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The Africa-EU Energy Partnership and its instruments

The Africa-EU Energy Partnership and its instruments. CEMA workshop Nairobi, Kenya. Sanne Willems European Commission. The starting point: the EU Energy Initiative (EUEI). Johannesburg 2002 – World Summit on Sustainable Development An expanding global energy agenda:

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The Africa-EU Energy Partnership and its instruments

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  1. The Africa-EU Energy Partnership and its instruments CEMA workshop Nairobi, Kenya Sanne Willems European Commission

  2. The starting point: the EU Energy Initiative (EUEI) • Johannesburg 2002 – World Summit on Sustainable Development • An expanding global energy agenda: • energy security becomes a key concern • access to energy services remains key issue for Africa • climate change moves higher on the agenda • EUEI scope and dialogue expands accordingly, especially the energy dialogue with Africa

  3. Institutional path to the Africa-EU Partnership on Energy • Africa - EU Ministerial Troika suggests comprehensive energy partnership (Brazzaville, October 2006) • 2006/2007 Strategic European Energy Review (SEER) with strong external dimension; includes the importance of integrating energy in development cooperation • Joint Presidency - Commission Background Paper. Berlin, Maputo and Accra meetings in March 2007 • Council conclusions in May 2007 support the Energy Partnership and outline the key elements • December 2007: Adoption of the Energy Partnership as part of the Africa-EU Strategic Partnership in Lisbon

  4. Overall objectives of the Partnership • Effective Africa-EU dialogue on energy access and energy security for both continents • Improved access to reliable, secure, affordable, climate friendly and sustainable energy services • Increased European and African investments in energy infrastructure in Africa, including promotion of renewables and energy efficiency

  5. The Partnership’s Actors and Finance Actors • EU Implementation Team: • Co-chairs Germany and Austria, other EU Member States • European Commission • African Implementation Team: • Co-chairs African Union Commission and Mauritius, other AU Member States • Regional Economic Communities (RECs), AFREC and other African Energy Institutions • Private Sector (in particular, energy companies and utilities), AfDB, EIB, other IFIs, energy centres, civil society Finance • Integrated framework of EU financing instruments • EU & African states, the AfDB, etc. • Private sector

  6. The State of Play & the Way Forward • EU and Africa to enlarge appropriate institutional arrangements for the implementation of the Partnership • Adopt Roadmap and Political Targets at High Level Meeting 14th September 2010 in Vienna, Austria • Develop second Action Plan for period 2011-2013 • Monitoring and reporting

  7. The Africa-EU Partnership on Energy • Priority actions and a Roadmap for implementation adopted • A reformulated overall objective: Improved access to reliable, secure, affordable, cost- effective, climate friendly and sustainable energy services for both continents, with a special focus on achieving the MDGs in Africa • Three priority areas, with political targets for 2020: • Energy Access • Energy Security • Renewable Energy and Energy Efficiency • High Level Meeting in Vienna Austria 14 September 2010 to endorse the second Action Plan (2011-2013) • See website: http://www.aeep-conference.org/

  8. The Africa-EU Energy Partnership Joint Africa-EU Targets Access to Energy +100 million people in Africa to have access to modern energy sources • Renewable Energy • and Energy Efficiency • renewable energy (+10,000 MW • hydro, +5000MW wind, +500MW • solar, triple other renewables) • improve energy • efficiency in Africa Energy Security • double energy interconnections • in Africa and between • Africa and Europe • double the use of • natural gas in Africa N.B. Political Africa-EU targets (not commitments), within a scenario of wider African targets.

  9. Integrated Framework of EUinstruments behind the AEEP Main elements • Africa Infrastructure Partnership & its ITF: continental & regional scale • Regional Indicative Programmes of the 10th EDF (COM funds) • National Indicative Programmes of the 10th EDF (COM funds) • ACP-EU Energy Facility (COM and, possibly, MS) fund local scale projects • ENPI: Neighbourhood Investment Facility (NIF), Mediterranean Solar Plan Other resources • DCI Thematic Programme (ENTRP) • Capacity for management of energy resources (Coopener, CEMA) • Contribution to the Extractive Industries Transparency Initiative • Contribution to the Global Gas Flaring Reduction Initiative (GGFRI) Global Energy Efficiency and Renewable Energy Fund (GEEREF) • Africa-EU Partnership on Climate Change/GCCA (e.g. CDM) • Bilateral programmes and other initiatives of MS, including the EUEI Partnership Dialogue Initiative (EUEI PDF)

  10. Instruments: EC contribution breakdown on 9th EDF Energy Facility projects Comp. 3- Improvement of cross border cooperation in the energy sector: 4 projects 4% EC funding (8,57€ M) Comp.2- Improvement of the management and governance of energy: 11 projects 5% EC funding (10,58€ M) Comp. 1a- Small-scale initiatives: 41 projects 30% EC funding (58,01€ M) Comp.1. b- Large infrastructure projects: 18 projects 61% EC funding (118,81€ M)

  11. Instruments: Lessons learned EF I • EF has increased awareness on access to energy both at the level of the EC, Delegations and ACP countries. • ACP bodies received major contribution from the 1st EF, both in terms of number of projects and funds. • Generation projects used mainly renewable energies alone or combined in hybrid systems • Local and decentralised solutions have proved potential to increase access to energy • CfP not considered the most suitable tool for large infrastructure projects • Level of financing from private sector rather low

  12. Instruments: The 2nd Energy Facility • 2 Call for Proposals • EC € 150M & MS; 2,5m per project • Focus on Renewable Energy • Rural and peri-urban areas • Private sector involvement • Other components • € 40m Pooling Mechanism: leverage of loans, private sector investment • € 3,5m EUEI Partnership Dialogue Facility (EUEI PDF): Governance • http://ec.europa.eu/europeaid/where/acp/regional-cooperation/energy/second-energy-facility_en/index_en.htm

  13. Instruments: The 2nd Energy Facility- Process • The €100 M CfP was launched on 1/11/2009 and the deadline to submit the concept notes was the 01/02/2010 • 668 project proposals were received and submitted to the first administrative check • 613 project proposals passed the administrative check and have been evaluated • The 219 successful candidates (representing 320M€) have been invited to submit a detailed proposal • 167 full proposals have been received and evaluation of these proposals is ongoing. • End of October evaluation is expected to be finalised and successful candidates will be informed

  14. Initial distribution of projects per energy type

  15. Instruments: Infrastructure Trust Fund under the Infrastructure Partnership

  16. Instruments: Global Energy Efficiency and Renewable Energy Fund - GEEREF • Overall objective of GEEREF is contribute to the expansion of RE, efficiency and other clean energy technologies markets and services in developing countries and transition economies • Catalyst function to attract commercial investors to become shareholders of the Fund and thereby multiply the volume of finance • Implemented by EIB/European Investment Fund

  17. Thank you Sanne Willems European Union- Delegation to the Republic of Kenya Sanne.willems@ec.europa.eu

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