AfrElec Week 18, Issue 53

�� Hard sell for hydro The Batoka Gorge HPP is technically possible and offers cheap power, but a

high price tag, an outdated development plan and Zimbabwe’s poor financial reputation are likely to make securing investment difficult

�� Nigerian power plans International companies looking at energy projects in Nigeria have been

urged to consider the country’s pension funds as co-investors

�� Market liberalisation Cote d’Ivoire could liberalise its power distribution market in a bid to attract

investors and reduce the cost of electricity

�� Coal deal Australia’s Resgen is closer to sealing a US$141m deal with Sedgman to

procure coal-handling equipment for its Boikarabelo mine in South Africa

Issue 53 11•May•2016 Week 18

P2 Week 18 11•May•2016w w w. N E W S B A S E . c o m

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MexicoDeepwater Special Report

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C O M M E N T A R Y

Have a question or comment? Contact the editor – Richard Lockhart ([email protected])Copyright © 2016 NewsBase Ltd. All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

C O N T E N T S

Zimbabwe and Zambia’s hydro dreams likely to be a hard sell 4Nigerian PenCom’s power plans 6

P O L I C Y

Zambians suffer extended load-shedding 7Cote d’Ivoire to liberalise distribution market 7

I N V E S T M E N T

SA pushes domestic electrification 8

C O A L - F I R E D T H E R M A L G E N E R A T I O N

Makomo to build 600-MW coal TPP in Zimbabwe 8

C O A L

Resgen signs SA mine contract 9

R E N E W A B L E S

Rwanda drives forward solar projects 9Zanzibar needs renewables to provide reliable power 10

N E W S I N B R I E F 12

O U R C U S T O M E R S 18


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ZIMBABWE and Zambia’s US$5 billion Batoka Gorge hydropower development could be com-pleted by 2023, the Zimbabwean Minister for Energy has claimed.

Samuel Undenge said last week the countries would undertake a feasibility study for the Zam-bezi River development by July this year.

But Harare and Lusaka have yet to attract financing for the 2,400-MW proposal, which could see both countries exporting electricity to the South African Power Pool (SAPP).

“We hope there will be financiers that come through because it’s a very viable project,” Undenge said. “We estimate that it will come out at about US$0.05 per kWh when completed, which is far below solar energy and thermal power.”

Southern Africa is in the midst of a drought which Zimbabwe’s agriculture ministry has pre-viously compared to severe dry conditions in 1992 responsible for a regional recession.

Hydropower generated 21.02% of electricity supplied through the common SAPP market last year.

But both Zimbabwe and Zambia have seen low water levels at the 1,620-MW Kariba HPPs, which have been generating at half capacity.

Given current climate patterns, the sustaina-bility of another large-scale hydropower invest-ment in Southern Africa merits further scrutiny.

Run-of-the-riverHydropower continues to be popular in the Zambezi Basin, with major projects planned, such as Zimbabwe’s 300-MW extension to Kariba South and Mozambique’s 1,000-MW Chemba HPP.

These projects were conceived prior to the current drought, which underlined the need for Southern African countries to diversify their energy mixes away from hydropower.

The proposed Batoka Gorge facility would be located 54 km downstream from the Victo-ria Falls, in an area straddling Zimbabwe and Zambia.

Current development plans envision two underground power stations either side of the border, each holding four 200-MW Francis

turbines. The latest feasibility study will update work undertaken in 1993 and 2009, which sug-gested the eight-turbine scheme would be tech-nically and financially viable.

Developers will also need to renew the envi-ronmental impact assessment (EIA) and statics integrated assessment (SIA) carried out in 1993 and 1998 respectively, according to the Com-mon Market for Eastern and Southern Africa (COMESA).

One key issue will be Batoka Gorge’s con-ception as a run-of-the-river generation plant, without a large reservoir for water storage and regulation.

Although the lack of a reservoir avoids flood-ing in the upper river, these facilities are highly prone to the effects of drought, which can sub-stantially diminish electricity generation.

AlternativesUpdated feasibility studies will also need to consider alternatives for electricity generation emerging in both countries.

In February, Zambia launched its 120-MW Itezhi Tezhi HPP with enough capacity to close 21% of the country’s generation deficit.

Zimbabwe signed up a Chinese construction firm to build the 600-MW, coal-fired Lusulu HPP last year, and both countries are targeting the generation of around 300 MW from solar power to safeguard against dry seasons.

In certain respects, and despite progress on the alternatives, Batoka Gorge remains an attrac-tive proposition.

Hydro is still by far the cheapest source of electricity in Zimbabwe and Zambia, with sig-nificant hydro-potential still to be tapped.

In Zimbabwe, hydro costs were reported at US$0.015 per kWh as of 2015, as against US$0.08-0.012 for coal and US$0.20-0.30 for solar power.

Furthermore, the 1993 feasibility study con-cluded Batoka would produce power for less than any other potential HPP regionally with the exception of a 450-MW expansion at Kafue Lower Gorge.

Once completed, Batoka’s high capac-ity could be enough to turn Zimbabwe and

W H AT:Zimbabwe is confident that the US$5 billion Batoka Gorge HPP can be built by 2023

W H Y:Southern Africa is keen to exploit its hydro resources to meet rising demand

W H AT N E X T:With no funding for the 2,400-MW project in place, and doubts about Southern Africa’s hydro potential, the prospects are not as rosy as Zimbabwe and Zambia hope

Zimbabwe and Zambia’s hydro dreams likely to be a hard sellThe Batoka Gorge HPP is technically possible and offers cheap power, but a high price tag, an outdated development plan and Zimbabwe’s poor financial reputation are likely to make securing private or institutional investment difficult, writes Callum Cyrus

One key issue will be Batoka Gorge’s conception as a run-of-the-river

generation plant, without a large

reservoir for water storage and

regulation

C O M M E N TA RY

ZIMBABWE


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Zambia into exporters via the Zambia-Zimba-bwe interconnector to Botswana and Namibia, and the upcoming Zambia-Tanzania-Kenya interconnector.

Exports from Batoka Gorge would bring Zambia, and especially Zimbabwe, valuable inflows of foreign currency from their Southern African neighbours.

Payment detailsZimbabwe and Zambia’s ability to attract financ-ing for Batoka Gorge will be crucial to determin-ing the development’s success.

Zimbabwe, in particular, struggled to attract private investment during the crippling reces-sion experienced from 2000-2009, and investors still have concerns about dealings with Harare.

Zimbabwean President Robert Mugabe’s controversial tenure has eroded confidence in fundamental investment variables such as the protection of property rights.

Harare and Lusaka favour a public-private partnership (PPP) at Batoka Gorge, and Zim-babwe has introduced a BOOT PPP incentive package which includes a five-year tax holiday followed by five years of reduced taxes.

