Unlocking Private Investment | A Roadmap to achieve Côte d’Ivoire’s 42 percent renewable energy target to achieve Côte Private Investment | A Roadmap Unlocking Unlocking Private Investment A Roadmap to achieve Côte d’Ivoire’s 42 percent renewable energy target by 2030 About IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org. © International Finance Corporation [2018]. All rights reserved. 2121 Pennsylvania Avenue, N.W. 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Cover photos: left: © Dominic Chavez/International Finance Corporation; right: iStockphoto Back cover photos: left: iStockphoto; right: © Dominic Chavez/International Finance Corporation Unlocking Private Investment A Roadmap to achieve Côte d’Ivoire’s 42 percent renewable energy target by 2030 Contents Foreword ............................................................................................................viii Acknowledgements ............................................................................................... x Executive Summary ................................................................................................ 1 Country Context and Background ............................................................................7 Power 8 Renewable Energy Potential 10 Côte d’Ivoire’s Innovative Vision to Attract Investment .............................................11 Hydropower ..........................................................................................................17 Status 18 Challenges 20 Management of existing hydropower assets 20 Attracting the private sector 20 Potential Solutions 20 Improve the quality and transparency of information about hydropower resources and their development 20 Develop a clear government framework for hydro projects 21 Revise existing high-level resource study and include site prioritization 21 Adjust current approach to site prioritization to increase opportunities for new players in the market 21 Carry out feasibility studies to prepare a tender program for small hydropower 22 Biomass .............................................................................................................. 23 Status 24 Challenges 25 Low demand for on-site thermal energy 25 Coordinating a range of stakeholders 25 High capital expenditures 26 Facilitating management and sourcing supply 26 Potential Solutions 26 Strengthen agricultural sector capacity 26 Define a government strategy for biomass and conduct a comprehensive mapping study 26 iv Contents Develop pilot projects 29 Expand use of municipal solid waste and alternative feedstock 29 Variable Generation: Solar and Wind .......................................................................31 Utility-Scale Generation and Grid Integration 34 Current status 34 Challenges for utility-scale generation and grid integration 36 Potential solutions 38 Off-Grid 43 Challenges 43 Potential solutions 44 Mini-Grids and Distributed Generation 50 Challenges 50 Potential solutions 51 Cross-cutting Issues: Finance, Policy, and Regulation ............................................... 55 Status 56 Challenges 57 Developing experience in the renewable energy sector 57 Maintaining a neutral, competitive process 57 Identifying appropriate investment promotion incentives 57 Potential Solutions 58 Map existing sources of funding available for renewable energy in Côte d’Ivoire, including concessional and grant funds 58 Explore feasibility of targeted guarantees 58 Maintain an updated investment prospectus for Côte d'Ivoire’s renewable energy sector in consultation with the private sector 59 Develop and implement an ongoing renewable energy policy monitoring framework based on ECOWAS experience 60 Create a renewable energy and energy-efficiency agency and one-stop shop for investment promotion 60 Next Steps ...........................................................................................................63 v Contents Annexes ..............................................................................................................65 Resources 66 Hydropower 66 Biomass 66 Variable Generation: Solar and Wind 67 Grid-tied 67 Off-grid 68 Grid, mini-grid, and distributed generation 68 Finance and policy 69 Project Portfolio 70 Laws and Regulation for Clean Energy 70 vi Contents Figure 1: Roadmap process 5 Figure 2: Market share and generation mix (2017) 9 Figure 3: Indicative pathways for scaling grid-tied renewable energy based on government plans (MW) 13 Figure 4: Annual costs of implementing renewable energy project pipeline ($M) 14 Figure 5: Total capacity and costs of identified renewable energy pipeline to 2030 ($M and MW) 15 Figure 6: Breakdown of power generation supply (% total GWh produced) 19 Figure 7: Power generation supply (GWh) 19 Figure 8: Direct normal solar irradiation in Côte d'Ivoire 35 Figure 9: Operating and proposed utility-scale solar PV project installed costs in Africa (2011-2018) 36 Figure 10: Average number of weeks to get connected to electricity 37 Figure 11: Electricity access and mobile phone ownership, Sub-Saharan Africa, 2016 (% of rural households) 48 Table 1: Installed capacity (2017, 2030) 13 Table 2: Costs for installation goals identified in pipeline 15 Table 3: Installed capacity (2017) 18 vii Foreword long with the challenges it presents, addressing climate Achange also reveals immense opportunities. The International Finance Corporation (IFC)—a sister organization of the World Bank and member of the World Bank Group—analyzed the Paris Thierry Tanoh Agreement goals set by 21 of the largest Minister for Petroleum, emerging market countries, and found Energy and Renewable Energy Development, Côte d’Ivoire more than $23 trillion in climate-smart investment opportunities leading up to 2030. As a result of government policy leadership and private sector innovation, clean, renewable energy is becoming the technology of choice to meet growing demand and achieve ambitious goals for energy access and reduced emissions. Côte d’Ivoire is no exception. IFC and Côte d’Ivoire have been working together for over a decade to deliver Alzbeta Klein private sector solutions that expand the Director, Climate Business Department, International country’s power supply. Finance Corporation Foreword When the country set its target to achieve 42 percent renewable potential worth about $9 billion. A range of financial sources energy generation by 2030, IFC approached the Ministry of including blended concessional climate finance and commercial Petroleum, Energy and Renewable Energy Development to capital will need to be leveraged to achieve this ambitious goal. forge a partnership supporting private sector solutions that IFC will work with other development partners to support can help achieve this