Although small-scale solar providers focused on the rural off-grid market have been the darlings of the development world, they generate just enough electricity to power more than a few basic appliances such as light bulbs, fans, and televisions. These improvements are undoubtedly an important improvement, but the vision for energy access should embrace a more comprehensive and robust potential. Improvements in quality of life and productivity should be the centerpiece of the agenda for powering Africa. A sustainable vision is required to identify feasible, durable solutions. Unless government and industry stakeholders invest in larger renewable systems, we will continue to champion an unsustainable model of sustainable development.

While African governments have increasingly framed renewable energy as the linchpin of their climate change and development strategies, solar energy still remains largely dependent on public sector capital from sources like the World Bank and the African Development Bank. At present, Africa lacks sufficient investment to fund enough energy projects to achieve universal energy access by 2030. In 2015, the African Progress Panel found that current energy-sector investments in Africa are about US$8 billion a year—less than one-sixth of the US$55 billion per year required to meet electrification targets. And even those funds won’t meet the renewable energy sector’s financing needs.

According to a recent Power for All report, only 11 percent of World Bank energy access funding and 1 percent of African Development Bank funding went to decentralized renewables between 2011 and 2014. With climate mitigation funding in flux due to the U.S. withdrawal from the Paris Agreement, Africa’s solar industry must rapidly develop more capital-efficient ways to reach consumers outside of the grant-based or subsidized rural electrification model or risk future impediments to growth.

Solar companies providing subsistence-level energy to consumers with poor economic prospects have provided an important basis for the industry’s development. Investors betting on the off-grid rural market are right about the transformative impacts of models like M-KOPA, which enables customers to repay the cost of a $200 entry-level solar system over time. These systems provide the means for children to read at night, and they improve household health by reducing reliance on dirty fuels like kerosene. However, if these investors hope to generate long-term growth and improve economic livelihoods, solar systems must be able to generate enough output to power products like refrigeration, which improve food security, or irrigation and agricultural machinery, which enable productivity in the increasingly promising smallholder-led agricultural industry in sub-Saharan Africa.

Likewise, water heating is a staple and important aspect of daily urban living. Enhanced access to electricity shouldn’t just be a stop-gap solution: it should provide a means of reducing poverty and create better conditions for healthier, more financially stable lives in the long-term. As governments and development partners work to catalyze Africa’s green revolution, energy generation must play an essential part of the story. In Kenya, for example, energy accounts for nearly 15 percent of agricultural input costs. Harnessing enough energy to enable customers to expand their discretionary income is a critical path to improving the customer experience while also helping the energy industry’s profit margins—everybody wins. Electrification efforts that focus solely on basic solutions will not uplift the continent as a whole.

For renewable energy to create scaled impact, greater focus is needed on urban and peri-urban locales, which are often neglected in the race to power Africa. The sheer number of customers in urban areas means that efforts to improve electrification among all residents will reduce marketing and distribution costs. Although the electricity deficit is most stark in rural villages, the continent’s most developed cities from Nairobi to Johannesburg also confront irregular power, which, given the rapid urbanization trends in Africa, will become an ever-greater problem as more slums spring up on the urban periphery.

According to the Honourable Akinwumi Ambode, Governor of Lagos State, nearly 86 people enter Lagos every minute of the day—a rate 10 times that of New York. As new settlements crop up, the grid has yet to keep pace with the scale of development. Because the cost of solar power has gone down by 80 percent since 2010, renewable energy solutions have become an increasingly appealing option to expand access to energy in urban environments, the primary drivers for Africa’s economic growth. In these environments, community-level mini-grids and individual solar home systems are models that can deliver higher returns for customers and solar providers alike. Expansion of solar provision in urban areas can subsidize the costs of expansion of solar power in rural communities, and translate into a more commercially sustainable approach to achieve universal and, equally as important, reliable electricity access for more Africans.

As hubs of innovation, urban areas also offer more opportunities to experiment with various types of solar solutions on a large scale. It is hard to imagine testing a scalable power system in a small village—distribution and maintenance would be expensive due to infrastructural and access issues, and piloting a scalable system in a population-limited area is difficult.

Urban settings are ideal testing grounds because research shows that innovation in urban areas grows at the same rate as populations because it increases more opportunities for personal interaction and leads to exposure to new ideas. Directing more investment towards urban energy solutions can improve local resilience by helping balance the over-stretched power grids found in most African countries, and facilitating nationwide energy efficiency.