According to the Corporate Council, Zim-babwean investments have seen growing inter-national interest in recent years, with business delegations visiting from France and the United Kingdom in 2015. Chinese financiers stepped in to fund the 300-MW Kariba South extension, which is being developed by Sinohydro.

Tellingly, however, the Exim Bank of China withheld funding for the scheme in April 2015 because Harare had missed too many loan pay-ments at other projects.

There is scope for a PPP to work at Batoka Gorge, but the chances are narrowing as Zim-babwe battles another recession caused by the slowdown in China – Zimbabwe’s second largest

trading partner.Investors also need to be convinced that a

large-scale project like Batoka can turn a profit, something which would require cost-reflective tariffs in both Zimbabwe and Zambia.

The high price tag is likely to make securing private or institutional investment difficult, and Zimbabwe’s financial and political predicament will probably hinder confidence in the PPP framework.

What now?With an outdated development plan, Batoka Gorge is a tough sell for Harare and Lusaka as work continues on other projects.

Convincing private or developmental inves-tors to sign up to a large hydropower scheme, at a time when changing climate patterns have posed significant challenges, could be difficult.

NewsBase believes there is a chance the two governments could attract Chinese development financing, but much will depend on the result of feasibility studies scheduled for the summer.

The scheme undoubtedly has significant gen-eration potential and – potentially – low costs of production, so it is understandable that Harare is continuing to push the idea.

Hydro is still the cheapest option in this region, but investors need to be convinced sig-nificant capital expenditures can be recouped before joining a PPP.

Unfortunately, NewsBase believes the uncer-tainty in Zimbabwe could undermine confi-dence in Batoka Gorge’s long-term viability, though this might be tempered somewhat by partnering with Zambia.

The two countries might be better off entic-ing foreign investment in smaller schemes which diversify the energy mix, even though hydropower will continue to play a key role in electricity supply.�

Convincing private or

developmental investors to sign

up to a large hydropower

scheme could be difficult

C O M M E N TA RY

The Batoka Gorge


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WITH only 3,000 MW of operational on-grid generating capacity serving a population of 170 million, the need for investment in power and energy infrastructure in Nigeria is critical.

Investors remain wary of the risks inherent in the country, such as the weak legal regime, high banking instability and unreliable infrastructure. This makes partnership with large and stable domestic players with whom they can co-invest to mitigate such risks an attractive option.

Chinelo Anohu-Amazu, director-general of the National Pension Commission (PenCom) of Nigeria, told NewsBase last week that this was a role her agency was eager to fulfil. She said it wanted to encourage international investors to co-invest with Nigerian pension funds on energy infrastructure projects, with PenCom providing the guidelines under which that co-investment could take place.

Anohu-Amazu, who was in Edinburgh to deliver the keynote speech at the Scottish Busi-ness in Africa Forum (SBIAF), hosted by the Sustainable Business Initiative (SBI) at the Uni-versity of Edinburgh Business School, said part of her mission was to support the government’s commitment to increase power supply across the country.

“When we are talking of power infrastructure we are talking about the whole range of the sec-tor: generation, distribution, transmission,” she said. “The key thing is to develop appropriate investment vehicles that the pension funds can go into to support these projects.”

She said international companies studying major energy projects in Nigeria must identify a stable and well-funded co-investor on the ground to partner with. The pension funds, which oversee around 5 trillion naira (US$25 bil-lion), are ideally suited because their “long-term nature lends itself to the developmental nature of initiatives like gas pipelines and power plants.”

In Nigeria there are 21 pension fund adminis-trators (PFAs) that invest and manage the funds, and four pension fund custodians (PFCs), which hold the funds in trust. Both the PFAs and PFCs are regulated by PenCom, which oversees the entire industry.

Anohu-Amazu stressed that the shared regu-latory background of the pension funds, as well as strict corporate governance requirements, made them good partners for co-investment.

Rethink requiredYet while she is confident that the funds would make an ideal partner for inward investors, Ano-hu-Amazu said there had to be a change in the approach of the investment community with respect to Nigeria and Africa as a whole.

“What I think is required is a shift from that negativity, this view that ‘it’s not safe to invest there’ and that you must quickly maximise your returns before exiting. That is not a developmen-tal mentality and that is not the type of investor that we are looking for,” she said.

Anohu-Amazu stressed that investment vehicles for infrastructure projects in Nigeria were structured in the same way as they would be in Hong Kong, London or New York. The need for strict corporate governance and regula-tory compliance for infrastructure bonds meant that risk for investors could be mitigated, though not “obliterated”, which she said was an unrealis-tic goal in any investment anywhere in the world.

“The job is to mitigate those risks so that they do not interfere with the expected [return on investment] ROI. It’s a no-brainer that, for exam-ple, we are talking about solar power in a country of 170 million that don’t have reliable electricity provision.”

Risk reductionOne possible risk identified by investors is that should there be another banking crisis in Nige-ria, as happened in 2008-09, the state might not be strong enough to bail out the banks. Ano-hu-Amazu said this should not be a primary concern for investors in infrastructure, especially if they come on board as part of a public-private initiative in partnership with the pension funds.

“What we are doing is developing alternative means of financing projects because the banks, with their high interest rates, are not necessar-ily suited to long-term investing,” she said. “The Nigerian Pension Commission is propagating a paradigm shift from that mind-set of the banks having to bail out infrastructure projects, or the banks themselves being bailed out by the state.”

She went on to say: “The primary aim of the funds is to pay returns and benefits to pension contributors. But we also have to invest that money well and in a way that benefits the retirees and the country alike. So in terms of a hypothet-ical bailout, I am thinking there should not be a focus on one source of financing. It has to be a collaborative effort with multiple sources and a diversification of risks.”

Risk mitigation is a key concern for compa-nies looking at Nigeria. Securing the support of well-regulated bodies such as the pension funds and leveraging their experience and resources looks to be a viable route for investors to take when considering capital expenditure on major long-term energy projects. And with on-grid capacity levels lower even than North Korea, the need for the rapid deployment of such projects is clear. �

W H AT:The funds are well placed to structure investment vehicles that reduce risk and expedite the development of long-term projects

W H Y:They are heavily regulated and committed to investments that benefit their contributors as well as the country

W H AT N E X T:The harnessing of investment via public-private initiatives and other vehicles ought to ramp up power capacity additions

Nigerian PenCom’s power plansInternational companies looking at energy projects in Nigeria have been urged to consider the country’s pension funds as co-investors, writes Ryan Stevenson

C O M M E N TA RY

NIGERIA

Chinelo Anohu-AmazuDirector-general of the National Pension Commission (PenCom) of Nigeria

http://www.business-school.ed.ac.uk/sbi/industry-engagement/scottish-business-in-africa-forum/


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COTE d’Ivoire President Alassane Ouattara has called for an end to the distribution monopoly held by Compagnie Ivoirienne d’Electricite (CIE). The president is hoping to attract inves-tors in the sector to create healthy competition and thereby bring about a drop in the cost of electricity.

