Developing Energy in Africa — What Does Sustainability Look Like?

Access to affordable energy has been the cornerstone of economic prosperity experienced by such countries as the United States, the United Kingdom and many others. These countries have also procured the direct results of their energy development through water contamination and diminished air quality as well as sickness. With hindsight being 20/20, how can these developed nations help the continent of Africa seek clean and sustainable energy without imparting a sense of colonialism? What does scalable energy development look like for Africa? How do you bring power and electricity to the masses? These questions and a thousand more have been posed of researchers, scientists, organizations and energy enthusiasts across the world as the continent’s population becomes increasingly vulnerable to the consequences of seeking and using basic indigenous sources of energy.

In its second year, the Global Commerce Forum’s Energy Africa Conference explored energy development across the diverse regions of Africa that are poised for variable energy markets while also accounting for the strengths, weaknesses and resources of each individual country. The conference hinged on creating a synergy between natural gas and renewables to assist the countries in Africa toward a cleaner, sustainable and more reliable energy future.

Even though the alignment of natural gas and renewables played out great on paper, it was evident from speakers across the spectrum that to power Africa, all aspects of energy development needed to be explored, especially as they related to the region and people that would be using that energy. “I think it is important to understand the needs of the people. Running long power lines to a village may not make sense or be economical where small lights and generators may be better,” said Likeleli Seitlheko, an energy policy studies and energy economics fellow at Rice University who grew up on the outskirts of Maseru, Lesotho.

The Kingdom of Lesotho, which is landlocked in the center of eastern South Africa, lies below the international poverty line where inhabitants earn on average $1.25 per day. In the urban centers, more expensive infrastructure development will take carefully formulated monetary structuring and planning, something that could take years and has the possibility of corruption or worse, the project going stale. The majority of these developments couldn’t leave the bigger cities either because of transmission costs, leaving rural dwellers without any feasible options.

“There is a real trend in rural to urban migration. Our youth are leaving our villages for the cities where there is more opportunity and more access to power,” said retired colonel Joseph Simbakalia, regional commissioner in Mtwara, Tanzania. “It is important to develop real energy options for our rural communities.” And problems like this are plentiful. Africa’s problems are primarily with access. With little to no infrastructure in place over vast geographic regions, access to power transmission, diesel and natural gas isn’t only unfeasible—it isn’t economical either. Even in the large cities, people can go without power for hours or days, and when it is on, it is intermittent and unreliable.

The most recent survey taken by the United States Geological Survey, released in April 2012, has shown vast undiscovered reserves of natural gas off the east coast of Africa. The most recent discoveries by Anadarko amounted in roughly 30 trillion cubic feet of natural gas and some of the largest discoveries in Africa, according to IHS Energy. However, because of demand, economics and infrastructure challenges, most of this will be exported to Asian markets. The midstream infrastructure currently in place is dismal even as it stands, and countries that use it have it allocated for various types of petroleum. It is also in these areas, close to the large cities, that large-capacity wind and solar can be accessed and applied to a current transmission system.

Therefore, it is only pragmatic that in areas where there is no major transmission or midstream infrastructure and where a majority of the people are, coming up with unique and sustainable solutions is crucial to the continent’s successful energy creation. With a diverse reach of study and experience, panelists of the conference explored different opportunities to maximize proper impact for various regions. In many areas solar and wind provide real options for power, whereas in other dense, forested areas, biofuel generators and battery recharging are more feasible.

It is important to understand what these challenges are and to explore what designs and business opportunities are working and what ones are not. The Energy Africa conference brought together some of the most engaged and thoughtful individuals in the energy sector working on projects for Africa and other emerging economies. They brought product insight, economic foresight, but more importantly they brought stories about the communities of Africa: stories of people brought together through advanced cellular communication, mothers and their children who are forever changed by cook stoves, and a story of a single light bulb where people from a village could come to study and be together. They told of an Africa and of its communities slowly changing through access to energy.

Nokero Solar Light Bulbs -

Light seems to be something that we all take for granted. During the day, it is light out and once it gets dark, we switch on our lights and comfortably continue our lives within our homes and workplaces. But what if we did not have energy, and did not have the ability to create light amidst darkness? There are approximately 1.3 billion people around the world without access to basic electricity. Some of these people live in darkness after the sunsets, and others rely on kerosene to provide minimal light.

