Africa Renewable Energy Initiative (AREI)

African Development Bank (AFDB)

The Africa Renewable Energy Initiative aims (1) to help achieve sustainable development, enhanced well being, and sound economic development by ensuring universal access to sufficient amounts of clean, appropriate and affordable energy; and (2) to help African countries leapfrog towards renewable energy systems that support their low-carbon development strategies while enhancing economic and energy security.

Open to Applications: 
Yes
Application Time Frame: 

On a specific date. See steps to apply for details.
In the immediate term, the Initiative will engage with multiple African stakeholders and proponents of existing projects to stimulate discussions on transformation built around different RE deployment models, seeking alignment where possible.
Phase 1: Between 2016 and 2020, the Initiative seeks to facilitate and support the establishment of particularly promising incentive structures and comprehensive policy packages for national governments in interested African countries. The Initiative will identify projects that use RE/EE technologies or applications that can be replicated quickly in other African countries and help seek international public funding that leverages public and private investments.

Climate Objective: 
Mitigation
Administrator Type: 
Intergovernmental Organization
Financial Instruments Offered: 
Contingent Grants, Grants
Direct Access: 
Yes
Fund Size: 

USD 5 billion (2011-2016)
Donors – which include Canada, the US and Japan as well as EU member states – pledged to “mobilise” $10 billion by 2020.

Financing Award: 
Not Specified
Trustee: 
African Development Bank (AFDB)
Implementing Entity: 

Independent Delivery Unit will be hosted by the AFDB and defined by specific arrangements between the hosting institution and the Governing Board that will provide for its independence and ensure African leadership.

AREI policy development projects and implementation of policy programmes/incentives schemes will be mainly pursued via African governments. Implementers of such activities may include:
§ African Government Institutions and Agencies (both national and sub-national)
§ Civil Society and Non-Governmental Organizations
§ Public-private partnerships

Steps to Access & Application Procedure: 
Organizational and Decision Making Structure: 

The AREI will be led by Africans and strongly anchored in existing African political and decision-making processes. The Initiative will establish clear governing rules fully in line with the guiding principles and operations, monitoring and evaluation procedures.
These need to ensure that the Initiative remains fully Africa-led, and that all activities contributing to it – whether pursued through the Independent Delivery Unit and the AREI Trust Fund or directly through countries or other institutions – adhere to the AREI guiding principles. Monitoring and evaluation procedures must be established that correspond to the principle of African ownership, recognize the need for flexibility, and
ensure efficient and transparent use of resources.

BOARD OF DIRECTORS
The Board of Directors shall be composed of at least nine members with seven Africans and two non-regional members.
The main role of the Board of Directors is to mobilize political support, provide strategic oversight and vision, ensure African leadership and ownership of the Initiative, set priorities, objectives and milestones, foster resource mobilization, and oversee the implementation of the project pipeline and the annual work plan.

TECHNICAL COMMITTEE
The Technical Committee will be composed of high level experts with proven experience in the energy sector, in investment and development issues on the continent or in developing countries.
The main role of the Technical Committee is to define the initiative’s operational priorities and objectives, review and select submitted projects; oversee resource mobilization activities; ensure coherence with other initiatives; and recommend funding for supportive activities, incentives, and investments.

INDEPENDENT DELIVERY UNIT
The Independent Delivery Unit will be fully accountable to the Board of Directors. The delivery unit will be hosted by the AfDB and defined by specific arrangements between the hosting institution and the Board of Directors that will provide for the independence of the Independent Delivery Unit and ensure African leadership.
The main roles of the Independent Delivery Unit will be to provide a secretariat role for the Board and the Technical Committee, coordinate and prepare annual work plans, coordinate and conduct supporting activities across all clusters; coordinate and facilitate support and finance to accelerate implementation, design and manage grant application and assessment procedures in consultation with the Trustee; and communicate with stakeholders on behalf of the Initiative.

TRUSTEE (AFDB)
The main role of the Trustee – accountable to the Board of Directors – is to manage funds and investments; design and manage grant application and assessment procedures with the Independent Delivery Unit; ensure adherence with risk management and compliance procedures.
Detailed Terms of Reference for each of the above bodies will need to be further developed and elaborated.

The Initiative is led by the African Union’s commission, the New Partnership for Africa’s Development (NEPAD)’s Agency, the African Group of Negotiators, the African Development Bank, the UN Environment Program (UNEP), and the International Renewable Energy Agency (IRENA).

Partners to the joint statement:
Canada
France
Germany
Italy
Japan
United States of America
United Kingdom
EU
Sweden
The Netherlands

Monitoring and Reporting Procedures: 

The Initiative will establish clear governing rules fully in line with the guiding principles and operations, monitoring and evaluation procedures. These need to ensure that the Initiative remains fully Africa-led, and that all activities contributing to it, whether pursued through the Delivery Unit and Trustee facility or directly through countries or other institutions, adhere to the AREI guiding principles. Monitoring and evaluation procedures must be established that correspond to the principle of African ownership, recognize the need for flexibility, and ensure efficient and transparent use of resources.

Co-financing Requirements (if applicable): 

Not specified

Other Eligibility Criteria Beyond Geography and Income: 

African Union Member Countries.
Eligible projects and/or services
1. Basic project requirements13 Submitted proposals must satisfy the following basic conditions:
• Location: the project should be located in Africa and in line with the host government(s)/
region’s or continental priorities and with no objections from other countries impacted
and concerned, particularly in the case of projects which have trans-boundary impacts.
• Purpose: the project must have a clearly defined, and demonstrable public benefit for the
energy poor.
• Technology: the project must have an explicit focus on renewable energy, energy
efficiency or transmission/distribution, and cannot promote fossil fuels or nuclear energy.
• Socio-economic and environmental impacts: AREI social and environmental safeguards
must have been successfully applied with thorough and participatory analysis of possible
adverse impacts concluding these are minimal or non-existent.
• Meaningful engagement: The project includes stakeholder involvement, including civil
society and participation, and where required, consent of local communities from project
conception to implementation.
• Local socio-economic, environmental and/or other development co-benefits foreseen.
• Additionality: the project is enabled through additional efforts and would not have
happened otherwise and/or the AREI supported/attributed effor

Other Comments: 

Currently in the immediate establishment phase (2016–2017): Formal
initiation of the AREI activities, including resource mobilisation,
establishment of the governance and management structure
and initial identification of Phase I projects and programmes that
will be included in the pipeline.

Phase I (2017–2020): Assessments, preparations and critical
enabling and programmatic activities at the continental African
level as well as in a number of pioneering countries, setting the
basis for enhanced acceleration in Phase II. In cooperation with
bilateral and global partners, support for preparatory activities
for the renewable energy projects and incentives that will be
included in the pipeline. Achievement of at least 10 GW new and
additional generation capacity.

Phase II (2020–2030): Ambitious, full-scale roll-out of nationally
determined policies, programmes and incentives as initiated
under Phase I. Continuous project identifications, assessments
and revisions for further scaling-up across all renewable energy
applications. Mobilizing the potential of delivering at least 300
GW new and additional generation capacity.

Contact Information

http://www.arei.org/

Seyni Nafo, for the African Group of Negotiators, mimikaseyni@gmail.com

Last Updated: 
21.06.17
Download All Data
Sectors & Topics: 
Renewable Energy
Eligible Countries and Geographic Regions: 
Middle East & North Africa
Sub-Saharan Africa
Central African Republic (the)
South Africa
Active in Countries: 
Ethiopia