The Africa-EU Energy Partnership and its instruments CEMA workshop Nairobi, Kenya Sanne Willems European Commission

The starting point: the EU Energy Initiative (EUEI) Johannesburg 2002 – World Summit on Sustainable Development An expanding global energy agenda: energy security becomes a key concern access to energy services remains key issue for Africa climate change moves higher on the agenda EUEI scope and dialogue expands accordingly, especially the energy dialogue with Africa

Institutional path to the Africa-EU Partnership on Energy Africa - EU Ministerial Troika suggests comprehensive energy partnership (Brazzaville, October 2006) 2006/2007 Strategic European Energy Review (SEER) with strong external dimension; includes the importance of integrating energy in development cooperation Joint Presidency - Commission Background Paper. Berlin, Maputo and Accra meetings in March 2007 Council conclusions in May 2007 support the Energy Partnership and outline the key elements December 2007: Adoption of the Energy Partnership as part of the Africa-EU Strategic Partnership in Lisbon

Overall objectives of the Partnership Effective Africa-EU dialogue on energy access and energy security for both continents Improved access to reliable, secure, affordable, climate friendly and sustainable energy services Increased European and African investments in energy infrastructure in Africa, including promotion of renewables and energy efficiency

The Partnership’s Actors and Finance EU Implementation Team: Co-chairs Germany and Austria, other EU Member States European Commission African Implementation Team: Co-chairs African Union Commission and Mauritius, other AU Member States Regional Economic Communities (RECs), AFREC and other African Energy Institutions Private Sector (in particular, energy companies and utilities), AfDB, EIB, other IFIs, energy centres, civil society Finance Integrated framework of EU financing instruments EU & African states, the AfDB, etc. Private sector Comprehensive partnership Include every stakeholder where he can best contribute

The State of Play & the Way Forward EU and Africa to enlarge appropriate institutional arrangements for the implementation of the Partnership Adopt Roadmap and Political Targets at High Level Meeting 14th September 2010 in Vienna, Austria Develop second Action Plan for period 2011-2013 Monitoring and reporting

The Africa-EU Partnership on Energy Priority actions and a Roadmap for implementation adopted A reformulated overall objective: Improved access to reliable, secure, affordable, cost- effective, climate friendly and sustainable energy services for both continents, with a special focus on achieving the MDGs in Africa Three priority areas, with political targets for 2020: Energy Access Energy Security Renewable Energy and Energy Efficiency High Level Meeting in Vienna Austria 14 September 2010 to endorse the second Action Plan (2011-2013) See website: http://www.aeep-conference.org/ On 8-9 December 2007, the long-awaited second EU-Africa Summit was held in Lisbon. This Summit was the first since the 2000 Cairo Summit and allowed the official launch the new Africa-EU strategic partnership. This new long-term strategic partnership –enshrined in the Lisbon Declaration, the Joint Africa-EU Strategy and the Action Plan - marks a fundamental break in the way the EU deals with Africa, the way Africa looks at Europe and the way we work together on global issues in the global arena. The Action Plan, setting out clear and measurable priorities for 2008-2010, will serve as common roadmap for action. It provides both an institutional and an operational framework with concrete objectives for the 8 partnership priorities.

The Africa-EU Energy Partnership Joint Africa-EU Targets Access to Energy +100 million people in Africa to have access to modern energy sources Renewable Energy and Energy Efficiency renewable energy (+10,000 MW hydro, +5000MW wind, +500MW solar, triple other renewables) improve energy efficiency in Africa Energy Security double energy interconnections in Africa and between Africa and Europe double the use of natural gas in Africa The targets are political in sense and are not to be seen as commitments. The targets are in the context of the Africa-EU Partnership and do not represent the wider African targets. The targets may have to be revised over time. On access to energy, the African target is to reach an additional 250 million people by 2020. N.B. Political Africa-EU targets (not commitments), within a scenario of wider African targets.

