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Inadequate electricity services pose a major impediment to reducing extreme poverty and boosting shared prosperity in Sub-Saharan Africa. Simply put, Africa does not have enough power. Despite the abundant low-carbon and low-cost energy resources available to Sub-Saharan Africa, the region s entire installed electricity capacity, at a little over 80 GW, is equivalent to that of the Republic of Korea. Looking ahead, Sub-Saharan Africa will need to ramp-up its power generation capacity substantially. The investment needed to meet this goal largely exceeds African countries already stretched public finances. Increasing private investment is critical to help expand and improve electricity supply. Historically, most private sector finance has been channeled through privately financed independent power projects (IPP), supported by nonrecourse or limited recourse loans, with long-term power purchase agreements with the state utility or another off-taker. Between 1990 and 2014, IPPs have spread across Sub-Saharan Africa and are now present in 17 countries. Currently, there are 125 IPPs, with an overall installed capacity of 10.7 GW and investments of $24.6 billion. However, private investment could be much greater and less concentrated. South Africa alone accounts for 67 IPPs, 4.3 GW of capacity and $14.4 billion of investments; the remaining projects are concentrated in a handful of countries. The objective of this study is to evaluate the experience of IPPs and identify lessons that can help African countries attract more and better private investment. At the core of this analysis is a reflection on whether IPPs have in fact benefited Sub-Saharan Africa, and how they might be improved. The analysis is based primarily on in depth case studies, carried out in five countries, including Kenya, Nigeria, South Africa, Tanzania and Uganda, which not only have the most numerous but also among the most extensive experience with IPPs.
Africa's Power Infrastructure: Investment, Integration, Efficiency is based on the most extensive data collection exercise ever undertaken on infrastructure in Africa: the Africa Country Infrastructure Country Diagnostic (AICD). Data from this study have provided new insights on the extent of a power crisis in the region, characterized by insufficient capacity, low electricity connection rates, high costs, and poor reliabilityùand on what can be done about it. The continent faces an annual power sector financing gap of about $21 billion, with much of the existing spending channeled to maintain and operate high-cost power systems, leaving little for the huge investments needed to provide a long-term solution. Meanwhile, the power crisis is taking a heavy toll on economic growth and productivity. This book asserts that the current impediments to economic growth and development need to be tackled through policies and investment strategies that renew efforts to reform state-owned utilities, build on the lessons of private participation in infrastructure projects, retarget electrification strategies, expand regional power trade, and mobilize new funding resources. Further development of regional power trade would allow Africa to harness larger-scale and more cost-effective energy sources, reducing energy system costs by US$2 billion and carbon dioxide emissions by 70 million tons annually. But reaping the promise of regional trade depends on a handful of major exporting countries raising the large volumes of finance needed to develop generation capacity for export; it also requires a large number of importing countries to muster the requisite political will. With increased utility efficiency and regional power trade in play, power costs would fall and full cost recovery tariffs could become affordable in much of Africa. This will make utilities more creditworthy and help sustain the flow of external finance to the sector, which is essential to close the huge financing gap.
The reform of energy subsidies is an important but challenging issue for sub-Saharan African (SSA) countries. There is a relatively large theoretical and empirical literature on this issue. While this paper relies on that literature, too, it tailors its discussion to SSA countries to respond to the following questions: Why it is important to reduce energy subsidies? What are the difficulties involved in energy subsidy reform? How best can a subsidy reform be implemented? This paper uses various sources of information on SSA countries: quantitative assessments, surveys, and individual (but standardized) case studies.
This open access book presents a picture of the current energy challenges on the African continent (and the Sub-Saharan region in particular) and proposes pathways to an accelerated energy transition. Starting with an analysis of the status quo and the outlook for Africa’s energy demand and energy access, it provides an account of the available resources, including hydrocarbons and renewable energy resources, which are playing an increasingly crucial role. It then moves on to analyze the level of investment required to scale-up Africa’s energy systems, shedding light on the key barriers and elaborating on potential solutions. It also provides a suggestion for improving the effectiveness of EU–Africa cooperation. While mainly intended for policymakers and academics, this book also speaks to a broader audience interested in gaining an overview of the challenges and opportunities of the African energy sector today and in the future.