Expanding electrification in rural Africa is an important step towards building an inclusive future, but the solar industry’s preoccupation with last-mile off-grid solutions will not deliver transformative growth for the continent. Empowering entrepreneurs at a scale that enables them to grow their businesses and generate more economic employment will require firms and investors alike to balance urban with rural concerns, and immediate energy access with a longer-term, sustainable vision.

By Ademola Adesina is the Founder and CEO of Rensource, a West Africa-focused distributed energy services company.

Africa’s power sector needs far exceed most countries’ already stretched public finances, making it crucial for governments to attract greater levels of private investment to scale up generation capacity. To reach the scale required, governments must provide a sound investment climate and enabling environment, the report finds.

 “Independent Power Projects in Sub-Saharan Africa – Lessons from Five Key Countries” draws on case studies carried out in Kenya, Nigeria, South Africa, Tanzania and Uganda – countries that have the most experience with IPPs in the region.

“Independent power projects now constitute the primary vehicle for private investment in the African power sector,” said Makhtar Diop, the World Bank’s Vice President for Africa. “The objective of this report is to identify key lessons that can help African countries attract more and better private investment.”

Currently, there are 126 IPPs in 18 Sub-Saharan countries, accounting for an installed capacity of 11 GW and $25.6 billion in investments. But to benefit more countries the report recommends these IPPs should be much larger and spread across the region.

Enabling factors for attracting more and better IPPs include:

1. More competitive procurement efforts from countries in Sub-Saharan Africa, which includes encouraging long-term contracts through a competitive bidding process. This can help secure reduced prices and help avert other issues, such as the possibility of a problematic contract. If direct negotiations are conducted, they should be done transparently.
2. Clear and conducive energy sector policies, structures and regulatory environment.
3. Systematic and dynamic power sector planning, including the ability to accurately project future electricity demand, determine best supply or demand management options and anticipate how long it will take to procure, finance, and build the required electricity generation capacity.
4. Financial viability of the public utilities is vital as they remain the principal off-takers of power produced by IPPs. Given the high-risk environment of most countries in Sub-Saharan Africa, it will be important to provide proper mitigation through financial guarantees and security measures to attract new investors.

The report also finds that renewable energy IPPs are becoming more promising and can be viable if procured competitively.

The report concludes that all sources of investment need to be encouraged and for IPPs to flourish, countries in Sub-Saharan Africa need dynamic, least-cost planning linked to the timely, competitive procurement of new power generation capacity. This must be accompanied by effective regulations that encourage distribution utilities that purchase power to improve their performance and prospects for financial sustainability, thereby widening access to electricity.

By the World Bank

Click on image to submit your project on energy or other sectos for financing and scaling up.

But while large countries such as India, Mexico, and South Africa have benefited from surging investment in the renewable energy sector, many of their smaller neighbors remain off the radar of solar power developers and are struggling to obtain the electricity they need.

To bridge this gap, the World Bank Group has launched Scaling Solar, a “one-stop shop” for governments that want to attract private investors to build large-scale solar plants but lack the purchasing power of bigger emerging markets where strong competition has driven down solar prices to virtual parity with oil, gas, and coal-fired electricity.

Scaling Solar includes a package of technical assistance, templates for documents, pre-approved financing, insurance products, and guarantees that take the guesswork out of whether a solar project is viable and bankable for both governments and investors.

Under the program, a country can assess a project, manage a competitive tender, build a plant, and start generating cheap, sustainable solar power within two years—a fraction of the time it would take to do so independently, and faster than other generation sources such as hydro and thermal.

Zambia, for instance, is on track to have two 50-megawatt solar facilities up and running about two years after having engaged in the program. The country’s needs are urgent as several years of drought have significantly reduced the output from hydropower plants Zambia has traditionally relied on.

Zambia’s first tender attracted 48 interested groups including top developers EDF, Enel, and First Solar, and 11 prequalified to bid. This has provided an important boost for the country, which desperately needs new sources of energy but has otherwise struggled to attract investors given the impact of falling copper prices on its economy.

“For quite a long time, we’ve had interest from the private sector to invest in renewable energy including solar. But we haven’t had the coherent structure to implement this,” said Andrew Chipwende, chief executive officer of Zambia’s Industrial Development Corporation. “With Scaling Solar, what we’ve been able to do is develop a transparent process that the private sector and public institutions can work towards.”

