REEEP co-financed activity Financing Cogeneration And Small-hydro Projects In The Sugar And Tea Industry In East And Southern Africa REEEP co-financed activity

Introduction The REEEP funded initiative aims at addressing the financing barriers and risks that face agro-industries in selected African countries, in investing in Renewable Energy and Energy Efficiency Services (REEES) Important option as agriculture and agro-industries account for close to 50% of sub-Saharan Africa’s GDP and over 70% of employment Targeting 2 agro-industries (tea and cane sugar) and partnering with 2 parallel on-going UNEP/GEF projects; Greening the Tea industry in East Africa (small hydro) and Cogen for Africa (Bagasse cogeneration) Could be replicated across wide range of agro-industries Wood/timber, pulp and paper Coffee, sisal, palm oil, tea, cocoa, tobacco, etc Countries covered: Ethiopia, Mozambique, Tanzania, Uganda and Zambia

Key Objectives Key Activities Analyse, understand and build capacity for addressing the challenges associated with lending to the agro-industries for sustainable energy investments Strengthen networking among financial institutions interested in financing these sectors Key Activities Consultations with industry representatives Identify and analyze risks associated with financing of energy projects in the tea and sugar industries Develop mechanisms for overcoming financial barriers facing the sugar and tea sector in development of REEES units – standard PPA Training and capacity building for key stakeholders

Expected Outputs A set of financial and risk mitigation instruments accessible to the region’s financial community, and sugar and tea industries that will facilitate REEES investments Training workshops on financing for energy projects in the Tea and Sugar industry, risk assessment and mitigation for financial institutions A mailing list of domestic, regional and international financial institutions and investors interested in financing REEES in target countries Reports and short articles on financial barriers facing the tea and sugar industries and options for overcoming barriers A website with information on the cogen and small hydro financing opportunities and tools for minimizing financial risks (www.afrepren.org/reeep/)

Training Workshop Objectives To introduce participants to the two GEF REEEP-related ‘Greening the Tea Industry in East Africa’ and ‘Cogen for Africa’ initiatives. To introduce participants to the fundamentals of renewables and power sector issues To expose financial institutions representatives and sugar and tea industry representatives challenges, barriers and risks of financing REEES projects in the tea and sugar sectors To expose financiers to opportunities for financing REES in the agro-industries, as well as investors from the agro – industries in the region to financing opportunities available from the financial institutions To provide a link and network between the financiers and investors

Presentations to cover: Structure and Format Presentations to cover: Small hydro Cogeneration Power sector reforms Risks and barriers to financing RE Financing options for RE Case examples of financing RE Interactive sessions and group discussions through out Sharing of knowledge based on wide range of expertise

Discussion Groups Groups to discuss specific experiences on risks and challenges of financing RE Discuss most common risks Rank the 3 most common risks and provide justification for ranking Propose mitigation strategies for the risks

Energy, Environment and Development Network for Africa AFREPREN/FWD Energy, Environment and Development Network for Africa Contacts Websites: http://www.afrepren.org/reeep/ http://cogen.unep.org http://greeningtea.unep.org