AIX: Power and Renewables
The Africa Investment Exchange: Power & Renewables meeting will once again be held at RSA House, London, 14-15 November 2018. An initial agenda will be published in January. Themes will include:
- Technologies and disruptors changing the African energy landscape – how storage can help integrate renewables, meet peak demand and strengthen grids
- Distribution business models – financing the last mile and reducing network losses
- Grid bottleneck – how additional transmission or grid strengthening can be funded
- Break-out sessions – focusing on renewable energy auctions, geothermal development in East Africa, hydropower models
- Regional focus – identify key trends in energy finance policy and regulation across different African regions
- Unlocking domestic finance – strategies for catalyzing more local capital – both equity and debt
- Off-grid Investment Exchange – integrating centralised transmission and distribution with decentralised energy schemes
- African Energy Live Data 2018 – power generation trends and challenges
A write-up of the Africa Infrastructure Development Association (AfIDA) Workshop held on the sidelines of this year’s AIX: Power & Renewables meeting in November. The workshop explored a series of issues critical to the project development sector in Africa, including financing, standardisation and how the industry might work collectively to move things forward.
An updated agenda has been published for the fourth annual Africa Investment Exchange: Gas meeting, which will be held at RSA House, London on 11-12 April 2018.
Held under the Chatham House Rule, the meeting brings upstream players together with senior officials, power sector and downstream developers and investors to help develop and strengthen partnerships along the African gas value chain.
Agenda highlights include:
- Regional gas focus on West Africa (with a focus on Senegal, Nigeria and Ghana), Central Africa (Cameroon and Equatorial Guinea) and East and Southern Africa (Tanzania and Mozambique).
- Financing along the value chain – financing GTP, LNG and upstream projects, lessons from recently successful FID decisions and the potential for stronger partnerships and co-operation along the value chain.
- Gas-to-power investment strategies – meeting the continent’s fast-rising demand for GTP.
- Gas to market – Project stakeholders from Equatorial Guinea, Mozambique, Senegal, Nigeria and Ghana discuss the challenges of developing an indigenous gas industry that serves both African and international markets.
- Africa Gas Outlook – highlighting key trends, with expert analysis and data from African Energy Live Data.
- The potential for working with ‘new’ investor classes – From the European Commission and African Development Bank to upstream operators, gas industry investors are looking to tap into new sources of private capital to finance the take-off African energy industries need.
- AfricaHardball – Political issues that weigh on Africa’s gas industries.
- Building an LNG value chain – focusing on, the prospects and competitiveness of African LNG amid growing global supply availability, FLNG, FSRU, onshore projects and the complexity of the LNG to power value chain.
Please note there is a 25% discount which runs until 22 December.
Price payable: £1,275 plus VAT (full price £1,700 plus VAT)
A number of senior industry players have confirmed their participation at the fourth annual Africa Investment Exchange: Gas meeting at RSA House, London on 11-12 April 2018.
Confirmed panellists include:
- Dafe Akpeneye, Commissioner, Nigerian Electricity Regulatory Commission
- Tarik Hamane, Executive Director – Advisor to the Chairman, Moroccan Agency for Sustainable Energy (MASEN)
- Kishan Pillay, Director of Oil & Gas: Industrial Development Division, Department of Trade and Industry, South Africa
- Helen Tarnoy, Managing Director, Aldwych International
- Victor Tivane, Director of Local Content, ENH, Mozambique
- Jay Bhattacherjee, Chief Executive Officer, Aminex
- Steve Brann, Senior Investment Manager, Vitol
- Oliver Quinn, Director – Exploration and Africa, Ophir Energy
- Ezekiel Adesina, Senior Business and Strategy Analyst, Nigeria LNG
- Paul Eardley-Taylor, Oil & Gas, Southern Africa, Standard Bank
- Olusola Lawson, Regional Director, West Africa, African Infrastructure Investment Managers (AIIM)
- Chris Levell, Managing Consultant, Gas Strategies
- Jon Marks, Chairman, Cross-border Information (CbI)
- Steve Husbands, Head of Commercial – Oil & Gas Advisory, SLR
- Brian O’Hanlon, Director of Business Development, Global Energy Group, Overseas Private Investment Corporation
- Roland Fisher, Chief Executive Officer, Gasfin Development
- Zackarie Fortin‑Brazeau, Business Development Manager, Stolt‑Nielsen Gas
- Pierre Raillard, Director Africa, OneLNG
- John Smelcer, Partner, Webber Wentzel
- JP Sweny, Counsel, Latham & Watkins
- Erik Wandrag, Senior Transaction Advisor, Power Africa
AIX: Gas brings upstream players together with senior officials, power sector and downstream developers and investors to help develop and strengthen partnerships along the African gas value chain.
KfW, the German Development Bank, and the African Trade Insurance Agency (ATI) announced, on the side lines of the annual Africa Investment Exchange: Power and Renewables Meeting, a new instrument to support renewable energy projects in sub-Saharan Africa that targets small- and mid-scale (up to 50 MW) green power renewable energy projects.
The facility is designed to provide a viable solution to one of the biggest challenges facing independent power producers (IPPs) operating in Africa, specifically the requirement to provide project lenders with a liquidity guarantee. The German Federal Ministry of Economic Cooperation and Development (BMZ) through KfW will provide funding of up to 32.9 million EUR to the facility, which aims to enable small-and mid-scale renewable energy projects in Africa to reach financial close by addressing liquidity requirements that lenders frequently require in order to fund such projects.