“I’ve asked the Prime Minister to plan for a distribution of electricity by many companies,” Ouattara stated. “It’s when we’ll have several companies that the prices will go down because distribution is too expansive,” he added.

CIE is a unit of Eranove, which also has a stake in the West African nation’s water dis-tributor, Societe de distribution d’eau de la Cote d’Ivoire (SODECI).

Eranove has been doing business in Cote d’Ivoire for several decades and has also con-ducted business in Senegal, the Democratic Republic of Congo (Kinshasa) and Mali.

Eranove operates an installed power capacity of more than 1,100 MW in Cote d’Ivoire, which accounts for over half of the nation’s electricity production capacity. Abidjan is seeking to dou-ble its power production capacity to 4,000 MW by 2020.

Eranove has been supplying Cote d’Ivoire with electricity since 1990 under an agreement with the government that runs until 2020. Ouat-tara has not revealed how utility markets will be liberalised, or if it is possible to do so before the expiration of the deal with Eranove.

Foreign electricity operators in Cote d’Ivoire say the nation has developed and maintained a regulatory framework for the power sector, which has encouraged investor confidence.

A defined set of rules for how CIE has to pay independent power producers (IPPs) has had a big impact, ensuring transparency in the sector, as all the operators know that they will get paid.

As well, a waterfall structure gives independ-ent electricity generators a relatively high place in the payments queue.

Last June, the government decided to hike electricity prices by 16% staggered over three years to keep pace with production costs.

Energy tariffs had been scheduled to increase by 5% in January; however, some customers had complained of rates rising by as much as 40%. Consequently, Ouattara cancelled the January rate hike and vowed to develop a more competi-tive industry in the nation.�

LOAD-SHEDDING in Zambia has been lasting longer than the scheduled eight hours per day recently as technical faults in the Zimbabwean grid caused imports to fall.

Zambian Energy Minister Dora Siliya told the Zambian Parliament that there had been a fault with the power interconnector between Zimbabwe and Zambia, which usually pro-vides electricity generated in South Africa and Mozambique.

“Normal load-shedding is supposed to be eight hours according the schedule, but in the recent past days some parts of the country have experienced extended hours of load-shedding because we have a problem with the intercon-nector,” she said, local media reported.

Siliya said the fault was being worked on and that Zambia was expected to return to its normal eight-hour load-shedding. He comments came in response to questions about the power situa-tion posed by Zambian MPs.

Zambia has been grappling with a power defi-cit of around 1,000 MW over the past two years,

largely caused by depleted rainfall and low water levels at most of the country’s hydropower plants (HPPs).

Siliya said the Kafue Gorge HPP, which nor-mally has 990 MW of capacity, was currently generating below 600 MW, while the Kariba North HPP, which has maximum capacity of 1,080 MW, was generating less than 300 MW.

“Even as we import emergency power, we are still not being able to produce all the power needed. That’s why we have continued with load-shedding,” Siliya said.

Deputy Energy Minister Charles Zulu said that the government was continuing to import emergency power, which had been stable at 40 MW per day from 6.00 am to 10.00 pm, adding that the emergency power contract for Aggreko would expire in December this year.

Zulu said that the imports were necessary because of continued low water levels at the country’s reservoirs.

Zambia is currently importing 300 MW from neighbouring countries. �

Zambians suffer extended load-shedding

Cote d’Ivoire to liberalise distribution market

P O L I C Y

Zambia has been grappling with a power deficit of

around 1,000 MW over the past two

years

Foreign electricity operators in Cote d’Ivoire

say the nation has developed

and maintained a regulatory

framework for the power sector

ZAMBIA

COTE D’IVOIRE


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ZIMBABWEAN coal miner Makomo Resources is firming up plans to build a 600-MW, coal-fired thermal power plant (TPP) at Hwange with financial assistance from China.

Makomo Resources director Raymond Mutokony said his company would finalise the development plan for the Hwange power project by the fourth quarter of 2016.

“We hope that by the fourth quarter a lot of ground would have been covered,” Raymond Mutokony told The Chronicle, a local daily.

Sinohydro has prepared a detailed feasibility study to build a 2x300-MW TPP near Makomo Resources’ mines at Hwange through an esti-mated investment of US$1.5 billion.

China has agreed to provide a soft loan for this proposed power project. Zimbabwean Finance Minister Patrick Chinamasa said that Beijing had conveyed its willingness to fund the development and two other 600-MW power projects – China Sunlight and Lusulu – during bilateral talks held after Chinese President Xi Jinping visited Harare in December.

After the slump in global coal prices,

Makomo is looking to build the power project to maintain production levels at its coal mines.

“We have the capability to produce 350,000 tonnes per month but we are producing less because of subdued demand and low interna-tional commodity prices,” said Mutokonyi.

Makomo produces 250,000 tonnes per month from its mines at Hwange.

It delivers most of its output to the Hwange power station operated by state-run Zimbabwe Power Co. (ZPC) and exports the remainder to Zambia and Malawi. The company’s coal conces-sion, spread over 70 square km in the Bulawayo district, is estimated to have 400 million tonnes of coal reserves.

The Zimbabwean government is pushing the development of the greenfield Makomo, China Sunlight and Lusulu projects and ZPC’s separate 600-MW brownfield project to meet growing demand for power in the country, which is esti-mated to reach over 3,500 MW by 2018.

Exim Bank of China has agreed to provide a US$1.2 billion loan to build two extra 300-MW units at ZPC’s Hwange power station.�

THE South African Department of Energy (DoE) is to invest 7.5 billion rand (US$494 mil-lion) in new power infrastructure in the 2016-17 financial year, with 6.8 billion rand (US$448 million) going to provincial and municipal gov-ernments to fund energy improvements, with a focus on connecting 100% of the country’s homes to the grid.

South African Energy Minister Tina Joe-mat-Pettersson told the National Council of Provinces (NCOP) that the proposed budget aimed to help the government meet its long-term goal of building 10,000 MW of new capacity by 2025.

“One of our ongoing needs remains the elec-trification of domestic housing,” the minister said, noting that household electrification access currently stood at 88% across the country.

“The Integrated Electrification Programme [INEP] and its implementing agencies Eskom, municipalities, and non-grid service providers have made remarkable progress in increasing access to electricity in South Africa,” she added.

