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Local Manufacturers, Financiers & Policy Status for Cogeneration Promotion In SADC Region,

By

Josephat Mapingire


EXECUTIVE SUMMARY

The aim of the study is to identify prospects for local manufacture of cogeneration systems and components particularly in the Southern African Development Community (SADC) region as well as establish reasons why financial institutions have not been keen in funding cogeneration activities.

The report is sub-divided into five chapters. The first chapter provides an overview on the study, objectives and challenges faced in conducting the study. The chapter also analyses some of the lessons the SADC region can learn from the success of cogen development in Mauritius.

The second chapter provides a brief overview of the local manufacturing sector in the SADC region as well as examines, in some detail, key engineering companies in the region that are involved in the cogen spare parts manufacture. This chapter ends with an analysis of the key cogen spare parts that can be manufactured in the region.

The third chapter focuses on the financing institutions/schemes in the SADC region. Funding of development projects in the region is dominated by public/government finance, Official Development Assistance (ODA and domestic savings/funding mechanisms. This chapter provides a brief review on the potential funding sources for cogeneration projects as well as the challenges financial institutions face in funding cogeneration projects in the region.

The fourth chapter discusses policy options that can promote local manufacture of cogen spare parts in the SADC region within the context of SADC's Energy Protocol. In its initial overview of the energy policy in SADC, it is noted in this chapter that the SADC region has developed an Energy Protocol, which among other tasks, sets guidelines for co-operation between member states and should be implemented within the context of the principles of a regional cooperation policy and strategy. A Technical Unit was established with the mandate to propose and when necessary update the energy policy for approval by the Committee of Ministers.

The study ends with a chapter summarizing key findings and recommendations on the way forward. The study restates that cogeneration resource potential in SADC is significantly high and it is necessary for the region to learn from the experience of Mauritius where cogeneration has contributed immensely to meeting its power requirements.

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