Africa

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By WAM
DUBAI, May 27 2018 (WAM)

Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority; DEWA, has received a delegation from the Finnish company, Valmet in the renewable energy sector.

The delegation included Jukka Hahlantera, Commercial Counsellor of the Finnish Embassy in the UAE; Ari Kokko, Director Technology and R&D at Valmet, and Pasi Lestelin, Energy Sales and Services Operations Southern Europe, Middle East & Africa (SEMEA) at Valmet.

The meeting supports DEWA’s commitment to establish cooperation and joint efforts, and exchange expertise and insights with international organisations.

Saeed Mohammed Al Tayer welcomed the Finnish delegation and discussed enhancing cooperation and exchanging best international experiences and expertise between DEWA and Finnish companies in renewable, clean energy and environmental sustainability.

Al Tayer highlighted DEWA’s key developmental projects and strategic initiatives that support the Dubai Clean Energy Strategy 2050, which was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, to diversify the energy mix, to ensure that clean energy will generate 75 per cent of Dubai’s total power output by 2050.

“To achieve these goals, DEWA has launched several green programmes and initiatives, including the Mohammed bin Rashid Al Maktoum Solar Power Park, which is the largest single-site solar park in the world, with a planned capacity of 5,000MW by 2030, and a total investment of AED 50 billion,” explained Al Tayer.

The Finnish delegation expressed interest in participating in DEWA’s clean and renewable energy projects, to promote sustainable development in Dubai and reduce the UAE carbon footprint to achieve a better future for generations to come.

WAM/Hazem Hussein/Tariq alfaham

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Mohamed Salah's injury is "serious" according to Jurgen Klopp, but Egypt remain confident he will be fit for the World Cup.

Commercial Habitat, a high-end home appliance store located in the upscale municipality of Vitacura, in the east of the Chilean capital, supplies part of its electricity consumption with energy generated from solar panels installed on its roof. Credit: Orlando Milesi/IPS

By Orlando Milesi
SANTIAGO, May 27 2018 (IPS)

Chile has become a model country for its advances in non-conventional energy, and is now debating whether citizens who individually or as a group generate electricity can profit from the sale of the surplus from their self-consumption – a factor that will be decisive when it comes to encouraging their contribution to the energy supply.

A Senate committee has analysed whether to eliminate the payments to citizens for their surplus energy established in a law in force since 2012, in response to an indication to that effect from the government of socialist former president Michelle Bachelet (2014-March 2018), which her successor, the right-wing Sebastián Piñera, is keeping in place.

Now it is being studied by the Chamber of Deputies, which has been warned by leaders of environmental organisations that the proposal to eliminate payments to citizens who inject the surplus energy they generate into the grid will sentence these initiatives to death.

Gabriel Prudencio, head of the Ministry of Energy’s Renewable Energy Division, told IPS that the current government aims to make “distributed generation a major element in citizen power generation.”

“We will continue to encourage end users to be able to generate their energy because of the resultant benefits, but we must identify and avoid any inconvenience in terms of economy, especially for those who cannot install these systems, and for the sake of the security of the system,” he said.

Manuel Baquedano, president of the non-governmental Institute for Political Ecology (IEP), said “We hope that this proposal will not succeed and that we can continue with citizen-generated energy. Without the contribution of this sector, the goal of 80 percent non-conventional energy by 2050 will not be achieved.”

The expert believes that the authorities fear that citizen power generation, mainly solar, will become a business in itself and will not be used only for self-consumption and to cut the electricity bills of individuals or small businesses.

“They are legislating against a ghost,” he told IPS. “Energy should be born from thousands of connected points and by a system that allows buying and selling.”

The current installed electricity generation capacity in Chile, a country of 17.9 million inhabitants, is 22,369 MW. Of this total, 46 percent comes from renewable sources (30 percent hydropower), and 54 percent is thermal (21 percent coal).

All electricity generation is in private hands, most of it based on foreign capital. Consumption, which is constantly growing, reached 68,866 GW-h in 2013.

Revolution towards non-conventional sources

Chile’s solar and wind energy potential is 1,800 GW, according to a study by the Ministry of Energy and the German Agency for Technical Cooperation (GIZ).

If only five percent of the Atacama Desert in northern Chile were used to generate solar energy, 30 percent of South America’s electricity demand could be met, according to the Solar Energy Research Centre (SERC).

During Bachelet’s four-year term, Chile made an unprecedented leap in non-conventional renewable energies (NCRE), which went from contributing five percent of generation in 2013 to 20 percent in 2017.