Creating Confidence

Following Zambia’s successful launch, Scaling Solar has expanded elsewhere in Africa, with competitive tenders coming soon in Senegal and Madagascar. As the program grows, it is providing more opportunities for clean energy investment and creating a new market standard for developing large-scale solar power.

“What Scaling Solar offers is a robust process, contracts that have been pre-negotiated and which are ultimately going to be bankable, and transparency and speed. For us, as investors, that’s exactly what we are looking for,” said Ashwin West, Investment Principal with African Infrastructure Investment Managers. “It is a robust framework that creates confidence in the market.”

The process begins with feasibility studies led by IFC advisers. They work with governments to establish how much solar capacity should be added to the grid, and select suitable sites. IFC also helps structure and plan a competitive bidding process for developers, who enter the tender with a clear and complete picture of the project. The winning developer can then access financing from IFC should they choose it, as well as partial risk guarantees from the World Bank, and political risk and other insurance products from the Multilateral Investment Guarantee Agency (MIGA).

Scaling Solar has the financing support of USAID’s Power Africa, the Ministry of Foreign Affairs of the Netherlands, the Ministry of Foreign Affairs of Denmark, and the Infrastructure Development Partnership Fund (DevCo), a multi-donor facility managed by IFC.

By IFC

Having recently moved into their new house built on a stand acquired in the new settlement of Budiriro 5B Extension — neighbouring thousands of houses built by banking institution CABS under the Budiriro Housing Scheme — life would have been most unpleasant without any source of power supply, as Zesa-powered electricity is yet to reach the area because getting connected to the utility’s power lines is proving to be a cumbersome process filled with hurdles.

But power problems are slowly becoming a thing of the past as people in the area have been left with no choice but to turn to solar power.

While the investment in a solar panel and battery was initially made sulkily, the Chirayas were soon to realise turning to solar energy was one of the best decisions they could have ever made. While it might have taken sacrifice to fund the initial setting up of the solar connection in their home, the return on investment that immediately followed has left them without any hint of regret.

“I have to admit that before we connected to solar power, I wished Zesa would hasten to connect the area so we would avoid the costs, but I have since changed my mind,” said Chiraya with a beaming smile.

“With our solar panel and battery, we are able to power lighting for the whole house, the entertainment set [television, home theatre system, DStv] and to charge all our cellphones. We use gas to cook and we are planning to invest in another battery so we can also power the fridge and other electrical gadgets.

“The best part is that since we installed solar energy, there has not been a day we have gone without power supply. My kids are happy too; they get to do their homework uninterrupted and the TV can be switched on all day without us worrying about any extra costs. All we need is the sun, but even without as much sun, the battery still manages to charge.”

For Chiraya, the best part about using solar energy is not having to constantly worry about electricity bills, or the power cuts that have characterised Zimbabwe for years. High electricity bills and going without power and fumbling in the dark trying to locate a candle, are now things of the past for her family.

Back in the day — when Zimbabwe’s economy was still strong and Zesa could be counted on to provide an adequate power supply — solar energy was viewed by many as a preserve for those in very remote areas. It seemed solar panels had been manufactured specifically for marginalised rural areas located far from civilisation. But the crumbling of the economy and the subsequent power shortages that saw Zimbabwe having to import electricity from other countries was, however, to see a shift in the way people perceived solar energy. For the first time, solar energy became an appealing alternative even for the urban folk.

That for the first time, the Kariba Dam — that had for years been a major source of power generation in Zimbabwe — is experiencing the lowest water levels and has been generating less and less electricity, might have also been the wake-up call many needed to eventually decide to look to solar as a real option. This is especially so for those who are moving into houses in newly established suburbs that have spouted all over, but are not yet connected to Zesa’s power supply such areas include, parts of Damofalls, Southlea Park, Caledonia and Glaudina, among many other areas.

Today, the only regret that many that were forced by the power problems to resort to solar energy have, is that they did not realise solar power’s benefits much sooner. Those that are harnessing it couldn’t be happier as it has proven to be the most reliable source of power they can access. As long as the sun is still shining, they will never have to worry about running out of energy — and Zimbabwe has a lot of sunshine, the intensity of which may only get worse as the full effects of climate change continue to be felt. But even when there are a lot of clouds, solar energy continues to replenish itself.

