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"This paper explores the South African experience of introducing grid-connected renewable energy by seeking answers to a number of key questions: 1. Why and how did South Africa move from feed-in tariffs to competitive tenders for grid-connected renewable energy? 2. How did the government design and manage the program? What were the distinctive features of these competitive tenders, and how were the bids evaluated? 3. What were the investment and price outcomes of the different bid rounds? 4. Who were the key private sector actors in the various deals? What kinds of financing institutions were involved? Who were the successful sponsors, equipment providers, and engineering, procurement, and construction (EPC) contractors? 5. What were the impacts and trade-offs between prices and economic development outcomes (e.g., local industrial development and employment creation)? 6. What were the key success factors, shortcomings and risks associated with the program? 7. What lessons can the South African program offer to other developing countries? "
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.
In the wake of the Great Recession of 2008–09, economists feared that protectionist policies might sweep the world economy, echoing the wave of tariff escalations during the Great Depression of the 1930s. To some surprise, officials were more restrained and largely avoided traditional forms of protection (tariffs and quotas), leading some observers to underestimate the incidence of new protectionism. In fact, policymakers increasingly turned to more opaque behind-the-border nontariff barriers (NTBs). Using a combination of statistical analysis and case studies, the authors show that local content requirements (LCRs), a form of NTB, have become increasingly popular. How much was global trade actually reduced on account of LCRs? A conservative estimate might be $93 billion. Case studies featured cover the healthcare sector in Brazil, wind turbines in Canada, the automobile industry in China, solar cells and modules in India, oil and gas in Nigeria, and “Buy American” restrictions on government procurement in the United States.
A volume on the political economy of clean energy transition in developed and developing regions, with a focus on the issues that different countries face as they transition from fossil fuels to lower carbon technologies.
Deliberations on the just transition in South Africa have intensified and will continue to do so for the next few years and decades. Climate change, widening socio-economic inequality, the precarious future of work and emergent approaches to financing arrangements have brought new urgency to the issues. It therefore remains critical to interrogate how South Africa can ensure a just transition to a low carbon economy. This book underlines the fact that the low carbon transition in South Africa has to grapple with complex historical, social, economic, cultural and political factors. The main message is that the transition to a low-carbon society is possible, but it can only succeed if it is just and handled collaboratively. In addition, the book aims to broaden the discourse on low carbon transition and explore the opportunities in and impediments to making the transition fair, affordable and socio-economically viable.
Expectations are high regarding the potential benefits of public-private partnerships (PPPs) for infrastructure development in low-income countries. The development community, led by the G20, the United Nations, and others, expects these partnerships between goverments and private companies in infrastructure service provision to aid "transformational" mega-projects, as well as efforts to achieve the Sustainable Development Goals. Yet PPPs have been widely used only since the 1990s, and discussion of their efficacy is still dominated by best-practice guidance, academic studies that focus on developed countries, or ideological criticism. Meanwhile, practitioners have quietly accumulated a large body of empirical evidence on the actual performance of PPPs. The purpose of this book is to summarize and consolidate what this critical mass of evidence-based research indicates about PPPs in low-income countries, and thereby develop a more realistic perspective on the practical value of these mechanisms. With a primary focus on Sub-Saharan Africa, though drawing on critical insights from other regions, it demonstrates that the benefits of such partnerships will only be realised if expectations remain modest and projects are subject to transparent evaluation and competition.
Energy has always been essential to economics and politics. While global energy consumption increases, fossil fuels are depleting. The countries that will be hit hardest by declining energy resources are the emerging economies of the Global South, where the relevance of the industrial sector is only slightly declining (or, indeed, still on the rise) and where governments have subsidised energy consumption for decades. Climate change – a direct outcome of the increasing consumption of fossil fuels – hits these emerging economies hard. Against this backdrop, Energy Policy inthe Emerging Economies: Climate Change Mitigation under the Constraints of Path Dependence analyses energy policy in Brazil, China, India, Indonesia, Mexico, South Africaand South Korea with particular regard to these countries’ contributions to climatechange mitigation. Advancing a new approach that expands on energy transition studies and the concept of path dependence, Sören Scholvin and Joachim Betzshed light on material conditions, energy demand and expansion plans, politico-economicconstellations, energy-related know-how and climate policy.
The fact that market experience improves performance and reduces prices is well known and widely exploited in technology-intensive industries, but sparsely used in analysis for energy technology policy. Knowledge of the "experience effect" can help in the design of efficient programmes for deploying of environment-friendly technologies. The effect must be taken into account when estimating the future costs of achieving targets, including targets for carbon dioxide reduction. This book discusses issues raised by the "experience effect", such as price-cost cycles, competition for learning opportunities in the market, risk of "technology lockout" and the effects of research, development and deployment policies on technology learning. Case studies illustrate how experience curves can be used to set policy targets and to design policy measures that will encourage both investment in and use of environment-friendly energy technologies. Low-cost paths to stabilising CO2 emissions are explored.
This book breaks new ground in the studies of green transition. It frames the ongoing transformation in terms of a "battle of modernities" with the emerging vision of ecomodernity as the final destination. It also offers a systematic exploration of the potential for extensive transformation of carbon-intensive sectors – with a focus on energy and transport – towards a low or post-carbon economy. The book does so in a comparative perspective, by pointing to a diversity of techno-economic and institutional solutions in the mature Western economies, and in the rapidly growing East and developing South. The contributors highlight a broad spectrum of available alternatives as well as illuminate conflicting interests involved. They also demonstrate how solutions to the climate challenge require parallel technological and governance innovation. The book advocates a new, overarching vision and agenda of ecomodernity – based on a synergistic paradigm-shift in industry, politics and culture – to trigger and sustain the ecological innovation necessary to tip development in a green direction. This vision cannot be monolithic; rather, it should reflect the diverse interests and conditions of the global population. This book is aimed at researchers and postgraduate students of energy, transport, environmental and climate policies, as well as development, environment, innovation and sustainability.
Based on close to two hundred interviews with decision-makers, government officials, and industry stakeholders, Karoline Steinbacher presents the first in-depth enquiry into Germany’s efforts of “exporting” its sustainable energy policies. The book closes the empirical gap in understanding how Germany’s leadership influences the transfer of renewable energy policy to three heterogeneous cases, namely Morocco, South Africa, and California.