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Bulletin July 2016
Selected news and information on European energy development Cooperation
No.2 |July 2016
u Power and Energy Africa 2016, Dar es Salaam, Tanzania, 7 – 9 July| Event Details
u High-Level Political Forum on Sustainable Development, New York, USA, 11 – 20 July | Event Details
u “What future awaits the energy systems in Europe and the world in the year 2040 and beyond?”, Presentation and Discussion, Brussels, Belgium, 13 July | Event Details
u Global Sustainable Finance Conference, Karlsruhe, Germany, 14 – 15 July | Event Details
u POWER-GEN Africa & DistribuTECH Africa, Johannesburg, South Africa, 19-21 July | Event Details
u Workshop: EU Financing Energy Projects in Africa and Asia, Berlin, Germany, 25 – 26 August | Event Details
NEWS FROM THE EUROPEAN UNION
European Consensus on Development and Agenda 2030: More coherence needed
Greater synergy between EU policies and a more coherent and flexible approach are needed to reduce inequalities and address the root causes of migration. This is the result of a meeting held on the 12th of May by the Council for Development, in which Ministers debated a revision of the European Consensus on Development in light of the 2030 Agenda for Sustainable Development, adopted by the UN last year and now to be implemented by the EU as well. The European Consensus on Development was established in 2005 and commits the European Institutions to eradicate poverty and create a fairer and more stable world.
According to Ministers attending the Council meeting, it is equally important to strengthen the link between sustainable development and humanitarian aid. In addition, civil society and the private sector should be better integrated into all efforts for human rights, good governance and the rule of law.
Furthermore, Ministers agreed on stepping up the Joint Programming of External Assistance by the EU and its Member States, thereby recognising the importance of global value chains (GVCs). The implementation of the Valetta Action Plan on Migration, in-line with the Council conclusions on the EU approach to forced displacement and development was another point of discussions. The Council´s agenda also included a summary of the main outcomes of the World Humanitarian Summit, which had taken place on the 23rd and 24th of May in Istanbul, Turkey.
Towards a future EU Development Policy: European Commission launches open public consultation
On the 30th of May, the European Commission launched an open public consultation on the future of EU development policy with the aim of informing the forthcoming revision of the European Consensus on Development. The Commission would like to gather views from a wide range of stakeholders on how EU development policy might respond to the 2030 Agenda for Sustainable Development as well as to other important, related international commitments and key global trends. This open online public consultation process is due to run for twelve weeks. To take part in the consultation and for detailed information, please visit the consultation’s page via this link.
“Clear EU Commitment to address climate change”: EU Ministers’ statement on the ratification of Paris Agreement
The fight against climate change needs to be sped up. The European Environment Council, which met in Luxembourg on the 20th of June, adopted a statement on the ratification of the Paris Agreement, agreed upon by the international communityin December 2015 in Paris. The Paris Agreement will enter into force after ratification by 55 countries, representing at least 55% of global greenhouse gas emissions. "With this statement we want to send a clear political message on the EU's commitment to address climate change. We are determined to ratify the Paris agreement as soon as possible and to work for effective implementation of the deal", Sharon Dijksma, Dutch Minister for the Environment said.
Ministers also took note of the presentation by the Commission of the proposal for the adoption and ratification of the Paris Agreement by the EU. Furthermore, they held a policy debate on the review of one of EU's main tools for reducing greenhouse gas emissions and addressing climate change, the emissions trading system (ETS). Ministers also took stock of discussions on new rules and limits for air pollutants, the so-called NEC directive (revised national emissions ceilings). The EU Presidency informed Ministers of the state-of-play of negotiations with the European Parliament on this.
The full statement on the ratification of the Paris Agreement can be found here.
More information on the reform of the EU ETS can be found here.
For details of the NCE directive, see here.
European Union joins Mission Innovation to speed up innovation in clean energy
The European Commission became the 21st member of “Mission Innovation”, a global initiative aiming to accelerate global clean energy research and innovation, which was launched at the United Nations Climate Change Conference (COP21) in Paris last year. Twenty of the world’s major economies have already joined Mission Innovation and pledged to double their public investment in clean energy research and innovation by 2020.
The European Commission, acting on behalf of the EU, is also eager to accelerate global clean energy innovation and making clean energy widely affordable. It will do so by providing necessary funds from the EU research and innovation programme Horizon 2020. It is expected that some €10 billion will be allocated to clean energy projects under the Horizon 2020 programme for the 2014-2020 funding period. The Initiative is also working closely with the private sector and the Breakthrough Energy Coalition to strengthen this investment and innovation potentials.
