Beruflich Dokumente
Kultur Dokumente
the
Issue 2 – 2019
THE RISE OF
RENEWABLES:
Synergies between
Portugal and Africa
EAST AFRICA:
The launch of Ethiopia’s National
Electrification Plan 2.0
RESPONSIBLE
CONFERENCING:
Africa Energy Forum to host football tournament
to support victims of Cyclone Idai
Welcome to the
ENERGYNET
MAGAZINE
Dear Friends and Colleagues,
As you know, for 26 years EnergyNet there will always be a shift in business
has focused squarely on energy and development needs – so in this edition
energy infrastructure. Over the last of the EnergyNet Magazine I’m pleased
eight years I have enjoyed leading a to outline our profile in 2019/20.
business brimming with passionate
and brilliant people who understand This year we’re taking a more streamlined
the market, and work tirelessly to approach to bring together the right
Simon Gosling, Managing deliver value-adding events to support stakeholders in four easily accessible
Director, EnergyNet the sector. Over such a long period locations within our Africa portfolio,
saving you time, money and energy. which 52% are African) and the the Latin America and Caribbean
That’s why 2019 will see only 4 Africa- broader delegate base, welcoming Gas Conference (LGC) in Peru this
focused conferences - down from 13 over 700+ aspirational women November - officially the World Gas
in 2016 - to better serve your business entrepreneurs and stakeholders Conference (WGC) for Latin America.
development needs. • Our recent and ongoing support of Our partnership with OLADE brings
• Africa Energy Forum (Lisbon, Portugal the victims of Cyclone Idai – the all 27 Ministers of Energy from across
2019 & Barcelona, Spain 2020) Africa Challenge Cup LATAM and the Caribbean to Peru this
• Powering Africa Summit (Miami, • EnergyNet’s social programmes November, with sponsors invited to a
USA) where we have privately funded closed door Ministerial Round Table.
• Regional Energy Summit - West renewable energy projects for female
Africa (Dakar, Senegal) African entrepreneurs I look forward to seeing you all at the
• Regional Energy Summit - East • Our commitment to over 100 Africa Energy Forum in a few weeks’
Africa (Addis Ababa, Ethiopia) African students (EnergyNet Student time - and if you have any needs which
Engagement Initiative) over the last EnergyNet may be able to support, we
The above portfolio will support six years are always ready to listen.
EnergyNet’s role as a responsible
business and champion of social, In our LATAM Business we’re using Very best,
gender and racial equality which the same approach to help investors
includes: engage with stakeholders. We’re
• Africa Energy Forum’s commitment partnering with the International Gas
to women moderators this year (of Union, ARPEL and OLADE to host Simon Gosling
Our Partnership:
AS STRONG AS EVER
For the fourth consecutive
year, Power Africa held its
annual Partners Meeting on
the side lines of the Powering
Africa Summit in the United
States — this year in Miami.
We hosted over 150 guests, from
over 100 private sector and
development partners, as well
as several African governments.
W
e spent the day in discussion
with those partners, took an
honest self-assessment, and
we heard that while Power Africa has
been successful, significant challenges
remain for power sector investment
in Africa.
LEADING THE
CHARGE:
Energy Growth in Senegal and West Africa
Adopted in 2015,
T
he plan’s seventh goal aims itself, but in the country’s territorial
to provide reliable energy to waters in the Atlantic. BP’s Greater
the United Nations all people: “Ensure access to Tortue project has progressed steadily,
Sustainable affordable, reliable, sustainable and with the company recently agreeing
modern energy for all.” This objective to collaborate with TechnipFMC to
Development Goals
is perhaps most pressing in West Africa, develop a floating production storage
provide a roadmap where millions do not have access to and offloading unit on the maritime
for progress throughout reliable, high-quality energy. Despite border of Senegal and Mauritania. The
sitting atop substantial reserves of Greater Tortue project is expected to
the world over a natural gas, the region has the world’s begin production in the early 2020s, and
15-year period, lowest access rate to quality energy. it could produce up to 10 million cubic
tonnes of liquefied natural gas (LNG)
identifying seventeen The combination of ample resources, each year depending on the extent of
interconnected strategies limitless opportunity for growth, and the areas resources.
the support of international institutions
for global prosperity.
