National Sensitization Workshop Mitigation Kairaba Beach Hotel 29, 30 January 2009 Mitigation Options in the Energy Sector and Investment Options Presented by Bah F. M. Saho Director of Energy Department of State for Energy
Energy in the National Economy • Energy is commonly described as the engine that drives the economy • account for about 0.8% of GDP (attributed to the electricity, gas and water supply) • Other than electricity sub-sector, trade in the entire energy sector in The Gambia is not regulated
Energy in the National Economy • electricity sub-sector is regulated. Others not regulated • Revenue accrued from the energy trade in enormous (fuelwood volume of sales estimated at D304 million p.a, electricity sales - D1300 million, and petroleum products – over 2 million and solar PV minimal) • Need diversifying the supply option, energy efficiency measures, and regional cooperation
Energy Sector overview • FUELWOOD:PRINCIPAL SOURCE OF ENERGY • Consumption - 80% of energy balance • Affects the environment (Natural forest and GHG emission, and other associated health risks) • PETROLEUM PRODUCTS: Second most important • Accounts for about 16% of total consumption • All petroleum products are imported • Affects Balance of Payment and the environment.
Energy Sector overview (Contd.) • ELECTRICITY - Accounts for less than 3% • All Generation is thermal (affects Balance of payment and the Environment) • Urban Area has about 40% access • Rural Electrification Project for about 46 villages – less than 10% access • RENEWABLE ENERGY (Solar PV)– Less than 0.1% • Limited to solar (most promising) • Wind regimes not strong especially in the interior • Solar PV application widespread • Solar Thermal application limited • Biomass use (without wood) limited • Huge environmental benefits
GHG Emissions • Energy sector contributed 1593.39 Giga grams (Gg) of CO2 in 2006 compared to 885.7 Gg of CO2 in 1995 • an increase of 707.69 or 80% increase in CO2 over the period • residential sector account for 78%, transport sectors 11% and electricity generation 8% • in mitigation options, cooking fuel substitute ranks the highest priority, followed by the transport sector and then the electricity production.
Mitigation Options • Under residential sector: • Use of improved cooking stoves:(i) Improved wood stoves such as Nofflie and (ii) improved charcoal stove called ‘Jambar’. • Widespread utilization of LPG • Widespread production and utilization of biogasusing animal waste, liquid municipal waste (sewage) or vegetable waste • Under transport sector: • Use of public transport: Encourage the use of mass transportation; • Biofuels for Transport: Biofuels of ethanol and bio-diesel for domestic cooking and as alternative transport fuels.
Mitigation Options (Cont.d) • Under electricity generation: • Solar Electric Technologies: Rural electrification using Solar Home PV Systems to displace a planned diesel plant; • Use of CFLs; • Solar Thermal Heating providing heating and hot water for domestic, commercial, or industrial uses.
Key Issues in Assessing Investment and financial Flow • Availability of Data: For planning and policy • Issues of Data Collection: taxes to be levied or benefits; confidentiality and inability due to time/other resources • Methods of Data Collection: Surveys and census data, Request through correspondence; and Legal and regulatory frameworks • Modelling and scenario limitations: data, capacity, representativeness for model and default values
Conducting the Assessment of Investment and Financial Flows • Stage 1: Identification Of The Mitigation Options And Complete Financial Analysis • Coordination: Department of Water Resources • Other Stakeholders: DOSFEA, DOSEN, Department of Community Development (DCD) for improved wood cooking stoves, NAWEC for electricity and energy efficiency, Forestry Department and Department of State for Agriculture for biofuels, other Government Departments, NEA, NGO, and Private sector • Stage 2: Identification Of Sources Of Financing And Securing It • Coordination: DOSFEA • Other Stakeholders: DOSEN, DWR, Department of Community Development (DCD) for improved wood cooking stoves, NAWEC for electricity and energy efficiency, Forestry Department and Department of State for Agriculture for biofuels, other Government Departments, NEA, NGO, and Private sector • Sources of Financing: GOTG, Local Banks, private sector, Micro financial institutions, traditional donors