“Solar energy showed the greatest growth, from 11 MW in early 2014 to 2,080 in late 2017, followed by wind energy, which grew from 333 to 1,426 MW,” said environmental engineer Paula Estévez in the book Energy Revolution in Chile, published by former Chilean Minister of Energy Máximo Pacheco on May 10.

According to Baquedano, “In the country’s energy revolution, the main thing is indeed the change towards renewable energy that took place. Chile’s energy mix is going to be 100 percent renewable at some point.”

Baquedano warned, however, that “the benefits of this energy revolution from the productive point of view have been only for the private sector and have not been passed on to the public sector.”

Prudencio said that “to date, there are approximately 16 MW of installed capacity of systems under Law 20,571 (payments to residential generators), which is equivalent to more than 2,600 operating projects throughout the country.”

A few cases in point

Ragnar Branth, general manager of Commercial Habitat, a high-end furniture and home design store in the municipality of Vitacura in eastern Santiago, installed solar panels on the roof to power a five-kW photovoltaic plant whose generation saves 13.5 percent in annual electricity bills.

“There is a benefit in the monthly fee, but the initial investment is quite significant. We’re talking about more than 20 million pesos (about 32,200 dollars) in the purchase of panels and their installation alone, and that is not compensated in savings until at least the fifth or sixth year of consumption,” he told IPS.

The Canela Wind Farm, with 112-m-high wind turbines and an installed capacity of 18.15 megawatts (MW), generates electricity with the force of the winds coming from the sea in the Coquimbo region of northern Chile. Credit: Orlando Milesi/IPS

“The government took a good first step with the cogeneration law. However, some adjustments are needed, including the recognition of 100 percent of the energy generated and some kind of benefit in the investment project,” he said.

“If the government wants this to spread and wants there to be significant cogeneration, there has to be a benefit in the investment or some form of tax reduction or benefit,” he added.

In the agricultural county of Buin, south of the city of Santiago, 99 citizen shareholders convened by the IEP financed the community project Solar Buin Uno that built a 10 kW photovoltaic solar plant connected to the grid.

Much of the energy is delivered to the Centre for Sustainable Technologies (CST), and the rest is injected into the grid. But the local distribution company pays only up to 60 percent of the value of the kWh billed to the CST. That is, it pays for the surplus only a portion of what it charges its users.

The generation by individuals received a special boost with the Distributed (decentralized) Generation Law, in force since 2017, also known locally as citizen generation.

Andrés Rebolledo, the last energy minister in the Bachelet administration, explained to IPS that this law “aims to encourage and give signals for the generation by citizens and show that homes and small businesses can generate their own energy based on NCRE.”

The former minister said there has been “exponential growth” of citizen generators and stressed that the modification being debated by parliament raises the possibility that they could increase their potential from 100 to 300 kW, favouring small and medium enterprises.

“The objective and vision is that the progress that Chile has made in terms of NCRE generation at the level of large plants can also be taken advantage of at the citizen level and that in this way households can generate their own electricity, save on their electricity bills and at the same time contribute to a more sustainable model,” he said.

“This implies an effort to strengthen the distribution networks, to have another form of measurement so that households can manage their own consumption and generation and, ultimately, so that they can become prosumers, that is, for a household to be both a producer and a consumer of energy at the same time,” he said.

The former minister explained that the request for a debate in parliament “was intended to try to send out signals and offer incentives so that more people could make an investment and this could become accessible to all, always taking care that households do not turn this into a business but rather for their own consumption.”

But non-governmental organisations say it will be a setback if the payment received for the injection of energy into the grid generated by citizens is eliminated.

According to Sara Larraín, executive director of Chile Sustentable, the proposed modification “eliminates the payment for the energy surplus injected by the residential generator over its own consumption.”

That, she told IPS, “discourages households from investing in self-generation and recovering their investment in less time thanks to the retribution for the electricity fed into the grid.”

Speaking to members of parliament, Larraín said that the reform “is a monopolistic distortion in favour of distribution companies that already constitute a monopoly as concessionaires of the distribution service.”

The president of IEP, Baquedano, said that the installation of a second citizens’ plant in the north of the country was suspended pending the legislative decision, “because the model will not work if this legislation is approved.”

“There’s a question mark over what’s going to happen to the energy generated by citizens. The government will have to understand that if citizen energy runs out, the environmental movement will not keep quiet. The conflicts will return, that’s my thesis, and not just my thesis because we are also preparing the scenarios,” he concluded.

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Zimbabwe's Axcil Jefferies hopes to be the first African racing driver on the F1 grid for 25 years.

