Leveraging the Power of Energy to Light Up Africa

STORY HIGHLIGHTS leveraging-the-power-of-energy-to-light-up-africa-780x439

  • West Africa has made great strides in electrification, but there is still a long way to go to connect the entire population and provide everyone with reliable and affordable energy.
  • While several countries in the subregion have significant renewable energy sources, they lack the conditions to develop them.
  • To accelerate Africa’s energy transformation, the World Bank is supporting the West Africa Power Pool (WAPP) through financing for interconnection infrastructure and reforms aimed at developing a regional electricity market.

ABOMEY-CALAVI, July 22, 2021—In a corn mill in Zoundja, a district in Abomey-Calavi, a northern suburb of Cotonou, Benin, about twenty pots and pans compete for space amidst a deafening noise that can be heard all over the neighborhood. At the control of his machine, Antoine K has the privilege of serving the households of the district by grinding their corn into flour. The only problem is that not everyone can afford his services in this urbanized area where rich and poor live side by side. “I grind a kilo of corn for CFAF 75 (1.5 cents), which is too expensive for some women, but I have no choice if I want to be able to pay the electricity bill and keep the mill running,” says the miller.

 

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At Antoine K.’s corn mill, higher electricity rates mean higher prices for services, which is a problem for poor households. Zoundja, Abomey-Calavi, Benin. Zoundja, Abomey-Calavi, Benin. © Gnona Afangbedji/World Bank

 

In 25 years of service, Antoine, now in his 50s, has seen a lot of improvement in access to electricity. Neighborhoods have been progressively electrified and today power outages are less and less frequent.

But he has also seen the cost of services rise as electricity rates in Benin have increased. The last bill he received from the Beninese power company was for more than CFAF 100,000 (about $180), including taxes—too much for his CFAF 200,000 ($365) monthly income. The increase in electricity rates has a domino effect on the cost of his services.

In Benin, as is the case everywhere in West and Central Africa, the mill occupies a central place in the life of households that consume corn or other grain-based foods on a daily basis. But the price of electricity represents an exorbitant cost for these small businesses, whose clientele is made up essentially of poor households.

Still a long way to go despite significant progress

With an electrification rate of 53% in 2019 against only 34% in 2000, West Africa has made significant progress, but challenges remain, and nearly half the population still lacks electricity.

The story of the electrification of Rosalie Zongo’s village in Burkina Faso illustrates this progress and also shows the need to address persistent challenges, develop the potential of diverse energy resources, and strengthen interconnections.

 

 
 
 
 

Toward an efficient regional power market in West Africa

A regional solution that goes beyond the efforts made at the national level is imperative to ensure a sustainable energy future in Africa. “Our region has immense electrical energy resources, which are capable of meeting demand for many years. But they are concentrated in a few countries that sometimes lack the means to develop them. Through interconnection, we are making power available to countries,” says Apollinaire Siengui Ki, Secretary General of the West Africa Power Pool (WAPP). “Connectivity makes it possible to supply the amount of energy needed at a lower cost.”

Created in 1999, WAPP brings together 14 countries. Its mission is to promote and develop infrastructure for the production and transmission of electrical energy and to ensure the coordination of power exchanges between the member states of the Economic Community of West African States (ECOWAS).

With the support of its partners, including the World Bank, WAPP has mobilized approximately $5 billion to complete nine cross border interconnections and aims to interconnect all 14 countries by 2024. This has improved access in several countries of the region, some of which, such as Côte d’Ivoire, are now able to sell excess electricity to other countries that need it.

Trust: an essential component of any successful commercial venture

For such a regional market to work, significant reforms are required at the country level to enable market stakeholders to effectively and efficiently play their roles as reliable buyers and reliable suppliers of electricity.

To help Burkina Faso, Côte d’Ivoire, Guinea, Liberia, Mali, and Sierra Leone implement the sectoral reforms needed to successfully create this regional electricity market, the World Bank provided $300 million in financing approved in July 2020. The goal: to support the implementation of the December 2018 ECOWAS directive on securing cross border trade in electricity, which is based on three main pillars: increasing confidence in the application of electricity trade agreements by supporting mechanisms to improve  payments and the supply of electricity; implementing least-cost supply decisions for electricity that take into account regional options and promote competition; and promoting transparency by addressing the issue of the solvency of national electricity companies and keeping the market informed of key investment decisions that may impact supply and demand.   

“The World Bank has consistently prioritized the development of interconnections and regional electricity trade in order to reduce the costs of electricity and therefore to limit the sector’s fiscal burden and to lower costs for businesses and consumers,” says Ousmane Diagana, World Bank Vice President for West and Central Africa. “Pooling the region’s diverse green resources, such as hydropower in Guinea and Liberia and solar energy in the Sahel, will help build a more resilient system that will be better able to adapt in the long run to the various shocks that the region faces.”

 

 

Banking on green energy and powering the digital revolution

By 2030, regional electricity consumption is expected to increase by 100%. Meeting this exponential growth in demand by expanding the existing electricity mix would increase carbon emissions by an estimated 102%. But closer regional cooperation will make it possible to adopt cleaner technologies and reduce the carbon intensity in power generation by 32%. Regional trade will thus enable the development of renewable energy projects that are too large to be accommodated by a single country’s power system. Also noteworthy is the approval of $465 million of new financing in June 2021, which will help increase renewable energy integration and improve the operation of the regional power grid through battery energy storage—an innovative initiative that will boost investment in renewable energy.

“We want to move out of the hydrocarbon era and into green energy,” says Gesler Murray, Liberia’s Minister of Mines and Energy. “Liberia is in a region that is rich in solar energy, and we also have many rivers on which various types of hydroelectric systems could be installed.”

