Clean captive installations for industrial clients in Sub-Sahara Africa - Internationale Climate Initiative (IKI)
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Clean captive installations for industrial clients in Sub-Sahara Africa

As of: October 2021

In sub-Saharan Africa, the manufacturing sector is often faced with the challenge of securing a cheap and reliable source of electricity. Backup diesel generators are in widespread use. This project is trialling business models for renewables for industrial clients. Renewable energy sources that can replace fossil backup systems operate independently of feed-in tariffs and are cheaper than owned fossil generation. As a result, they are beneficial to manufacturers and utility companies alike. The project is using pilot installations to demonstrate the economic viability of these systems. In each target country, the project supports companies in their efforts to develop renewable energy projects at industrial sites and introduces replicable business models. Figures for plant power generation are published so as to increase transparency while reducing assumptions about investment risks. Business models are fully documented and toolkits are provided to encourage take-up by other companies.

State of implementation/results

  • The project has published country studies on clean captive installations in the four partner countries Kenya, Ghana, Nigeria and South Africa. The reports dive into each country's electricity market, policy and regulatory framework, tariffs and market potential for clean captive installations, with a strong focus on finance.
  • Economic and financial tools for assessing suitable financing structures of clean captive installations have been developed and published.
  • To select pilot projects scoping missions to all project countries have been completed, project selection criteria have been defined and online seminars conducted to call for proposals. Three projects have been selected in Kenya. In Ghana project selection is advanced. In Nigeria and South Africa projects are being pre-selected for due diligence.
  • More information, including the country studies, the tools and on projects selection are available on the project website.

Project data

Country:
Ghana, Kenya, Nigeria, South Africa

Implementing organisation:
United Nations Environment Programme (UN Environment)

Political partner(s):
  • Department of Trade and Industry (DTI) – South Africa
  • Federal Ministry of Environment - Nigeria
  • Ministry of Energy - Ghana
  • Ministry of Energy and Petroleum, Directorate for Renewable Energy - Kenya
  • Ministry of Environment, Science, Technology and Innovation (MESTI) - Ghana
  • Ministry of Environment and Forestry - Kenya
  • South African National Energy Development Institute (SANEDI)

Implementing partner(s):
  • Frankfurt School of Finance & Management gGmbH

BMU grant:
3.489.949,00 €

Duration:
04/2019  till  03/2023


Website(s):



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