2018 | Renewable energy underpins Africa’s future sustainable development. RES4MED&Africa is committed to creating enabling environments for renewable energy investments that can accelerate Africa’s clean energy transition and foster sustainable economic growth. The RES4MED&Africa flagship publication aims to be an example of partnership at work and sheds a light on what is needed to make Africa’s sustainable energy future a reality. The 2018 edition gathers a multi-stakeholder and pluri-disciplinary overview that explores what is needed to scale renewables in Africa and how this creates real added value for Africa’s growth. The report represents RES4MED&Africa’s dedication to push forward the renewable energy momentum in Africa that can ensure affordable, reliable and sustainable energy for all. Unlocking Value from Sustainable Renewable Energy Renewable Sustainable from Value Unlocking ROBERTO VIGOTTI Secretary General, RES4MED&Africa to deploying clean energy solutions was Foreword to understand and respond to local needs. Sustainability Only shared policy dialogue and strategic partnerships could shape favorable business and Bankability environments for investments in emerging and developing markets. of Renewables A distinctive feature that we also adopted - The Contribution from the start is capacity building to foster local project ownership and develop much-needed of RES4MED&Africa institutional and local skills that benefit project sustainability, contribute to local industrialization and job market creation and share knowledge all the while adapting to the sector’s rapid developments. This publication collects the views of specific actors Access to clean, affordable and reliable energy of our public-private partnerships and network is fundamental to drive sustainable economic of over 35 international partners on the topic growth in Africa, where a fast growing of our 2018 annual conference. and populated economy and resulting increasing The dialogue experience and resulting visibility electricity demand can be met with renewable has helped turn RES4MED&Africa into a successful energy; not only by the traditional hydro connecting platform for renewable energy business. and geothermal technologies, but today with solar And this first book wants simply and wind energy, that have become cost-effective to underline that story. in these last five years. Renewables have become one of the world’s most The private sector plays a vital role for the smooth dynamic sectors thanks to an unexpected evolution deployment of renewable energy in African as the cost of solar and wind energy technologies countries. Creating public-private stakeholder are dropping dramatically turning them into networks is important to gain deeper understanding the most cost-effective option in a growing number of local needs to propose the right solutions. of countries. Today, the story of renewables Private sector actors are encouraged to make a real is expanding towards further decentralization, strategic investment in Africa that fosters impact decarbonization, and digitalization, including human resource development, increased creating new challenges and opportunities competitiveness, and innovative business creation. and revealing new markets. Private sector energy actors underline the need With this in mind, RES4MED&Africa is excited to to identify bankable projects with good head into a future that will be even more disruptive fundamentals as the next move forward. than imagined. Together with our members, partners and African stakeholders, we look forward When we started, back in 2012, renewable energy to continue accelerating the renewable energy solutions for the Mediterranean and Africa transition. were still ineffective and above all uncompetitive. At the time, a strongly Eurocentric perspective produced a wealth of analysis, roadmaps and recommendations to be proposed for adoption Roberto Vigotti to African countries. Secretary General, RES4MED&Africa Since its inception, RES4MED&Africa adopted an “upside down” view: for us, the priority Editorial Unlocking Value from Sustainable Renewable Energy RES4MED&Africa’s first flagship publication the next frontier is to enable Africa’s renewable focuses on how renewable energy can unlock energy transition that lays the foundation for the Africa’s sustainable development and growth. continent’s sustainable economic development. Africa’s sustainable development is unimagi- The challenges are vast but the opportunities nable without renewable energy. In addition to even greater – and this publication seeks to ga- the continent’s natural resource abundance, ther different views on what is needed to move renewables have never been more cost-effecti- forward. ve, efficient, and suitable, with