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SOLAR PV IN SUB SAHARAN

AFRICA
Case for a development of an ambitious
industrial program in Sub Saharan Africa
Power Kick for Africa, Abuja - J une 2011
Karim Megherbi, CEO
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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS





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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS





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1. HELIOS ENERGIE
A unique Business Model in the industry
Three activities :
Project development in Sub Saharan Africa and the
Caribbean
R&D projects
Advisory for institutions and EPC contractor
100 MWc pipeline in Benin, Mali, Burkina Faso, Mauritania,
Haiti, Senegal,



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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS





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2. EXAMPLE OF BENIN
Location (1/2)
6 MWp plant located north of Benin
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2. EXAMPLE OF BENIN
Location (2/2)
18 M EUR AFD as lender Meeco as lead
investor
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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. ENERGY IN NIGERIA

6. CONCLUSIONS





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3. EXAMPLE OF BURKINA FASO
Location
20 MWp plant located West of Burkina Faso
PV Plant
/ Gold
mine
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3. EXAMPLE OF BURKINA FASO
Status of the project
55 M EUR BAFD as MLA SEMAFO as lead
investor
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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. CASE FOR A PROGRAM IN NIGERIA

6. CONCLUSIONS





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4. SUPPORT FRAMEWORK PROPOSAL
Ex. of Central Africa : grids and hydro
The vision of the regional
interconnection system
exists.

The vision is structured
around the huge potential
of hydro, especially RDC.


Given the grid conditions,
FIT may not be adapted as
such to achieve the real
goal of the energy sector
in Africa.
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4. SUPPORT FRAMEWORK PROPOSAL
Managing the asymmetry of information in FIT
Implementing a FIT in a country generates speculative
behaviors difficult to manage.
0,00%
20,00%
40,00%
60,00%
80,00%
100,00%
1 2 3 4 5 6 7 8
months
MARGIN
COSTS
Super profits
Extra margin
FIT
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4. SUPPORT FRAMEWORK PROPOSAL
Example of the FIT in Uganda
FIT
cEUR/kWh
2011
MWc
2012
MWc
2013
MWc
2014
MWc
27,6 2 1 2 2,5
It is possible to achieve today
20 cEUR/kWh in Uganda
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4. SUPPORT FRAMEWORK PROPOSAL
Another vision
Creation of a Solar Committees with high skills to be
developed through training, workshops, plant and lab visits.
Financing through DFI.
Setting up of a regional strategy/national strategies by
these committees.
Validation with external experts once it is drafted.
Call for proposals, projects consideration
Choices based not only on price but on the overall impact
and participation in the implementation of the strategies.
We would like to suggest to African countries to set
up project-approval procedures conducted by
national/regional committees
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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. SUPPORT FRAMEWORK PROPOSAL

5. CASE FOR A PROGRAM IN NIGERIA

6. CONCLUSIONS





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5. CASE FOR A PROGRAM IN NIGERIA
The Energy Mix
Nigerian government targets:
priority = Gas and Hydro
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5. CASE FOR A PROGRAM IN NIGERIA
Future needs
Meeting ambitious targets is a
challenge given the time frame
Projected Generation Growth @ 3,000MW/year
Projected Generation Growth @
1,500MW/year
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5. CASE FOR A PROGRAM IN NIGERIA
Solar Radiation
Excellent radiation areas
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5. CASE FOR A PROGRAM IN NIGERIA
Grid consideration
Radiation matches the grid requirements
2255
2276
2247
2163
Irradiation
(kWh/m)
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5. CASE FOR A PROGRAM IN NIGERIA
kWh Price

PV Electricity Generation Price: around 38
NGN/kWh (17 18 cEUR/kWh)
Highly dependant on the Business Model:
- Garantee framework
- IRR targets
- Loan Financial conditions
- Social targets (local industry, off grid sector)


Set up targets in terms of PV kWh price and social
impacts to define the best way to acheive them
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SOMMAIRE

1. HELIOS ENERGIE

2. EXAMPLE OF BENIN

3. EXAMPLE OF BURKINA FASO

4. CASE FOR A PROGRAM IN NIGERIA

5. SUPPORT FRAMEWORK PROPOSAL

6. CONCLUSIONS





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6. CONCLUSIONS
PV has to be part of the regional strategy (1/2)
We would like to suggest an objective of 10% of the
electricity generated in Central Africa with PV.


Small market legislation should be adapted. Best
sites and key projects should be identified. Several projects
with strong impacts could be quickly developed.

Huge opportunity to increase the penetration rate of EnR
with the development of interconnections.





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6. CONCLUSIONS
PV has to be part of the regional strategy (2/2)
Strong partners should be selected, preferably specialized in
energy in emerging markets with a strong expertise in
energy infrastructure management.


Financing of program is key: the project structures
(guarantees, contracts, technical choices) should be in
accordance with the highest standards of the energy
sector in Africa.

PV projects should be dimensioned in accordance with
national and regional energy strategies.
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THANK YOU
FOR YOUR ATTENTION!
Contacts:

Karim MEGHERBI CEO
karim.megherbi@helios-energie.fr

Petronille HAZOUME Project Manager West Africa
p.hazoume@helios-energie.fr