Among the world’s population living without light, 95 percent live in Asia and Sub-Saharan Africa. Typically, people in these regions spend up to 25 percent of their daily income on fuels to light their homes. Kerosene fuels are a major source of house fires every year and they cause serious health issues due to internal pollution. Half of the world’s deaths among children under five are a result of acute lower respiratory infections (ALRI) and 1 million people die each year from chronic obstructive respiratory disease (COPD). Nokero International, Ltd. was founded on the mission to have “No Kerosene” around the world.

The privately held company based out of Denver, Colorado was founded in 2010 to provide a safe, affordable, clean and efficient alternative to kerosene lamps—solar light bulbs. Today Nokero produces both solar light bulbs and solar phone chargers, alleviating health risks and decreasing kerosene spending across the developing world. Solar products allow families to extend their days into night and comfortably continue their lives at home and at work. With more light, we can accomplish more; therefore, with safer and more affordable light, people around the world can focus on their education and businesses instead of worrying about their safety and health.

Nokero’s solar light bulbs and phone chargers are not only distributed in Africa and Asia, but they are popular in the United States. They provide a green alternative to expensive outdoor lighting, and are small and portable for backpackers and campers. The most recent products include the N180-Start solar light bulb and the N222 solar light/phone charger combination. The N180 is currently the most affordable solar light bulb on the market at just $6 retail value. The N222 is a technologically advanced device that provides both high luminosity light as well as basic phone charging capabilities while on or off the electronic grid.

As a testament to Nokero’s mission to spread light around the world, they recently launched the Solar Relief Campaign to bring N200 solar light bulbs, their most popular product, to people affected by Typhoon Haiyan in the Philippines. Through Nokero’s website, customers have three options to help alleviate darkness in the Philippines: Buy an N222 and Nokero donates an N200, buy multiple N200s at a discounted price, or buy an entire case of 48 bulbs to send to a community in need. For more information on Nokero’s relief efforts, partnered with both Habitat for Humanity and One Heart for Hope Foundation, visit www.nokero.com/haiyan.

Improving on Energy Efficiencies – The Jordan Institute

When it comes to sustainability, most buildings in the U.S. over-consume resources. At The Jordan Institute, a New Hampshire-based non-profit organization, the primary mission is reducing the consumption of energy in commercial buildings. It sees that by addressing energy usage in buildings, building owners soon realize a cascade of other benefits. The Institute works to make the buildings across New England energy efficient, environmentally friendly and aesthetically pleasing for the surrounding community. Historic, multi-family, commercial, industrial, warehouse, mixed use, office buildings, dormitories—it doesn’t matter what the building is designed for—The Jordan Institute and its new for-profit subsidiary, Resilient Buildings Group, Inc., have the expertise to reduce their energy consumption. This work in turn leads to myriad other benefits including improved operations and maintenance costs, durability, comfort, occupancy rates, indoor air quality and aesthetics.

The Back Story

The not-for-profit Jordan Institute was founded in 1995 with an initial gift from Doyle E. and Lenore M. Jordan. Its initial objective was to conduct research and engage in policy initiatives that connect environment, public health and the economy. Since its early days the organization has grown to include consulting services, energy audits, building modifications and energy savings verification.

As the Institute’s successes multiplied, and demand for its building retrofitting services increased, it came to recognize a pressing need for a sister organization capable of providing in-the-field project management services. The company introduced the for-profit Resilience Buildings Group, Inc. in July 2013.

Making Buildings Energy Efficient

New England buildings use local materials, clay bricks for construction and oil-based boilers with steam radiators for heating. From the founding of the country through the middle of the 20th century that model was practical. However, today those buildings are energy sieves, losing heating and cooling faster than the HVAC units can operate. It is highly impractical to tear the structures down, especially so when many of them are treasured historical jewels. The work of the Jordan Institute leads to market-driven improvements in individual buildings, spurring greater community improvements.

How the Process Works

After a building owner contacts Jordan Institute for a preliminary audit, the Institute sends a team out to conduct a complete energy audit that includes building structure, windows, HVAC, lighting and air exchange. They develop a short report with recommendations on where the owner can maximize investments in improvements and what the impacts of the improvements will be in terms of reducing heating, cooling, maintenance, lighting and electric costs. By making the changes a building operator can reduce and stabilize the building’s operations costs.

