Renewables in Africa - Meeting the Energy Needs of the Poor / Energy Policy 1

Renewables in Africa - Meeting the Energy Needs of the Poor / Energy Policy 1 Renewables in Africa - Meeting the Energy Needs of the Poor Stephen Karekezi AFREPREN/FWD African Energy Policy Research Network P.O. Box 30979, Nairobi, Kenya Tel: +254-2-566032 or 571467 Fax: +254-2-561464 E-mail: [email protected] Web-site: www.afrepren.org Abstract This paper presents estimates of renewables energy technologies disseminated in sub-Sahara Africa and evaluates the potential of renewables in meeting the energy needs of AfricaÕs poor. Using data mainly from eastern and southern Africa, the paper examines five major renewable energy technologies, namely: (i) large-scale biomass energy; (ii) small scale biomass energy (iii) solar photovoltaic; (iv) solar thermal; and, (v) wind. It then evaluates how suitable each renewable energy technology is to meeting the energy needs of the urban and rural poor. The paper ends with key measures that could encourage the large-scale dissemination of renewable energy technologies to the poor in Africa. Keywords: Renewable energy technologies, Africa, poor 1. What is Driving the Interest in adversely affected their economies. The Renewables? rapid development of renewables is often mentioned as an important response option Recent interest in renewable energy in for addressing the power problems faced by Africa is driven by, among others, the the region. following important developments. The first is the recent increase in oil prices, Two important global environment which, recently, peaked to US$ 33.16 per initiatives have also stimulated greater barrel (Economist: Jan, 98 - Dec, 2000) at a interest in renewables in Africa. The first time when AfricaÕs convertible currency was the United Nations Conference on earnings are very low due to poor world Environment and Development (UNCED) market prices and decreased volumes of its held in Rio de Janeiro, Brazil in 1992. At commodity exports. Consequently, it is this Conference, an ambitious environment estimated that in the year 2000, petroleum and development document entitled imports as a percentage of export earnings "Agenda 21" was reviewed by one of the has doubled from about 15-20% to 30-40% largest gathering of Government Heads of for a number of African countries States and, perhaps more importantly, was (AFREPREN, 2001). endorsed by a large number of multi- nationals companies. Agenda 21 sought to {Insert brief regional profile: SSA here} operationalise the concept of sustainable development. In addition, the Rio The second important development that has Conference provided the venue for the increased interest in renewables in the second important event, the signing of the region is the recurrent crises faced by most United Nations Framework Convention on power utilities in the region. For example, Climate Change (UNFCCC) by 155 in year 2000 alone, Ethiopia Kenya, Governments (United Nations, 1992). The Malawi, Nigeria and Tanzania faced Convention came into force in early 1994 unprecedented power rationing which after ratification by 50 States. Renewables in Africa - Meeting the Energy Needs of the Poor / Energy Policy 2 Renewables featured in both Agenda 21 African countries such Algeria, Angola, and the Climate Change Convention Cameroon, Nigeria and Libya. In spite of (United Nations, 1992). Because of the the continued divergence on the part of important role of fossil fuels in the build-up African energy analysts on how to respond of greenhouse gases in the atmosphere (it is to the climate change challenge, the estimated that the energy sector accounts consensus around the further development for about half the global emissions of of renewables appears to be growing. The green-house gases) and concomitant challenge of engendering a consensus on climate change concerns, renewables are renewable energy development appears to perceived to constitute an important option be less onerous than that faced by the for mitigating and abating the emissions of African energy efficiency community. greenhouse gases (Socolow, 1992). In contrast to energy efficiency that could Figure 1 Electrification % have an immediate impact on fossil fuel exports, the long-term nature of renewables The above perspective was, however, not would allow a more gradual and less initially shared by the many energy analysts disruptive transition away from dependency in Africa. In contrast to the industrialized on fossil fuels. Mobilizing support for world which is worried by the long-term renewables has, consequently, been global environmental impact of current somewhat less arduous. This viewpoint is patterns of energy production and use, bolstered by some evidence indicating that African countries are largely pre-occupied at the global level, the medium-term with the immediate problems of reversing outlook for fossil fuels demand may not be the persistent decline of their centralized as high as previously anticipated due to power systems as well a meeting the long- concerns over associated negative standing and pressing demands for a environmental impacts. In the long-term, minimum