Cogen for Africa

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					 Financing Cogeneration And Small-hydro
Projects In The Sugar And Tea Industry In
         East And Southern Africa

       REEEP co-financed activity
•   The REEEP funded initiative aims at addressing the financing barriers and risks
    that face agro-industries in selected African countries, in investing in Renewable
    Energy and Energy Efficiency Services (REEES)

•   Important option as agriculture and agro-industries account for close to 50% of
    sub-Saharan Africa’s GDP and over 70% of employment

•   Targeting 2 agro-industries (tea and cane sugar) and partnering with 2 parallel
    on-going UNEP/GEF projects; Greening the Tea industry in East Africa (small
    hydro) and Cogen for Africa (Bagasse cogeneration)

•   Could be replicated across wide range of agro-industries
     – Wood/timber, pulp and paper
     – Coffee, sisal, palm oil, tea, cocoa, tobacco, etc

•   Countries covered: Ethiopia, Mozambique, Tanzania, Uganda and Zambia
Key Objectives

 Analyse, understand and build capacity for addressing the challenges
  associated with lending to the agro-industries for sustainable energy

 Strengthen networking among financial institutions interested in
  financing these sectors

Key Activities

• Consultations with industry representatives
• Identify and analyze risks associated with financing of energy projects in
  the tea and sugar industries
• Develop mechanisms for overcoming financial barriers facing the sugar
  and tea sector in development of REEES units – standard PPA
• Training and capacity building for key stakeholders
Expected Outputs

• A set of financial and risk mitigation instruments accessible to the
  region’s financial community, and sugar and tea industries that will
  facilitate REEES investments

• Training workshops on financing for energy projects in the Tea and
  Sugar industry, risk assessment and mitigation for financial institutions

• A mailing list of domestic, regional and international financial institutions
  and investors interested in financing REEES in target countries

• Reports and short articles on financial barriers facing the tea and sugar
  industries and options for overcoming barriers

• A website with information on the cogen and small hydro financing
  opportunities and tools for minimizing financial risks
Training Workshop
 • To introduce participants to the two GEF REEEP-related
   ‘Greening the Tea Industry in East Africa’ and ‘Cogen for
   Africa’ initiatives.
 • To introduce participants to the          fundamentals     of
   renewables and power sector issues
 • To expose financial institutions representatives and sugar
   and tea industry representatives challenges, barriers and
   risks of financing REEES projects in the tea and sugar
 • To expose financiers to opportunities for financing REES in
   the agro-industries, as well as investors from the agro –
   industries in the region to financing opportunities available
   from the financial institutions
 • To provide a link and network between the financiers and
Structure and Format

• Presentations to cover:
   –   Small hydro
   –   Cogeneration
   –   Power sector reforms
   –   Risks and barriers to financing RE
   –   Financing options for RE
   –   Case examples of financing RE

• Interactive sessions and group discussions through
• Sharing of knowledge based on wide range of
         Discussion Groups
• Groups to discuss specific experiences on
  risks and challenges of financing RE
  – Discuss most common risks
  – Rank the 3 most common risks and provide
    justification for ranking
  – Propose mitigation strategies for the risks
                     Energy, Environment and Development Network for Africa