THE ROADMAP

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Power Africa has several roles to play in the development of regional power trade. Our development partners are key financiers of major projects, making direct investments and facilitating greater private investment through risk mitigation products. We are also helping to develop sustainable financial models to attract private investment. Transmission projects present a challenge for financing because the risks and revenue streams may come from multiple utilities and markets. Transmission financing models on the continent have typically been through debt financing using the utility’s balance sheet, concessional-type debt backed by some form of government support, direct on-lending from the government, or grant financing. In the absence of a clear revenue model, it is difficult to attract private sector investment. We have helped utilities design transmission pricing models (including wheeling tariffs) to ensure adequate revenue flows to support ongoing maintenance and operations. These pricing models attract private investment and reduce the burden on the national budget. Transmission projects are inherently complex, both physically (as they cover hundreds of kilometers) and politically (as they require inputs and coordinated operations and management by many stakeholders). Power Africa helps to convene donor partners to coordinate assistance and to align stakeholders around a common action plan. These activities play an integral role in facilitating cross-border trade. Finally, we provide capacity building support to power pools, particularly in West and East Africa, by seconding full-time staff and providing regular technical assistance on regional power pool development and management. This support ensures knowledge sharing (through exchanges), alignment of essential planning, and improved capabilities in power pools. It also establishes regional centers of excellence and helps countries jointly approach financiers to fund major projects (see features on power pools, and on Norway and Sida on page 77). Power Pools are an example of the opportunity and imperative of a partnership approach toward investment at a regional level. AfDB, DfID, Norway, Sida, and the U.S. Government are working in partnership with the Eastern Africa Power Pool (EAPP) and other regional institutions to evolve bilateral efforts to a cooperative approach to support regional power trade. The World Bank is co-financing a 667 km high-voltage power line from Kenya through Tanzania to Zambia, thereby linking the EAPP to the SAPP. The AfDB plays a coordinating role, co-financing a transmission line between Burundi and the Democratic Republic of Congo. In total, more than 20 transmission projects are in planning or underway in East Africa. Collectively, Power Africa partners have pushed for prioritization 74 — PILLAR 3
COMPLETE REGIONAL INTEGRATION THROUGH POWER POOLS and alignment that supports the success and sustainability of these investments, in partnership with key African institutions. The West African Power Pool (WAPP) is currently working on five major interconnectors that will facilitate regional integration. Power Africa supports the WAPP through full-time seconded staff working within the organization providing direct technical assistance and capacity building. Power Africa, with support from the Africa Finance Corporation, has also provided a public-private partnership advisor offering transaction support to two regional power projects (450 MW Maria Gleta in Benin and 450 MW Domunli in Ghana). Power Africa also provides capacity building through USAID to support the national utilities on regional power pool management and establish regional centers of excellence, while facilitating exchange programs with power pools outside West Africa. Over the next three years, high-voltage transmission lines will be completed among Ethiopia, Kenya, Uganda, Rwanda, and Tanzania, facilitating the trade of up to 2,000 MW. In partnership with the EAPP, Power Africa has helped form a working group of representatives from Ethiopia, Kenya, and Tanzania’s (EKT) utilities and regulators to complete the necessary agreements for cross-border trade. The processes developed by the working group will help pave the way for future power agreements among other countries in the region. As surplus power becomes available in Ethiopia, Kenya, and Tanzania, power trade will improve the supply, reliability, and affordability of power in the East Africa region. PILLAR 3 — 75
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A U.S. GOVERNMENT-LED PARTNERSHIP T
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TABLE OF CONTENTS 7 INTRODUCTION 8
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The partnerships we have developed
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THE ROAD AHEAD TOOLS & RESOURCES Tr
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INTRODUCTION In June 2013, Presiden
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EXHIBIT 2 ELECTRICITY ACCESS IN SUB
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Similarly, Power Africa’s Regiona
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WORKING WITH THE PRIVATE SECTOR Our
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EXHIBIT 3 PARTNER CONTRIBUTIONS TO
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EXHIBIT 4 ROADMAP TO 30,000 MW MW P
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PILLAR 3: UNLOCKING ENERGY SECTOR P
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usinesses that access electricity t
Page 25 and 26: PILLAR 1: GETTING TO 30,000 MW This
Page 27 and 28: EXHIBIT 7 TRACKED GENERATION PROJEC
Page 29 and 30: EXHIBIT 8 POWER AFRICA’S GENERATI
Page 31 and 32: RISK ADJUSTING THE PROJECTS WE TRAC
Page 33 and 34: can increase efficiency and improve
Page 35 and 36: The Garden City solar project site
Page 37 and 38: 2. ADVANCE NEW OPPORTUNITIES FOR D
Page 39 and 40: In East and Southern Africa, Power
Page 41 and 42: Nighttime market lit by solar power
Page 43 and 44: Power Africa is already supporting
Page 45 and 46: SUCCESSFUL GEOTHERMAL DEVELOPMENT R
Page 47 and 48: NIGERIA Supporting new feasibility
Page 49 and 50: PILLAR 2: GETTING TO 60 MILLION CON
Page 51 and 52: President Barack Obama tours the pa
Page 53 and 54: EXHIBIT 17 POWER AFRICA’S PLANNED
Page 55 and 56: Olkaria Geothermal Plant in Kenya.
Page 57 and 58: We expect to phase-in grid roll-out
Page 59 and 60: component prices have made it possi
Page 61 and 62: Power Africa will enable a continen
Page 63 and 64: Development Foundation’s (USADF)
Page 65 and 66: KENYA EXAMPLES OF POWER AFRICA’S
Page 67 and 68: PILLAR 3: UNLOCKING ENERGY SECTOR P
Page 69 and 70: I remain proud of the partnership a
Page 71 and 72: We must also continue to evaluate o
Page 73 and 74: ESTABLISH EFFECTIVE ‘DELIVERY UNI
Page 75: NATIONAL AND REGIONAL INTEGRATION T
Page 79 and 80: countries transition to more cost-e
Page 81 and 82: THE NORWEGIAN MINISTRY OF FOREIGN A
Page 83 and 84: CONCLUSION Not only is Power Africa
Page 85 and 86: APPENDICES ACEI AfDB AFC ALSF APV A
Page 87 and 88: 2. PRIVATE SECTOR PARTNERS 1 58 DEV
Page 89 and 90: TABLE 2B: ALL TRACKED PROJECTS BY S
Page 91 and 92: TABLE 5A: FINANCIALLY CLOSED PROJEC
Page 93 and 94: AFDB DFID 1 EU IRENA NEPAD 2 Norway
Page 95 and 96: Regulatory Reform Capacity Building
Page 97 and 98: USAID.GOV/POWERAFRICA FACEBOOK.COM/
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THE ROADMAP

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