has created an appealing environment Senegal’s territorial riches are not limited
for investing in West Africa’s energy to LNG, however, as the Senegal River
sector. Ambitious projects are underway offers tremendous opportunities for
in Senegal, as the nation is poised to energy development. The 675 mile-long
both shore up its own energy needs river forms a natural border between
and export to neighboring countries. Senegal and Mauritania (as well as
However, opportunities abound Guinea and Mali), and it is overseen by
throughout the region, particularly the Organisation for the Promotion of the
among French-speaking nations like Senegal River (OMVS). This ambitious
Benin, Mali and Niger. organisation seeks to use hydropower
plants and microplants to provide rural
The Senegal River SENEGAL: WEST AFRICA’S electrification; OMVS recently signed
offers tremendous ENERGY HUB a contract with Sinohydro to construct
a 294 MW hydropower plant in the
opportunities for With a bustling capital city located on Republic of Guinea. With a track record
energy development the coast of the Atlantic Ocean, Senegal
has become a hotspot for new energy
of success and a long-term vision for
further construction, OMVS should offer
projects. The most significant of these an appealing entry point for international
projects are taking place not in Senegal energy players and investors.
The 5th annual Regional Energy Summit: West Africa (RES: West Africa) will arrive for
the first time in Dakar, Senegal from 10-11 October 2019. RES: West Africa will bring
together over 800 investors, project leaders and government representatives to engage
and present the latest developments on enhancing the energy mix within West Africa.
The Summit will feature project focused discussions on Gas, Wind, Solar, Hydro and
Off-grid and will showcase investment opportunities through regional anchor projects,
infrastructure financing and the future of renewable energy within Senegal and beyond.
The 4TH annual Regional Energy Summit: East Africa (RES: East Africa) will
return to Addis Ababa in March 2020 to present the latest developments within large-
scale power generation.
The Summit will feature project-focused panel discussions showcasing regional anchor
projects, infrastructure financing and the future of renewable energy PPPs and IPPs.
The Off Grid stream will once again gather the most proactive developers, regulators,
policy-makers and financiers in the off-grid and mini-grid space.
than double from the current levels. the utility to regional constituencies, By 2025, the NEP will implement: (i) 8.2
These are visible indicators of rapid the sector is on the right track to million new grid connections, and (ii) 6
growth in electricity generation and become financially strong and million beneficiaries will have access
overall development. operationally efficient. to off-grid solutions through stand-
alone solar solutions and mini-grids
In addition to significant upcoming The updated version of the National technologies, illuminating the country,
increase in installed capacity, Electrification Program (NEP 2.0) irrespective of where someone happens
substantial progress has been made focuses on integrated—grid and off- to live.
in terms of engagement of the private grid electricity access—and provides
sector. The GoE has established an implementation framework for The investment and directly related
Public-Private Partnerships (PPPs) for the achievement of 35 percent of program implementation support
the transformation of energy project off-grid access by 2025. The NEP requirements of the NEP 2.0 are
financing and implementation. Future document has been updated to reflect substantial and require mobilizing
geothermal, hydro, solar and wind the government’s commitment to significant amount of financing. The
power generation projects will be revise the electrification program NEP 2.0 includes a prospectus for
developed by private Independent based on implementation progress syndicating nearly US$6 billion of
Power Producers (IPPs) utilizing and improved analytics. To achieve financing in direct investments and
project finance modalities, where the GoE’s universal electricity access Technical Assistance for on-grid and
public sector will focus on regulatory goal by 2025, the NEP 2.0 takes stock off-grid electrification. The GoE is
and off-taker roles. The major gaps of the progress achieved since the confident that our stakeholders and
in transmission and substation launch of the first NEP, updates grid Development Partners are as excited
development to supply industrial parks, electrification targets and costing, as we are towards achieving universal
railway lines, agro-processing centers and provides a detailed off-grid electricity access by 2025. With these
and rehabilitation of additional major implementation framework based on strategic interventions of generation,
towns are also being considered for best practices and consultations with access and improving efficiency;
Joint Venture development between public and private sector implementing Ethiopia is well placed to achieve
the public and private sector. agents. The design of NEP 2.0 brings the 2030 agenda for Sustainable
together all sector stakeholders and Development Goals (SDGs).
To further transform the power sector, Development Partners, led by the GoE.
enable PPP modalities, stakeholders In addition, I wish to thank government agencies
are working on major initiatives to and our Development Partners for
improve technical, operational and NEP 2.0 presents a full-fledged integrated their contributions to date, toward
financial performance of EEU and EEP, sector-wide approach to electrification, preparation of this second NEP. Going
and enhanced regulatory framework building on best practices: household forward, the NEP will keep being a
at EEA. The sector expects to connections are linked with generation living document, periodically updated,
reduce technical losses and improve and transmission plans, to ensure that to respond to significantly changed
power reliability with the recently clean and sufficient electrons reach all circumstances or information about key
completed 8-town rehabilitation and households across the country. Meeting technical, economic, or other variables
ongoing 6-town rehabilitation projects the double electrification imperative— underpinning its design.
including in the capital city of Addis to increase both capacity and reach
Ababa. With the introduction of of electrification is a significant task.