Sustainable infrastructure development is vital for Africa s prosperity. And now is the time to begin the transformation. This volume is the culmination of an unprecedented effort to document, analyze, and interpret the full extent of the challenge in developing Sub-Saharan Africa s infrastructure sectors. As a result, it represents the most comprehensive reference currently available on infrastructure in the region. The book covers the five main economic infrastructure sectors information and communication technology, irrigation, power, transport, and water and sanitation. 'Africa s Infrastructure: A Time for Transformation' reflects the collaboration of a wide array of African regional institutions and development partners under the auspices of the Infrastructure Consortium for Africa. It presents the findings of the Africa Infrastructure Country Diagnostic (AICD), a project launched following a commitment in 2005 by the international community (after the G8 summit at Gleneagles, Scotland) to scale up financial support for infrastructure development in Africa. The lack of reliable information in this area made it difficult to evaluate the success of past interventions, prioritize current allocations, and provide benchmarks for measuring future progress, hence the need for the AICD. Africa s infrastructure sectors lag well behind those of the rest of the world, and the gap is widening. Some of the main policy-relevant findings highlighted in the book include the following: infrastructure in the region is exceptionally expensive, with tariffs being many times higher than those found elsewhere. Inadequate and expensive infrastructure is retarding growth by 2 percentage points each year. Solving the problem will cost over US$90 billion per year, which is more than twice what is being spent in Africa today. However, money alone is not the answer. Prudent policies, wise management, and sound maintenance can improve efficiency, thereby stretching the infrastructure dollar. There is the potential to recover an additional US$17 billion a year from within the existing infrastructure resource envelope simply by improving efficiency. For example, improved revenue collection and utility management could generate US$3.3 billion per year. Regional power trade could reduce annual costs by US$2 billion. And deregulating the trucking industry could reduce freight costs by one-half. So, raising more funds without also tackling inefficiencies would be like pouring water into a leaking bucket. Finally, the power sector and fragile states represent particular challenges. Even if every efficiency in every infrastructure sector could be captured, a substantial funding gap of $31 billion a year would remain. Nevertheless, the African people and economies cannot wait any longer. Now is the time to begin the transformation to sustainable development.
"Power-sector reform and regulation in Africa offers detailed, up-to-date and original research into how governments and policymakers in six African countries have grappled with the development of their energy sectors. Arising out of a two-year peer-learning process involving senior executives in the electricity regulators in each country, the book contains an intelligent and clear analysis of the knowledge and shared experiences gathered in Africa by African scholars."--Publisher's note
The world is currently undergoing an historic energy transition, driven by increasingly stringent decarbonisation policies and rapid advances in low-carbon technologies. The large-scale shift to low-carbon energy is disrupting the global energy system, impacting whole economies, and changing the political dynamics within and between countries. This open access book, written by leading energy scholars, examines the economic and geopolitical implications of the global energy transition, from both regional and thematic perspectives. The first part of the book addresses the geopolitical implications in the world’s main energy-producing and energy-consuming regions, while the second presents in-depth case studies on selected issues, ranging from the geopolitics of renewable energy, to the mineral foundations of the global energy transformation, to governance issues in connection with the changing global energy order. Given its scope, the book will appeal to researchers in energy, climate change and international relations, as well as to professionals working in the energy industry.
In recent years, interest for local energy production, supply and consumption has increased in academic and public debates. In particular, contemporary energy transition discourses and strategies often emphasize the search for increased local energy autonomy, a phrase which can refer to a diverse range of configurations, both in terms of the spaces and scales of the local territory considered and in terms of what is meant by energy autonomy. This book explores policies, projects and processes aimed at increased local energy autonomy, with a particular focus on their spatial, infrastructural and political dimensions. In doing so, the authors – Sabine Barles, Bruno Barroca, Guilhem Blanchard, Benoit Boutaud, Arwen Colell, Gilles Debizet, Ariane Debourdeau, Laure Dobigny, Florian Dupont, Zélia Hampikian, Sylvy Jaglin, Allan Jones, Raphael Ménard, Alain Nadaï, Angela Pohlmann, Cyril Roger-Lacan, Eric Vidalenc – improve our understanding of the always partial and controversial processes of energy relocation that articulate forms of local metabolic self-sufficiency, socio-technical decentralization and political empowerment. Comprising fifteen chapters, the book is divided into four parts: Governance and Actors; Urban Projects and Energy Systems; Energy Communities; and The Challenges of Energy Autonomy.
The Oxford Handbook of Comparative Regionalism - the first of its kind - offers a systematic and wide-ranging survey of the scholarship on regionalism, regionalization, and regional governance. Unpacking the major debates, leading authors of the field synthesize the state of the art, provide a guide to the comparative study of regionalism, and identify future avenues of research. Twenty-seven chapters review the theoretical and empirical scholarship with regard to the emergence of regionalism, the institutional design of regional organizations and issue-specific governance, as well as the effects of regionalism and its relationship with processes of regionalization. The authors explore theories of cooperation, integration, and diffusion explaining the rise and the different forms of regionalism. The handbook also discusses the state of the art on the world regions: North America, Latin America, Europe, Eurasia, Asia, North Africa and the Middle East, and Sub-Saharan Africa. Various chapters survey the literature on regional governance in major issue areas such as security and peace, trade and finance, environment, migration, social and gender policies, as well as democracy and human rights. Finally, the handbook engages in cross-regional comparisons with regard to institutional design, dispute settlement, identities and communities, legitimacy and democracy, as well as inter- and transregionalism.
This book examines recent progress made in the region’s privatisation effort in Sub-Saharan Africa. With cumulative proceeds of privatisation accounting for just $8 billion compared to $46 billion in transition economies over the same period, it is ...