Now Africa power project locked in a battle for control with major donors
Hydropower generation in the Democratic Republic of Congo. EU member states have emerged as the key financiers of AREI with France, Germany and EU already committing $3.4 billion each. Other financiers are the US, Canada, Japan, UK, Italy, Sweden and Holland. PHOTO FILE | NATION
With the US-led Power Africa Initiative hanging in the balance under the Donald Trump administration, the intrigues surrounding the Africa Renewable Energy Initiative (AREI) even before it is rolled out could derail the push for universal access to electricity.
AREI aims to add 10,000MW of clean energy to national grids in African countries by 2020 and ultimately 300,000MW by 2030.
It has so far attracted commitments of $10 billion from developed countries.
EU member states have emerged as the key financiers of AREI with France, Germany and EU already committing $3.4 billion each. Other financiers are the US, Canada, Japan, UK, Italy, Sweden and Holland.
A continental initiative to increase access to electricity is now the subject of a raging debate, with civil society groups accusing the European Union and France of seeking to control its direction. With the US-led Power Africa Initiative hanging in the balance under the Donald Trump administration, the intrigues surrounding the Africa Renewable Energy Initiative (AREI) even before it is rolled out could derail the push for universal access to electricity.
“AREI’s integrity and its promise of bringing light and energy to Africa’s people is now being gravely threatened by the efforts of the EU and France for premature, undue approval of their projects and attempts to co-opt the initiative to serve their ends, supported by a handful of Africans,” said civil society organisations from 25 African countries.
Established in 2015, AREI aims to add 10,000MW of clean energy to national grids in African countries by 2020 and ultimately 300,000MW by 2030.
It has so far attracted commitments of $10 billion from developed countries.
But the civil society groups say the initiative no longer adheres to its principles of sustainable development, enhanced wellbeing and sound economic development.
Besides, the board of directors chaired by the President of Guinea Alpha Condé has come under criticism for lack of transparency and locking out key stakeholders in decision-making.
The board, which is anchored at the heads of state level, is not only mandated to ensure AREI remains African-led and owned but is also supposed to mobilise political support, provide strategic oversight and oversee the implementation of projects.
The civil society groups added that the push by the EU and France to be incorporated in the board goes contrary to AREI rules that stipulate that it should comprise one developing and one developed non-African country.
The implementation of Phase I targeting 10,000MW was supposed to kick off this year.
The EastAfrican has a list of the 19 projects that were identified by the European Commission and France, and have apparently been approved by the AREI board.
The projects have a total capacity of generating 1,750MW and are to be implemented at a total cost of $5.5 billion.
Four of the projects are in East Africa. These are the NextGen Solar project in Tanzania the Ruzizi III Hydropower plant being implemented jointly by Rwanda, Burundi and the Democratic Republic of Congo, the Mutobo hydropower plant in Rwanda and the Hydropower Generation, Transmission & Access Programme in Tanzania.
The others are in Chad, Nigeria, Ghana, Ivory Coast, Mali, Benin, Zambia, Mauritius, Ethiopia, Niger and Guinea.
In its progress report dated January 2017, AREI states that no projects or programmes have yet been either attributed, funded or supported by AREI.
“This will happen once projects have been carefully screened against AREI criteria and there are stringent social and environmental safeguards in place,” the report says.
However, controversy surrounding AREI is building up after the board in March this year reportedly decided to endorse the 19 projects identified by the EC and France on an exceptional basis pending the establishment of the formal process of identifying projects.
The move prompted the resignation of Prof Youba Sokona, head of AREI interim Independent Delivery Unit (IDU) in April on the basis that they did not meet the initiative’s criteria. Prof Sokona has been replaced by Seyni Nafo, a Malian.
To distance itself from the raging controversy, EC admitted that while it identified the projects and committed $346.3 million towards their funding, the decision to endorse them was taken by the AREI board.
The EC said that in identifying the projects, it relied on a preliminary IDU list of projects collected from African governments.
“The European Commission did not take part in the decision to endorse the projects,” the EC spokesperson for international co-operation and development Carlos Martin Ruiz de Gordejuela, told The EastAfrican.
He noted that as a leading supporter and financier of renewable energy and climate action in Africa, the EU is committed to providing 30 million more people with access to sustainable energy, save 11 million tonnes of carbon dioxide and generate 5,000MW of renewable energy on the continent by 2020.
But according to Brandon Wu, director of policy and campaigns at ActionAid USA, the scheme by the EU and France to arm-twist African governments and assume control of AREI poses serious threats to the initiative.
“If AREI becomes just another donor-driven initiative, in which rich countries call the shots, its fundamental premise will be deeply undermined,” Mr Wu told The EastAfrican.
EU member states have emerged as the key financiers of AREI with France, Germany and EU already committing $3.4 billion each. Other financiers are the US, Canada, Japan, UK, Italy, Sweden and Holland.
In its preliminary report, the IDU had identified some 442 projects across the continent with a total capacity of 150,000MW in hydro, wind, solar and biomass.
Most of these projects are in East Africa, with a capacity of 14,000MW, followed by Southern Africa at 13,000MW, West Africa at 10,500MW, North Africa at 7,000MW and Central Africa at 5,000MW.