Enterprise Resource Planning (ERP) However, it’s also an exceptional Minister Dr. Seleshi Bekele
system at both EEP and EEU, recent opportunity to develop Ethiopia in Ministry of Water, Irrigation,
establishment of cost reflective tariffs, tandem with its aspiration of becoming and Energy
significant improvement in billing and a middle-income country and a leading Addis Ababa, Ethiopia
collection rates and decentralization of player in the regional power trade.
Africa
Energy.
In one place.
africa-energy-forum.com
EnergyNet Africa aef IN PORTUGAL
IMPLEMENTING
PORTUGAL’S
RENEWABLES
ROADMAP
Exclusive interview with João Galamba, Secretary of State for Energy
C
The Portuguese lear objectives have been and energy with a view to a sustainable
adopted to promote energy development and social and territorial
Government is currently efficiency among consumers, cohesion,” he explains.
enacting change across within industrial processes, and via
the expansion of electric mobility, Regarding energy specifically, he
its energy landscape
as part of Portugal’s drive to set an continues: “Portugal is set to achieve
in order to achieve a example in Europe, and indeed to carbon neutrality by 2050, with the
47 percent renewables Africa. The country’s Secretary of greatest effort done in the next decade.
State for Energy, João Galamba, is The National Energy and Climate
influence by 2030. As its therefore better placed than most to Plan (NECP) therefore reflects the
capital Lisbon prepares outline the country’s plan to exploit challenges and the main steps to be
endogenous resources in the name of developed by 2030, aligned with a
to host this year’s Africa cleaner energy. trajectory of carbon neutrality.”
Energy Forum, this
“My mission under the Ministry of the In this framework, new emission
initiative has taken on
Environment and Energy Transition reduction targets have been
extra significance as the is to formulate, conduct, execute and established, whereby final energy
two regions continue to evaluate policies on the environment, consumption will incorporate 47
urban planning, cities, housing, urban percent renewables, while 80 percent
find synergies in their transport, suburban and road passenger of electricity generation will likewise
targets. transport, climate, nature conservation derive from renewable sources.
production from 11.8 GW in 2015 to as identifying realistic objectives and the banner of energy in the future.
much as 28.8 GW in 2030. actions, valuing the potential and The country’s experience in deploying
priorities of each country.” reliable renewable technologies,
“Adding to that, there is also the promoting effective energy efficiency
opportunity to promote the circular The CPLP corresponds to a seventh of initiatives and supporting energy
economy towards a sustainable 100 the world’s hydrocarbon producers, with innovation makes it a prime candidate
percent renewable-based energy prospects of improving its position in the for knowledge sharing and indeed
transition, especially, addressing the coming years to give the community even event hosting.
sustainable management of other more strategic importance. As evidence
key issues such as strategic minerals, of its successful functionality, in 2017, it “The Africa Energy Forum will
responsible mineral sourcing, water was decided among the association to strengthen the cooperation between
usage and the value for related increase the use of renewable energy African and European countries,
local communities. and to promote energy efficiency in identifying opportunities to work
order to achieve diversification of the together in the upcoming years,”
“Overall, the NECP 2030 implementation energy mix, rational use of energy, and Galamba aptly concludes.
reinforces the Portuguese path and reduction of greenhouse gas emissions.
the commitment to keep improving
JOÃO SALDANHA DE AZEVEDO
performance,” Galamba surmises. Galamba elaborates: “The energy theme
GALAMBA
has a very important geostrategic
SECRETARY OF STATE FOR
STRENGTHENING THE dimension where the Community
ENERGY, PORTUGAL
COOPERATION BETWEEN of Portuguese Speaking Countries
AFRICA AND EUROPE asserts itself, and energy diplomacy is João Saldanha de Azevedo Galamba
increasingly a relevant tool to which was born in Lisbon, on August 4, 1976.
The learning curve that Portugal is Portugal has contributed. Moreover, the
Holds a degree in Economics
following at present represents the best energy cooperation between Portugal (Universidade Nova de Lisboa), took
of the country’s local expertise, but also and African countries at bilateral level the doctoral program towards his Ph.D.
its global outlook. Understanding global has been amplified, generating excellent in Political Science at the London
and local challenges simultaneously, synergies through direct prolific School of Economics and taught
partnering accordingly, and contributing relations. Political Philosophy.
to the mitigation of a very international
Worked at Banco Santander de
challenge is a familiar ethos for the “As such, it is a great honour to host this
Negócios, at DiamondCluster
country; and one that will be put on year’s Africa Energy Forum in Lisbon.
International, at the Portuguese
display at this year’s Africa Energy In as much as energy is a fundamental
Presidency of the Council of the
Forum in Lisbon this June. axis of international relations, there is European Union and at the Integrated
a real need for an effective diplomatic, Continuing Care Mission Unit.
“Portugal, as a member of the institutional and business cooperation
Community of Portuguese Speaking between counties. Therefore, the Member of the Portuguese Parliament
Countries (CPLP), has long-promoted a Africa Energy Forum is an excellent since 2009, being a member of the XI,
XII and XIII Legislatures. Coordinated
strong cooperation between ourselves opportunity to debate the energy sector,
the Members of Parliament of the
and several African countries in different create new partnerships and deepen
Socialist Party in the Budget and
fields, including the energy sector,” existing relations.”
Finance Committee and was Vice-
Galamba says. “The CPLP’s strategic President of the Socialist Party
vision reiterates the strengthening of Galamba emphasises how pivotal Parliamentary Group.
multilateral cooperation, based on the Portugal will be not just in setting an
interest of its peoples in sustainable example from its domestic setting, but
Written by Matthew Staff
and harmonious development, by in connecting Europe and Africa under
THE RISE OF
RENEWABLES:
synergies between Portugal and Africa
There is far more that
T
o the north, despite Portugal’s However, Portugal has the benefit of
traditional success throughout being a previous leader in the onshore
links Portugal and the advent of renewable energy, space to leverage investment and
Africa beyond history the country has fallen behind as new progression, and Mr Cruz is hopeful that
methods surrounding offshore and this will help his own domestic market
and geography. From
wind overtake the importance that was react sufficiently, while also applying
an industrial standpoint initially placed on onshore generation. lessons learned to neighbours across
the two entities may be the continental border.
At the heart of this momentum shift
at different stages but is the country’s leading energy player, “In Portugal, in decentralised solar
when it comes to energy, EDP, who has long urged Portugal to particularly, we already have a lot of
react more speedily to this change players wanting to make investments
the rise of renewables of direction. in Portugal. This is why the challenge
has brought about an now is to prepare the grid for this new
“The focus on the accommodation of wave of renewables based on solar,”
interesting synergy – one
cleaner energy - namely offshore wind and he says. “It’s also where we at EDP
that makes the upcoming especially solar - presents a challenge of are most active at present, offering
Africa Energy Forum in developing decentralised generation while solar solutions to the market; and it’s
surrounded by a grid that was built based also where we’re continuing to have
Lisbon one of the most on traditional big powerplants,” introduces an influence in Africa, especially in
intriguing yet. the company’s Executive Director, João Portuguese-speaking countries.”
Marques da Cruz. “This will require huge
investments now, not just in hardware and A NEW WAVE OF
equipment, but also in intelligence in order DECENTRALISED CLEAN
to manage this decentralised generation. ENERGY
“This transition is the biggest challenge Across Angola, Mozambique and Cape
that everybody is facing right now Verde in particular, EDP is joining
in Portugal.” numerous international players in
mirroring domestic development with
This is where the alignment with international opportunity.
Africa’s own nascent venture into clean
energy and decentralised solutions In Africa, Mr Cruz believes the first
comes into play. step is to veer away from traditional
generation by promoting localised, off- looked at as opposite to the big wind the consensus now is to invest in
grid solutions. farms or centralised renewable projects renewable energy – both across
already ongoing.” centralised and traditional windfarm
“Sustainable, local grid solutions,” he projects, and these aforementioned
corrects. “When we think about off-grid ‘NOW’ IS THE MOMENT decentralised options too.
solutions (and local grids are disconnected FOR AFRICA
from the rest of the grid so are classed as “I hope that major players can
off-grid), it’s important to accommodate ‘Doing things together’ ties in nicely with understand that ‘now’ is the moment
local generation with improved grid the forthcoming Africa Energy Forum in for Africa. EDP certainly understands
management and supply skills. Lisbon this June; affirming that Portugal’s and is ready.”
historical ties with Africa can be brought
“This kind of ‘island’ in terms of energy into modern times via networking,
management is something we believe knowledge sharing and - hopefully, as
is one of the main drivers for Africa far as Mr Cruz is concerned - tangible
and other places lacking a more robust investments and project building.
central grid.”
“This event needs to be seen as a
The belief extends to an expectation starting point,” he says. “If the event
that local off-grid options will generate doesn’t initiate any real process of
a better quality of clean energy than the investment or collaboration then it’s not
main grid can provide, and it’s something a success, but I hope in this case with the
that both Africa and Portugal need to participants in attendance, that we can
diversify into in order to fully capitalise create a momentum of more investment
on the opportunities that offshore in energy in African countries.”
generation and solar present.
This wish comes from a realisation that
JOÃO MARQUES DA CRUZ
More important still is the idea of situations need to improve on both sides.
MEMBER OF THE EXECUTIVE
implementing the two strands of energy Whereas Africa is trying to offset central BOARD, EDP
generation in tandem. challenges, Portugal is trying to reinvent
its renewables landscape; but the Mr Cruz holds a Management
Mr Cruz explains: “In Portugal we have common thread across both is the kinds Degree from ISE – Instituto Superior
a two-step approach to first address of projects that can be implemented. de Economia of the Universidade
Técnica de Lisboa (1984), an MBA in
large windfarms and then look into And they need to be implemented soon.
Universidade Técnica de Lisboa (1989)
decentralised generation. One thing
and a Postgraduate Degree in Airlines
we’ve learned from projects in Africa “’Delay’ is a common word associated
Management and Marketing from IATA
though is that we can do these two with energy projects, especially in – International Air Travel Association
things together without phases. Africa, but I hope when we speak of this and Bath University (1992). He was
My suggestion for both is - without event in years to come we’ll look back elected Member of the Executive Board
forgetting the big windfarm projects that at a positive turning point whereby of EDP Renováveis in May of 2012,
countries are already deadlocked into – leaders and companies began to push Chairman of Câmara Comércio Luso-
to also look towards decentralised solar through projects rather than just talk Chinesa in April of 2012 and Chairman
solutions simultaneously. about them,” Mr Cruz concludes. of EDP Internacional in September of
“There are much better conditions for 2014. He was elected Member of the
“You can do them together and there’s implementation now because local Executive Board of EDP in February of
no reason why this new wave of authorities understand the need to 2012, being re-elected in April of 2015
and again in April of 2018.
decentralised clean energy should be invest in clean energy, and hopefully
secured in Europe, Latin America, its CONTRIBUTING TO role with several projects attained in
homeland of course, and finally – Africa. AFRICA’S SOCIO- recent years.”
ECONOMIC DEVELOPMENT
“From our point of view, the One of the more recent projects won by
relationship between Portugal and North Africa has been a significant region Efacec in Morocco occurred in December
Africa is very positive, based on a for Efacec since the 1990s, emphasising 2018, with the signing of the contract of
logic of partnership, and focused how widespread the continent’s energy the Bouregreg Water Treatment Plant, the
on the development of projects and evolution has been. Over the coming largest water treatment plant in Morocco;
infrastructures that promote people’s years, strong investments are planned highlighting both the company’s and the
quality of life,” Ramalho continues. across power grids and electrical country’s ongoing proactivity.
“Portugal has an unquestionable role interconnections in several countries
in the development of much-needed in West, Central and North Africa – Meanwhile, in Angola, Efacec has
energy infrastructures across several especially Morocco, a relative neighbour produced and installed the largest
African countries; notably Cape Verde, to Portugal. and most powerful transformer in the
Angola and Mozambique. country; in Guinea-Bissau, Efacec
“Efacec believes in the high potential won an international public bid for the
“Efacec has an historical presence in of the Moroccan market, that has construction of two substations and a 6.2
these markets but regardless of our increasing levels of investment kilometre link to the new thermal power
close connection to Portuguese speaking expected, particularly in solar power station; and in Rwanda, the company
African countries, Efacec aspires to plants, electrical substations up to was selected for the construction of
be a relevant player across the entire 400KV and the retrofit of hydroelectric three new 200KV substations.
Continent. To this extent, we are also power stations,” Ramalho explains. “In
currently active in other African markets addition, investments in wastewater These are just a select few examples,
including Cote d’Ivoire, Egypt, Kenya, treatment plants is also a trend but each represent not just Africa’s rising
Ethiopia, Tunisia, Algeria, and Morocco.” where Efacec is playing a relevant prominence in the global energy order,
but companies like Efacec’s willingness Ramalho continues: “We believe that
to aid this mission. the knowhow we have, our expertise
to deliver high impact projects on time
“With each project, we are not just and to high quality standards, and our
We are also there
providing technical expertise, but we ability to deliver turnkey solutions makes to listen to African
are also raising living standards and us more than a relevant contributor to
making significant contributions to the this event.
political and economic
socio-economic development of these authorities to assess their
African countries,” Ramalho says. “As “That being said, we are also there to
we think how to operate in any given listen to African political and economic
needs and ambitions for
African country, the word ‘partnership’ authorities to assess their needs and the energy development
is paramount. Equal partnerships allow ambitions for the energy development
of their countries.
knowledge transference and local of their countries. We are sure that
community learning and empowerment. some relevant business opportunities
As years go by, the local utilities are and synergies will then emerge.”
benefiting from those international
contractors who come to stay in Ramalho goes on to laud Portugal’s
the country and play a role in the event-hosting capabilities and is equally
development of the local economy. excited at the prospect of networking
and learning over the course of the four
ÂNGELO RAMALHO
“As a global player in Africa, Efacec days, as he is conducting business. CEO, EFACEC
continues to live by this partnership
spirit by incorporating local content as In doing so, Efacec will continue Has a Degree in Mechanical Engineering
much as we can.” to enhance its understanding of a from the Faculty of Engineering of the
continent that it has helped empower University of Porto and the PADE –
Advanced Management Program AESE.
EMPOWERING AFRICA’S and flourish from a power perspective
Since October 2015, Ângelo Ramalho is
FUTURE over the years. Contributing to the
the Chief Executive Officer of Efacec.
full value chain, from generation
Partnership has been a recurring theme to distribution, the company is
He has an extensive professional
underpinning the Africa Energy Forum excited about the future of African career, initially in the oil & gas industry,
over the years too, and Efacec is excited energy, especially given the growing particularly in Shell Portugal, Gás de
about the prospect of this year’s event investment interest being targeted Portugal and Galp Energia. Among
being hosted in Lisbon. towards its key regions. other prominent roles, he was Managing
Director of Natural Gas distribution
“Undoubtedly, it will be a high-level “It is interesting to see increasing companies, Lusitaniagás and Lisboagás,
forum to discuss the state-of-art, and interest in Africa from IFIs and this will Executive Director of Galp Power and
the future evolution of the energy sector help foster the pressing infrastructure LPG General Manager of Galp Energia.
in Africa,” Ramalho affirms. needs of countries in the region,” He also performed non-executive
director roles at Portgás, Setgás, Galp
Ramalho concludes. “Efacec will keep
Azores and Galp Madeira. In December
As a prominent solutions provider in participating in this process by being an
2006 he took over the Chairman of
the space, Efacec wants to be part of active player in the energy sector, as this
Board of Directors and Director of
the debate, and inevitably through its is where our heart and legacy is.
Global Power Sales Alstom Portugal. He
experience and portfolio in both Portugal believes that the energy of his people is
and Africa, it has more to offer than “We want to continue our contribution the critical factor of success in achieving
most to the debates being conducted towards Africa’s economic and social the projects he leads.
this coming June. growth - to empower Africa’s future.”
TRANSMISSION
AND DISTRIBUTION
IS EVOLVING IN
AFRICA-
but how can private sector support this
trend and unlock its potential?
Here we speak with
G
ridworks, a newly launched generation capacity has increased in
platform backed by CDC, is many countries, grid capacity remains
Simon Hodson, CEO of a dedicated developer and a bottleneck to the availability and
newly launched platform investment platform for electricity affordability of power. Off-grid solutions
network investments in Africa. have attracted significant investments
Gridworks, about the recently and, whilst there are important
tools needed to improve What recent developments have
taken place in Africa’s T&D space?
power networks and drive
improvements in the sector The T&D space on the continent
is evolving and I expect the pace of Key stakeholders are
development will continue to increase
over the coming years. Key stakeholders,
increasingly looking to
including governments and multilateral private sector
institutions, are increasingly looking to
private sector involvement in T&D as one involvement in T&D
of the tools needed to improve power as one of the tools
networks and this presents a range of
opportunities for Gridworks (the CDC
to improve power
backed dedicated development and networks
investment platform in T&D which I
lead) to explore. The fundamental
challenge remains though, that while
issues to overcome, this is clearly a Why do you think the Africa Energy in this sector by CDC to date. Networks
developing market which we all see has Forum is valuable to the Africa and partnerships are key to operating
the potential to play an important role power sector? successfully in the market and my team
in driving improvements in the sector, and I who are attending AEF hope to
if executed in a coordinated fashion. A coordinated effort is required to build on old relationships and develop
improve the power sector in Africa and new ones.
How can private sector financing partnerships are key. AEF is an excellent
support the development of T&D opportunity for stakeholders to get
in Africa? together, share ideas and collaborate.
Coordination is important in a number
It is widely accepted that significant of areas – technical, financing and
capital investment is needed in regulatory – it is important that as a
T&D in Africa (McKinsey estimate group of stakeholders in this vital
$345bn between 2015 and 2040). sector we share best practices and work
This need for investment means that together for the improvements we all
the private sector, working alongside strive for.
other sources of capital, will have a
significant role to play. It is important Which countries in Africa are a
to encourage stakeholders to work focus for Gridworks and why?
together in partnership to develop and
structure investable opportunities to Gridworks and CDC have experience
unlock this funding. working across the continent. Our
focus will be to find opportunities to
Private sector financing is not a work with governments and partners
silver bullet solution but sustainable in order to accelerate the delivery of
and long-term investment from the affordable, reliable power to households
private sector can, with the support and businesses. Gridworks will focus
of other stakeholders, contribute to its resources on countries where there SIMON HODSON
improvements in the sector by funding is a receptivity to facilitate private CEO, GRIDWORKS DEVELOPMENT
appropriate capital investment and sector investment. Investments could PARTNERS
driving technical improvements. With be in the form of utility concessions,
Simon is CEO of Gridworks
the right support management practices public private partnerships (PPPs),
Development Partners, a newly
can reduce losses, improve health management contracts, r ural
launched platform owned and
and safety and contribute to a more electrification programmes, distributed
funded by CDC Group. Gridworks is
sustainable power sector. power companies/projects, or utility dedicated to developing and investing
services companies. in opportunities in the transmission
Ultimately, I believe that private sector and distribution and off-grid sectors
investment can, in the right conditions, What are your objectives for the in Africa. Simon has three decades of
drive significant improvements in the 21st Africa Energy Forum? experience making and managing direct
quality, quantity and availability of investments in developing countries.
power to end users. CDC is an example I lead Gridworks, a newly launched Simon has previously held roles at Delin
of where private capital has been platform backed by CDC as a dedicated Capital, IPS (part of the Aga Khan Fund
pivotal (for example Virunga Energies developer and investment platform for for Economic Development), CDC
Group as well as funds in Cyprus and
in the DRC and Umeme in Uganda) electricity network investments in Africa.
Cuba. Simon originally qualified as a
and Gridworks will aim to build upon We are using the AEF to announce our
chartered accountant.
these successes. launch and build upon the work done
FRIDAY 14 JUNE -
HIGHLIGHTS FROM
THE FINAL DAY
Eskom will host an interactive
THE INNOVATION THEATRE RETURNS
session on - Insights, Planning and
Stability. How is Eskom, a Global This year’s aef Innovation Theatre, sponsored by ABB,
Scale African Utility, Dealing with will take a closer look at the battery storage sector. With
Its Challenges. technology moving so fast, when is the right time to
introduce storage based solutions? And what foundations
The Portuguese Government will can developers and utilities be laying in preparation for the
present the tender process for ‘storage boom’?
1.35GW (2019) and 700MW (early
2020) of PV projects in Portugal. The Innovation Theatre is a separate stream to the main
agenda, running throughout Wednesday and Thursday.
Expect compelling case studies, dynamic speakers
and a game-changing iproduct showcase of innovative
storage-based technologies by some of the world’s leading
companies. Not to be missed! Read the working agenda
Selected students from top African universities are sponsored to attend the Africa Energy Forum to witness first-hand
the wider impact of the power sector on global economies. Top class students from Nigeria, Ethiopia, Egypt, Senegal
and South Africa will attend the 21st Africa Energy Forum (aef) in Lisbon. These countries have been chosen for their
wealth of resources, expertise and movement in the sector over the last 18 months.
This year we’ll be hosting our very own ESEI University Challenge! Join us in the Innovation Theatre on the final day
of the conference as 5 countries go head to head in a quick-fire quiz.
RESPONSIBLE
CONFERENCING:
Africa Energy Forum to host football tournament with
Manchester United legends to support victims of Cyclone Idai
O
Cyclone Idai was one ne month on and the impact – so 100% of any money raised goes
of the cyclone is raising to disaster relief for the victims of
of the worst storms on fears that a massive cholera Cyclone Idai.
record to ever hit the epidemic could break out, with more
than 4,000 registered cases and 7 EnergyNet has donated £20,000 to
African continent. The fatalities already. disaster relief efforts in Zimbabwe through
storm was the deadliest the provision of 1,350 WakaWaka Solar
The Africa Energy Forum (aef) has Lanterns and Power+ Solar Charging
and costliest in the South-
teamed with KOHLER, principal partner Power Packs to support those shut off
West Indian Ocean in of Manchester United, and Clarke from energy, who live in darkness once
more than 100 years with Energy, a KOHLER company, to raise the sun goes down.
£50,000 for victims of the Cyclone.
over 1,000 people killed. The ‘Africa Challenge Cup’ football Camille van Gestel, Founder of WakaWaka,
tournament will be a major networking commented; “When recovering from
event taking place on 12th June at the a disaster nothing is more frightening
Os Belenenses, Estádio do Restelo in than to have to spend your evenings in
Lisbon, Portugal. utter darkness. Having light is a basic
necessity, enabling people to pick up their
EnergyNet is fully funding the hire of lives also after sunset, to cook, work and
the stadium and KOHLER and Clarke do homework. WakaWaka can literally
Energy are funding all other cost- enlighten, perhaps even brighten the lives
related elements of the tournament of people.”
LESSONS LEARNT
The following text is an excerpt from Episode 4 of the aef podcast series,
which gathers the good, the great and the most knowledgeable African energy
experts, all in one place. Here, Damon Thompson meets Daniel Metcalfe &
Laura Kiwelu from global law firm Norton Rose Fulbright.
Damon Thompson: Daniel, Laura, it’s will do in that we just need to be in a storage technology’s been mentioned
great to have a chance to connect before position where we’re bringing more increasingly on projects.
the Forum. Dan, I know you’re relatively power and energy to the countries, to
new to the sector - I think your first aef the communities.
was in Mauritius. What have been your Damon: I think there are obviously
key observations? some pitfalls when trying to develop
Damon: You’re a global firm. Are there projects. They can sometimes get
Daniel Metcalfe: I traditionally started any lessons learned from your work in stuck. What are some of the challenges,
off as an infrastructure lawyer and did places like Australia, for example, and and are they unique to Africa in terms
that for many years. Although I’ve done other countries that you’re perhaps able of getting a project from start to close?
a lot of energy work in and around that, to bring to your experience in Africa?
I haven’t really had a particular focus Daniel: I don’t think they’re unique
on power and energy until the last three Laura: I think certainly in Australia the to Africa… Africa hosts a number of
or so years. interesting things are the more innovative developing markets. That itself brings
technologies like battery storage, the challenges, regulatory challenges,
For me, it’s been an interesting transition fact that we’ve been really trail blazing economic challenges, political
and a combination that other institutions in Australia on projects. Certainly, we challenges. That’s actually the interesting
have also made in terms of joining want to see Africa as leap frogging onto thing about doing projects in and around
infrastructure and energy. The two are these technologies, not just sticking with and across Africa.
fairly indivisible when you think about it. pure solar PV for a long time, but actually
Lots of it has been a continuum, but in bringing in battery power, battery storage You have those different dynamics
terms of understanding the technologies as well. involved, yet you have to be experienced
and things like that, it’s a bit of a and have an understanding of how to
new learning. I’m in regular contact with colleagues navigate those challenges. In terms
in Australia around the battery storage of how best to go about that, really
Because I’m almost exclusively focused projects that they’ve been working it’s about picking the right partners,
on Africa, the one thing that is a constant on, considering lessons we can learn, picking the right advisors, early
is the fact that there is just a continuing and how these can apply to projects planning, understanding that it will
need. Whilst technology is, of course, we’re working on in Africa that are be difficult, it will be challenging, and
crucial and vital for development, at the involving small but increasing amounts having realistic expectations.
end of the day, almost any technology of battery storage and the fact that
Damon: Talking projects, you’ve Daniel: For me, it’s one that certainly megawatts, gas fired, combined cycle
obviously helped to develop a whole sticks in the memory because it was in Tema in Ghana.
number. Is there one that you’re particularly difficult and challenging,
particularly proud of, one that really but also it was quite a recent one, That was a really interesting one, with a
sticks in the memory as having really which is the Bridge Power project in unique project structure.It also had quite
strong impact with you? Ghana, which we close the vendor a unique financing structure, vendor
financing of just before Christmas. 202 financing with some GuarantCo support…
DEVELOPMENT LESSONS
LEARNT
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DEVELOPING BANKABLE
PROJECTS
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NAVIGATING TRENDS IN
AFRICAN ENERGY
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GETTING PROJECTS
MOVING
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