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ECOWAS Status Report

RENEWABLE ENERGY AND ENERGY EFFICIENCY STATUS REPORT 2014 | 67 By technology, large hydropower remains the dominant non-fossil fuel energy source in the region, with an estimated 10.5 GW of new capacity in the pipeline, representing 90% of the total (See Figure 18.)7 Of other renewables, an estimated 397 MW of wind capacity is expected to be added, followed by small- hydropower (≤ 30 MW) (282 MW), modern biomass (258 MW), and solar (234 MW).8 By Member State, Côte d’Ivoire is the ECOWAS leader in biomass pipeline capacity, at 60 MW, Ghana is the leader in anticipated solar development (162.9 MW), and Nigeria is the leader in anticipated wind (191.2 MW) and small hydro (91.5 MW).9 The international renewable energy market is becoming an increasingly attractive sector for a host of public and private investors. Overall, consolidated, reliable data on investments in the renewable energy sector is not available for all 15 member states. However, analysis by Bloomberg New Energy Finance of six leading ECOWAS Member States—Côte d’Ivoire, Ghana, Liberia, Nigeria, Senegal, and Sierra Leone — indicates a variable flow of investment into the region (See Figure 19.) Within these six Member States, investments in new renewable energy totalled USD 29.7 million in 2013, down significantly from the high of USD 370 million in 2011.xxiv,10 Overall, in places where investment has been tracked, countries have seen a sporadic flow of financing to renewable energy development. Globally, private finance plays an important role in renewable energy development. Within ECOWAS, incentivising private participation in the sector has been one of the key priorities for policymakers. Although data on private finance flows is not widely available across the region, an analysis of projects shows that it has played a key role in the development of installations such as the Cabeolica Wind Farm in Cabo Verde (See Sidebar 4.) The public sector has also played an important role in funding renewable energy development, with national governments, international development partners, and multilateral development banks having all allocated funds to energy sector development in the region. As demonstrated, a number of Member State governments are already supporting the renewable energy sector by providing financial incentives and/or public financing to project development. (See Chapter 4.) In addition to government support, renewable energy has become a key component of the lending activity of international and regional development banks. One of the continent’s leading public development institutions, the AfDB, has a large energy sector portfolio and is increasingly active in West Africa. Regionally, West Africa received USD 1.54 billion (Unit of Account (UA) 991 million), or 27.8 % of total loans and grants approved by the AfDB in 2013, of which infrastructure investments—including energy, water and sanitation, and transportation—accounted for nearly USD 500 million, or 31.9 percent.13 Overall, energy accounted for 16% of the bank’s loan and grant activity over the same period.14 All ECOWAS Member States (with the exception of Cabo Verde) are eligible for the AfDB’s African Development Fund (ADF) concessionary window.15 Other multinational lending institutions, such as the World Bank and the European Investment Bank, have made the development of Africa’s sustainable energy sector an important priority. FIGURE 18 | Renewable Energy Capacity in the Pipeline in the ECOWAS Region, by Technology Source: Africa-EU Energy Partnership xxiv. Investment figures include total investments in renewable energy technologies greater than 1 MW. Figures exclude hydropower greater than 50 MW. Large Hydro 90% Other Renewables 10% Solar Biomass Small Hydro Wind 2% 2% 3% 3% 05INVESTMENT REGIONAL FINANCING SOURCES

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