To meet the climate and development goals of the Paris Agreement, the 2030 Agenda, as well as the Agenda 2063 of the African Union, developing countries will strive to grow using a low-carbon development pathway, minimizing their emissions whilst ensuring development of their economies. Renewable energy will be a key part of their strategy to do so, with localized solutions for industry holding great potential.

The project aims to strengthen the ability of the four identified countries – Ghana, Kenya, Nigeria and South Africa – to move towards low carbon-emitting development strategies in order to have sustainable development and overall human well-being. It also contributes to several Sustainable Development Goals, including

  • Climate Action (SDG 13),
  • Responsible Consumption and Production (SDG 12),
  • Affordable and Clean Energy (SDG 7), and
  • Industry, Innovation and Infrastructure (SDG 9).
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What are captive installations?

Captive installations refer to the energy generating technologies, which are installed by industrial or commercial organizations on their sites. They are deemed “captive” because the electricity produced is generated for the plant’s own use (and sometimes for neighbouring communities’), not sent to a third-party or to the national grid. In another word, such power installations generated power to be utilized by the owner of the plants, and “clean” captive installations refer to those installations powered by renewable sources of energy, such as solar or industrial waste.

Benefits

Captive renewable energy installations alleviate the pressure of electricity generation from national grids and reduce industrial clients’ needs to rely on private supplementary fossil-fueled generators, which are expensive to run. These clean captive installations are frequently referred to as second generation of renewable energy business models, as they do not rely on national governments’ incentivizing policies to enhance the deployment of clean energy technologies.

autonomy from the grid supply

reliable electricity supply

energy cost savings

Project activities

To achieve project’s goal, our activities fall under four components:

Component 1: Baseline studies and awareness raising

Awareness of the project is raised with both public and private sector stakeholders, whose feedback is integrated into the project design. This initial phase sees country studies being prepared and scoping missions completed in each partner country.

Component 2: Economic and financial tools and assessments

Tools for assessment of financial and economic viability and suitable financing structures of clean captive installations are elaborated and disseminated among industrial and commercial actors, national and international financiers, and national public institutions.

Component 3: Realization of one pilot project per country

Four viable and replicable pilot projects with industries, one in each partner country, are selected, developed, financially structured, realized and monitored. The country-tailored business models will allow for replicability at the national scale, and in similar contexts.

Component 4: Knowledge dissemination and outreach

Through a knowledge management strategy to be designed jointly with stakeholders, case studies on pilot projects are prepared and published. Project results and knowledge are to be disseminated through national, regional and other events and other relevant means, allowing replication at both national and regional levels.

Project Awareness

The project will raise awareness amongst industry players, financiers and governments, and support dissemination of clean modern energy technology and leapfrogging of the right business models in the countries in Sub-Sahara Africa.

Engaging with national public authorities and private sector actors, the project focuses on the financial barriers that hinder the greening of private clean energy generation installations. Industrial actors could turn to available and cost-competitive captive renewable energy sources but are often reluctant to increase their capital intensity for non-core business activities and find it difficult to access third party finance for diverse reasons.