision-makers to create Linah Mohohlo, Olusegun Obasanjo, Robert Rubin and change in Africa. The Panel has extensive networks of Tidjane Thiam. policy analysts and think tanks across Africa and the world. By bringing together the latest thinking from these The Africa Progress Panel brings about policy change knowledge and political networks, the Africa Progress through a unique combination of cutting-edge analysis, Panel contributes to generating evidence-based policies advocacy and diplomacy. The life experiences of Panel that can drive the transformation of the continent. 4 ELECTRIFYING AFRICA ABOUT THIS POLICY PAPER This policy paper is a follow-up to the Africa Progress links with the rest of the world, the paper also highlights Panel’s annual flagship reportPower, People, Planet: Seizing critical steps that must be taken by leaders in the Africa’s Energy and Climate Opportunities, published in June international public and private sectors. 2015. The 2015 report explored the links between energy, climate and development in Africa. It documented the risks that would come with a business-as-usual approach AFRICA PROGRESS PANEL and highlighted the opportunities for African leaders. SECRETARIAT As a global community, the report stated, we have the technology, finance and ingenuity to make the transition CAROLINE KENDE-ROBB Executive Director to a low-carbon, renewable energy future, but so far we EBUNOLUWA ARIBIDO have lacked the political leadership and practical policies DANIELLE CHRISTOPHE needed to break the link between energy and emissions. PETER DA COSTA The report concluded that Africa is well placed to be part DAN GRAHAM of that leadership. KAJSA HULTGREN MAX BANKOLE JARRETT Power, People, Planet, was circulated widely among DANIELA POKORNA policymakers, business leaders, civil society and heads DAMIEN SOME of state, globally and in Africa. Since its publication, the Panel has carried out high-level advocacy for the report’s recommendations on climate and energy policy, working closely with a wide range of partners. This new paper seeks to build on the political momentum that has been created over the past year to increase energy access in Africa. Its main aim is to provide additional policy-relevant information and insights to support the implementation of ambitious new public and private initiatives now underway that aim to increase energy access swiftly across Africa, especially the New Deal on Energy for Africa, spearheaded by the African This paper may be freely reproduced, in whole or in part, Development Bank. In light of the continent’s dynamic provided the original source is acknowledged. 5 LIGHTS, POWER, ACTION ACKNOWLEDGEMENTS This report draws on the expertise, advice and active (Partner, TPG); Donald Kaberuka (Senior Advisor, TPG/ engagement of many people. Caroline Kende-Robb Satya); Horst Koehler (former President of Germany); (Executive Director, Africa Progress Panel) led the team Rachel Kyte (Special Representative for the Sustainable preparing the report. Kevin Watkins (Chief Executive, Energy for All Initiative); Carlos Lopes (former Executive Save the Children UK) was the lead author. Peter da Secretary, United Nations Economic Commission for Costa (Senior Advisor, Africa Progress Panel) and Africa); Trevor Manuel (Senior Advisor, Rothschild Bethelhem Belayneh Kassaye (Independent Economist & Group); Ngozi Okonjo-Iweala (Senior Advisor, Lazard Researcher) provided advice throughout the project. The Ltd); Dora Siliya MP, (Minister of Agriculture, Zambia); report was edited by Andrew Johnston and copy-edited Lars Thunell (Senior Advisor at The Blackstone Group); by Tom Minney. Kandeh Yumkella (former Special Representative for the Sustainable Energy for All Initiative). We would like to thank the following African institutions for their invaluable contribution: the African Development We drew on the advice and insights of a group of expert Bank and the United Nations Economic Commission commentators, all of whom were extremely generous for Africa. with their time. Special thanks are due to: The Africa Progress Panel benefited from discussions with Paul Batty (Media Associate, European Climate a number of people prominently involved in international Foundation); Morgan D. Bazilian (Lead Energy Specialist, dialogue on energy and climate. We would like to express The World Bank Group); Gregor Binkert (BD Consulting our gratitude to the following individuals: Akinwumi & Investment); Oliver Classen (Media Director, Public Adesina (President, African Development Bank Group); Eye); Yariv Cohen (Chairman of Kaenaat, Co-Founder Gordon Brown PC (former Prime Minister of the United of Ignite Power); Amy Copley (Africa Growth Initiative, Kingdom); Nick Hurd MP (Minister of State for Climate Brookings); Inger Anette Sandvand Dahlen (Senior Change and Industry, United Kingdom); Jay Ireland Advisor, Section for Renewable Energy, the Norwegian (President and CEO, General Electric Africa); Ji-Yong Cai Agency for Development Cooperation (NORAD)); 6 ELECTRIFYING AFRICA Professor Anton Eberherd (University of Cape Town); Africa 2.0, CEO, Ubuntu Capital); Kevin Urama (Senior Professor Mosad Elmissary (Head, Energy Division, Adviser to the President, African Development Bank); Lai NEPAD Planning and Coordinating Agency); Steven Hunt Yahaya (Senior Special Assistant to the President, Nigeria). (Energy Innovation Advisor, Department for International Development, UK); Lawrence E. Jones (Co-Founder and The Africa Progress Panel would like to acknowledge President, the Center for Sustainable Development in the generous support from the African Development Africa); Augustine Jarrett (Chief Economist and Principal Bank; ECONET, the German Government (Deutsche Economic Advisor to the President, Liberia); Wanjohi Gesellschaft für Internationale Zusammenarbeit (GIZ) Kabukuru (Editor, Indian Ocean Observatory); Siyanga GmbH), the Dangote Foundation; the Norwegian Malumo (CEO, Copperbelt Energy Cooperation); Yacob Agency for Development Cooperation (NORAD); the UK Mulugetta (Professor of Energy and Development Policy, Department for International Development (DFID) and University College London); Onike Nicol-Houra (Principal Virgin Unite. Business Development Officer, African Development Bank); Bronwyn Nielsen (Editor-in-Chief, CNBC Africa ); Infographics designed by Nice and Serious and Lacoudhir. Jasandra Nyker (CEO, Bio Therm Energy); Alex Rugamba Layout designed by Nice and Serious. Cover designed (Director, Energy Environment and Climate Change, by Lacoudhir. Foreword image of Kofi Annan by African Development Bank); Andrew Scott (Climate Robert J. Wilson. Change, Environment and Forests, Research Fellow, Overseas Development Institute, UK); Patrick Smith The report is also available on Worldreader Mobile at (Editor, Africa Confidential and The Africa Report); Youba read.worldreader.org for any data enabled mobile phone. Sokona (Special Advisor on Sustainable Development, None of the above individuals or institutions is responsible the South Centre); Ørnulf Strøm (Assistant Director, for errors in the report or for the wider content, which Section for Renewable Energy, the Norwegian Agency for reflects the views of the Africa Progress Panel. Development Cooperation (NORAD)); Amadou

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