The launch of the new facility is happening at an opportune moment when emerging markets are seeing record investments in the renewable energy sector. The International Energy Agency (IEA) expects sub-Saharan Africa’s renewables capacity to grow by 73% (24.4GW) over the period 2017-22. In addition, small-scale projects are seen as a potential solution to Africa’s energy deficit because they are easier to implement and can target energy requirements at source, but these projects find it difficult to access the type of guarantees needed to reach financial closure. The facility will kick in by providing immediate liquidity to keep the IPP afloat during periods of payment delays that are beyond the grace period provided in the power purchase agreement.
Günther Nooke, Personal Representative of the German Chancellor for Africa, BMZ, said “The Regional Liquidity Support Facility will address a key challenge in renewable energy project finance and de-risk private sector investments. We are pleased to provide the funding to this innovative instrument underlining Germany’s commitment to the objectives of the African Renewable Energy Initiative (AREI).”
The RLSF is designed to help independent power producers (IPPs) developing renewable energy projects in Africa to obtain the liquidity they need in the event that their off-taker (frequently a state owned entity) delays payment. The facility will provide immediate cash collateral supported by guarantees to a commercial bank that will in turn open a standby letter of credit to the benefit of the IPP. The amount provided will enable the IPP to operate and service the debt for up to 6 months. Furthermore, unlike most IPP letters of credit (which tend to be 12 month tenors) the facility is designed to be in place for multiple years.
Dr. Thomas Duve, KfW Director Southern Africa and Regional Funds, noted “We highly appreciate the opportunity to partner with ATI on this innovative instrument. The RLSF is a strongly market-driven concept, emphasizing KfW’s strategy to support and leverage the resources of local partners and the private sector.”
The facility, in combination with ATI’s traditional suite of political and trade credit risk insurance products (in particular ATI’s arbitration award default cover), means that ATI is able to cover the full range of political and financial risks facing investors on such projects.
Speaking at the launch, John Lentaigne, ATI’s Chief Underwriting Officer commented “We are delighted to be working with the German government, represented by KfW, on an initiative that directly targets one of the main bottlenecks preventing green power projects from being financed in Africa.”
Jef Vincent, Senior Advisor to ATI, who has overall responsibility for the initial implementation of the facility, added “Unlike some of the alternative solutions to the liquidity issue, ATI’s guarantee (as provided via the RLSF) will not require a counter-guarantee from the relevant Ministry of Finance, and as such we are confident this will be a very useful tool for those projects that we expect to support.”
Kano Electricity Distribution Company (KEDCO) is a sponsor at the fourth annual Africa Investment Exchange: Power and Renewables meeting which will be held in London on 15-16 November.
We are delighted to announce KEDCO’s Chief Executive Officer, Jamil Gwamna‘s participation in the Unlocking domestic finance session on 15 November. View the latest agenda.
KEDCO is a owned primarily by Sahelian Power SPV Ltd, a consortium of both local and international companies with years of experience in energy marketing and distribution with 60% equity in the share capital. Following a thorough bidding process, KEDCO was handed over to the core investors on November 1st 2013. KEDCO is one of the 11 electricity distribution companies privatized by the Federal Government of Nigeria with a mandate to execute the objectives of the Nigerian power sector reform, as contained in Section 67 of the Electricity Power Sector Reform Act 2005. The Act authorizes KEDCO to distribute and market electricity in the tri-states of Kano, Katsina and Jigawa.
KEDCO main product is high quality electricity sourced mainly from Kumbotso, Zaria and Jos transmission stations with total injection installed capacity of 828.7MVA. KEDCO delivers about 1,110Gwh of energy to about 300,000 customers, with an installed transmission capacity of 600MVA (330/132kv) and distribution installed capacity of 1,800MVA (33/11kv and 33/0.415kv) KEDCO has 6 transmission substations at 132/33kv and, distributes electricity to MD and non-MD customers.
KEDCO is licensed to distribute electricity in the tri-states of Kano, Jigawa and Katsina with a geographical coverage of 67,128Km2 and total population of about 20,000,000. Thus, KEDCO has the largest market potential in Nigeria, i.e. with about 4 million households in the territorial markets.
Paul Hanrahan, Chief Executive Officer, Globeleq is joining the opening Africa Power & Renewables Strategy panel at the fourth annual Africa Investment Exchange: Power & Renewables meeting in London (15-16 November).
Supported by analysis from CbI’s African Energy Live Data, the opening session at AIX: Power & Renewables will identify key trends in energy finance policy and regulation, renewable energy programmes and other power generation plans, and examine the growth and impact of off-grid models.
Other panellists participating in the session include:
Oliver Andrews, Chief Investment Officer, Africa Finance Corporation
Lucy Heintz, Partner: Energy, Actis
Andrew M. Herscowitz, Coordinator, Power Africa
Astrid Manroth, Director for Energy Transformative Partnerships, African Development Bank
Co-produced by CbI’s African Energy, AIX: Power and Renewables brings established and non-traditional investment sources (including private equity firms, family offices, foundations, institutional investors) together with project developers and other stakeholders for a frank discussion of the challenges facing investors along the electricity value chain.
The meeting is limited to around 180 senior level participants.
Proceedings are held under the Chatham House Rule and structured around interactive panel-led sessions.
John Hamilton, Director, African Energy will chair the North Africa Focus and South-South Co-operation panel at the fourth annual Africa Investment Exchange: Power & Renewables meeting in London (15-16 November).
Mohammed El-Khayat, Executive Chairman, New and Renewable Energy Authority (NREA)
Adel Baba-Aissa, Director, Renewable Energy Partner
Ahmed Badr, Executive Director, RCREEE
Lars Buesching, Managing Partner, Solizer
Ali Zerouali, Co-operation and Partnerships Director, MASEN
The panel will lead a discussion with the wider audience, examining:
- What next for Egypt’s rapidly developing renewables programme?
- Snapshot of renewable energy programmes in the region and their commercial viability
- Meeting demands for gas-fired power generation
- Morocco: an emerging Africa-focused financial hub