DIFFUSION STRATEGY OF GREEN TECHNOLOGY AND GREEN INDUSTRY IN AFRICA A Pilot Study of Renewable Energy Technology Market, and Energy Efficiency Adoption in Cassava and Maize Processing Industry in Kenya and Nigeria. Prof. Rene Kemp & Jacinta Ndichu UNU-MERIT Dakar, Nov 25, 2013.
DIFFUSION STRATEGY OF GREEN TECHNOLOGY AND GREEN INDUSTRY IN AFRICAA Pilot Study of Renewable Energy Technology Market, and Energy Efficiency Adoption in Cassava and Maize Processing Industry in Kenya and Nigeria
Prof. Rene Kemp & Jacinta Ndichu
Dakar, Nov 25, 2013
i) Important role of energy in SSA’s social economic development
ii) Low access to grid electricity
iii) High reliance on traditional biomass resources for energy 700 Mio rely on biomass (EAI, 2012)
iv) Energy use is known to be inefficient in SSA, but not much is known about drivers/challenges of EE technologies
v) Current trends will aggravate the situation in future
SSA Av. Losses 11% against a global av. of 9%, Some countries its as high as 41%.
Hydro - Currently provides 70% of SSA electricity BUT onlyfrom 5% of exisiting resource.
Geothermal - Combined capacity of 14,000MW most of which is in Ethiopia & Kenya, others are Tanzania, Eritrea
Biomass - Provides 80% of SSA’s energy needs.
There is need to shift from traditional biomasss (wood, charcoal) to more sustainable energy sources
Agro industry has largepotential: waste and byproductscanbeused as biofeeds. Co-generationpotentialexists in sugar, coffee, palm oil, fruits, vegetable, meat & dairy sectors.
Wind- Estimated capacity of 93,900MW
Solar –high solar radiation in most of SSA
Kenya’s RET market more diversifiedandlarger...
Both markets are.....
small, young & vibrant: 56% in Kenya established after 2008 & 68% in Nigeria between 2000-2012, 14% after 2010
promising: In Kenya beginnings of innovation in technology adaptation and business strategies for RETs are evident
**role of similar developmental contexts between countries important for transfer & diffusion)
This could change in the future as awareness of RET & quality appreciation grows.
Key drivers: Nigeria - unreliable power supply; Kenya - volatility in foreign exchange
Other drivers influential in both countries : Access to finance, VAT & duty exemptions, presence of a national RE strategy, packaging RETs with finance & suportive services, presence of a regulation framework
Regulations and licensing procedure in place for:
Packaging of biomass & solar RETs more developed with training, maintenance, and financial services included
Drivers of EE Tecs:
Important barriers for RETs:
Major barriers for EE Tecs:
initial set-up costs of EE technology
high cost of maintaining the EE measures
Common barriers for RE and EE Tecs in both countries:
Sources of EE Technology used
Foreign-domestic composition of RETs in percentage (Inner circle Nig, outer Kenya)
beginnings of growth in domestic content observed in Kenya
both countries reported anticipated future growth for the same
** In Kenya the situation is worse than in Nigeria that has a slightly better technological base for agro-processing
Types of organization involved in successful EE projects
Innovative approaches were being adopted by RET distributors
Focus on a single RET allowed better understanding and more innovative capabilities particularly in:
Findings highlight the need for technical collaboration especially between 1st & 2nd line actors in sectoral innovation systems.
Traditional cooperation frameworks (development aid, CDM) are less effective especially for SMEs as they fail to provide an effective conduit for intellectual property rights & protection
Ineffectiveness of cooperation frameworks has resulted in an emergent trends where both government & business try to address these short comings
Local Multinational tea fatory
Sri lankan Tea Sector
Imenti Small Hydro project
Ke Gov, UNEP-GEF, UNDP
Learning by observation
- Policy framework
African Dev Bank
50% $$$ in equity
Risk mitigation instruments for $$$
Local & Foreign civil enginners, electrical firms
National Grid Operator
May – June 2013
Start of the project
Final version of report
Workshop in Brussels
Report about analytical framework
2nd workshop in Brussel
Policy makers workshop in Nairobi
1st draft report