Transcript The impact of international donor agencies in promoting

The impact of international
donor agencies in promoting
renewable energy
Marlett Balmer
GTZ ProBEC
19 March 2009
Outline of presentation
• Introduction and objectives
• An overview of the development of RE in South
Africa
• Review of factors shaping donor interest in RE in SA
• Review of factors shaping RE development locally
• Investigating a happy meeting ground for donor
objectives and local realities
• Overview of current initiatives and donor activities
• Conclusion and recommendations
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An overview of RE in South Africa
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A short history of a long story
• Pre-1994
– Energy landscape characterised by excess electricity supply capacity, low
levels of access to electricity for majority of the population and renewable
energy viewed as an interesting area with potential poverty alleviation
application
– RE was firmly in the lunatic fringe, inhabited by saffron robed, long-haired
proponents
• Post 1994
– Review of policy, new policy goals: White Paper on Energy - increasing
access to affordable energy services; improving energy governance;
stimulating economic development; managing energy-related environmental
and health impacts; and securing supply through diversity.
– Impressive increase in access to grid-electricity
– Potential restructuring of the electricity industry launched (REDS)
– Renewable Energy viewed as a viable instrument to increase access to
electrification (REFSA and later non-grid rural programme)
– Direct use of biomass energy acknowledged but not addressed
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The story continued….
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Donor support after 1994 included work funded by DANCED, DANIDA,
EU, US-AID
Local initiatives included the SABRE-gen project of Eskom, CSIR
projects on various subjects
• 2000 and beyond
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RE policy launched in 2003 setting targets
Focus shifted from poverty relief to potential growth sector, influenced
by climate change issues
Completely ignored the direct (poor, rural) biomass energy users
Collapse of non-grid programme
A few orchestrated PR exercises (Stirling engine at DBSA, Eskom
wind farm)
Development driven by private investors (Darling wind-farm, Bethlehem
Hydro) and private sector
Donors: Danish supported CABEERE propgramme, shift from support
to national institutions to local authorities
Electricity supply crises - a way to sway opinion to nuclear?
Increased recent interest in RE, EE and climate change
National Energy Act approved in April 2008 - development of SANEDI
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Factors shaping international interest
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Increasing global energy demand
Increased security of supply
Climate change
Increasing energy prices
Providing opportunities for economic growth
Increased awareness
Expertise and experience through successful
implementation
• Continued commitment to MDG’s
• South Africa as key country in the region
• International interest emphasised by the launch of the
International Renewable Energy Agency (IRENA) in
January 2009
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The South African reality
• Low-cost, coal based energy economy
• Low energy costs (cheap energy)
• A developing economy, trying to keep energy
costs low
• Clash of political objectives (low energy costs
for the voters vs.environmental agenda)
• Lack of adequate political support for RE
• Capacity challenges in skills and know-how
• Eskom monopoly hinders growth of IPPS
• Electricity supply challenges - nuclear push
• Politicisation of energy - biomass users
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ignored and forgotten
Current initiatives
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Wind energy: SAWEP funded by World Bank through GEF, expansion of
Darling wind farm to 45MW funded by Danish government, DBSA
Danish Government funds the SA cities network for wind energy development in
SA
Eskom and Agence Francaise Development (EFD) signed a 100 million euro
deal to develop a west coast Windfarm near Koekenaap
BMZ funded, GTZ implemented TERNA programme supports the Dept. of
Environmental Affairs and Development Planning Western Cape to achieve its
RE goals and increase the use of wind energy
Solar energy: A 40 million Rand SWH manufacturing plant planned for EastLondon (private investors and Taiwanese support)
The national solar water heating programme is supported by E&CO (2.3 million
Rand “Home Comfort Propgramme” in Johannesburg and REEE
Establishment of a thin-film solar panel production unit planned for Paarl (40
million euro from European Investment Bank)
KfW funding of DHS concession area in Eastern Cape
Hydro Energy: Ongoing Bethlehem Hydro projects (3 MW)
Planned 3 MW Sol Plaatjie Damn project, 4 MW private development between
Clarens and Bethlehem (NuPlanet)
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Current initiatives continued
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Biomass: VW Stiftung supports the project “Bio-models - modeling the biomass
use for the household energy sector in rural areas of SA”, coordinated through
the University of Johannesburg
Regional - Programme for Biomass Energy Conservationa implemented by GTZ
and funded by German, Norwegian and Dutch governments
Biofuels: SA Strategy launched
InWent and Alensyns supports SABIO - South African Biofuels Competence and
Training Centre
The ‘RE-Impact biofuels project South Africa supported by Newcastle University
UK and coordinated by CSIR investigated the rural application of bioenergy in
South Africa
Others: RE Market transformation fund (DME AND DBSA)
Green Star SA - green commercial and office buildings
BMU supported BECCAP programme in South Africa
Enerkey project supported by the Universities of Stuttgart and UJ
GTZ development of a focal area on Climate Change and Energy in South Africa
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The potential role of donor agencies in
promoting RE
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Donor agencies can support RE to ensure security of energy supply
and address climate change concerns
Leverage resources and for a cleaner development path for South
Africa
Donors need to acknowledge the realities of SA and work out ways to
benefit all
But clear objectives and real political will required from SA
SA can access resources to develop a local RE industry that will place
it in the lead in the region - Mosgas and Sasol were harebrained
schemes in their times
Donors can ensure that the energy requirements of the forgotten
masses (biomass energy dependent rural energy users) be addressed
in innovative and novel ways - “Modernising traditional energy” by
ProBEC
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Thank you
Questions?