level of modern energy services fossils fuels may also become for the majority of their poor - many of uncompetitive in cost as reliance on more whom have no electricity and continue to costly oil reserves grows and alternative rely on inefficient and environmentally energy systems such as fuel cells become hazardous unprocessed biomass fuels. more affordable. Consequently, many African energy analysts believe that Although the contribution of African renewables constitute a reliable and countries to global greenhouse emissions ecologically sound long-term alternative for (GHGs) is, on a per capita basis, much virtually all African countries including smaller than that of industrialized countries current oil-exporting nations, many of (some projections, however, indicate a which have abundant and unexploited much higher contribution in the future), biomass, hydro, solar and wind resources. there is growing realization that Africa is What is not yet clear is the extent to which likely to be dis-proportionately affected by renewables can assist in addressing the the impacts of climate change. Of particular energy needs of AfricaÕs poor - the subject concern is the dependence of the poor in of this paper. Africa on rain-fed agriculture, which is believed to be already under threat from unpredictable weather patterns triggered by 2. Renewables and the Poor in what appears to be climate change. The Africa recent floods that adversely affected southern parts of Africa appear to indicate 2.1 Large-scale Biomass that the impact of climate change may Utilization already be a reality. Knowledge of large-scale biomass energy In spite of the growing evidence of climate systems is not as widespread in Africa as change, the position of the African energy that of small systems. Large-scale biomass community on the climate change question utilization encompasses: direct combustion has not been unanimous. Support for for process heat; ethanol production; renewables was, at best, lukewarm on the gasification; heat co-generation; biogas part of energy experts from oil-exporting production; and, briquetting. The best- Renewables in Africa - Meeting the Energy Needs of the Poor / Energy Policy 3 known large-scale biomass energy systems Kenya. Available evidence indicates that with sound economic track records are co- these programmes have registered generation using biomass as fuel stock and important economic benefits. At its height, the production of ethanol as a substitute for the Zimbabwe alcohol programme was petroleum fuel. capable of producing about 40 million litres and there are plans to increase annual Figure 2 Power Generation Ð output to 50 million litres (Scurlock and Mauritius: Capacity (MW) Hall, 1991). In the Zimbabwe ethanol 1998 programme, 60 % of the whole plant was locally produced and significant staff Co-generation using bagasse as feedstock to development took place (Scurlock, et al, produce both process heat and electricity is 1991). The plant has been in operation for a well-established technology in the Africa. twenty years with few maintenance As a result of extensive use of co- problems (World Resources Institute, 1994; generation in Mauritius, the country's sugar Karekezi and Ranja, 1997). industry is self-sufficient in electricity and sells excess power to the national grid The total investment cost of Kenya's (Baguant, 1992). As shown in the following ethanol plant is estimated to be US $ 15 graph, in 1998, close to 25% of the million. At its peak, plant production country's electricity was generated from averaged about 45,000 litres per day sugar industry, largely using bagasse, a by- (Baraka, 1991). The plant used surplus product of the sugar industry (Deepchand, molasses that were an environmental hazard 2000). In the next few years, it is expected because of the past practice of dumping that the sugar industry may be able to surplus molasses in a nearby river. The account for close to a third of the countryÕs ethanol was blended with gasoline at a ratio electricity needs (Karekezi and Ranja, of 1:9. Since it was commissioned, Kenya's 1997). ethanol programme has continued to register annual losses mainly due to the It is estimated that modest capital prevailing low Government-controlled investments combined with judicious retail prices (which have since been equipment selection, modifications of sugar liberalized); inadequate plant maintenance manufacturing processes (to reduce energy and operation; resistance from local use in the manufacture of sugar) and proper subsidiaries of multinational oil companies; planning could yield a 13-fold increase in and, unfavourable exchange rate which has the amount of electricity generated by sugar significantly increased the local cost of factories and sold to the national Mauritian servicing the loan that financed the power utility (Baguant, 1992). establishment of the plant. In an attempt to break even, the plant has had to export 13.3 The potential impact of increased million litres of crude ethanol (Kenya investment in co-generation for the poor is Times, 1991). The plant has, however, not well understood.

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