An Historic Building Example:

Take for example the historic district of Claremont, New Hampshire. With stimulus funding, Gary Trottier borrowed funds at a low interest rate and combined other grants and his own savings to make a $1.2 million upgrade to this 1890s mixed-use, three-story, 32,365 square-foot building, the Union Block. With seven retail spaces on the ground floor and 34 low-income apartments upstairs, the building is very attractive from the outside. However, its energy use was abysmal and the building was very uncomfortable. Trottier only leased one retail space, and rented apartments on a week-to-week basis; the building was never fully occupied. One thermostat “controlled” the heat for the entire building, meaning that the retail spaces were bitter cold in the winter, while occupants on the third floor had their windows open, wearing tee-shirts even in January.

After an energy audit and lengthy discussions with the local and State historic preservation leaders, building operators developed a plan to improve the building. After addressing strategic air sealing in the basement, attic, and other glaring voids, 12 inches of cellulose now insulates the attic. Renovators enclosed a large stairwell to reduce the “stack effect” where warm air rises up and out, and replaced the antiquated oil-fired steam heating distribution system with a high-efficiency, bulk-stored, wood-pellet hot-water system. A solar hot water system provides a portion of domestic hot water to the residential units. Each unit now has a thermostat to control temperatures in individual units and each is properly ventilated.

Net results:

- Energy costs reduced: 30 percent - BTU savings: 53 percent - Occupancy: nearly 100 percent with 6-month and 1-year leases

Community benefit: Preservation of a beautiful historic building, comfort and dignity for the residents and tenants, and a business model which allows the building owner to remain solvent. Across the street, friend and former college roommate, Andy Dauphin exclaimed “I want what he got!” And so began the quest to improve the Moody Building, another beautiful brick historic building. These projects led to other creative ideas, including the launch of a small district-heating system using waste heat from local industrial sources like the paper mill. And without much ado, an urban revitalization was underway.

The Money Side of Building Efficiencies

The Jordan team has worked on hundreds of buildings in New Hampshire and across New England—energy audits, energy monitoring and verification, building commissioning, LEED consulting and certification, and owner advocacy—and by launching subsidiary Resilient Buildings Group, it can now scale-up the impact by adding energy-centric construction management services to its offerings.

Since Jordan’s start, public policy initiatives have been at the core of its work. Projects in the field have informed the Institute’s work so that it can address legislative and regulatory barriers to market solutions. With the bulk of projects now being handled by Resilient Buildings Group, Jordan can return its attention to public policy and developing programs to liberate the market into making good decisions without public dollars.

Current legislative efforts are centering on solutions to finance these projects. New Hampshire is notorious for its state motto, Live Free or Die, and for investing few public funds into energy efficiency and renewable energy projects. When public funds become available they must be leveraged to the hilt.

Says Laura Richardson, Jordan’s new executive director, “We think we can make some legislative and policy tweaks which will allow the private market to finance these projects over longer terms so that they are more comprehensive. Ultimately, that is the biggest challenge we now face —financing. With stimulus funds, we built the know-how in the state and there is interest to make these improvements. But public funds will never be enough to cover these costs; the private market needs to help us solve this problem. Most of New Hampshire’s buildings are heated with oil, and our electricity rates are among the highest in the nation. Finding solutions to reduce energy use in buildings is critical for us.”

The Bottom Line

Energy-efficient buildings are more value than simple operational cost reductions. An efficient building reduces energy demands, enabling utilities to support more structures with the existing power infrastructure. Efficient buildings improve occupancy comfort levels increasing lease retention. And the ability to improve historic buildings adds value to the surrounding community by retaining its heritage.

Spreading Electricity in the African Republic of Benin

BACKGROUND U.S. Secretary of State John Kerry recently called the Republic of Benin “a democratic leader in West Africa,” noting that its friendship with the United States is “based on common interests and values…to promote good governance and economic development, regional stability, and the empowerment of vulnerable populations.” Sitting between Nigeria and Togo, Benin stretches over 400 miles from north to south, with a population of almost 10 million. It is a stable democracy and a member of the Economic Community of West African States (ECOWAS).

As in many developing countries in Africa, the main source of energy is biomass, firewood and charcoal, followed by petroleum products and electricity. While the October 2013 discovery of oil off the coast of Benin may help to ease fluctuations in fossil fuel prices there, the country has huge and largely untapped energy potential which presents excellent investment opportunities that could be not only lucrative, but also improve the socioeconomic development and well-being of the population.