The budget will allocate 5.5 billion rand (US$362.5 million) to INEP, Joemat-Pettersson

said, “ensuring the department keeps bolster-ing its mandate in eradicating lack of electricity access, using both grid and non-grid technol-ogies.” The minister added that 200 million rand (US$13.2 million) would be used to fund consulting services for the country’s nuclear programme.

“Funding for state-owned entities such as the South African Nuclear Energy Corporation, National Nuclear Regulator and the South Afri-can National Energy Development Institute were maintained at existing funding levels. NECSA will receive 599.34 million rand [US$39.5 mil-lion] in 2016/17, while the NNR and SANEDI will receive 16.64 million rand [US$1.1 mil-lion] and 20.63 million rand [US$1.36 million] respectively.”

She also pointed out that the Renewable Energy Independent Power Producer Procure-ment Programme (REIPPPP), which attracts private investment into renewable energy ven-tures such as solar and wind plants, had seen 26 billion rand (US$1.7 billion) spent on Broad-Based Black Economic Empowerment during construction. �

C O A L - F I R E D T H E R M A L G E N E R AT I O N

SA pushes domestic electrification

Makomo to build 600-MW coal TPP in Zimbabwe

I N V E S T M E N T

“One of our ongoing needs remains the

electrification of domestic

housing”Tina

Joemat-PetterssonSouth African Energy

Minister

After the slump in global coal

prices, Makomo is looking to build the power project

to maintain production levels at its coal mines

ZIMBABWE

SOUTH AFRICA

South African Energy Minister Tina Joemat-Pettersson


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THE Rwandan government intends to con-struct 100 solar mini-grids in rural areas as part of efforts to mitigate the effect of climate change and to establish a resilient economy.

The commitment forms one of the Intended Nationally Determined Contributions (INDCs) that the Paris climate treaty has created to drive forward reductions in carbon dioxide (CO2) emissions. Rwanda and 160 other countries have now signed the Paris treaty.

Rwandan Foreign Minister Louise Mushiki-wabo said the East African country was vulner-able to the effects of climate change and needed to establish a climate-resilient economy.

Rwanda’s INDC, which is a kind of action plan, includes “sustainable small-scale energy installations” that mainly target rural commu-nities that depend on kerosene for lighting and wood fuel and agriculture residues for their cooking needs.

Mushikiwabo said that Rwanda’s Vision 2020 and Green Growth and Climate Resilience Strat-egy would steer the country towards becoming a developed, climate-resilient and low-carbon

economy by 2050.She said that the least developed countries

needed support through increased levels of cli-mate technology and finance transfer.

The agreement will come into effect after 55 countries that account for at least 55% of global emissions have deposited their ratification instruments.

He said Rwanda had created the Green Fund, which has so far attracted over US$100 million in pledges to support climate resilience initia-tives all over the country.

Rwanda’s renewable energy investment plans were endorsed by the UN-backed Climate Investment Funds (CIF) in November 2015. The country can now receive funding under the Scal-ing Up Renewable Energy in Low Income Coun-tries Programme (SREP).

SREP funding of US$50 million will help develop financially sustainable long-term mar-kets that will allow private investors to provide off-grid electricity services. About 1.5 million of Rwanda’s 12 million people are expected to ben-efit from the SREP.�

AUSTRALIAN coal developer Resource Gener-ation (Resgen) has signed a heads of agreement (HoA) and letter of intent (LoI) with mineral processing company Sedgman, part of Austral-ia’s CIMIC Group, for the design, procurement and construction of a coal-handling and prepa-rations plant at South Africa’s Boikarabelo mine.

The US$141 million contract is one of the components in Resgen’s final phase towards the development of the mine, which is estimated to hold coal reserves of up to 744.8 million tonnes.

Resgen’s investment in the Boikarabelo mine looks attractive, as coal remains a major feedstock for power generation. The Waterberg region, where the mine is located, contains up to 40% of South Africa’s coal reserves.

“The contract price represents a substantial saving over the previously announced estimate and was achieved as a result of the Sedgman design offering a smaller footprint with associ-ated capital savings while offering equal, if not improved, production outputs,” Resgen said in a statement last week.

Resgen said it was also negotiating a three-year operations contract for the new plant with Sedgman “effective following the expiry of a 15-month operations contract to cover the war-ranty period post-commissioning.”

Resgen had hoped to commence production in the Boikarabelo mine by mid-2016, “subject to securing debt funding of US$500 million to com-plete construction and buy mobile equipment.”

However, the plan has been hampered by the weak global coal prices that have seen potential financial investors hold back their initial com-mitment to fund the project.

Although the coal developer had in 2014 signed a US$113 million loan with Komatsu Financial to finance the acquisition of its mobile equipment fleet, the company said in its 2015 full-year financial report that “the weakening coal price has, however, delayed credit approval from the club of financiers with which we were negotiating to obtain the remaining US$400 mil-lion capital requirement.”

Financiers of the project include Rand Mer-chant Bank, HSBC Bank, Industrial Develop-ment Corporation of South Africa, PIC, Noble Group and Export Finance & Insurance.

Although the company says the contract mining options have been evaluated previously and found unviable, “it is possible in the current market that circumstances may have changed and consequently we are now seeking quotes from mining contractors – a process that is likely to take several months to complete.”�

R E N E WA B L E S

Resgen signs SA mine contract

Rwanda drives forward solar projects

C O A L

Resgen’s investment in

the Boikarabelo mine looks

attractive as coal remains a major

feedstock for power generation in South Africa

AUSTRALIA

Rwanda’s Green Growth and Climate Resilience

Strategy will steer the

country towards becoming a developed,

climate-resilient and low-carbon

economy by 2050

RWANDA


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THE islands of Zanzibar in Tanzania currently rely heavily on electricity imported from the mainland, but as fears grow that the supply of energy from hydropower and natural gas could dwindle and become too expensive, energy experts say the country could be best served by promoting renewables.

Currently, subsea cables from Tanga and Dar es Salaam provide electricity to the islands, but wind, solar, wave power and biogas have all been suggested as possible alternative sources of electricity.

Boosting power supplies on the islands would create a domino effect and improve Zanzibar’s economy. Factories and schools would bene-fit greatly from energy for heating and lighting and consequently lead to the unemployment rate dropping. Likewise, most rural areas on the island depend on agriculture, with electricity imperative for irrigation and crop production, as well as for small industrial commercial activities. With an abundance of sunshine and sufficient wind, an expansion of solar and wind energy is being heavily pushed for by local activists.

Researchers on the island have launched the Renewable Energy Zanzibar Association

(REZA) and the group has received support from the Deputy Minister of Land, Water, Energy and Environment, Juma Makungu Juma.