The European Commission’s press release announcing its membership of Mission Innovation can be found here.
European Investment Bank and Asian Infrastructure Investment Bank agree to strengthen cooperation
The European Investment Bank (EIB) and the Asian Infrastructure Investment Bank (AIIB) have agreed to broaden their mutual cooperation in order to support investment in strategically important projects. They will also seek joint financing mechanisms for projects and increase their cooperation in those countries in which both institutions are active. The enhanced cooperation is intended to strengthen the sustainable development process in a complex global economic environment. Development will be promoted in various sectors, including transport, clean water provision and climate mitigation.
The European Investment Bank’s press release announcing details of the cooperation can be found here.
Commissioner Mimica: “Strengthening the migration and development nexus”
During a visit to West Africa to attend the African Leaders Summit in Dakar, Senegal, the European Commissioner for International Cooperation and Development, Neven Mimica, discussed EU policies on migration and development with, amongst others, Senegal’s President Macky Sall. The Commissioner spoke about the links between addressing the migration crisis and the role of development therein, and presented a number of European projects aimed at addressing this. “The migration and development nexus is to be strengthened, in order to have migration working for development and development working for migration”, Mimica said.
For further details of his visit, see Devex’s report here.
IN THE SPOTLIGHT
Practical Action with practical answers: new mobile app launched
The technology justice-oriented platform Practical Action has launched a new mobile app called Practical Answers. The application provides technical expertise in various developmental areas, including agriculture, disaster risk reduction, recovery, energy, environment, adaptation to climate change, water and sanitation. The app has been specifically designed for development practitioners and provides them with access to practical “how-to” guides on these subjects.
Renewable Energies: REN21 Global Status Report confirms them as a competitive choice
Renewable energies are firmly established as competitive and mainstream sources in many countries around the globe. This is the main finding of the Renewables 2016 Global Status Report, published by the Renewable Energy Policy Network for the 21st Century in June.
According to the report, renewable power generating capacity witnessed its largest ever increase in 2015, with an estimated 147 gigawatts (GW) added. One of the main driving forces for this trend is the fact that renewable energies are now cost competitive with fossil fuels in many markets. In addition, many governments continued to push renewable energies, particularly in the wind and solar sectors. As of early 2016, 173 countries had renewable energy targets in place, and 146 countries had support policies. The report also found that cities, communities and companies are leading the rapidly expanding “100% renewable” movement, playing a vital role in advancing the global energy transition.
2015 saw a total worldwide investment of US$286 billion in renewable power and fuels.
US Government and the European Union jointly support ElectriFI
During the European Development Days, on the 15th of June, the European Union and the Government of the United States of America signed a transfer agreement to supplement the funding of the Electrification Financing Initiative, ElectriFI.
ElectriFI was launched by the European Commissioner for International Cooperation and Development, Neven Mimica, at COP21 in Paris in 2015. It serves as an innovative mechanism to unlock, accelerate and leverage investments in order to increase access to affordable, reliable, sustainable and modern energy in developing countries. So far, round one of applications under ElectriFI has received more than 250 projects requesting a total investment of more than 800 million Euros.
The US Government, via the Power Africa Initiative which is run by the US Agency for International Development (USAID), will contribute some US$10 million to ElectriFI. This contribution will be targeted towards projects in sub-Saharan Africa, with the aim of boosting sustainable business models and increasing energy access in that region. For further information please refer to this link and the press release of the European Commission.
Large-scale and centralised energy planning ignores poor peoples´ needs, study finds
Despite increased attention to energy access in the last five years, much national energy planning is still dominated by large-scale, top-down and centralised energy infrastructure development. This is the conclusion of the Poor People’s Energy Outlook 2016 (PPEO), published by Practical Action and presented during the European Development Days, which took place on the 14-15 June in Brussels. Even where there is an intention to deliver off-grid energy access at scale, there is uncertainty about what options will be the most appropriate. In order to tackle this problem, the PPEO 2016 highlights some practical, decentralised energy solutions that meet poor peoples’ needs – and focuses on the examples of selected communities in Bangladesh, Kenya and Togo, where national energy agendas with so called Total Energy Access (TEA) are implemented. The executive summary of the study can be found here.
