Clean captive installations for industrial clients in Sub-Sahara Africa

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.

Project data

Countries
Ghana, Kenya, Nigeria, South Africa
IKI funding
3,489,949.00 €
Duration
04/2019 till 09/2023
Status
completed
Implementing organisation
United Nations Environment Programme (UN Environment)
Political Partner
  • Department of Trade, Industry and Competition (DTIC) – 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
  • Frankfurt School of Finance & Management gGmbH
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State of implementation/results

  • 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.
  • Three pilot projects have been selected in Kenya. In Ghana, Nigeria and South Africa one project each has been selected.
  • Press releases have been published on important project milestones.
  • Gender fliers were developed. In recognition of the importance of gender mainstreaming in the implementation of project activities and its output as reflected in the project document, gender has been a consideration during the initial scoping missions, in the selection of pilot projects, and will also be considered in the monitoring phase of the project. Further, aiming to address gender at a higher level, and from a public and private level perspective, the project team has developed two fliers:
    • The first flier targets the private sector and is focused on the employment of women in the energy transition. It addresses the barriers facing women in the RE sector by analysing beliefs, practices, context, and opportunities; including practices that can be put in place to promote inclusion.
    • The second flier is oriented towards the public sector and focuses on women participation in the captive renewable sector in C&I. It contains recommendations for public institutions oriented towards encouraging female participation, including stakeholder engagement, and leading by example.
    Both fliers have been made available to all project Steering committee members to be further disseminated thus helping raise awareness of this important necessity. -
  • 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.
  • Upcoming: Development & publication of lessons learned including country-specific studies on captives RE business and financing models, including the case studies on supported pilot projects are planned for 2023. An end-of-project brochure and ‘Status of Clean Captive Installations for Industrial Clients in Sub-Sahara Africa” publication will also be developed and published in this time frame.
  • End-of Project national workshops in the four partner countries will be organised between April and June 2023, at which knowledge and project results in the country and beyond will be disseminated with a view to fostering an uptake in private sector clean captive installations.
  • More information, including the country studies, the tools and on projects selection are available on the project website.

Latest Update:
04/2024

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