Integrated Framework of EU instruments behind the AEEP Main elements Africa Infrastructure Partnership & its ITF: continental & regional scale Regional Indicative Programmes of the 10th EDF (COM funds) National Indicative Programmes of the 10th EDF (COM funds) ACP-EU Energy Facility (COM and, possibly, MS) fund local scale projects ENPI: Neighbourhood Investment Facility (NIF), Mediterranean Solar Plan Other resources DCI Thematic Programme (ENTRP) Capacity for management of energy resources (Coopener, CEMA) Contribution to the Extractive Industries Transparency Initiative Contribution to the Global Gas Flaring Reduction Initiative (GGFRI) Global Energy Efficiency and Renewable Energy Fund (GEEREF) Africa-EU Partnership on Climate Change/GCCA (e.g. CDM) Bilateral programmes and other initiatives of MS, including the EUEI Partnership Dialogue Initiative (EUEI PDF)

Instruments: EC contribution breakdown on 9th EDF Energy Facility projects Comp. 3- Improvement of cross border cooperation in the energy sector: 4 projects 4% EC funding (8,57€ M) Comp.2- Improvement of the management and governance of energy: 11 projects 5% EC funding (10,58€ M) Comp. 1a- Small-scale initiatives: 41 projects 30% EC funding (58,01€ M) Access to energy projects divided in: 1.a Small scale (up to 2,5 M Euro EC contribution) and 1.b Large scale (from 2.5 to 10 M Euro EC Contribution). Major share of funding for large infrastructure projects (61%) and small-scale initiatives (30%) However, the distribution by number of projects shows a different picture: 41 projects on small-scale infrastructure, 18 on large infrastructure The « soft » activities not only in component 2 projects; also in all the infrastructure projects (notably capacity building). In funding of exclusively governance projects it is 5% but in nr of projects it is 15% (11 projects out of 74) Component 3: Of the 4 regional projects, 3 are in West Africa and managed by the West Africa Power Pool to deliver cross border electricity services Comp.1. b- Large infrastructure projects: 18 projects 61% EC funding (118,81€ M) 10

Instruments: Lessons learned EF I EF has increased awareness on access to energy both at the level of the EC, Delegations and ACP countries. ACP bodies received major contribution from the 1st EF, both in terms of number of projects and funds. Generation projects used mainly renewable energies alone or combined in hybrid systems Local and decentralised solutions have proved potential to increase access to energy CfP not considered the most suitable tool for large infrastructure projects Level of financing from private sector rather low

Instruments: The 2nd Energy Facility 2 Call for Proposals EC € 150M & MS; 2,5m per project Focus on Renewable Energy Rural and peri-urban areas Private sector involvement Other components € 40m Pooling Mechanism: leverage of loans, private sector investment € 3,5m EUEI Partnership Dialogue Facility (EUEI PDF): Governance http://ec.europa.eu/europeaid/where/acp/regional-cooperation/energy/second-energy-facility_en/index_en.htm

Instruments: The 2nd Energy Facility- Process The €100 M CfP was launched on 1/11/2009 and the deadline to submit the concept notes was the 01/02/2010 668 project proposals were received and submitted to the first administrative check 613 project proposals passed the administrative check and have been evaluated The 219 successful candidates (representing 320M€) have been invited to submit a detailed proposal 167 full proposals have been received and evaluation of these proposals is ongoing. End of October evaluation is expected to be finalised and successful candidates will be informed

Initial distribution of projects per energy type

Instruments: Infrastructure Trust Fund under the Infrastructure Partnership

Instruments: Global Energy Efficiency and Renewable Energy Fund - GEEREF Overall objective of GEEREF is contribute to the expansion of RE, efficiency and other clean energy technologies markets and services in developing countries and transition economies Catalyst function to attract commercial investors to become shareholders of the Fund and thereby multiply the volume of finance Implemented by EIB/European Investment Fund

European Union- Delegation to the Republic of Kenya Thank you Sanne Willems European Union- Delegation to the Republic of Kenya Sanne.willems@ec.europa.eu