Overview of renewable energy and energy efficiency - unido

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 1.38SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICAWhy should Africa promoteEnergy Efficiency?• The rate of increasing energy demand outpaces the rateof increases in supply• “Wake up call” from energy supply shortfalls• Gradual withdrawal of donors from large scale energyinvestments• Delayed investment from “shaving off” peak loadsModule 1SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICAWhy should Africa promoteEnergy Efficiency? (2)• Reduction in the cost of energy supply– Tunisia: Switch to SWH to reduce electricity cost by 20%• Job creation potential• Can attract CDM-related financing• Industry: Reduction in the cost of productionModule 1
MODULE 1: OVERVIEW OF RENEWABLE ENERGY AND ENERGY EFFICIENCYpage 1.39SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICAEnergy Cost as % of Cost of Production40%30%20%10%0%Sri Lanka (low - 1998) Sri Lanka (High - 1998)Eastern Africa (low - 2005) Eastern Africa (high - 2005)Module 1SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICACONCLUSIONS• Rationale for promoting renewables and energy efficiencynot well argued:– Climate change and environmental concerns not applicable in Africa• Solid rationale for promoting renewables and energyefficiency:– Enhanced energy security: reduce exposure to high oil import costs– Availability of plentiful and cost-competitive renewables (hydro &geothermal)– Ability to provide cost-competitive energy services to remote ruralsettlements– Significant job and enterprise creation potentialModule 1
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