Turning to solar does not only present a win-win situation for those that harness the energy, which comes in abundance; it is a great stride in the country’s push towards green energy, as the traditional method of getting energy harms the environment because fossil fuels have been proven to highly pollute the areas we live in. Solar energy does not contaminate the homes or anything outdoors. If the whole of Zimbabwe goes solar, it would be a monumental achievement along the way to going green.

The environment is enabling for Zimbabwe to become a solar nation!

lFor feedback, email at
cmasara@standard.co.zw

The upward trajectory in the economy has seen the construction of iconic commercial buildings as investors, local and international, seek to tap into limited office space and take advantage of the robust retail market. This competition in the property market is being driven by Nairobi’s status as an investment hub for the East and Central African region.

Devolution has also spurred more activity in the construction sector as counties seek to erect mega structures that will positively impact development in their respective areas. New buildings going up include county offices, hospitals, schools and agricultural facilities such as factories and processing plants.

The 2016 City Momentum Index (CMI) report by Jones Lang LaSalle, an investment management company specialising in real estate, points out Kenya’s booming economy as the driving force behind the development of new infrastructure and the country’s booming real estate sector. These activities, according to the report, have enabled Nairobi’s expansion as it registers among the highest levels of office and retail construction of any city globally at the moment.

FAST-GROWING DEMAND FOR POWER

All of this new construction amounts to a fast-growing demand for power, with current grid capacity sometimes struggling to meet this demand, which results in power rationing or blackouts. This interruption to business operations stifles efficiency, and therefore, profits.

Never in the country’s history has the need for new energy solutions been more evident than now. Only 25 per cent of the Kenyan population is connected to the national electricity grid, with rural grid access at about 5 per cent. It is also estimated that there is a 300MW electricity shortfall at peak hours (6.30pm to 10.30pm), when most domestic consumers switch on electricity from the country’s total 2,282 MW capacity.

This, yet heat from the earth’s core, the wind, water, and the sun are all freely available and sustainable; harnessing them can supply an endless source of energy. Kenya has long daylight hours, making it particularly well suited to solar technology, which generates electricity even in cloudy conditions.

Recognising this, a growing number of businesses throughout East Africa are installing solar systems to generate solar electricity for powering facilities in buildings such as lights, air con and machinery.

Solar roof systems are particularly well suited to dense urban environments, where land is at a premium, and power demand is high. Solar is highly scalable and flexible, which enables it to be integrated in innovative ways. A great example is the solar carport that was constructed on the roof of the carpark at Garden City Mall in Nairobi last year. There is no better illustration to show how planning at the initial design stage of a new mega structure can easily incorporate solar, which provides a source of electricity to power the building during daylight hours, thereby reducing reliance on grid energy.

SOLAR HYBRID

Such systems, known as solar hybrid, are dispelling the common perception that solar is the preserve of households and communities with no access to grid energy. In fact, there are examples around the world of structures with solar integrated in clever ways, such is the global opportunity for solar PV.

For example, Blackfriars Bridge spans the River Thames that flows through the heart of London, England. The bridge functions as a train station and busy commuter rail link into the city. The panels meet nearly half of the train station’s annual energy needs.

The solar system at Garden City Mall comprises 3,364 solar panels; the structure not only provides 454 parking spaces and 6,000 square metres of car park shade, but also generates 1,450mWh of clean electricity annually, equivalent to powering 550 urban homes in Nairobi every year. By using solar electricity rather than grid energy, the mall will reduce carbon emissions by around 18,750 tonnes over the lifetime of the solar system.

Solar hybrid technology is a highly innovative energy solution that works alongside the power from the grid, and in combination with a diesel generator. During daylight hours, the solar panels generate solar electricity, and if the grid goes down, the system generates solar electricity alongside the diesel generator.

According to MasterCard’s African Cities Growth Index (ACGI) 2015, Nairobi is one of the cities with the highest growth potential globally, and it is expected to grow rapidly in the next five years. As a continental financial and investment hub, its commercial property sector is as robust as ever. It is commendable for new buildings to adopt environmentally friendly technologies, such as solar, in order to generate clean energy, which reduces reliance on fossil fuels.

