Africa-EU Bioenergy B2B Forum

In collaboration with:

Africa-EU Renewable Energy Cooperation Programme (RECP) A European Platform for Private Sector Investments in Africa’s RE Markets

Michael Franz

Background I: Demand and Market Volume in Africa

3 New Investment in Clean energy in Sub-Saharan Africa 2004-15 ($bn); Source: Bloomberg New Energy Finance

SSA: 13% of the world’s population, but only 4% of its energy demand

Since 2000 energy use has risen by 45%

Only 290 out of 915 million people have access to electricity

80% rely on traditional use of solid biomass, mainly fuelwood, for cooking

“Modern” renewables account for less than 2% of the primary energy mix

Annual (private!) investment in the range of double-digit billion US$ is required per year to meet Africa’s energy needs

Enormous challenge = huge opportunities!

$0.0bn$0.2bn$0.2bn

$0.5bn

$1.0bn

$0.3bn

$2.0bn

$1.4bn

$6.5bn$6.8bn

$3.1bn

$5.2bn

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Other clean energy

Geothermal

Small hydro

Wind

Solar

Background II: Key Market Segments for RE in Africa

4 4

Large / Meso- scale on-grid (IPP) Ticket size: XX-XXX US$m (meso: X-XX US$)

Key regulations: PPA (FiT)

Small on-grid (captive power) Ticket size: 0.X-X US$m (bundled X-XX US$m)

Key regulations: FiT / Net-Metering

Off-Grid (Mini-Grids) Ticket size: 0.X-X US$m (bundled X-XX US$m)

Key regulations: Licences, Tariffs, Grid-connection standards

Off-Grid (Standalone Systems) Ticket size: X-XX US$m (“bundled”)

Key regulations: Standards, Import Tax / Duties

5

Policy Matters!!

Analysis of applicants for support through

two EU support instruments: ElectriFI and RECP

Distribution of applications indicates perception of developers for viability of certain business models in certain markets (in addition to: market size etc.)

Key driver for IPP: regulation providing for clear framework for investment

Key Policy Instruments for Promoting Investment in RE

6

What is the RECP?

The RECP is a African-European platform for promoting renewable energy market development and investment in Africa

Funded by the European Commission, the Netherlands, Germany, Austria and Finland

7

How can the RECP provide support?

8

Well structured and accessible Market Information

Identifying Project Opportunities in Partner Countries

Match-Making Events in Africa and Europe

Project preparation support and access to financial support

Successful Access to Financing

+ complementary policy advisory

+ support to skills development and innovation

How can the RECP provide support?

Access to market information

Web-based market briefings introducing the political and economic situation, the electricity sector and the RE

potential

Market Studies with “how-to”-information, providing an in-depth analysis of a certain market segment (e.g. Captive-Power/Self-Consumption in Nigeria)

Project scouting: through in-country partners, and consultants

Information events: workshops that introduce certain markets (or segments) presentations or panels; organized through partners

9

How can the RECP provide support?

Access to potential business partners and project opportunities

RECP matchmaking events help you identify your next project/partner:

Meet technology suppliers, project developers, service providers from Europe

Meet potential clients and business partners from African markets

Meet potential financiers

More than 15 events in preparation, both in Africa and Europe, for 2016 and 2017

Events are organized standalone or attached to other events, through partners (African and European industry associations or equivalent), with structured match-making sessions

10

How can the RECP provide support?

Information on Financing Opportunities

RECP’s finance database helps you identify sources of funding:

Information on more than 50 individual sources of funding; currently gathering data on funds

Initial risk-mitigation instruments included, to be expanded

Inclusion of local banks is planned

11

How can the RECP provide support?

Advisory to Project Developers: the “Finance Catalyst”

Provides advisory support to project developers on project development, structuring and access to finance (“bankability TA”)

Cooperation (“two-way-street”) with existing financing instruments (ElectriFI, REPP, SEFA, and many others): “feeding into” as well as “upstream referral”

Delivered through a team of highly experienced professionals

Standardized and fair access procedure through an “intake” on the RECP website

Time “budget” of up to 100 hours per project (deviations possible)

12

How can the services and products be accessed?

Countries, Partners and Access

The RECP operates „in depth“ in six African countries (Nigeria, Rwanda, Uganda; Senegal, Zambia and Mozambique in preparation)

We cooperate with and implement through a network of partners, both in-country as well as global or European industry associations

Information and support services are accessible through www.africa-eu-renewables.org

13

Thank you for your attention! Suggestions & Feedback always welcome!

www.africa-eu-renewables.org Contact: Michael Franz, michael.franz@euei-pdf.org

• Flexible European Technical Assistance instrument promoting sustainable energy for equitable development

• Services: donor coordination support, political dialogue, policy advice, private sector promotion

• Studies and Resources, e.g.

