Power Africa Roadmap’ Is Cited As the Source of the Information
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A U.S. GOVERNMENT-LED PARTNERSHIP THE ROADMAP A Guide to Reaching 30,000 Megawatts and 60 Million Connections ACKNOWLEDGMENT Many individuals and organizations contributed to the development of this Roadmap. This strategy brought together the ideas, input, and vision from a wide range of Power Africa’s many partners, including those serving at U.S. Government agencies and posts across sub-Saharan Africa, civil society, academia, think tanks, the private sector, multilateral development banks, and like-minded governments. In particular, we would like to extend a special thanks to the following people outside of the U.S. Government, who provided detailed input for the Roadmap as part of a peer review process: Tony Blair and Pierrick Judeaux, Africa Governance Initiative; Solomon Asamoah, Sheila Khama, Monojeet Pal, and Alex Rugamba, African Development Bank; Philippe Niyongabo, African Union Commission; Moe Shaik, Development Bank of South Africa, Aubrey Hruby; Atlantic Council; Ben Leo and Todd Moss, Center for Global Development; Georgios Pantoulis, Roberto Ridolfi, and Felice Zaccheo, European Commission; Koen Peters, Global Off-Grid Lighting Association; Dan Haglund, International Centre for Trade and Sustainable Development; Fatih Birol, International Energy Agency; Femi Akinrebiyo, Eva Bakonyi, Jacqueline Strasser Higgins, and Gregor Pfeifer, International Finance Corporation; Jan Martin Witte, KfW Development Bank; Robert Stoner, Massachusetts Institute of Technology Energy Initiative; Hans Olav Ibrekk, Ministry of Foreign Affairs, Norway; Mosad Elmissiry, The New Partnership for African Development; Tutu Agyare, Nubuke Investments; Bengt Johansson and Anders Arvidson, Swedish International Development Cooperation Agency; Daniel Schroth, Sustainable Development for All Initiative; Anita Marangoly George, Rahul Kitchlu, Lucio Monari, Jamal Saghir, and Meike van Ginneken, World Bank Group; Steven Hunt and Sally Gear, the United Kingdom’s Department for International Development. Finally, a special acknowledgement to the staff in Power Africa’s Coordinator’s Office at USAID and all of the staff across U.S. government agencies and departments involved in developing this Roadmap. TABLE OF CONTENTS 7 8 The Challenge: Powering Africa 16 The Roadmap: 10 An Innovative Model INTRODUCTION Three Strategic Pillars 12 Power Africa Partnerships 20 Measuring Progress 23 PILLAR 1: 23 Progress to Date 35 Advance New Opportunities GETTING TO 30 Maximize Value from for Deal Flow Existing Transactions 41 Increase Efficiency of 30,000 MW Existing Generation 47 PILLAR 2: GETTING 47 Progress to Date 50 Scale Grid Roll-Out Programs TO 60 MILLION 55 Intensify Beyond the Grid Efforts CONNECTIONS 65 PILLAR 3: UNLOCKING 66 Policy Interventions ENERGY SECTOR 73 National and Regional Integration through Power Pools POTENTIAL 81 CONCLUSION 83 Glossary of Acronyms 90 Enabling Environment Assistance 83 and Abbreviations 94 Sample of Monitoring and APPENDICES 85 Private Sector Partners Evaluation Indicators 86 Transaction Data 1 - A LETTER FROM THE PRESIDENT OF THE UNITED STATES BARACK OBAMA, AFRICAN DEVELOPMENT BANK GROUP PRESIDENT AKINWUMI ADESINA, AND WORLD BANK GROUP PRESIDENT JIM KIM In 2013, the United States laid out an ambitious goal for Power Africa: to double access to electricity in sub-Saharan Africa. To meet this goal, the United States and its partners recognized the public and private sectors would need to work together to rethink and rewrite the rules for moving energy deals forward in Africa. Power Africa is working in partnership with African governments to make this happen. Thanks to Power Africa, new power projects have already brought thousands of additional megawatts of cleaner electricity to sub-Saharan Africa. Our public and private sector partners are harnessing the continent’s abundant energy resources — including solar, wind, hydropower, geothermal, and natural gas. In conjunction with Power Africa, African governments and their partners are connecting homes and businesses, farms and schools, clinics, and communities to electricity grids or providing off-grid electricity and modern cooking solutions. But our success is measured in more than just megawatts and connections. Today, Power Africa comprises a diverse coalition of public and private sector partners who are committed to investing in Africa’s future and working tirelessly to deliver on their commitments and ensure their efforts have an impact on millions of lives. The U.S. Government, the African Development Bank, the World Bank Group and the Governments of Sweden, the European Union, Norway, and the United Kingdom have committed to leverage substantial financial resources and technical expertise to expand Power Africa’s work across the continent. Building on Power Africa’s vision and leadership, a number of new initiatives have emerged that seek to address Africa’s energy challenges and further accelerate progress towards our shared goal of expanding energy access. We know that there is no silver bullet or quick fix to solving Africa’s energy challenges, but we are committed to working together with African leaders to unlock Africa’s vast energy potential – proving that our partnership- driven model is working. 2 The partnerships we have developed are fundamentally changing the way energy deals are done in Africa. By strengthening the investment climate across sub-Saharan Africa and increasing the capacity of African governments and utilities to develop and manage their domestic energy sectors, we are helping catalyze the investments of private companies across the continent. Our approach builds on the priorities laid out in the Africa Power Vision, developed by the African Union’s New Partnership for Africa’s Development and endorsed by African governments in 2014. In 2015, the world adopted the new Sustainable Development Goals (SDGs), which include a commitment to ensure access to affordable, reliable, sustainable, and modern energy for all. Power Africa’s partnership with the joint World Bank and United Nations Sustainable Energy for All (SE4All) initiative supports this goal. The African Development Bank recently developed a New Deal on Energy for Africa and a Transformative Partnership on Energy for Africa, to accelerate universal access to energy in Africa, complementing our joint efforts to meet the energy needs of millions of people. Our combined efforts to scale up access to cleaner electricity will also help mitigate climate change and enhance resilience to climate shocks, both of which are important for the implementation of the historic Agreement to Combat Climate Change, reached in Paris at COP-21 in December 2015. Power Africa lays out a clear path for African governments to create the kind of legal, policy, and regulatory environment that will encourage accelerated and sustainable investment and growth in Africa’s energy sector for generations to come. With new and increasing commitments to finance electricity in Africa and stronger political will to drive universal access to energy, our collective efforts will help power the continent. This Roadmap illustrates how the Power Africa model is working and can be expanded so our aspirational goals can ultimately be achieved, ensuring that no one is left behind. It reaffirms our shared commitment to double access to electricity across sub-Saharan Africa, with renewed confidence in our ability to deliver on our promise. As we move forward, we will continue to work hand-in-hand with our partners in Africa, to bring affordable, reliable, and sustainable power to the millions of people who currently lack access to electricity. BARACK OBAMA AKINWUMI ADESINA JIM KIM President of the United States African Development Bank Group World Bank Group 3 ABOUT THE ROADMAP This Roadmap shows how the collective efforts of Power Africa’s more than 120 public and private sector partners fit together to achieve our ambitious goal of adding 30,000 megawatts (MW) and 60 million connections in sub-Saharan Africa by 2030. The Roadmap outlines Power Africa’s three strategic pillars: Generation, Connections, and Unlocking Energy Sector Potential. These three pillars will help our partners to accelerate energy transactions by working with African governments to create the policy, legal, and regulatory frameworks needed to attract private sector investment in the energy sector. This Roadmap does not provide a comprehensive breakdown of all Power Africa activities in every country, of every potential transaction, or of every partners’ activities. Rather, it highlights work that Power Africa’s partners are engaged in all over sub-Saharan Africa to illustrate the broader, strategic, and collective effort that is required to implement and sustain our stated goals and objectives. It provides energy practitioners, academics, politicians, development partners, and other interested parties with insight on how electricity access in sub-Saharan Africa can be doubled if all stakeholders work together to advance that common goal. Through greater coordination, we will be able to leverage our diverse tools and expertise, ensure coherence, and avoid duplication of effort, maximizing our reach and impact across the continent. The Roadmap offers a tangible plan for how to make our common vision of an economically vibrant sub-Saharan Africa a reality by developing Africa’s rich and abundant energy resources in a rapid, transparent, inclusive, and sustainable manner. John Njoroge has been selling d.lights since September 2014 at his small hardware