The deputy energy minister has promised that the government will support the association in the development of the electricity sector on the islands.

Officers from REZA have stated that their roles at this time of operations include advising the government on issues relating to renewable energies.

They will also seek to promote, co-ordinate and monitor social projects based on renewable energies as well as facilitate national, regional and international co-operation on technology development and transfer.

Officials from the Energy Ministry have wel-comed investors in an effort to have alternative energy sources added to the current hydro-power from the national grid. However, despite this hydro remains cheaper than solar, wind, or biogas. In recent years, power transmission from the mainland has not been reliable, leading to mounting pressure being put on politicians to find alternative sources of energy to ensure the islands have a sustainable supply.�

Zanzibar needs renewables to provide reliable power

R E N E WA B L E S

Boosting power supplies on the islands

would create a domino effect and improve Zanzibar’s economy

ZANZIBAR

HARD DATA COLD LOGIC

NewsBase Research (NBR) is our in-house data and analysis division. As part of its service offering, NBR has developed a market-leading forecasting service for the global power industry, including:

• Power demand forecasts by country and region.

• In-depth datasets of current and planned infrastructure capacity, including foresight on future power mix decisions by economy.

• Forecasts for future supply/demand stress points by economy.

Power Forecasts &

DatasetsFor more information, email [email protected] with your country or region of interest.


AfrElecAfrElec N E W S I N B R I E F

P O L I C Y

EU wants to boost energy partnership with AlgeriaThe European Union seeks to further develop its partnership with Algeria in the field of energy, said Monday in Algiers EU Ambassador Marek Skolil. “The EU and Algeria have built a sound partnership in the field of energy, but we want more in the interest of the two countries, said Skolil during an information day at the headquarters of the Ministry of Energy, ahead of the Algerian-EU Business Forum on Energy, to take place in Algiers on May 24.

The information day, co-held by Energy Ministry Director General of Hydrocarbons Mustapha Hanifi and Electricity and Gas Regulation Commission (CREG) Chairman Abdelalil Badache, was attended by representatives of private companies. Skolil has pointed out to the need for adoption with the current world changes through changing strengthening relations stressing that the Algerian-EU Business Forum is a an opportunity to reach such aim. Besides, he welcomed the participation of Algerian private companies to the Forum, which will be open to leading groups as well as to small companies.

The Forum, will focus on issues relating to gas, renewable energies and energy efficiency. During the information day, Hanifi said that about one hundred European companies have already confirmed their participation in

the Forum, adding that most of them will be represented by their respective CEOs. As he deplored due to poor participation of Algerian private companies want to part take in the forum which are only ten. The Forum is open for private operators in the manufacturing of equipment used in the fields of renewable energies and energy efficiency, including the smallest equipment, he explained.ENNAHAR (ALGERIA), May 9, 2016

Fashola hopes to boost power with 99 billion nairaAs the implementation of the 2016 Appropriation Act, signed last week by President Muhammadu Buhari commences, the Federal Government is set to inject 99 billion naira to revamp the country’s power sector through the Federal Ministry of Power, Works and Housing. The sum of 433 billion naira was appropriated for the ministry. Out of the appropriated amount, according to documents obtained yesterday from the ministry by The Guardian, the other two segments of the Ministry, Works and Housing, are to get 268 billion naira and 66 billion naira respectively to execute planned projects in the next one year. It is not immediately clear how much difference the 99-billion-naira budget can make, but the generation and distribution firms have expressed fear that the planned growth of the sector may be stunted by lack of required liquidity even as the ministry plans to introduce measures to tackle the problems inherent in the operations.

Although government plans to complete 47 transmission projects in the fiscal year, step up work on Zungeru Hydro Power Plants, among others, the concerns about the ability of operators to resolve the liquidity issue is growing. THE GUARDIAN (NIGERIA), May 11, 2016

Zimbabwe seeks energy framework with SAThe Zimbabwean government is seeking an official framework with South Africa to structure energy deals, Energy and Power Development secretary Partson Mbiriri has said. An agreement in principle was reached between Energy and Power Development Minister Samuel Undenge and his South Africa counterpart Tina Joemat-Pettersson last month although no timelines have been indicated yet on when the pact should be in place.

Mbiriri said the two ministers will sign a Memorandum of Understanding, informed by the fact that South Africa and Zimbabwe share many things, which include electricity, fuel and infrastructure. He said that there is recognition of the fact that while the neighbouring trading partners have been sharing a lot in the energy sector, most of it has been happening outside an official framework. “It was the decision of the two ministers when they met last month that there be a framework on the basis of which we then can explore various avenues. South Africa, for example, is way ahead in terms of renewable energy, in particular solar,” Mbiriri said. THE HERALD (ZIMBABWE), May 9, 2016

G R I D

Nigeria to decentralise power transmission networksNigeria is seriously considering the decentralisation of its power transmission network into segments, which could be granted to private operators to invest in, manage and charge transmission fees, Minister of Power, Works and Housing Babatunde Fashola said. He said that due to the current challenges of the country’s transmission network, a proposal on the ‘technical possibilities’ of decentralising the huge transmission grid was already on the table of the government.

He said the proposal, if it goes through,


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would enable the government to invite private operators to invest and manage segments of the grid on an agreed commercial framework. He said the adopted roadmap of the President Muhammadu Buhari government for the power sector was first to ensure that power generation in the country remained incremental, its transmission stable and distribution uninterrupted. Fashola also disclosed that a total of 907 containers loaded with transmission equipment at the country’s sea port have been ordered to be released to the Transmission Company of Nigeria (TCN) and its contractors by Buhari.

This, he noted, would allow the TCN complete extant transmission projects, which would see it grow its wheeling capacity to 20,000 MW of electricity within five years. “We are also looking at technical possibilities that support the decentralisation of the grid while keeping them interconnected. This will help us take up offers of private investment that ensures investors can ring fence and collect revenues wheeling charges for the power they help to transmit or transport,” Fashola said.THISDAYLIVE.COM (NIGERIA), May 5, 2016

Huawei advises integration of power services in NigeriaTo build a better connected smart grid, power utilities in Nigeria need to focus on the integration of power, service and information, communications technology company Huawei has said. The company said in a report that traditional energy consumption methods were expensive and inefficient and could no longer meet contemporary requirements. It, however, said a new era of information and communications technology was emerging, offering a plethora of technologies that could

be harnessed and combining the power of the internet and the energy revolution to connect all energy resources.

The report stated: “Future electric power systems must utilise advanced ICT technologies, including Big Data, as well as the massive amounts of data accumulated by various modules within the power systems. Power utilities must integrate various modules, including production, distribution, consumption, and storage, from the system lifecycle perspective to form global system solutions. These systems must learn, adapt, and evolve by themselves. Only by achieving these objectives are power utilities able to provide clean and economical electricity while striking a balance between demand and supply.”

