Smart Villages in West Africa: Accra regional workshop report Workshop Report 20 May 2016 ACCRA, GHANA Key words: West Africa, Energy Access, Rural Development, Off-grid energy Smart Villages We aim to provide policymakers, donors, and development agencies concerned with rural energy access with new insights on the real barriers to energy access in villages in developing countries— technological, financial and political—and how they can be overcome. We have chosen to focus on remote off-grid villages, where local solutions (home- or institution-based systems and mini-grids) are both more realistic and cheaper than national grid extension. Our concern is to ensure that energy access results in development and the creation of “smart villages” in which many of the benefits of life in modern societies are available to rural communities. www.e4sv.org | [email protected] | @e4SmartVillages CMEDT – Smart Villages Initiative, c/o Trinity College, Cambridge, CB2 1TQ Publishing © Smart Villages 2016 The Smart Villages Initiative is being funded by the Cambridge Malaysian Education and Development Trust (CMEDT) and the Malaysian Commonwealth Studies Centre (MCSC) and through a grant from the Templeton World Charity Foundation (TWCF). The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Cambridge Malaysian Education and Development Trust or the Templeton World Charity Foundation. This publication may be reproduced in part or in full for educational or other non-commercial purposes. SMART VILLAGES AND RESILIENCE TO NATURAL DISASTERS CONTENTS Summary 5 Introduction 7 Inauguration of forum 8 Welcome Address 8 Introduction to the Smart Villages Initiative 8 Keynote address 9 Workshop Objectives 10 Panel Session 1: Opportunities for improving energy access in West Africa 11 ECREEE and opportunities for improving energy access in West Africa 11 Off-grid energy opportunities in West Africa 12 Rural electrification experience in Nigeria 12 Energy Commission Ghana’s role in promoting off-grid electrification 13 Discussion 13 Findings of the Smart Villages engagement programme in East Africa 14 Entrepreneurs in the off-grid energy ecosystem in West Africa: Elevator pitches 16 Discussion 22 Recommendations from the day’s sessions 23 Panel Session 2: Supporting energy access in off-grid areas: The role of public, private and multi-lateral investment 24 Ensuring energy access for bottom of the pyramid consumers 24 EnDev Benin 25 The role of public, private and multilateral investment 26 Private capital investment to improve energy access 26 Discussion 27 -3- e4sv.org SMART VILLAGES AND RESILIENCE TO NATURAL DISASTERS Breakout Session 1 29 Panel Session 3: Linking improved energy access to increased opportunities for gainful employment 31 Implementing renewable energy projects to create gainful employment in sub-Saharan Africa 31 Renewable electrification incubator 32 Solar lantern project in rural Sierra Leone 33 Energy access and gainful employment 34 Q&A Session 36 Discussion 36 Recommendations from the day’s sessions 37 Panel Session 4: Linking improved energy access to increased access to essential services (markets, health, education, democracy) 38 The role of renewable energy in improving energy access to rural areas 38 Scaling up energy access through women’s economic empowerment 39 Implementation off-grid energy projects in rural Nigeria 40 Productive use of energy in Ghana 41 Food and energy challenges: how Jatropha curcas, Ricinus communis and sweet sorghum could be a solution in rural area? 42 Breakout Session 2 44 Closing remarks 46 Annex 1: List of Participants 47 Annex 2: Workshop Programme 50 e4sv.org -4- SMART VILLAGES IN WEST AFRICA: ACCRA REGIONAL WORKSHOP REPORT SUMMARY On average, 60% of the population across the 15 From 23 to 25 May 2016, the Smart Villages countries that comprise the Economic Community Initiative along with SNV Ghana organised the of West Africa States (ECOWAS) is based in rural first regional workshop in West Africa in Accra, areas. Rural electrification rates in the region Ghana to develop a better understanding of remain extremely low and estimates suggest that, rural energy access in the region. The workshop for the region as a whole, only 19% of the rural brought together stakeholders from 13 countries population has access to electricity. Traditional from across the region and garnered substantial biomass, which is utilised mainly for cooking, interest among a wide-range of stakeholders represents the bulk of final energy consumption including representatives from the public sec- in the region. In urban areas, charcoal remains tor, the donor community, non-governmental the basic fuel despite efforts to promote liquefied organisations (NGOs), the private sector, and petroleum gas (LPG), whilst the rural population academia. tends to use firewood in traditional stoves. With increasing population and urbanisation, the use of Workshop participants were informed about firewood is having a severe impact on forest and SNV Ghana’s efforts to improve energy access woodland environments. It also has a negative