The Beninese populace, until very recently, has been subject to almost daily mandatory power outages due to domestic energy shortages, reliance on imported electricity for 85 percent of national needs, and the lack of a nationwide interconnected power infrastructure. Benin’s democratically elected President, Dr. Thomas Boni Yayi, a former head of the West African Development Bank (WADB) and the current president of the ECOWAS, the monetary zone that uses the CFA Franc currency, has highly prioritized the reduction of foreign power dependence and the increased supply of affordable quality energy in both urban and rural areas. His goal after his election in 2005, and particularly since his re-election in 2010, is to ensure that everyone in Benin has access to electric power, with as much as possible being domestically generated. President Yayi’s strategy has been to leverage private investment, multilateral lending institution financing, government funding, and public-private partnerships to greatly increase production capacity and delivery throughout the country.

POWER PRODUCTION

The Government of Benin has embarked on many large-scale infrastructure projects in the power sector over the past several years, utilizing a combination of government and private funding and multilateral loans and grants to finance new or updated infrastructure in order to greatly increase Benin’s domestic power production. Its success thus far has been remarkable, and can be a model to other African countries facing energy and capital shortages.

Private investment has financed the construction of a 5 MW solar plant in the northern city of Kandi, and in October 2013, President Yayi signed a memorandum of understanding with the Dangote Group for it to invest about $300 million in a 200 MW coal-fired power plant in Benin. In signing the MOU, President Yayi emphasized the importance of private investment in the Beninese power sector, and Mr. Dangote, the richest man in Africa, noted the excellent investment opportunities in Benin.

DELIVERY OF AND ACCESS TO POWER

While the production of electricity is crucial, delivering that power to over 50 percent of the population located in outlying rural areas is necessary for economic growth and the reduction of poverty. Thus, Benin is attempting to ensure increased and sustainable access to power by extending the electrical grid to places that were previously unreachable. One example currently underway is a project to bring reliable power to 66 rural localities by extending the power grid. Of those localities, 21 have already been reached. There are two other projects to connect 105 additional villages to the grid; collectively they are almost 70 percent completed. This ongoing work to extend distribution grids has been funded by the Government with the assistance of WADB and ECOWAS.

Additional projects to deliver power throughout the country include the construction in Benin’s largest city, Cotonou, of underground lines to transport energy; the extension of distribution networks in outlying areas around Parakou, the third largest city in the country; the interconnection of 10 cities that lacked permanent electricity with two major northern cities, Nikki and Kandi; and the rehabilitation of blackout and protection equipment in substation plants throughout the country.

To ensure supply in case of shortages in domestic production, a project jointly financed by the African Development Bank, the West African Development Bank (WADB), and ECOWAS, connected the power grids of Benin and Nigeria in 2007, and in 2010, a $44 million interconnection of Benin with Togo was completed.

Private initiatives to exploit renewable energies are being implemented in Benin by companies including Helio International, Euro Negoce Benin, Germany’s Telefunken, Risun Solar France, Soleil Energy, Citelum IMEX International, Interco Services and AF Power, all of whom have signed partnership agreements with the Government.

OTHER ENERGY INVESTMENT OPPORTUNITIES

In addition to investments in the electrical energy sector in Benin, there is huge potential for other opportunities in energy production such as hydroelectric (Benin has major rivers and an Atlantic coastline), solar, wind, biofuel, and natural gas. The discovery of 87 million barrels of oil off Benin’s coast in October 2013, in addition to the 110 million barrels already found, provides new business development potential in the immediate future. According to South Atlantic Petroleum of Nigeria, which found the new oil field, active production of 7500 barrels per day will start in 2014, increasing to 20,000 barrels per day in 2015. Further exploration for oil continues on Benin’s shoreline by SAPETRO and other private companies. Benin plans to use its share of the oil profits to continue infrastructure development, and there is no doubt that public-private partnerships and private investment will play a large role in this development.

To encourage foreign investment, Benin has been steadily improving business conditions. In 2011, President Yayi spearheaded the passage of strong anti-corruption legislation, and a single-window business creation office was established in early 2012, greatly decreasing the time required to start a company. Reforms are underway in the investment, competition, property and customs areas, and the port of Cotonou is being developed to handle greatly increased traffic. Incentives and other privileges are available to companies that invest locally and create jobs. GDP is forecast to grow 4.5 percent in 2013, while inflation is forecast at 2.8 percent. In July 2012, the International Monetary Fund, assessing Benin’s macroeconomic situation, hailed the Government’s sound budget management. The civil unrest existing in many other African countries is simply not present in Benin, even while freedom of the press, religion, speech and assembly are virtually unfettered.

Benin will continue to encourage and nurture public-private partnerships as a major tool in its efforts to improve conditions for its people, provide investment opportunities from abroad, and remain a stable foothold for democracy in Africa.