The COVID-19 pandemic has prompted rapid growth in the use of digital platforms and applications in all sectors and at all levels. But digital transformation cannot be achieved in the region without better access to electricity.

The time has come to optimize the management of energy resources in West Africa in order to improve the daily lives of the region’s inhabitants and enhance the productivity of its economies. From Antoine’s mill in Benin, to Rosalie’s family in Burkina Faso, to the major industries of the subregion, Africa is being transformed by the driving power of energy.

 

 

 
 

eC2: Vietnam: Technical Support for Energy Sector

Deadline:  03-May-2021 at 11:59:59 PM (Eastern Time – Washington D.C.)

The assignment objective is to provide technical capacity support to the World Bank providing technical specifications for state-of-the-art SCADA system to be implemented in Vietnam, battery storage and HVDC lines to inform the World Bank due diligence in a new investment in Vietnam.

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We can end routine gas flaring by 2030. Here’s how

We are now less than a decade away from the goal of Zero Routine Flaring by 2030, an nigerian-flaring-updated-minambition that sits at the nexus of climate change mitigation and energy policy. Developed by the World Bank and launched in 2015 by the UN, World Bank and several governments, along with oil companies and development institutions, the Zero Routine Flaring initiative is designed to end an oil industry practice that has existed since oil production first began more than 150 years ago.

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eC2: PROBLUE Project Coordinator for Cabo Verde

Deadline: 08-Mar-2021 at 11:59:59 PM (Eastern Time – Washington D.C.) blue_recovery_world_bank_environment

Task 1: Support the WBG team on the development and coordination of the PROBLUE project. The consultant should provide on-the-ground support, project coordination, and logistics for the WB team. This should cover elements related but not limited to organization of meetings, outreach, communication with stakeholders, as well as providing with local knowledge. Specifically, the consultant will: Serve as the WBG main focal point vis-à-vis the Ministry the Tourism and Transport and the private sector.
Act as a liaison to help set up meetings and ensure smooth conduct of meetings (
Ensure flow of information and documents between counterparts.

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eC2: Impact of Clean Energy Transition on Job Creation Case Studies

Deadline:   02-Feb-2021 at 11:59:59 PM (Eastern Time – Washington D.C.) greencompetitiveness

The Energy Sector Management Assistance Program (ESMAP) at the World Bank, is investigating how the energy transition the transition away from fossil fuels, encompassing the adoption of new technologies and models of service delivery in the sector can contribute to the generation of jobs and support economic activity while advancing the global decarbonization agenda. For a specified set of World Bank energy sector projects, the Consultant will prepare detailed case studies. As part of each case study, the Consultant will trace the set of activities undertaken as part of the project; develop a methodology for estimating jobs created by and as a result of the project, articulating a results chain in the process; and, applying the methodology, estimate the employment impact of the project (jobs numbers and various dimensions of job quality, earnings, etc.). Key findings from the case studies will be summarized in a note.
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Lighting Up Africa: Bringing Renewable, Off-Grid Energy to Communities

ACCRA, August 13, 2020 – Adwoa Adezawa lives on the Cape Coast of Ghana near the Elmina fishing port on the Atlantic coast. Her husband is a fisherman, and each day he must travel farther to find fish. However, the most difficult part of their life as a family, she said, has been the complete absence of electricity. Until recently, her entire community lived without power.

With a strong push for solar energy from the World Bank and the International Finance Corporation, life for thousands of Ghanaians is beginning to change. The $220 million Ghana Energy and Development Access Project (GEDAP) is among the first Bank-financed programs to focus on inclusive access to renewable energy through off-grid solar services and products.

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Global Gas Flaring Jumps to Levels Last Seen in 2009

WASHINGTON, July 21, 2020 — Estimates from satellite data show global gas flaring gasincreased to levels not seen in more than a decade, to 150 billion cubic meters (bcm), equivalent to the total annual gas consumption of Sub-Saharan Africa.

The 3% rise, from 145 billion cubic meters (bcm) in 2018 to 150 bcm in 2019, was mainly due to increases in three countries: the United States (up by 23%), Venezuela (up by 16%), and Russia (up by 9%). Gas flaring in fragile or conflict-affected countries increased from 2018 to 2019: in Syria by 35% and in Venezuela by 16%, despite oil production flattening in Syria and declining by 40% in Venezuela.

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eC2: Offshore Wind Financing for Emerging Markets

Deadline: 03-Aug-2020 at 11:59:59 PM (Eastern Time – Washington D.C.)

Wind turbine farm

The objective of this assignment is to assist IFC staff (primarily investment, credit and management) in understanding: 1) differences between offshore wind and onshore solar/wind/hydro projects in terms of risks, challenges, contractual structures, studies and financing structures, and; 2) potential project financing structures for offshore wind in emerging markets and how IFC can best mitigate any associated risks. Note that the analysis of current projects will focus on fixed foundation rather than floating or intertidal/nearshore projects. The analysis of future projects will consider floating, although to a lesser extent than fixed.

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Climate Finance Drives Action on the Ground

STORY HIGHLIGHTSScaling-Solar-Zambia

  • Climate finance, along with falling renewable energy prices, is enabling developing countries to expand and diversify their energy supply.
  • A new report identifies eight ways policymakers can drive clean, resilient growth, including through innovation and climate intelligence products.
  • An effort to create a new market for rooftop solar in India has mobilized $4.4 billion in commercial financing.

 

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eC2: Key Factors for Successful Development of Offshore Wind in Emerging Markets

Deadline: 26-Mar-2020 at 11:59:59 PM (Eastern Time – Washington D.C.)

index

The scope of the assignment shall cover the major topics that need to be considered by policymakers and regulators when establishing a new market for offshore wind development. These shall include, but not be limited to, the following points:

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