Development of Wind Energy in Africa

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Development of Wind Energy in Africa ( development-wind-energy-africa )

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markets have been developing in Africa. There are two key objectives: provide a mapping of wind energy potential and projects developed on the continent so far; and identify impediments hindering further development of wind energy markets on the continent. We use a hand-collected sample of 94 wind projects in Africa to perform what we believe is the first continent-wide mapping for the markets. The paper is structured as follows: Section 2 provides an overview of the continent’s wind potential and installed capacity. Section 3 provides a micro picture of the sector by mapping wind energy projects, describing their main characteristics and financing sources, and identifying incentives that have been established to promote the sector. In section 4, physical, technical and economic peculiarities that prevent African countries from harnessing their wind energy potential are examined. Section 5 is a conclusion of the discussions in the paper and also provides policy recommendations. 2.0 Africa’s Wind Energy Market: Setting the Stage To contextualize the development of the wind market in Africa, it is important to set the backdrop against which projects are being developed. This includes mapping of locations with wind resources and the size of potential output, reviewing the electricity generation mix for currently installed capacity, as well as assessing the outlook of the industry. The mapping of potential is important to establish the upper limits of wind energy development on the continent. These limits are most meaningful when cast against existing technologies and other important considerations in wind energy development. While multiple dimensions exist on which wind energy potential could be defined, we adopt for the purposes of this paper, a characterization based on the technical wind energy potential for African countries. This approach takes into consideration the physical upper limit given observed wind speeds, technological efficiency, and other structural and ecological restrictions5. We defer to section 4 the discussion on soft constraints to wind energy development such as legislative restrictions and limited competition in the energy markets. Using a technical feasibility method based on technologies available in 2005, Buys et al. (2007)6 find that eight African countries, namely; Somalia, Sudan, Libya, Mauritania, Egypt, Madagascar, Kenya and Chad have large on-shore wind energy potential (Figure 2.1). Mauritania’s potential, for example, is about four times its annual energy consumption in tons of oil equivalent, while Sudan’s is equivalent to 90% of its annual energy needs. Yet, there is variability in terms of geographic location of wind potential across countries. In particular, the study finds that five additional African countries – Mozambique, Tanzania, Angola, South Africa and Namibia – have potentially large off-shore wind energy resources (Figure 2.2). 5 Wind potential could be (i) theoretic: the physical upper limit of an energy resource, (ii) conversion: theoretic capacity accounting for technology efficiency, (iii) technical: conversion capacity accounting for other technological, structural and ecological restrictions (iv) economic: technical capacity which is economically feasible (Teske et al 2011). 6 Buys et al. (2007) estimate potential electricity generation from renewable energy resources based on a geo-referenced database of energy indicators from a variety of sources. A key merit of this database is that it adopts a standard unit of measurement – million tons of oil equivalent (mtoe) – which makes estimates ideal for comparison of potential across energy types. 2

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