The company said it proposed the idea of a better connected grid, adding that since then, it had been committed to applying leading ICT technologies in the electric power industry and helping the industry resolve problems that occur during its evolution.PUNCHNG.COM (NIGERIA), May 8, 2016

Nigerian power firms begin nationwide disconnectionsNigeria’s 11 electricity distribution companies have announced plans to begin a nationwide disconnection of historical debtors made up mainly of government ministries, departments and agencies (MDAs) whose collective debts now stand in excess of 78 billion naira (US$391.4 million) by the end of April, this year. This was disclosed at the weekend in Abuja by the executive director of research and advocacy at the Association of Nigerian Electricity Distributors (ANED) Sunday Oduntan.

Briefing journalists on the updates of

their operations and the challenges they face, Oduntan said that by the end of April, 2016, MDAs’ debts stood at a total of 78.6 billion naira with the military being the highest debtor at 38.7 billion naira. LEADERSHIP (NIGERIA), May 9, 2016

Eight NIPP plants ready to generate 2,000 MWThe Niger Delta Power Holding Company (NDPHC), operators of the National Integrated Power Project (NIPP), has presented the status report on its generation, distribution and transmission projects, saying eight out of 10 NIPP power plants are ready to generate over 2,000 MW as soon as vandalised gas processing projects are completed by the associated nominated gas suppliers.

The company has also stated that though power generation is often disrupted by acts of vandalism, it does not offer such incidences as excuses as it has continued to operate these power plants in the interest of the Nigerian economy, despite undesirable security challenges and an accumulated debt of over 94 billion naira owed it by the electricity market. This is coming as the 11 electricity distribution companies have agreed to submit their 2013, 2014 and 2015 audited accounts to the Nigerian Electricity Regulatory Commission (NERC). THIS DAY (NIGERIA), May 11, 2016

SADC to commission 3,059 MW of power capacity in 2016The Southern African Development Community (SADC) aims to commission new power projects that will add 3,059 MW of electricity this year as the region targets to ensure that it meets its energy needs by 2020. According to the Southern African Power Pool (SAPP), which co-ordinates the planning, generation and transmission of electricity on behalf of member state utilities, the majority of the new power this year is expected to come from South Africa.

At least three power generation projects with a combined output of 1,624MW will be commissioned in South Africa. Another significant contribution is expected to come from Zambia, which is due to add 300 MW. Angola, which is yet to be linked to the regional grid, will contribute 780 MW. Of the new energy generation projects planned for commissioning this year, only 2,269 MW will be added to the regional grid since the


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Southern African Development Community (SADC) is not yet fully integrated in terms of energy trading.

All mainland SADC countries, with the exception of Angola, Malawi and the Tanzania, are interconnected through SAPP regional grid, allowing them to share surplus energy. New generation capacity installed in any of the three non-participating countries is not accessible to the nine other members of SAPP – Botswana, Congo-Kinshasa, Lesotho, Mozambique, Namibia, Swaziland, South Africa, Zambia and Zimbabwe.HERALD.CO.ZW (ZIMBABWE), May 9, 2016

S U P P LY

Benin to increase power generation capacity to 352 MW by 2018The government of Benin plans to increase the country’s electricity generation capacity to 352 MWh by the end of 2018. According to an official release, the decision aims to solve the electricity shortage and end the constant load shedding in the country. A large programme purposed to eliminate load shedding by the end of 2016 has been set up, as well as one to improve energy sufficiency in two years, the source said.

The plan includes acquiring mobile power stations for additional capacities and the rehabilitation of power plants of the Beninese Electric Power Company. It also includes the installation of photovoltaic power stations that will produce 45 MWh, according to the release. The country plans to install a 120-MW thermal power station, which will be financed by the Islamic Development Bank (IDB) and the West African Development Bank (BOAD).

Further, from December 2018, independent power producers will provide 120 MWh from the Maria Gleta thermal power station in centre Benin. XINHUA (CHINA), May 7, 2016

Egypt aims to reach an electricity surplus of 25%Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker said that the energy sector seeks to achieve a surplus of up to 25% in the coming period. He added that the sector is working to promote investments to increase energy generated through building more power plants and diversifying energy resources, including solar,

wind, coal, nuclear, and hydro power. Shaker said the state was able to secure enough electricity for all consumers last year and has even reached a surplus in the current period.

“We are ready for the high demands of summer,” he said. “There will not be any blackouts this year.” Shaker noted that the Ministry of Petroleum agreed to provide the sector with the fuel necessary to run all power plants until December.DAILY NEWS EGYPT, May 10, 2016

Nampower to sign 200-MW supply agreement with EskomNampower is finalising the bilateral agreement with Eskom for a 200-MW power supply, the company’s acting managing director Kahenge Simson Haulofu has said. “Any additional supplies that may be requested will be negotiated as part of the day-ahead market established under the Southern African Power Pool, and can be sourced from any utility which is prepared to sell energy on a non-firm basis, and as mentioned, it is a day-ahead contract only,” Haulofu said.

The power utility is also on the verge of concluding an agreement with a private company for the supply of 44 MW from wind power at Luderitz. He also disclosed that a tender for a 37-MW renewable energy plant in the Hardap region will be issued in

three weeks’ time. In terms of energy-saving measures, Haulofu said 300,000 energy-saving bulbs ordered by the company have arrived in the country.

“300,000 LED bulbs have already been purchased and are stored in Windhoek, awaiting the appointment of the LED champions (companies) to install these into the customers’ homes. In total, 1 million bulbs will be ordered. The bulbs are supplied via local agents, are manufactured by Philips in China and delivered through the Philips offices in South Africa,” he explained.NAMIBIAN.COM.NA (NAMIBIA), May 4, 2016

Nigeria unveils roadmap to boost power generationNigerian Minister of Power, Works and Housing Babatunde Fashola has unveiled the federal government’s roadmap for boosting electricity generation through incremental power, saying that the government is looking at what the country could generate out of the existing power assets. The minister stated that the country has 26 power plants, with three powered by water in Jebba, Kainji and Shiroro, while the rest of the plants are powered by gas.

According to him, the country has 140 turbines with installed capacity of 12,341 MW, adding however that at the best of times, only about 78 turbines generate power, which had resulted in February 2, 2016 peak of 5,074 MW. “The problems have been identified as

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either damaged, unmaintained or unserviced turbines in the hydropower plants, and in the cases of gas plants, it is largely non-availability of gas, coupled with lack of maintenance.”

