Cogen for Africa - an innovative and first-of-its-kind regional initiative - was recently approved by the Global Environment Facility (GEF) Council for funding as a full-size project. It will be co-implemented by UNEP & the African Development Bank (AfDB) and executed by the Nairobi-based AFREPREN/FWD - the Energy, Environment and Development Network for Africa - which incorporates the regional programmes of the African Energy Policy Research Network (AFREPREN) and the Foundation for Woodstove Dissemination (FWD).

The six-year initiative seeks to significantly scale up the use of efficient cogeneration options in seven eastern and southern African countries, namely: Kenya, Uganda, Tanzania, Ethiopia, Sudan, Malawi and Swaziland.

While cogeneration has for the last 40 years been a reality in a number of agro-industries in Africa, most of the cogeneration plants are inefficient - operating with low-pressure boilers generating low volumes of power - and have very limited sales to the grid. The ‘Cogen for Africa' initiative is designed to promote wider use of efficient cogeneration options and stimulate well over US$300 million investment in the region's cogeneration industry in the medium to long term. It will also provide policy support to expand sales to the national grids of the seven participating countries.

The 6-year project has now been approved by the Global Environmental Facility (GEF) Council and preparations for the official launch in late 2007 are underway.

STRUCTURE OF THE INITIATIVE

The initiative will be co-ordinated by a regional ‘Cogen Centre' hosted by AFREPREN/FWD and staffed by local, leading regional and international cogeneration experts. The Cogen Centre is expected to be the centre of excellence for cogeneration in the region. At the national level, national cogen offices staffed by experienced national cogen experts are to be established in each of the participating countries, to co-ordinate national-level activities as outlined in the strategic work programme of the regional Cogen Centre.

PROJECT ACTIVITIES

Through the regional Cogen Centre and the national cogen offices, the initiative plans to provide support to cogen business development and investment promotion which will include appropriately targeted capacity-building, technology transfer and financial incentives. Key activities of the initiative are designed to lead to the following outcomes:

• developing and enhancing the capacity of project developers, technical service providers and local manufacturers of modern and efficient cogeneration systems

• making financing for cogeneration projects available and accessing it in terms and conditions that are favourable for investments

• demonstrating the commercial, technical, economic and environmental benefits of modern and efficient cogeneration systems in a number of new cogeneration plants and enhancing the confidence in the cogeneration market

• promoting more favourable policies and institutional arrangements that support cogeneration.

EXPECTED OUTPUTS

During the initial six-year phase, Cogen for Africa is expected to result in an additional 40 MW of modern and efficient cogeneration capacity as full-scale promotion projects (FSPPs). The installation of new cogeneration systems in the region requires a long lead time as it is a huge investment for the sugar factories and quite some time is needed for a supportive policy and regulatory environment to take shape.

By the end of the six years, Cogen for Africa is expected to have set the stage for accelerated cogen investments through the promotion projects. These projects will be used as showcases to convince other potential project developers of the technical reliability, economic viability and environmental soundness of more efficient cogeneration systems.

Another 20 MW of cogen projects will be directly supported through the provision of advice, services and training. These projects are expected to be under construction or at the advanced stage of project development at the end of the six-year project period. Beyond the initial six-year phase, Cogen for Africa is expected to stimulate a total installation of an additional 200 MW of cogeneration capacity in the medium to long term.

"Cogen for Africa" PDF-B Project

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