Powering Africa Through Feed-In Tariffs
A great opportunity exists for African countries to profoundly transform their societies and economies if they improve their use of renewable energy sources. This is the central outcome of a new report presented in Johannesburg, South Africa today. The comprehensive study conducted by the World Future Council and the Heinrich Böll Foundation with the support of Friends of the Earth England, Wales and Northern Ireland shows that Renewable Energy Feed-in Tariff policies (REFiT) are a promising mechanism to unlock renewable energy development in Africa. REFiTs encourage investment in the generation of renewable energy – from individual home owners and communities as well as big companies – by guaranteeing to buy and pay for all the electricity that is produced from renewable sources.
The 155 page report, which is aimed at African policy makers, civil society and the private sector, provides an in-depth analysis of existing and drafted REFiT policies in 13 African countries: Algeria, Botswana, Egypt, Ethiopia, Ghana, Kenya, Mauritius, Namibia, Nigeria, Rwanda, South Africa, Tanzania and Uganda. The individual case studies examine the factors driving each policy and the socio-economic effects of REFiTs as well as presenting and analysing the prerequisites for their effective implementation. The study clearly shows that, when tailored to local conditions, REFiT policies successfully increase the overall energy production of areas both on and off the electricity grid. Moreover, the decentralised nature of REFiTs provides the opportunity to empower communities and to revitalise local democracy and self-governance by allowing for alternative models of ownership and governance. Ansgar Kiene, Director of the WFC Africa Office, said at the launch: “Several African countries have already opened up their electricity market to independent renewable energy power producers. However, these countries have even more potential for local economic development if their policies are amended, including a more streamlined and transparent administrative process and a lower entry threshold.” The report identifies a variety of national and international measures to shift financial resources towards renewable energy uptake. These include levies on fossil fuels and contributions from the United Nation’s Green Climate Fund. Today’s official launch will be followed by a series of policy briefings for stakeholders across all African regions in 2013. Renewable Energy Feed-in Tariffs have been successful at increasing the use of renewable technologies worldwide. As of 2012, 65 countries have implemented some form of a REFiT, driving 64% of global wind installations and 87% of the photovoltaic capacity that has been installed worldwide. While the majority of these installations have occurred in industrialised countries, particularly Europe, the African continent still has significant untapped renewable energy potential.
Kulthoum Omari, Sustainable Development Programme Manager of the Heinrich Böll Foundation Southern Africa, stressed: “REFiTs are most successful when they are an integral part of a country’s wider development strategy. Thus, high-level political support and strong buy-ins from civil society and the private sector are crucial factors for the successful development and implementation of a REFiT.”
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