Fashola said the Jebba Hydropower plant, which was commissioned in 1985 by President Muhammadu Buhari with six turbines to provide 540 MW of power, was to be overhauled once every five to six years but this was never done for 28 years, until it was handed over in 2013, in the aftermath of the privatisation.

According to him, the first overhaul has now been completed and more will be undertaken and described this effort as incremental power. Fashola also noted that in a report recently submitted to his office by the concessionaire of Jebba and Kainji, the total available capacity of the two plants is 482 MW and 340 MW, respectively, totalling 822 MW. He described the plan by the investors to boost the generation to 1,338 MW as incremental power.THISDAYLIVE.COM (NIGERIA), May 8, 2016

Umeme and Tanesco owed for electricity billsAccording to the Daily Monitor, government owes electricity distributor Umeme 64.17 billion shilllings (US$19.2 million) for power used by some departments. Umeme’s media manager, Stephen Ilungole, has confirmed the claims to local media; however, he stated that due to client confidentiality, he wasn’t in a position to supply further details. “Unfortunately, customer information and transactions remain confidential for both government entities and any other customers. As a matter of policy, we don’t discuss customer issues publicly,” Ilungole explained. According to the media, it is public knowledge that over the last three years, the amount the government departments owe the distributor has fluctuated between 89.5 billion shillings (US$2.68 million) in 2013, 116 billion shillings (US$3.47 million) in 2014 and then 64.17 billion shillings (US$19.2 million) in 2015. The media further reported that the departments that owe Umeme the highest amount of money are the Department of Defence 29 billion shillings (US$8.7 million) and the Health ministries 4.3 billion shillings (US$1.28 million), the Uganda Police Force 12 billion shillings (US$3.5 million), Uganda Prisons Service 9 billion shillings (US$2.7 million), Mulago National Referral Hospital 1.4 billion shillings (US$4.2 million) and Uganda Broadcasting Corporation 2.2 billion shillings (US$6.7 million).ESI AFRICA (SOUTH AFRICA), May 9, 2016

Zambia to be power exporter in 18 monthsZambian President Edgar Lungu said his country is on course to transform the current power deficit into a surplus and make the country a net exporter of energy within 18 months. The head of state said this when he commissioned a US$200-million, 100-MW solar photovoltaic (PV) power project at Lusaka South Multi-facility Economic Zone (MFEZ). This was the first phase of the 600-MW solar project to be implemented at a total cost of US$1.2 billion.

The president said he had directed the Industrial Development Corporation (IDC) to drive the urgent installation of at least 600-MW of solar power in order to redress the current power deficit in Zambia.

“This is a proud moment for us in government and IDC in particular because when we say we have embarked on a credible diversification programme across various sectors we mean just that,” President Lungu said. The head of state said the project would be implemented through the Scaling Solar Programme and was the country’s first PV independent power project.

President Lungu said the project was a practical demonstration of the government’s resolve to create a diversified energy sector. “The difficult realities of climate change have taught us that over-reliance on hydropower won’t just do. I am here to promise you that we shall continue to walk-the-talk in every way possible,” President Lungu said.

Zambia is the first country in Africa to implement the Scaling Solar model and the projects are aimed at providing competitively priced, clean power that will reduce Zambia’s

dependence on hydro resources.TIMES.CO.ZM (ZAMBIA), May 8, 2016

T H E R M A L

Oando to sell gas to power plants in NigeriaOando Gas & Power (OGP), a fully-owned entity of Oando, has announced the commencement of the development of a mini LNG facility through its Transit Gas Nigeria subsidiary in Ajaokuta, Kogi State in Nigeria. According to the company, the 20-mcf-per-day liquefaction plant is primarily directed towards fulfilling the gas supply requirement for captive power plants, embedded generation and industrial clusters in the northern region, as well as stranded customers in the south.

Off-takers, particularly, power plants and industrial customers who currently utilise liquid fuels such as diesel and LPFO, it noted, would be able to lower energy costs by up to 40%, while significantly decreasing carbon emissions. Commenting on the initiative, OGP CEO Bolaji Osunsanya said: “The establishment of the Ajaokuta mini LNG project is in firm alignment with our mid-to-long term gas conversion strategy. This venture further emphasises our push to broaden our asset portfolio and strengthen our market play within the gas sector; and by providing the gas advantage, we will help spur the development of self-sustaining industrial clusters to bolster the country’s socio-economic growth.”PUNCHNG.COM (NIGERIA), May 10, 2016



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C O A L

Coal of Africa settles dispute with Rio and KweziCoal of Africa (CoAL) said that it had settled its dispute with Rio Tinto and Kwezi Mining over the remaining sum owed by its subsidiary MbeuYashu for the Chapudi coal assets, part of the Greater Soutpansberg Project in Limpopo, South Africa. CoAL said it had agreed to increase the minimum monthly payments from US$100,000 to US$650,000, as well as making additional lump sum payments with full and final settlement of the outstanding purchase price by June 15 next year.

The original deal, agreed on in 2012, was for US$75 million, of which US$30 million was to be settled by way of deferred consideration payments. CoAL said it had settled approximately US$11.2 million of the deferred consideration. CoAL chief executive David Brown said: “This was the last of the historic liability issues and this agreement provides certainty of outcome, as well as providing CoAL with flexibility.”IOL.CO.ZA (SOUTH AFRICA), May 5, 2016

Tanzania’s CAG seeks review of state stake in coal JVsTanzanian Controller and Auditor General (CAG) Mussa Assad has recommended changes in the percentage ownership in the

over 4.8-trillion-Kenya-shilling (US$46.69-billion) project involving extraction and exploration of coal mines and iron ores at Mchuchuma and Liganga in southern Tanzania. Such changes, according to his report presented before the National Assembly in Dodoma recently, would reflect the value of mineral resources used to secure the loan under which the project is being financed at US$2.4 billion.

A review of agreement revealed Hongda Sichuan (Group), a private partner with a US$600-million equity towards implementation of the project, owned 80% shares of the Tanzania China International Mineral Resources Limited (TCIMRL), while National Development Corporation (NDC) owns 20%. “We are of the opinion that share distribution comes with financial responsibilities. Thus, if a loan is to be secured against Tanzanian resources, NDC, on behalf of the government, should have become TCIMRL majority shareholder,” Assad suggested.