in rural areas in the country by investing in effect on the health and quality of life of rural developing sustainable market systems in these and urban people, in particular, women and girls. communities. The government of Ghana is also Women and children arrange fish for smoking during field visit to SNV improved cookstove project for fish smoking at Anyakpor Village near Ada Foah, Ghana. -5- e4sv.org SMART VILLAGES IN WEST AFRICA: ACCRA REGIONAL WORKSHOP REPORT actively involved in ensuring universal energy national and local levels. For their part, govern- access in the country by 2030. For remote rural ments in the region have to implement policies communities, the strategy calls for promoting de- and regulations that facilitate market develop- centralised electricity generation systems such as ment for high quality products instead of creating mini-grids or solar home systems (SHS). Across hindrances for the private sector. Another is the West Africa region, there is a huge potential the need to foster linkages between the private to increase renewable energy generation; how- sector and financial institutions. Multi-lateral ever, these resources remain unexploited due institutions can play an important role in offering to economic, political, and capacity constraints. credit solutions to develop the market for off-grid The World Bank and International Finance Cor- energy products. The government can also be an poration’s Lighting Africa programme is trying important source of low-interest credit for these to act as a catalyst for market development and firms. For their part, private sector firms work- transformation in the renewable energy sector. ing on the provision of off-grid energy solutions They are also making efforts to deal with some of have to build awareness about their work with the constraints facing the off-grid energy sector. financial institutions. For entrepreneurs working in the off-grid energy For cookstoves, there is an urgent need to devel- ecosystem in the region, one of the most pressing op and implement standards as well as quality issues is lack of access to finance, especially at assurance programmes to promote investment the consumer level. Entrepreneurs in the region in the sector. It is essential that projects aimed are utilising a number of technologies to improve at increasing access to energy in rural areas cap- energy access in rural areas. While solar home italise on women and promote their involvement systems are important, some organisations are in micro and small enterprises. Local women’s trying to couple electricity generation with pro- perspectives should be taken on board during the moting improved cooking solutions based on design and implementation of improved cook- biogas and LPG kits. A key lesson to emerge from stove interventions. Availability of improved these initiatives is the importance of training cookstoves can have a positive impact on rural local entrepreneurs within rural areas, which incomes not only by reducing fuel requirements can galvanise local development. It can also help but also by creating a value chain. create awareness about off-grid/clean energy solutions that are available to consumers. It is A key lesson from the workshop was that commu- also important to build capacity at the local level nity involvement is necessary for the success of and to train local people to provide after sales off-grid energy projects across the region. Distrib- services to ensure that operations and main- uted off-grid electricity generation presents the tenance can be provided to consumers locally. best solution for remote off-grid rural areas, both for household consumption and productive use. Despite the emergence of a number of entrepre- For long-term sustainable development in rural neurs in the off-grid energy sector, there is still areas, promoting the productive use of electricity a lack of scalable business solutions that can be is essential. Promoting productive enterprises offered to consumers at the bottom of the pyra- can help alleviate the chronic poverty that most mid in off-grid rural areas. There were a number of these areas suffer from. It can also help stimu- of common themes that emerged from the work- late the local economy and help increase incomes shop. One theme was that despite the challenges, as it provides the opportunity for employment it is necessary to work with government at the generation. e4sv.org -6- SMART VILLAGES IN WEST AFRICA: ACCRA REGIONAL WORKSHOP REPORT INTRODUCTION The Smart Villages Initiative began its regional This report summarises key points arising from engagement in West Africa with a workshop in the presentations and discussions and is accom- Accra, Ghana in May 2016. Over three days, from panied by a policy brief that distils the main 23 to 25 May, the workshop brought together messages for the policy and development commu- more than 90 key stakeholders from the public nities. Copies of the presentations are available sector, private companies, academia, civil society on the Smart Villages website (www.e4sv.org).