solar pv sub saharan

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SOLAR PV IN SUB SAHARAN AFRICA

Case for a development of an ambitious industrial program in Sub Saharan Africa

Power Kick for Africa, Abuja - June 2011 Karim Megherbi, CEO

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS

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1. HELIOS ENERGIE A unique Business Model in the industry

• Three activities : Project development in Sub Saharan Africa and the

Caribbean R&D projects Advisory for institutions and EPC contractor

• 100 MWc pipeline in Benin, Mali, Burkina Faso, Mauritania, Haiti, Senegal, …

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS

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2. EXAMPLE OF BENIN Location (1/2)

6 MWp plant located north of Benin

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2. EXAMPLE OF BENIN Location (2/2)

18 M EUR – AFD as lender– Meeco as lead investor

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. ENERGY IN NIGERIA

6. CONCLUSIONS

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3. EXAMPLE OF BURKINA FASO Location

20 MWp plant located West of Burkina Faso

PV Plant / Gold mine

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3. EXAMPLE OF BURKINA FASO Status of the project

55 M EUR – BAFD as MLA – SEMAFO as lead investor

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. CASE FOR A PROGRAM IN NIGERIA

6. CONCLUSIONS

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4. SUPPORT FRAMEWORK PROPOSAL Ex. of Central Africa : grids and hydro

• The vision of the regional interconnection system exists.

• The vision is structured around the huge potential of hydro, especially RDC. Given the grid conditions,

FIT may not be adapted as such to achieve the real

goal of the energy sector in Africa.

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4. SUPPORT FRAMEWORK PROPOSAL Managing the asymmetry of information in FIT

Implementing a FIT in a country generates speculative behaviors difficult to manage.

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

1 2 3 4 5 6 7 8

months

MARGIN

COSTS

Super profits

Extra margin

FIT

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4. SUPPORT FRAMEWORK PROPOSAL Example of the FIT in Uganda

FIT cEUR/kWh

2011 MWc

2012 MWc

2013 MWc

2014 MWc

27,6 2 1 2 2,5

It is possible to achieve today 20 cEUR/kWh in Uganda

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4. SUPPORT FRAMEWORK PROPOSAL Another vision

• Creation of a Solar Committees with high skills to be developed through training, workshops, plant and lab visits. Financing through DFI.

• Setting up of a regional strategy/national strategies by these committees.

• Validation with external experts once it is drafted.

• Call for proposals, projects consideration

• Choices based not only on price but on the overall impact and participation in the implementation of the strategies.

We would like to suggest to African countries to set up project-approval procedures conducted by

national/regional committees

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. CASE FOR A PROGRAM IN NIGERIA

6. CONCLUSIONS

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5. CASE FOR A PROGRAM IN NIGERIA The Energy Mix

Nigerian government targets: priority = Gas and Hydro

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5. CASE FOR A PROGRAM IN NIGERIA Future needs

Meeting ambitious targets is a challenge given the time frame

Projected Generation Growth @ 3,000MW/year

Projected Generation Growth @

1,500MW/year

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5. CASE FOR A PROGRAM IN NIGERIA Solar Radiation

Excellent radiation areas

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5. CASE FOR A PROGRAM IN NIGERIA Grid consideration

Radiation matches the grid requirements

2255

2276

2247

2163

Irradiation (kWh/m²)

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5. CASE FOR A PROGRAM IN NIGERIA kWh Price

• PV Electricity Generation Price: around 38 NGN/kWh (17 – 18 cEUR/kWh)

• Highly dependant on the Business Model:

- Garantee framework

- IRR targets

- Loan Financial conditions

- Social targets (local industry, off grid sector…)

Set up targets in terms of PV kWh price and social impacts to define the best way to acheive them

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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS

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6. CONCLUSIONS PV has to be part of the regional strategy (1/2)

• We would like to suggest an objective of 10% of the electricity generated in Central Africa with PV.

• Small market – legislation should be adapted. Best sites and key projects should be identified. Several projects with strong impacts could be quickly developed.

• Huge opportunity to increase the penetration rate of EnR with the development of interconnections.

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6. CONCLUSIONS PV has to be part of the regional strategy (2/2)

• Strong partners should be selected, preferably specialized in energy in emerging markets with a strong expertise in energy infrastructure management.

• Financing of program is key: the project structures (guarantees, contracts, technical choices) should be in accordance with the highest standards of the energy sector in Africa.

PV projects should be dimensioned in accordance with

national and regional energy strategies.

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THANK YOU

FOR YOUR ATTENTION!

Contacts:

Karim MEGHERBI – CEO karim.megherbi@helios-energie.fr Petronille HAZOUME – Project Manager West Africa p.hazoume@helios-energie.fr