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From left, Anthony Nyong, Director of Climate Change and Green Growth at AfDB, Hyoeun Jenny Kim, Deputy Director General of GGGI, Fisiha Abera, Director General of the International Financial Institutions Cooperation (Ethiopia). Credit: Ahn Miyoung/IPS

By Ahn Mi Young
BUSAN, May 26 2018 (IPS)

The Global Green Growth Institute (GGGI) presented the African model of a National Financing Vehicle in which the governments of Rwanda and Ethiopia have successfully promoted green growth and climate resilience, at an event May 25 on the sidelines of the annual meetings of the Board of Governors of the African Development Bank (AfDB) in Busan, South Korea.

GGGI and AfDB signed a partnership to accelerate Africa’s inclusive and sustainable green growth.

“We will focus on Africa, as we are seeing a huge potential in Africa,” Hyoeun Jenny Kim, deputy director general of GGGI, said in her opening remarks.

“So far, we’ve worked very closely and very extensively with Ethiopia and Rwanda throughout the comprehensive stages of designing and developing projects as well as mobilizing funds,” she told IPS after the side event.

“We’ve so far worked only with a small number of countries… But these climate funding success stories in Rwanda and Ethiopia encouraged us to extend our reach to other Africa countries like Senegal, Uganda or Mozambique,” she added.

After a two-year stint as ambassador to Senegal, Kim, who previously worked at the OECD, joined GGGI in May as its new deputy director general, in charge of planning and implementation of 33 projects in 25 countries.

She emphasized the need for adopting locally relevant green growth paths in Africa, as well as mobilizing funds. “When I was working at OECD, I was seeing the agenda from a global perspective. [While in Senegal as a Korean ambassador], I have seen the unique and particular reality facing each African country. So I understand the need to adapt our climate resilience and green growth initiatives to fit the particular condition of each African country.”

The side event highlighted how Rwanda and Ethiopia have used public investment funding to bring aboard private sector investment with close cooperation with GGGI.

Hubert Ruzibiza, CEO of Rwanda’s Green Fund, revealed how Rwanda has successfully financed green growth and climate resilience through its National Fund for Environment and Climate Change (FONERWA), whose function is to identify and invest in the best public and private projects that have the potential for transformative change that aligns with Rwanda’s commitment to building a strong green economy.

The fund has created about 137,000 green jobs, rehabilitated 19,304 area (ha) of land against erosion, and made about 28,000 families connected to off-grid clean energy.

“FONERWA has a global track record as the national financing mechanism by bringing together public and private sector investment,” Ruzibiza noted.

The side event also highlighted the GGGI-Ethiopia partnership to design, develop and implement Ethiopia’s political commitment to CRGE (Climate Resilience Green Economy), as well as its national financing mechanism called the Ethiopia CRGE Facility, which is the country’s primary financial instrument to mobilize, access and combine domestic and international, public and private sources of finance to support the institutional building and implementation of the CRGE Strategy.

“As we are raising the green growth and climate resilient funding, especially from small and medium-sized business that constitutes about 90 percent of our business, so are the number of projects increasing,” said Fisiha Abera, Director General of the International Financial Institutions Cooperation in Ethiopia.

GGGI has been working closely with the government of Ethiopia since 2010 to omplement its CRGE strategy. GGGI supported CRGE to mobilize a 60-million-dollar grant from the Adaptation Fund (AF) and the Green Climate Fund (GCF), as well as another 75 million in climate finance. Most recently, GGGI helped mobilize 300 million dollars from the international private sector for the Mekele Water Supply Project.

“The CRGE model shows the importance of the government’s political commitment in which the government takes a holistic national approach. So our advisers are working closely with a wide variety of government functions,” said Kim.

The AfDB and GGGI signed an MOU on the sidelines of the African Development Bank Group’s Annual Meetings in Busan to promote programs, conduct joint studies and research activities to accelerate green growth options for African countries, as well as to work together in the GGGI’s cities programs and the AfDB’s initiatives on clean energy, sustainable landscapes, green cities, water and sanitation, with the ultimate goal of strengthening climate resilience in Africa.

The MOU was signed by Kim of GGI and Amadou Hott, Vice-President, Power, Energy, Climate and Green Growth, AfDB.

Ban Ki-moon, who previously served as the eighth Secretary General of the United Nations, took office as President of the Assembly and Chairman of the council of GGGI on March 27.

Headquartered in the heart of Seoul, GGGI has 28 member states and employs staff from more than 40 countries. Its areas of focus include green cities, water and sanitation, sustainable landscapes, sustainable energy and cross-cutting strategies for financing mechanisms.

AFDB is Africa’s premier development finance institution. It comprises three distinct entities: the AfDB, the African Development Fund and Nigeria Trust Fund NTF. Working on the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.

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