Businesses need to take a long-term view of their energy needs – Garden City’s carport will, for instance, generate free electricity for at least the next 25 years, possibly up to 40 years. If all the shopping centres and buildings with unused roof spaces in Nairobi and other towns and cities installed solar, there would be far less need to rely on grid power and diesel energy. The amount of additional solar electricity generated by the panels could help meet the energy demand of the new and existing businesses, many of which need a secure, reliable source of energy around the clock.

By Guy Lawrence, Director, SolarCentury

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The forum in the form of presentations and analyses of economic and technical viability of the RE Project in The Gambia ended with a field visit to some RE demonstration projects.

In his welcome remarks, the national coordinator of the GEF/UNIDO 4 Project in The Gambia, one Mr Njie, said a similar seminar was convened for bigger companies, adding that small and medium enterprises were, therefore, provided for to discuss with them the need for renewable energy in the country.

Mr Njie said that most people look at the capital layout and then run away, but the best option should be renewable energy, as it is economically and technically viable.

The Director of Energy, Kemo Ceesay, highlighted the importance attached to the RE project, stating that it was designed mainly to demonstrate and promote viable renewable energy for productivity.

He said such forums for SMEs are meant to discuss the benefits of renewable energy, and how renewable energy could support their businesses to grow.

As a concerned government institution, the Energy ministry would continue this type of forum, he said, and appealed to the participants to make best use of the forum.

He called on all and sundry to support the project to explore renewable energy sources, and reiterated the support of government and the ministry toward the project.

Ndey Bakurin, Executive Director of the NEA and the focal person of the GEF/UNIDO 4Project in The Gambia, said that was the second renewable forum for SMES, which means facilitators of the project “are interested” in renewable energy promotion.

The theme for the forum, organised by GEF/UNIDO 4Project, was “Promoting renewable energy-based Mini-Grids for productive uses in rural areas of The Gambia”.

The project is working with the Ministry of Energy and the National Environment Agency, she said, adding that The Gambia as a country has shown real commitment to the protection of the environment, which is a key component.

“This was in line with Vision 2020 and other sectoral policies like the Gambia Environmental Action Plan,” she said.

“The Government of The Gambia continues to provide the enabling environment to address our energy needs, particularly for the people,” she said. Therefore, it was important they explored partnership and sustainable avenue to accessing energy, she added.

While the government is taking the lead role, the business community is important to ensure achievement of environmentally sound and sustainable development in The Gambia and the world at large, she went on.

The SME sector “is very important” as it is one of the principal driving forces for economic growth and job creation in a country, according to Mrs Bakurin.

She added that energy is a multi-dimensional issue, which influences poverty reduction and economic growth at both the micro and macro levels, and “it influences our social development and our environment”.

Paul Musasizi, chief executive officer of Kiira Motors Corporation (KMC), the state-funded company behind the vehicle, says with the potential for solar power in Uganda, it only made sense that engineers started to leverage the energy source for cars.

“The bus is purely electric and our idea is to test the strength of solar energy in enabling people to move,” he told a local newspaper.

The company built the prototype with funds from the Ugandan government. But KMC is hoping to attract investors to the project to start producing the buses for the mass market by 2018 at a retail price of $58,000. Typically, 35-seater buses retail between $35,000 to $50,000.

“As we continue with developing concepts, we are also studying the market,” Doreen Orishaba, one of the engineers in the project, told Uganda’s Observer newspaper. “We want to see that we don’t make vehicles for stocking but for production on orders.”

This is not KMC’s first foray into energy efficient car-making. Last year, the company introduced the Kiira Smack, a petrol-electric hybrid that it said would come into the market by 2018 as well for a $20,000 price. But analysts were doubtful at the time of the project’s commercial viability. The price could prove prohibitive, they argued, in a market that sells an estimated 20,000 cars a year. Additionally, in a part of the world where electricity is not a widely available commodity, electric dependent cars could put undue pressure on national grids.

But by using solar as a power source for the Kayoola, KMC may have found a way to overcome that challenge in this instance.

“Uganda being one of the 13 countries positioned along the equator, gives us about eight hours of significant solar energy that can be harvested,” Musasizi says.

By Quartz Africa.

The Noor Ouarzazate plant (NOORo), supported by the African Development Bank (AfDB) among other donors, is a keystone of Morocco’s solar Program (named Program Noor) to develop 2 GW by 2020 and create transformational impact on Morocco and the region. As such, it stands as a showcase example of the ambitious New Deal on Energy initiated by the Bank’s new President, Akinwumi Adesina, to provide universal access to energy for all Africans by 2025. The New Deal is poised to transform Africa’s energy by exponentially increasing on-grid generation and transmission, off-grid connections, and access to clean cooking energy throughout Africa.

