I recently took part in #skipthegrid, a social media forum about renewables, which has led me to ask: “Is off-grid the way of the future for energy Public-Private Partnerships (PPPs) in lower-income countries?”
At the Private Infrastructure Development Group (PIDG) we are supporting smaller, off-grid projects in the lowest income countries in Sub-Saharan Africa and South and Southeast Asia by mobilizing private investment for the provision of power to commercial off-grid properties and the construction of mini-grids.
On November 26, 2016, UN Secretary-General Ban-Ki Moon will convene the first-ever Global Conference on Sustainable Transport, in Ashgabat, Turkmenistan. What is at stake in this capstone two-day event? What fresh developments might it yield, and how might it change the dynamics for transport?
The new transport agenda. A number of earlier high-level events—including the UN Climate Action Summit, the OECD/International Transport Forum, and the Habitat III Conference—helped give a long-needed boost to the visibility of transport in the international arena in 2016. The events also helped position transport within the current set of global commitments that include the Sustainable Development Goals, the Paris climate agreement, the Decade of Action on Road Safety, and the Habitat III New Urban Agenda. The forthcoming Ashgabat event will put front and center one simple notion: for the next 15 years, the transport agenda will be framed by that set of global commitments. The commitments define the space within which governments, international organizations, the private sector, and civil society will have to act on transport. And they will dictate the future size and direction of transport funding.
This is a paradigm shift. Previously, the transport agenda was defined by the goal of providing access to transport infrastructure. Under the new framework, the international community has committed itself to much more. First, the issue is no longer simply access but equitable access for all. Second, other, equally important objectives have been added, including the efficiency and reliability of mobility services, transport safety, and decarbonization. In sum, the internationally accepted transport agenda concerns more than economic and social development; it is also about being part of the climate change solution.
Photo Credit: J Endres via Flickr Creative Commons
I’ve spent the last 18 years in Sub-Saharan Africa working with governments on making public-private partnerships (PPPs) work for their countries. My interest is not just professional. My wife is Cameroonian and we live with our children in Senegal. I love this region! So I have a deeply personal connection that drives me, and it is important that my work has a positive impact. But the countries I work in are typically very difficult for businesses and investors to operate in and tend to have regulatory systems and investment climates that dissuade private sector investment, which is critical for PPPs to succeed. So, even though it is personally rewarding, this is not an easy job.
In many ways, Indian leader Mahatma Gandhi was an early environmentalist. He believed in a self-sustaining life, walked everywhere, and even spun his own cotton yarn. If he were alive, he would been a huge supporter of India’s efforts to use its abundant sunshine to generate clean, sustainable energy.
Today, India’s climate change mitigation strategy bears the unmistakable stamp of the father of the nation. It has a goal of achieving a five-fold jump in renewable energy to 175 GW by 2022, the bulk of which - 100 GW - is expected to come from solar and 40% of that from rooftop solar alone.
Not surprisingly, this target was subject to much skepticism initially. Forget the quantum leap to 175 GW in seven years. At the time of the announcement, India was far from meeting its original target of 20 GW, because even just a few years ago, commercial banks considered solar a risky and ‘non-bankable’ technology.
Morocco, the host of COP22 happening this week and next in Marrakech, is an example of a country that is working closely with the World Bank and other organizations to shift its economy onto a low carbon development path.
It just submitted its official climate plan, or nationally determined contribution, NDC, where it pledges a 42% reduction below business-as-usual emissions by 2030. This is 10 percentage points more ambitious than it previously laid out, ahead of Paris, and we see the plan affecting a growing number of sectors in the economy. Morocco plans a $13 billion expansion of wind, solar and hydroelectric power generation capacity and associated infrastructure that should see the country get 42% of its electricity from renewable sources by 2020, ramping up to 52% by 2030.
To many people, it is a surprise to learn that in an age of such advanced technology, at least 663 million people still lack access to basic needs, like safe drinking water, or that 2.5 billion people lack access to sanitation, such as a toilet or latrine. And while much progress has been made, receiving safe drinking water 24 hours a day, seven days a week simply by turning a tap is still a dream for many in the developing world.
Even fewer realize this is not just a problem for families, but also for those on which families rely and that also need water: the farmers who grow the families’ food, the environment that protects and sustains their homes and communities, the businesses that employ them, the cities that house them, the schools that educate their children, the clinics and hospitals that treat them, and even the power plants that generate their electricity.
Why does this challenge persist? How can this challenge be met? And an increasingly urgent question: is there enough water to go around?
- Urban Development
- Social Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Financial Sector
- Climate Change
- Agriculture and Rural Development
- South Asia
- Sri Lanka
“If there is one thing that could really help my business, it would be reliable power supply,” said David, a small business owner in Lagos, on my recent trip to Nigeria.
“I agree. If only …,” echoed another.
And not without reason.
, the region with the second-lowest access rate. If we were to measure access to “reliable” electricity, then those numbers would be even more dismal.
Worryingly, the rate of access has been increasing at a mere 5 percentage points every decade, against population growth of 29 percent. If something is not done to dramatically change this trend, Africa will not see universal access to electricity in the 21st century. This is a seriously worrying prospect as the world races toward a 2030 deadline of universal access to electricity.
The target of achieving universal access by 2030 by the U.N.’s Sustainable Energy for All initiative and the billions of dollars committed by the U.S. government’s Power Africa plan underline the urgency of the situation. As a reminder,
So, are Africa’s utilities financially equipped to respond to this call?
The Organization of the Petroleum Exporting Countries (OPEC) unsettled oil markets in September when it announced it would resume placing limits on oil production among its members, effectively reversing two years of unrestrained production.
But how much control can OPEC really exert over prices? History suggests that formal agreements to influence the price of a particular commodity eventually fall apart. OPEC’s own history also shows that the short term benefits of managing supplies become long term liabilities. In addition, the oil producing landscape has changed dramatically in recent years with the advent of nonconventional producers, notably the U.S. shale oil industry. These factors will test the oil exporting organization’s power to influence markets.
Prices for most commodities, including oil, are forecast to rise in 2017 as a long period of declining prices appears to be bottoming out, according to the October Commodities Markets Outlook.
Oil prices are forecast to rise to $55 per barrel next year from $43 per barrel in 2016 as markets readjust after an era of abundant supply that outpaced demand. Energy prices, which also include coal and natural gas, are forecast to jump 24 percent in the coming year. The decision in September of the Organization of the Petroleum Exporting Countries (OPEC) to resume limiting oil production is another important factor behind the higher price forecast.