GEF and UN ENERGY

ENERGY PROGRAM FOR WEST AFRICA

Sub-Regional Workshop for GEF Focal PointsWest and Central Africa

19-21 June 2008, Douala, Cameroon

Dr. Pradeep MongaDeputy to the Director and

Chief RRE Unit, ECC Branch, UNIDO

Presentation Outline

•Introduction

•Context

•Objectives

•Consistency with GEF Strategies

•Main Areas of Intervention

•Implementation Modalities

•Time Framework

INRODUCTION• A GEF Initiative for West Africa to secure GEF

Funding under GEF 4 / RAF for Countries in the Region

• A Programmatic Framework Approach to identify Priority Areas and ensure Coherence and Synergies

• Consistency with GEF Strategies under Climate Change Focal Area

• Definitive Time Frame to finalize the Programmatic Framework and Concrete Projects for each country in the region

CONTEXT

• Key energy challenges in the region (lack of access, rising oil prices and excessive dependence on traditional biomass)

• Lack of access to energy – a serious constraint to development, especially in the rural areas

• Potential of renewable sources of energy yet to be realized

• Low energy efficiency level in industrial, buildings and public sectors

CONTEXT

• 262 million inhabitants comprising 40% of the total population of the sub-Saharan Africa

• Most of the countries in the region are currently categorized as LDCs and also Highly Indebted Poor Countries (along with very low HDI)

• Benin, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo along with Chad and Mauritania will be covered under the proposed Energy Program

OBJECTIVE

• Taking a programmatic approach, the program will promote renewable energy and energy efficiency projects at the national level in countries of the region

• The main focus will be on scaling up access based on renewable energy and promoting energy efficiency measures in industrial, households and public sectors

* Catalyzing private sectorinvestments, public private partnerships and markets

GEF Strategic Programs (CC)Strategic Program 1: Promote energy-efficiency in residential and commercial buildings

Strategic Program 2: Promote energy efficiency in industrial sector

Strategic Program 3: Promote market approaches for renewable resources

Strategic Program 4: Promote sustainable energy from Biomass

Main Areas of InterventionsStrategic Programs 1 and 2 dealing with

Energy Efficiency:

• Promotion of energy efficient stoves in households, institutions, and small and medium scale enterprises (SMEs);

• Initiation and scaling up efforts to promote energy efficient lamps in the residential and commercial sectors;

• Promotion of solar water heaters in hotels, hospitals and SMEs;

• Introducing energy efficient technologies and measures in industry for reducing energy consumption, and improving productivity;

Main Areas of InterventionsStrategic Programs 1 and 2 dealing with

Energy Efficiency:

• Promoting untapped cogeneration potential in industry and agro-based (i.e. residues from rice and sugar mills etc.) enterprises;

• Promoting building codes, certification of equipments and strengthening of ESCOs and the energy efficiency centres; and

• Providing support to the development of energy efficient policies, markets, manufacturing capacities and maintenance services.

Main Areas of InterventionsStrategic Programs 3 and 4 dealing with

Renewable Energy:• Setting up mini-grids based on mini hydro, solar,

wind and biomass sources to augment rural electrification;

• Promoting fuel substitution for Charcoal and fuel wood used in urban and rural areas;

• Promoting productive activities such as agro-based industries and multifunctional platforms based on renewable energy systems;

• Promoting industrial applications of renewable energy technologies (i.e. cogeneration, process heat and cooling applications etc. across industries / enterprises wherever potential exits);

Main Areas of InterventionsStrategic Programs 3 and 4 dealing with

Renewable Energy:

• Promoting local enterprises (SME development) based on energy supplied by renewable energy systems;

• Promoting, wherever feasible, bioenergy technologies such as biomass gasification and biogas from industrial residues / municipal wastes / households for mini-grids, process heat and cooking applications; and

• Providing support to the development of renewable energy policies, marketing, manufacturing capacities and maintenance services including ESCOs.

Implementation Modalities• Process needs to be participatory and demand driven keeping in view national / regional priorities, and in conformity with GEF Strategies;

• Programmatic approach would secure funding and provide coherence and synergies

•GEF OFP and Technical Ministries / Departments would need to work closely with the GEF Agencies to come up with country level PIFs within specified time frame;

• Given the time and resource constraints, there is a need to be strategic to ensure quality and speed in formulating PIFs and PPGs, and their implementation;

Implementation Modalities• Involvement of local stakeholders, NGOs, private sector and communities at the formulation stage would ensure sustainability of the project;

• GEF funds primarily to help in catalysing sufficient co-financing and in-kind support to fund specific projects in countries; and

• In cases where few activities under a project may not strictly fall under the GEF strategic priorities, steps would need to be taken to ensure that these get financed through other funding sources (including co-financing sources).

Time FrameThe proposed programmatic framework for West Africa (developed jointly by the GEF, UN Energy and GEF Agencies) will be submitted to the November 2008 GEF Council meeting for approval.

In order to ensure that the entire process remains demand-driven as well as participatory in nature, it is proposed to develop the proposed GEF programme through a series of meetings and consultations between June – September 2008:

• Consultations held with Ministers attending the 9th COP of CBD in Bonn on 28 May 2008. The aim was to inform the countries, seek their inputs / concurrence on the programme idea, and agree on the formulation process;

Time Frame• Technical and ministerial level consultations held in the margins of the regular session of AMCEN in Johannesburg, 10-12 June 2008;

• Joint meeting of GEF Focal Points from West and Central Africa, Douala/Yaoundé, 18-21 June 2008;

• Consultations with the UN Energy/Cluster Leaders (to be facilitated by the UN Energy Chair - Director General of UNIDO and the GEF Team) on 24 June and 7 July 2008;

• Joint consultative meeting with the GEF OFPs and Technical Focal points (i.e. Permanent Secretaries / Directors of Ministries / Departments of Energy/Power etc) from West Africa in the month of August 2008;

Time Frame• In-country consultations and meetings to provide inputs for formulation of country level PIFs and PPGs and identification of potential co-financing – July / August;

• Programme validation at a meeting to be attended by all key stakeholders from the region on 26-28 August 2008 in Cotonou – led by CEO, GEF and UN Energy Chair - Director General of UNIDO;

• Programme fine-tuning and submission along with PIFs for individual countries - September 2008; and

• Review by the GEF Sectt., and submission of the Programme / PIFs to the GEF Council Meeting – Nov. 2008

Key Points to RememberTARGET IS VERY CHALLENGING AND AMBITIOUS ….but can be achieved.

•Process needs to be country driven and participatory in nature;

• Strategic approach required to prioritize areas for intervention and meet deadlines;

• Close coordination and team work required between / within countries and GEF Agencies to develop the overall Programme and country level PIFs / PPGs;

TO CONCLUDE

Formulation / timely approval of Programmatic Framework and PIFs / PPGs is just a beginning …hard work begins then to complete the preparatory phase in time, resubmit project briefs for approval of GEF, and start implementation of full projects ….we are already looking at end 2009 / 2010