Noor Ouarzazate provides an important early example of the type of project, which can trigger the transformation of Africa’s energy sector required to achieve the New Deal’s ambitious vision. The New Deal will operate through five principles: raising aspirations to solve Africa’s energy challenges; establishing a Transformative Partnership on Energy for Africa; mobilizing domestic and international capital for innovative financing in Africa’s energy sector; supporting African governments in strengthening energy policy, regulation and sector governance; and increasing the Bank’s investments in energy and climate financing. Noor addresses those principles in four ways:

• The plant exponentially harnesses the country’s solar power, achieving over 500 megawatts (MW) installed capacity and increasing on-grid access to more than a million households by 2018;

• The plant in Ouarzazate will also help reduce greenhouse gas emissions in the region by 19 million tons over 25 years, keeping the region in line with its nations’ Nationally Determined Contributions (NDC) commitments under the Paris Agreement on climate change;

• Built on a partnership between the public and private sectors, the project will exponentially increase market access to solar energy by reducing market risk and creating attractive investment potential;

• The project will have a powerful economic impact on the country, contributing to industrial development and helping create an estimated 2,500 jobs.

“We are proud that Africa is leading the way at a global level to shift the world’s consumption and use of solar energy as a central source of our future power,” stated Kurt Lonsway, AfDB’s Environment and Climate Change Division Manager and CIF Coordinator. “At its outset, NOORo is an elegant achievement, because it helps answer the crying need for increased access to basic energy services for the citizens of Africa, at the same time that it breaks ground on low-carbon and sustainable energy use. We believe that NOORo will serve as a powerful example for Africa and the world.”

The Noor Ouarzazate plant is a partnership between the Climate Investment Funds (CIF), the AfDB, World Bank, and other international partners. Implementation of the whole Noor Ouarzazate CSP project will be carried out at a total cost of €2.1 billion including €365 million from AfDB and CIF via AfDB and €227 million from the World Bank and CIF via the World Bank.

For more information on the project, see the video on the socio-economic impact and the press kit.

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About the Climate Investment Funds (CIF)

Established in 2008, as one of the largest fast-tracked climate financing instruments in the world, the US $8.1-billion CIF provides developing countries with grants, concessional loans, risk mitigation instruments, and equity that leverage significant financing from the private sector, MDBs and other sources. Five MDBs – the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), and World Bank Group (WBG) – implement CIF-funded projects and programs.

By AfDB

Most African countries have joined bandwagon of global-warming conscious economies. South Africa is one of the countries at the forefront pioneering the climate change initiative. As a member of the BRICS (Brazil, Russia, India, China & South Africa) economies, South Africa has ushered the African-initiative on global warming and the importance of using renewable sources of energy. Since 2012, Johannesburg raised more than R800million for the solar water heater programme, South of the City, which assumes 110 000 RDP houses receiving sun-powered geysers by 2015. Next to the population, that is just a drop in the ocean, but it is a drop in the right direction.

According to the executive director of Greenpeace Africa, “Africa is one of the most vulnerable continents to climate change and climate variability.” This topic was discussed at the Johannesburg City Parks and Zoo public dialogue entitled ‘The nature and opportunities of preserving urban green spaces in Africa’, and quoted from a 2005 Intergovernmental Panel on Climate Change report titled Africa – up in smoke?. If we, and the government can see the dire situation, it calls for people to work with government, or campaign for a faster and better response to this situation before it gets worse; and we pay more for aid from other continents.

The image below depicts the environmental issues that the continent will  face in the future, and tries to find solutions to combat this through sustainable ways.

As the issue of sustainable sources of energy becomes at hot topic at events like COP21, a sustainable innovation forum, practical measures need to be taken into consideration by African governments. They need to understand the data and the consequences of global warming, the assumption is that there is understanding and knowledge but there are deeper issues that stop African governments from moving forward with these kinds of initiatives. The biggest issue is money, how can they generate money from sustainable energy sources and how will they maintaining the infrastructure if they are not making money? It is a fact, money is an important factor in the functioning of any economy and Africa is in need of constant monetary supply.