The CAG also advised that the management of NDC, in the alternative to change share ownership, should assess the possibilities of ensuring that the government stake in the Tanzania China International Mineral Resources Limited (TCIMRL) is not at risk. He stated that to achieve such goal, the NDC management should have negotiations with the private sector partner to secure the debt financing other than the mining rights of the project as suggested in the contract.ALLAFRICA.COM (SOUTH AFRICA), May 9, 2016

N U C L E A R

11 African countries consider nuclear power projects11 African countries are considering building nuclear power plants over the next 14 years to overcome the continent’s extreme electricity shortage. Outside South Africa, the entire installed generation capacity of Sub-Saharan Africa was now just 28 GW, said director of the Centre for Energy and Security Studies Anton Khlopkov. He said that only 24% of the population of sub-Saharan Africa now had access to electricity and even where electricity was connected, it was unreliable. “As a result, firms lose 6% of sales revenue. Where back-up generation is limited, losses can be as high as 20%,” he said.

Khlopkov said before the Fukushima nuclear disaster in Japan five years ago, more than 60 countries worldwide were considering constructing nuclear power plants. Even today, over 45 countries were still actively considering embarking on nuclear power programmes. In Africa, the countries are Algeria, Egypt, Ghana, Kenya, Morocco, Namibia, Nigeria, Senegal, Tanzania, Tunisia and Uganda. So far, in Africa, only South Africa is producing nuclear power, with its two reactors at Koeberg contributing 5% of the country’s energy mix.

But there are also five nuclear research reactors in Africa, two in Algeria and one each in Egypt, Morocco and South Africa. There were also two other nuclear research installations, in Nigeria and Libya. Four African countries also produce uranium, Malawi, Namibia, Niger and South Africa, contributing 15% of global production in 2014.SABC.CO.ZA (SOUTH AFRICA), May 5, 2016

H Y D R O

Nigeria tasks hydropower stations on stable power supplyNigeria’s Minister of Power, Works and Housing, Mr Babatunde Fashola, has asked Hydro-power stations in Nigeria to ensure stable power supply. Fashola made the request at a meeting held in Shiroro, Niger State, with the owners of the hydro-power stations across Nigeria. At the fifth monthly meeting attended by participants across all



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the hydro-power stations and distributions in Nigeria, the owners of the facilities were asked to make concrete decisions in their various stations to sustain the capacity of their stations and boost distribution. He advised the hydro-power stations and distribution companies to form clusters and stop waiting for the government to resolve their issues of interest. Fashola further stressed the need for them to hold meetings constantly and take leadership into their hands in decision making. The Minister applauded the Niger State government for its proactive support and understanding on community issues that were slowing down works at the Zungeru dam project. The Executive Director of Research and Advocacy with Association of Nigerian Electricity Distributors, Sunday Oduntan, told the meeting that the company inherited over 5 million deficit non-metred customers from 6.159 million estimated metre customers in the entire country.CHANNELSTV.COM (NIGERIA), May 10, 2016

DR Congo to select Inga 3 developer by OctDemocratic Republic of Congo (DRC) will decide by October between a Chinese and a Spanish consortium to develop the long-delayed Inga 3 hydroelectric project, with construction expected to begin the following June, a government official said. The US$12-billion project along the Congo River will expand on two existing Inga hydroelectric dams and is part of an eight-stage Grand Inga project that would produce a record 44,000 MW at an estimated cost of US$50-80 billion.

Proponents of the project say it could eventually power half of Africa, while critics say the money would be better used supporting smaller local plants. The Chinese consortium is led by China Three Gorges Corporation, while the Spanish one includes engineering giant Actividades de Construccion y Servicios, said Agency for the Development and Promotion of Grand Inga head Bruno Kapandji, the of the. “We are waiting for their bids in the month of July,” Kapandji said. “We will choose the one that will be the best in terms of experience, capacity to mobilise funds, capacity to mobilise technology.”

Of Inga 3’s 4,800 MW, 2,500 MW will be sold to SA, with 1,300 MW earmarked for the DRC’s mining sector. The remaining 1,000 MW will go toward meeting domestic demand in a country where less than 15% of the population has electricity. The start of construction has been repeatedly delayed by red tape and disagreements between the DRC and its partners on the project, including the

World Bank and African Development Bank, which have provided technical assistance.REUTERS (SOUTH AFRICA), May 10, 2016

R E N E WA B L E S

Scatec Solar to invest US$650m in solar in EgyptScatec Solar company seeks to pump US$650 million in renewable energy investments to establish five solar energy projects with a capacity of 250 MW in Egypt, according to the company’s CEO, Raymond Carlsen. “The company will launch three solar energy plants in Banban area in Aswan with a capacity of 150 MW. The company will construct a 50-MW plant, as well as participating in the establishment of two solar energy projects with a capacity of 100 MW with a number of companies that have qualified for the feed-in tariff projects,” he said.“Scatec Solar agreed with two companies to participate in two solar energy plants in Zafarana with a capacity of 100 MW, adding that they agreed to carry out the engineering, preparation, construction, operation, and maintenance work through combining resources. The total investments in the five projects are estimated at US$650 million.” the CEO added. The solar energy company has reached a deal with seven different banks to finance 75% of the five projects to be implemented in Banban area and Zafarana, including the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD). DAILYNEWSEGYPT.COM (EGYPT), May 9, 2016

Egypt to prioritise push for renewable energyThe Egyptian government is implementing its strategy for making energy mixture through lowering its use of fossil fuel and traditional

energy sources. Chairman of Egypt’s New and Renewable Energy Authority (NREA) Mohamed Salah El Sobky said that renewable energy projects are set to represent a short-term core for Egypt’s economic development since energy is the key factor in all industries and projects that will be executed within the upcoming period. The chairman said that a lot of states depended on diversifying energy sources and its renewable ones to avoid the crisis that traditional sources cause. Renewable energy is one of the prominent sectors in Egypt that can address the growing consumption of electricity backed by solar and wind powers, he said. Accordingly, the Egyptian government works on diversifying power sources, whether the fossil fuel or available water resources, building a number of nuclear plants for generating power besides developing and spreading usage of renewable energy sources, El Sobky added.UTILITIES-ME.COM, May 9, 2016

Phase 2 of Zambian solar power project startsPresident Edgar Lungu has announced commencement of the second round of the Zambia Scaling Solar programme targeting a further 200 MW of solar photovoltaic (PV) power projects. The solar project will be implemented by the Industrial Development Corporation (IDC). On May 7, the Head of State launched construction of the 100 MW under the first round of the Zambia Scaling Programme at the Lusaka South Multi-Facility Economic Zone (MFEZ).

President Lungu said this would form part of the 600 MW solar power project to be implemented at a total cost of US$1.2 billion. He said in Lusaka recently that subsequent rounds would be spread across Zambia until the entire 600 MW was procured using the World Bank Scaling Solar Initiative. TIMES OF ZAMBIA (ZAMBIA), May 9, 2016



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AfrElec Week 18, Issue 53

Economy & Finance

Transcript of AfrElec Week 18, Issue 53