Financing Cogeneration And Smallhydro Projects In The Sugar And Tea Industry In East And Southern Af

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• Financing Cogeneration And Small-hydro Projects
  In The Sugar And Tea Industry In East And
  Southern Africa
• REEEP co-financed activity

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Introduction

• The REEEP funded initiative aims at addressing
  the financing barriers and risks that face
  agro-industries in selected African countries, in
  investing in Renewable Energy and Energy
  Efficiency Services (REEES)
• Important option as agriculture and
  agro-industries account for close to 50 of
  sub-Saharan Africas GDP and over 70 of
  employment
• Targeting 2 agro-industries (tea and cane sugar)
  and partnering with 2 parallel on-going UNEP/GEF
  projects Greening the Tea industry in East
  Africa (small hydro) and Cogen for Africa
  (Bagasse cogeneration)
• Could be replicated across wide range of
  agro-industries
• Wood/timber, pulp and paper
• Coffee, sisal, palm oil, tea, cocoa, tobacco, etc
• Countries covered Ethiopia, Mozambique,
  Tanzania, Uganda and Zambia

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Key Objectives

• Analyse, understand and build capacity for
  addressing the challenges associated with lending
  to the agro-industries for sustainable energy
  investments
• Strengthen networking among financial
  institutions interested in financing these
  sectors
• Key Activities
• Consultations with industry representatives
• Identify and analyze risks associated with
  financing of energy projects in the tea and sugar
  industries
• Develop mechanisms for overcoming financial
  barriers facing the sugar and tea sector in
  development of REEES units standard PPA
• Training and capacity building for key
  stakeholders

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Expected Outputs

• A set of financial and risk mitigation
  instruments accessible to the regions financial
  community, and sugar and tea industries that will
  facilitate REEES investments
• Training workshops on financing for energy
  projects in the Tea and Sugar industry, risk
  assessment and mitigation for financial
  institutions
• A mailing list of domestic, regional and
  international financial institutions and
  investors interested in financing REEES in target
  countries
• Reports and short articles on financial barriers
  facing the tea and sugar industries and options
  for overcoming barriers
• A website with information on the cogen and small
  hydro financing opportunities and tools for
  minimizing financial risks (www.afrepren.org/reeep
  /)

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Training Workshop Objectives

• To introduce participants to the two GEF
  REEEP-related Greening the Tea Industry in East
  Africa and Cogen for Africa initiatives.
• To introduce participants to the fundamentals of
  renewables and power sector issues
• To expose financial institutions representatives
  and sugar and tea industry representatives
  challenges, barriers and risks of financing REEES
  projects in the tea and sugar sectors
• To expose financiers to opportunities for
  financing REES in the agro-industries, as well as
  investors from the agro industries in the
  region to financing opportunities available from
  the financial institutions
• To provide a link and network between the
  financiers and investors

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Structure and Format

• Presentations to cover
• Small hydro
• Cogeneration
• Power sector reforms
• Risks and barriers to financing RE
• Financing options for RE
• Case examples of financing RE
• Interactive sessions and group discussions
  through out
• Sharing of knowledge based on wide range of
  expertise

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Discussion Groups

• Groups to discuss specific experiences on risks
  and challenges of financing RE
• Discuss most common risks
• Rank the 3 most common risks and provide
  justification for ranking
• Propose mitigation strategies for the risks

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Contacts

• Websites
• http//www.afrepren.org/reeep/
• http//cogen.unep.org
• http//greeningtea.unep.org