“De-risk, unlock and amplify investments for renewable off-grid projects” – call from SE4All CEO
Key decision makers as well as institutional and business representatives joined together to discuss further investments in off-grid renewables in the developing world at the ARE-RECP Off-Grid Investment Forum, organised by the Alliance for Rural Electrification (ARE) and the Africa-EU Renewable Energy Cooperation Programme (RECP) in Amsterdam, Netherlands on 12-13 April 2016. The forum was attended by more than 250 participants from the private sector, financiers and development partners. In her opening speech, the CEO of the Sustainable Energy for All Initiative, SE4All, and Special Representative of the UN Secretary-General, Rachel Kyte, appealed to investors and financiers to help de-risk, unlock and amplify investments in renewable off-grid projects.
While aiming to inspire key players in the sector to increase investments in clean electrification markets, the Forum equally gave recognition to companies and organisations which have made special contributions to advance the development of the rural electrification sector in the past. On the occasion of its 10 year anniversary, ARE celebrated it first Awards ceremony. With the awards it honoured the passion and strong efforts of Phaesun (Private Sector in Developed Countries), Rahimafrooz Renewable Energy Limited (Private Sector in Developing Countries), OFID (NGOs & Foundations), Kenya (Government in Developing Countries) and the European Commission DG DEVCO (Multilateral & International Organisations).
While the first conference day was structured around speeches, debates and announcements, the second day - hosted by RECP - provided a structured platform for participants to come together to talk business. The B2B and matchmaking session in the afternoon involved some 180 parties in more than 620 direct meetings.
Further details of the conference can be found here.
2015: Best year to-date for the Alliance for Rural Electrification
Following the trend of earlier years, 2015 has been the best year for the Alliance for Rural Electrification (ARE), both in terms of profiling and growth. This is the conclusion of ARE’s Annual Report 2015, which was launched recently.
In broader terms, 2015 has been marked by great strides in the global development and energy community - which has never been more determined to tackle problems and create a real pathway to universal access to clean energy, the report states. Commenting on its success, and its implications for the future, ARE stated that “in full awareness that there are still more than a billion people waiting anxiously for electricity, there is therefore no alternative for ARE, our members and partners, than to stay fully committed and to make the objectives as defined by SE4All a reality.”
OPPORTUNITIES FOR THE PRIVATE SECTOR
POWER-GEN Africa & DistribuTECH Africa
The conference and exhibition will take place from the 19th to 21st of July in Johannesburg, South Africa. It offers a platform for high-level government officials, and brings together the world’s leading equipment and services providers and those developing and operating power infrastructures in sub-Saharan Africa. Renowned for delivering high-quality content and comprehensive in-depth practical information, a range of experts, involved in every aspect of power generation and distribution, and including government policy makers and those involved in planning, finance and legal aspects as well as utility and private power producers, will be in attendance. Detailed information on the event can be found here.
“High 5 for Africa”: power, food, integration, industrialisation and a better life
Light up and Power Africa, Feed Africa, Integrate Africa, Industrialize Africa and Improve the quality of life for the people of Africa. The “High 5 Agenda”, launched by African Development Bank President Akinwumi Adesina in his inaugural speech in September 2015, is designed to scale-up the Bank’s 2013-2022 Ten Year Strategy. It will stimulate the continent’s social and economic transformation – focusing on the two main objectives of inclusive growth and the gradual transition towards green growth. It will not only direct the AFDB’s policies, but is also intended to serve as a blueprint for African countries for their respective national transformations towards sustainability.
In order to achieve universal access to electricity by 2025, with a strong focus on encouraging clean and renewable energy solutions, it is necessary to provide 160 GW of new capacity, 130 million new on-grid connections, 75 million new off-grid connections and to provide clean cooking solutions for 150 million households.
Estimation of the required investments range from US$60 billion to US$90 billion per year. However, as part of its New Deal on Energy for Africa, AfDB will invest US$12 billion of its own resources in the energy sector over the next five years. This New Deal is thereby built on five inter-related and mutually reinforcing principles, including 1) raising aspirations to solve Africa’s energy challenges, 2) establishing a Transformative Partnership on Energy for Africa, 3) mobilising domestic and international capital for innovative financing in Africa´s energy sector, 4) supporting African governments in strengthening energy policy, regulation and sector governance and 5) increasing the African Development Bank´s investments in energy and climate financing.
In order to practically implement the High 5 Agenda and the sustainable transformation, the AfDB’s Statistics Department has developed several innovative tools, as part of its Africa Information Highway (AIH) initiative. It will enable the Bank to monitor and disseminate information and data on the performance of African countries in the High Five’s priority areas. One such tool is the High-Fives application, which can be accessed via the Bank’s AIH Open Data Platform. For more information refer to the AfDB’s news section.
The High-Fives app can be downloaded here.