– Mini-Grid Policy Toolkit

– Building Energy Access Markets

– Low Cost Grid Electrification

– Etc.

www.euei-pdf.org

Bonn 5 July 2017 page 15

EU Energy Initiative – Partnership Dialogue Facility (EUEI PDF)

05.07.2017 Seite 16

Goal: support coordination between donors,

access to information for all stakeholders

Objective: provide analytical framework for

orientation, map all relevant initiatives in Africa

Methodology: public sources, expert consultation,

validation with initiatives directly

Findings: 58 ongoing initiatives,

~5bn USD in 2013

Available at: http://www.euei-pdf.org

AEEP Mapping of Initiatives

AGAINITY - FROM BIOMASS TO ELECTRICITY European Bioenergy Future Brussels, 16 Nov 2016 David Frykerås, Againity AB

Agenda

About Againity The ORC system Case examples Background The ORC system Case examples

Biography David Frykerås, Founder of Againity • Working in Africa since 2005 • Previously sold and installed plants in:

Ivory coast, Cameroon, Mali, Zambia, Rwanda, Mozambique

• Active projects in:

Zambia, Rwanda, Kenya, DR Congo, Tanzania

Two global problems

Consequences of landfills and waste dumps: • Huge land areas consumed • Health consequences • Climate gas emissions

Household waste

Applications where fossil fuels are dominant: • Coffee, tea, rice production • Mining industry • Sawmills

Fossil-based electricity

Background The ORC system Case examples

The solution

Heat

Electricity

Hot water

Againity’s ORC system

> 90 °C

The Organic Rankine Cycle (ORC)

Heat for use or release

Boiler or other heat source

Household waste Incineration of household garbage.

Industrial waste heat Factories producing aluminum, chemicals, bricks, beverages, etc.

Applications

Power plants & solar Waste heat from i.e. gas turbines, diesel engines or heat from hybrids with sun panels.

Biomass boilers Boilers fueled by e.g. wood chips, husk, biogas.

Product offering

Temperature of heat source: > 90 ºC Temperature difference (hot and cold side): > 50 ºC.

Advantages of Againity’s technology

Quick installation

Low operational costs

High availability > 97% of the year

Long life-time

AT400, 400 kWe ORC AT100, 100 kWe ORC

Easy to connect with flanges.

Background The ORC system Case examples

Example 1 – Tea production, Rwanda

Heat from steam boiler: 500 kW

Electricity from ORC: 50 kW

Payback: 3 years

Example 2 – Solar panels + biomass boiler

3600 m2 solar panels

1 MW heat from boiler to ORC

200 kW from ORC

Zambia 200 kW power station with 24 hours/day production that can be connected to grid or stand alone.

Example 3 – Household waste, Kenya

• Huge land areas consumed

• Health consequences

• Climate gas emissions

• Rapid increase of waste

= Fuel and raw materials

Household waste

Againity’s waste-to-energy plant

The small-scale waste-to-energy plant consists of a manual sorting area, storage, a modern waste incinerator, an ORC unit and a control/staff room.

Waste

Electricity

Hot water

Recyclables

> 40 tons/day

Questionnaire – Boilers

To best serve your needs we are thankful if you provide us with the following data.

Customer (company, city):

1.      Current heat production (MWh/month, during the year):

2.      Maximum heat production (MW):

3.      The flow temperature of the heating network hot water (degrees Celsius):

4.      The return temperature of the heating network hot water (degrees Celsius):

5.      Heating network flow (m3/h):

6.      Pressure that the boiler is approved for (bar):

7.      Maximum temperature which the boiler is approved for (degrees Celsius):

8.      Minimum temperature on the boiler circuit (degrees Celsius):

9.      Flow in the boiler circuit (m3/h):

10.   Internal electricity demand (kWh/year):

11.   Current electricity price including taxes and fees (USD/kWh):

12.   Current heat price including taxes and fees (USD/kWh):

13.   Current fuel price (USD/kWh):

If available, please attach datasheet or similar

for the specific boiler.

How much energy are you wasting? Provide us with data of your heat source and we will happily calculate the potential of turning it into electricity!

Next step

Let’s turn your biomass into electricity!

Visit:

Laxholmstorget 3

SE-602 21 Norrköping

Sweden

Mail:

Box 2245

60002 Norrköping

Sweden

Againity AB

www.againity.com

info@againity.com

+46 705 29 32 23

Africa-EU Bioenergy B2B Forum B2B Matchmaking Sessions

Sponsored by: With the media support of: