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Philippe Niyongabo, African Union Commission

Financing bioenergy and biofuels in Africa

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Philippe Niyongabo, African Union Commission

  1. 1. AUC PROGRAM FOR DEVELOPMENT OF BIOENERGY IN AFRICA Presented by Philippe NIYONGABO Head of Energy Division Department of Infrastructure and Energy African Union Commission Innovation Finance for Access to Energy 21 September 2015, Milano, Italy 1
  2. 2. Why Bioenergy is Important in Africa Over 80% of the African population are still depended on traditional biomass for cooking and heating. Modern bioenergy is therefore central to achieving SE4ALL. However, bioenergy is complex because of the nexus with energy, water, food and land use. Therefore, investing in this important energy source for Africa needs to be supported by well-designed, cross sectoral policies. It is for this reason that the AUC led an African Bioenergy Policy Framework and Guidelines
  3. 3. Why bioenergy is important to Africa? Enhancing energy security by reducing oil imports Empowering rural development Helping African countries move towards the green economy path Reducing traditional biomass consumption, therefore reducing deforestation and health problems and Empowering women role Enhancing gender with possible positive welfare impacts Enhancing energy access in rural areas
  4. 4. Why demand is high for bioenergy in Africa? Africa has 60% of the world’s uncultivated land Africa has wide range of agro-ecological zones that provides wide optimal spectrum for growing wide range of energy crops Low labor cost Fuel cost is extremely high High cost of alternative renewable energy sources
  5. 5. Challenges for bioenergy development in Africa Natural resources localized limitation Climate change Land tenure Production issues Trade issues Low agricultural productivity Poor knowledge base Weak capacity research and development support Technical and sustainability issues Low investment and private sector participation in the energy sector Lack of harmonized regional policy framework
  6. 6. Risks of bioenergy expansion in Africa worsen food insecurity environmental degrading rainforest clearance
  7. 7. Biofuels Development for Transport and Household Sectors Implementing of the sustainable biofuel programme for transport and household sector in collaboration with the UNECA; Carrying out Regional Training workshop on Biofuel Development for Transport and Household Sectors: Frist training workshop for the Eastern and Northern in Cairo, Egypt 14-18 September 2015 Second training for the Southern in Mauritius, October 2015 Third training workshop for the Western and Central in Senegal, November 2015
  8. 8. Strategy to unlock potential of biofuels in Africa Strengthening the Capacity of African Countries to Promote the Use of Renewable Energy to Achieve Sustainable Development and Poverty Reduction by Implementing Biofuels Programme for Household and Transport Energy Use The biofuel industry in Africa will catapult the marginalised rural people into an inclusive growth i.e. important for Agenda 2063 of Africa Develop five case studies in five countries on the experience of enabling policies and regulatory reforms that facilitates for the adoption of the biofuels technologies.
  9. 9. Bringing the Biofuel Projects to Bankability Organise workshops that promote PPPs for sustainable power supply; Design bankable projects for biofuels, financing and building capacity to access energy finance from different funding mechanisms. Projects are designed at country level and presented at appropriate funding mechanisms that will be defined in the course of the implementation of this project, such as ACEC and others.