the potential to achieve universal energy access, ensure ener- Promoting Africa’s renewable energy transition gy security, match energy demand, and foster is a dynamic field that brings together many economic development all at once. As the busi- different actors, each with their experience and ness case for renewables is going mainstream, insights. This publication aims to reflect those various points of views through multiple arti- as best environmental, social and governance cles from selected RES4MED&Africa members practices for renewable energy projects in Afri- and partners, including high-level authors from can countries, lessons learnt from energy pover- international financial institutions (IFIs), inter- ty for decentralized renewable energy solutions national organizations, academia, and private in Sub-Saharan Africa, and the role of innovative sector actors. Taken together, the articles repre- and inclusive capacity building. To conclude, the sent a comprehensive multi-stakeholder and publication looks at much-needed climate-resi- pluri-disciplinary overview on what is needed lient infrastructure in Africa, the role of Italian to scale renewables in Africa, argued from each renewable energy investments in the continent, actor’s angle. and how renewable energy can be considered as a turnkey to achieve the United Nations Sustai- In every article, the authors take the reader on a nable Development Goals by 2030. deep dive into their perspective. Topics include sustainability strategies of energy companies, Partnerships and cooperation are key to scale the international community’s pursuit of pro- up renewable energy investments and to achie- gress on SDG 71, how sustainable energy can fo- ve the SDGs, especially as the UN tracks pro- ster industrial development in Africa, which in- gress on SDG 7 in 2018. As a platform for dialo- novative policies can boost renewables in sectors gue, knowledge exchange and capacity building, beyond power, and what is needed to scale up RES4MED&Africa launches its first flagship pu- renewables investments in emerging markets. blication as an example of such partnership at We receive an overview of the expected role of work. RES4MED&Africa is committed to creating renewables in Africa’s energy infrastructure de- an enabling environment for investments that velopment, and in what ways sustainable ener- can make renewables in Africa a reality. Scaling gy development finance can make a difference. up investments in renewable energy technolo- The challenge and opportunity of energy access gies is a central strategy to attain Africa’s sustai- in Sub-Saharan Africa is highlighted, as well as nable development and to achieve progress on the relevance of integrating a water-food-nexus SDG 7 by 2030. The viewpoints that follow reflect approach, and what kind of policy and regula- the current state of a continuously evolving di- tory frameworks are needed for renewables to scussion and serves as input for alignment and take off in Africa. The role of frugal innovation to action to drive Africa’s clean energy transition. create home-grown solutions is explored, as well 1 SDG 7: Ensure access to affordable, reliable, sustainable and mo- dern energy for all. Agenda 2030, United Nations, 2015. Table of contents 1 Introduction FRANCESCO STARACE, President, Enel Foundation & CEO, Enel Group 2 Sustainability along the Value Chain - Creating Shared Value from Renewable Energy ANTONIO CAMMISECRA, CEO, Enel Green Power 8 A Better Path for Africa’s Energy Future RACHEL KYTE, CEO, SEforALL 12 Transformation towards Sustainable and Resilient Societies: Using Synergies of Sustainable Energy Systems for Inclusive, Sustainable Industrial Development that Leaves No One behind TAREQ EMTAIRAH, Director of Department of Energy, United Nations Industrial Development Organization (UNIDO) 16 Renewable Energy Policies in a Time of Transition PAOLO FRANKL, Head of Renewable Energy Division, International Energy Agency (IEA) 24 Scaling up Renewable Energy Investment in Emerging Markets: Challenges, Risks and Solutions INTERNATIONAL RENEWABLE ENERGY AGENCY (IRENA), Coalition for Action, Business & Investors Group 32 Sustainable Renewable Energy Finance and the Role of CDP ANTONELLA BALDINO, CBO, Cassa depositi e prestiti Group (CDP) 38 Enabling the Green Power Transformation for the Africa We Want VERA SONGWE, Under-Secretary-General and Executive Secretary, United Nations Economic Commission for Africa (UNECA); LINUS MOFOR, Senior Environmental Affairs Officer (Energy, Infrastructure and Climate Change), United Nations Economic Commission for Africa (UNECA) 50 Making an Impact in the Mediterranean and Africa by Supporting Renewable Energy Projects ALESSANDRO BOSCHI, Head of Renewable Energy Division, Projects