15 million Euros for Hydropower Station between Rwanda and DR Congo
On the 18th of May 2016, the Government of Germany and of Rwanda signed a bilateral agreement worth €15million (about 13 billion in local currency Rwanda Franc, Rwf) in order to support energy supply in the country and the Great Lakes region.
The agreed grant is fully designated to the regional, public-private partnership project “Hydropower Station Ruzizi III”, a 147-megawatt hydropower joint project, located in South-West Rwanda and in the East of the Democratic Republic of Congo (DRC) on the River Ruzizi, marking the border between the two countries. Estimated costs for the completion of this project amount to more than US$625 million at the moment.
Besides contributing to the improvement of Rwanda’s energy supply and to regional socio-economic development, the project is intended to increase Rwanda’s clean energy generation capacity by about 50 megawatts.
The grant will be implemented by the German KfW Development Bank in cooperation with the Rwandan Government, the implementing Special Project Company of Ruzizi III, and additional donors including the African Development Bank (AfDB), World Bank, and the European Union (EU). For detailed information please refer to this link. A detailed project description by the African Development Bank Group can be found here.
Africa Economic Outlook Report 2016: Focus on urbanisation
The 2016 edition of the Africa Economic Outlook Report is now publicly available and can be downloaded here. The edition focuses closely on Africa´s distinctive pathways towards urbanisation and on how this is increasingly shifting economic resources towards more productive activities. The section on Sustainable Cities and Structural Transformation can be downloaded here.
NEWS FROM THE MEMBER STATES
A deep geothermal site was inaugurated on the 7th of June 2016, by France’s Minister for Environment, Energy and the Sea, Ségolène Royal, who is also responsible for the international climate negotiations. The site is at Rittershofen (Bas-Rhin Department in North Eastern France) and is the first one of its kind worldwide. Minister Royal appealed to the industry and encouraged companies to use renewable energies. She announced the acceleration of the implementation of the GEODEEP fund, intended to share the risks and costs of drilling. The investment, supported by “Fonds Chaleur” and the French State Agency ADEME (Agence de l’environment et maitrise d’energie), aims to replace the equivalent of 16 000 tons of petrol per year, leading to an emission reduction of 39 000 tons of CO2.
According to the Shanghai-based enterprise JinkoSolar, the company has delivered “Eagle” Photovoltaic Modules of 23 MW to Enerray, an Italian branch of the Maccaferri Industrial Group and Desert Technologies (DT, Saudi-Arabia). Enneray and DT have installed the Solar-Park Ma’an in Jordan with a total of 73 320 Eagle-Photovoltaic Modules – and they are now responsible for their maintenance. The park is supposed to produce approximately 47 GWh of solar energy for the harbour town of Aqaba. Further information can be found here.
Sweden’s energy technology goes German – the Swedish Energy Agency Energimyndigheten, together with the German-Swedish Chamber of Commerce, has designed a special “German Programme”, which entered its second phase in 2016. Innovative Swedish companies from the environmental and energy technology sectors are provided with the opportunity to explore the German market and find out about export opportunities. German’s Energiewende makes the country an attractive target for producers and traders of innovative and clean energy technology. “Germany’s efforts on energy transition offer an enormous potential”, Christopher Waldén from the Swedish Energy Agency said. “Other important areas are the implementation of smart grids and energy storage.”
Alex Chrisholm has been appointed as the new Permanent Secretary of the Department of Energy and Climate Change (DECC). This follows the announcement that Stephen Lovegrove will move across to become Permanent Secretary at the Ministry of Defence. Alex Chrisholm has currently been the Chief Executive of the Competition and Markets Authority. Energy and Climate Change Secretary Amber Rudd highlighted Chrisholm’s experience across the public and private sectors. Rudd: “This is an important time for DECC as we work to deliver the secure, affordable and clean energy our families and businesses can rely on, now and in the future. We continue our drive to improve the energy market, reduce people’s bills and build an energy infrastructure fit for the 21st century.”
u Video: Press Conference on the outcomes of EU Environment Council, Monday 20th of June 2016: http://video.consilium.europa.eu/en/webcast/0c7b950b-7bb8-4fb7-96db-d7815593111e
u Photo gallery of the European Development Days, 15-16 June 2016 in Brussels: https://edd-eu.photoshelter.com/archive
u Alliance for Rural Electrification (ARE) Media Pack: http://ruralelec.org/sites/default/files/are_media_pack_2016.pdf
u Solar Power Europe – Overview of solar PV support designs: http://www.solarpowereurope.org/media/downloads/
u Video: Cities and Regions as key players in the fight against climate change: http://newsroom.unfccc.int/lpaa/cities-subnationals/
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