Clean Energy

In partnership with the US Embassy in Botswana, the Trade Hub sponsored eight renewable energy companies from Botswana, Mozambique, Namibia, South Africa and Zambia to attend the Solar Power International Conference and Exhibition held September 10-14, 2012 in Orlando, Florida. The purpose of the trip was to encourage investment in Southern Africa's clean energy industry. To that end, the delegation met with US suppliers, distributors and manufacturers of solar energy products and services in order to develop linkages and draw attention to solar power investment opportunities in the region.

Electricity regulators are playing a crucial role in the promotion and development of clean energy investment for economic growth, job creation, electricity trade, and transfer of technical expertise in the SADC region. Trade Hub is supporting the development of a five-year strategic plan for the Regional Energy Regulators Association (RERA) for the period 2013 to 2017, which will outline strategies to help member regulators build policy, human and institutional capacity to lead regulatory reform. Energy Regulators have the potential to create an enabling environment for Independent Power Producers (IPPs) to invest in renewable energy by creating a transparent and predictable renewable energy regulatory framework, among other measures.

The Southern Africa Trade Hub and the U.S. Embassy in Gaborone, Botswana supported a   delegation of eight renewable energy companies from Botswana, Zambia, Namibia,  Mozambique and South Africa to attend the Annual Solar Power International 2012 Conference on September 10-14 in Orlando, Florida. Solar Power International (SPI) is the premier global solar energy conference and expo, designed to serve and advance the solar power industry.

These companies joined more than 21,000 attendees at the industry's largest, most comprehensive solar energy event in North America. The keynote speaker at this weeklong event was former U.S. President Bill Clinton, who expressed his commitment to supporting the expansion and use of solar and renewable energy—both in the U.S., and
in the world's emerging and frontier market regions.

The Southern Africa delegation included Solar Power, the oldest company dedicated to natural resource development in Botswana; BPC Lesedi, which removes barriers to the utilization of renewable and clean energy in Botswana; Energy Systems Group, a prominent supplier and installer of solar systems in Botswana, Alternative Energy Systems,  one of the leading suppliers and installers of solar electrical systems in Namibia;  and AE-AMD Renewable Energy, a South African company that identifies, evaluates, develops and operates renewable energy power plants. AE-AMD is currently building 10-megawatt and 20-megawatt plants in South Africa and has an over 60-megawatt pipeline for the next three years.

During the conference and exhibits, the executives from Southern Africa met with U.S. suppliers, distributors and manufacturers of solar energy products. Specifically, the executives met with Quanta Power Generation Group, which has resulted in discussions with AE-AMD for engineering, procurement, and construction services. In addition, discussions are already underway with ASP, a PV module manufacturer in the U.S. The Southern African executives identified suppliers of solar storage and are in advance discussions with Africa Energy Group in the U.S. to procure the solar systems. The executives also met in a special session with the U.S. Department of Commerce's International Trade Administration and the U.S. Export-Import Bank.

There are many resources available to U.S. firms that are interested in exploring untapped market opportunities in Africa. For example, recently OPIC approved up to $250 million for the agency's first solar power project in South Africa, a 60-megawatt plant that will help diversify the country's electricity generation beyond its heavy coal concentration and in the process displace approximately 140,000 tons of greenhouse gas emissions in its first year alone. The OPIC financing will enable two U.S. companies, MEMC Electronic Materials and its subsidiary SunEdison, to construct and operate a solar photovoltaic plant in South Africa's Free State province. All electricity generated by the plant will be sold to the national grid through a power-purchase agreement. Coal-fired plants currently produce 84 percent of South Africa's electrical generation capacity. MEMC, based in St. Peters, Missouri, is a major global manufacturer of PV wafers and related products for the semiconductor and solar industries. Through its SunEdison subsidiary acquired in 2009, MEMC is also a developer of solar power projects and is a leading solar energy services provider.

ORLANDO -- Eight solar power firm owners and operators from five Southern African countries attended the Solar Power International (SPI) conference in Orlando, Florida last week. Firm owners from Botswana, Zambia, South Africa, Mozambique and Namibia met with potential U.S. technology and investment partners, heard from industry experts on the state of the industry, and checked out the latest products on the market from the more than 1,200 exhibitors at the conference. Working with Maryland-based Elan International, the delegates' attendance at the conference was facilitated by the U.S. Embassy in Botswana and the U.S. Agency for International Development's Southern Africa Trade Hub.

For the U.S. Embassy in Botswana, getting the delegates to the conference was a win-win: southern African firms are increasingly seeking to grow their industry in their home countries, and at the same time, the solar industry in the U.S. — and America's economic recovery — is being driven in large part by exports. Africa is an open market for U.S. goods and services, and American firms are keenly interested in finding the right contacts with potential African partners.

The African delegates went to SPI ready to find U.S. partners and make new deals. Tamuka Kaseke, of South Africa's AM-AMD Independent Power, for example, has recently been licensed by the South African government to develop a 30-MW solar project with other projects in the pipeline, and he's now looking for an opportunity to buy solar components for his solar parks. Clearly impressed with American design, technology, and yes — prices — Kaseke has talked with dozens of exhibitors and learned about financing options from The U.S. Export-Import Bank, among others. "I love what I'm seeing here," he said.

The three delegates from Botswana were equally impressed. Felix Chavaphi, who owns the Botswana firm, Energy Systems, observed, "At this conference I'm seeing the state of the art." But he qualified the remark: "I have been surprised at how few Africans are here. Africa represents a new, potentially important market for solar products. Many African governments and private sector partners are ready to buy, and policies such as feed-in tariffs are being developed. Yet it doesn't seem the solar industry here has many African partners yet. I feel privileged because I'm getting a lot of attention here."

The group was the first U.S. Government-sponsored delegation to attend SPI from the Southern African region, which represents a market of more than 277 million people.

Thirty participants from eleven countries attended the Second Regulatory Practitioners Training Course in Namibia from July 16-20, 2012. The training was sponsored by SATH, and held in collaboration with the Regional Electricity Regulators Association (RERA) and the Electricity Control Board (ECB) of Namibia. The objective of the training was to enhance the capacity of regulatory institutions and regulators to promote and deploy clean energy in the region.

The main objective of the course was to enhance the knowledge and skills of commissioners and board members on the key concepts of electricity sector regulation and the critical role of renewable energy in enhancing the security of supply and minimizing the destabilizing effects of climate change. Electricity and energy regulation agencies in the region have a critical role to play in driving energy sector reforms and promoting private sector investment in the energy sector.

Energy regulatory agencies have a crucial role to play in promoting investment in renewable energy production to increase energy supply and bring down costs. To do so effectively, energy regulatory practitioners need to build capacity to develop appropriate policies, regulations and practices.