The Design of adapted Feed-in tariff for African countries


15-16 November 2010
(Side-event to the RERA Annual Conference – 17-19 November 2010)

Power reforms which aim to introduce more competition can foster the development of small-scale generation and open access for small-scale renewable generators (e.g. to distribution networks). But power reform is not enough to open the market to RET operators and needs to be complemented by explicit, long-term, stable and consistent RET policies and regulation. After numerous RET pilot projects launched in the 1980s and 1990s, there seems to now be quite a wide consensus on what needs to be done to lead to the massive diffusion of RET.

The large-scale diffusion of on-grid RET in a country is facilitated by the appropriate institutions and policies/legislation. An accurate assessment of the resources, a stable regulatory framework, transparent planning procedures and clear rules of connection to the grid are needed to reduce risk for investors and upscale RET.

This event will present state-of the art of tools that exist for implementing RET; it will deal on how it is possible to assess the resource today with simulation tools and costs of RET; It will present lessons that can be taken to diffuse RET at very large scale. It will focus particularly on the implementation of one of the most successful mechanisms existing to support on-grid RET: the feed-in tariff.

More than 40 countries have adopted a feed-in tariff. Among them are a number of developing countries that have recently adopted some sort of FIT. African countries like Mauritius, Kenya and South Africa have introduced such feed-in tariffs. Nigeria, Botswana, Namibia and Uganda are also considering adopting similar measures.

Designed carefully, feed-in tariff laws are one the most cost-effective measures to support RET. But in the case of developing countries, there is a need to balance conflicting priorities, especially when it comes to national development objectives such as health, education, employment etc., whereby environmental issues can often be considered as secondary. Therefore the complementary benefits that renewables can bring and the cost of mechanisms to support these technologies need to be weighed up.

The workshop will examine how a FIT can be designed, take case studies of successful feed-in laws and less effective FIT and then try to determine how effective FIT can be implemented in the particular context of African countries, notably to cover both on-grid and off-grid (Regulated Purchase Tariff) technologies. This event will give participants the possibility to work on the concrete implementation of adapted FIT in their own country.
Expected outcome

To give an up-to date overview of on-grid regulation for RET with existing toolkits and internet resources including uses, concepts and methodologies to adapt these tools to each country’s specific circumstances.

Participants will be provided with reading materials one month prior to the workshop, in order to facilitate the collection of existing pieces of legislation and energy surveys in their own country and in order to prepare themselves to be able to work on the implementation of adapted regulation during the workshop. Participants will get access to a website with the proceedings of the workshop and all the relevant materials and links needed to build consistent RET policies and regulation back in their country. Participants will also have contact with consultants for the implementation of relevant RET strategy and FIT.
Who should attend

Regulatory bodies and energy administrations from Southern and English-speaking African countries; Consultants from Southern and English-speaking Africa countries; Decision-makers directly involved in renewable energy projects.

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