Here is how African governments can make money from solar power:

• Government can ensure than upon installation of the solar infrastructure, a maintenance subscription fee can be charged per household. This can be paid monthly or yearly. This again gives obligation to the government to ensure that they have technicians coming out yearly to maintain the infrastructure. A win for both government and people.
• Accreditation, government can ensure that suppliers and fitters of solar infrastructure or renewable infrastructure, are accredited by one body that is managed by government. This can work on a yearly renewable basis to remain complaint. This will ensure that government can keep track of the number of companies offering services and the numbers of households that join the renewable grid. Government can ensure quality and safety of all infrastructure.
• Training, government can be responsible for all training facilities or institutions that will educate service providers and maybe civilians that need to understand renewable energy.
• In the process, jobs are created and can assist in reducing a certain percentage of unemployment, thus reducing the number of individuals/households on grant assistance. On the brighter side, government still gets to make money!

A dilemma is being faced by the continent and it needs government to act fast, if not, private sector will do what it does best, capitalize on opportunities as they come – then leave the bread crumbs to government.

By Ednah Nzombe

On Dec. 12, 2015, the world’s governments agreed to a universal, legally-binding agreementthat sets out ambitious goals to tackle climate change, including:

• Holding the increase in the global average temperature to well below 2 C above pre-industrial levels and pursuing efforts to limit temperature increase to no more than 1.5 C

• Reducing net greenhouse gas emissions to zero in the second half of this century

While there are many challenges ahead to achieving these objectives, the Paris agreement provides a critical shot in the arm for clean energy investment globally. As UN Secretary-General Ban Ki-moon noted at the end of the climate talks, “Markets now have the clear signal they need to unleash the full force of human ingenuity and scale up investments that will generate low emissions and resilient growth.”

Three outcomes of the Paris climate talks are particularly significant to expanding global investment in clean energy:

First, 187 nations, representing 98 percent of the world’s greenhouse gas emissions, have now submitted national climate commitments. Actualizing these commitments and limiting warming to below 2 degrees Celsius will create a multi-trillion dollar clean energy investment opportunity; the International Energy Agency has estimated the figure at $16.5 trillion. Over the next several years, governments will take steps to translate their national climate commitments into specific policies that will catalyze the necessary investments. For example, the U.S. Environment Protection Agency’s (EPA) Clean Power Plan, vehicle efficiency standards, and tax credits for wind and solar that were extended last month are all key measures that will help accelerate the shift to clean energy.

It’s important to keep in mind that the national commitments submitted in Paris create a floor, not a ceiling: the agreement includes a one-way ratchet, with nations required to update and elevate their climate commitments every five years.

Second, the Paris agreement calls for “finance flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development.”Specifically, governments have agreed to mobilize at least $100 billion in public and private finance for clean energy and climate resilience projects from 2020 to 2025 and agreed to go beyond this level after 2025. (See this helpful World Resources Institute summary for more details). Deployment of these funds help leverage more opportunities for private clean energy and climate financing.

Third, the Paris climate talks recognize that national government actions need to be buttressed by bold private sector action. In advance and during the climate talks, hundreds of global investors, businesses and capital market actors made new announcements on climate change and clean energy. Three examples:

Bill Gates and other business icons announced the Breakthrough Energy Coalition to accelerate and expand R&D investment aimed at scaling up clean energy.

The Financial Stability Board announced it was establishing an industry-led disclosure task force on climate-related financial risks under the chairmanship of Michael Bloomberg. The Task Force on Climate-related Financial Disclosures is charged with developing voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders.

New York State Comptroller Tom DiNapoli announced an additional $1.5 billion commitment to sustainable investments and the launch of a new $2 billion low-carbon index fund in coordination with Goldman Sachs. (See summary of other COP21-Paris Finance Day announcements here).

Reaction to the Paris agreement has also been strongly positive. “The ambitious agreement contains many of the market signals that investors have been calling for and what investors need to accelerate the transition to a thriving, clean energy economy,” Anne Stausboll, CEO of CalPERS, the nation’s largest public pension fund, said.

Michael Liebreich of Bloomberg New Energy Finance put it even more bluntly: “Paris is the world’s economy serving divorce papers” to the fossil fuel industry. “Which sensible businessperson or investor can ignore the clear signal?” Good question!

By Christopher N. Fox, Ceres