Driving Africa’s Transformation

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  The African Renewable Energy Initiative (AREI), launched in 2015 by the African Union (AU), is an Africa-owned and led effort to harness the continent’s huge renewable energy potential. Under this initiative, Guinea is seeking to become the number one provider of renewable energy in West Africa, with an installed capacity potential of more than 6,000 MW. In order to achieve its goal, Guinea will need reliable partners, one such being China, which has positioned itself as a result-focused champion for Africa’s green energy ambitions.
  Ahead of the 22nd Conference of Parties (COP22) to the United Nations Framework Convention on Climate Change in Marrakech, Morocco, Paulo Gomes, special advisor to the Guinean President Alpha Condé, spoke to ChinAfrica reporter liu Jian in Beijing on how China-Africa renewable energy cooperation can help transform the continent.
  ChinAfrica: Do you think renewable energy can help Guinea and West african countries better address some of their development challenges?
  Paulo Gomes: Yes, totally. Energy is indispensable for growth. The IMF this year is forecasting 5 percent growth in Guinea, despite the impact of Ebola last year, and I think this growth, to a large extent, has been possible thanks to the investment that Guinea has made in renewable energy by building the Kaleta Dam with part of the loan [needed for this project coming] from China. So the impact of energy trickles down in many sectors. Not only [for] the mining sector [and] agribusiness, but also [for] the lady who is in her house in Conakry [cooking] for her family, having predictable and cheap energy is very important. So the impact on the development and even on women and families is [huge], [and] we believe it’s probably the entry point for African transformation.
  What are your expectations for longerterm China-africa cooperation in the renewable energy sector?
  I think the investment of Chinese companies in solar energy has enabled many African countries to have access to solar energy at a cheaper cost. The agreement to be signed during the COP22 in Marrakech between China and Africa in term of renewable energy is a commitment [of the Chinese] President Xi Jinping to support African countries in terms of developing renewable energy, so we are quite excited to see the involvement of China in renewable energy.
  I think the whole world will gain if Africa gets seriously into renewable energy. As you know, African population is growing in the next couple decades, and if Africa starts polluting the way most of the world has polluted so far, it will have an enormous impact on the planet. It’s a cost for Africa, because we could develop much faster if we also used fossil fuel for industry, but I think there is commitment [on the part of] Africa to go for an industrialization process with green energy. It’s difficult, it’s expensive, but I think it’s a price Africa is willing to pay in partnership with others, and the technology and knowledge of China will be very useful for that process.   One of the objectives of the aRei is to install large-scale renewable energy capacity in africa by 2020. How far advanced are we to achieve this?
  As you know, the initiative has been fully approved by the AU. President Alpha Condé [of Guinea], [who] is now the coordinator of the initiative, Madam Nkosazana Dlamini-Zuma, who is the chairperson of the AU, and President [Akinwumi] Adesina from the African Development Bank [will] soon have an initial meeting [with the goal of] having the initiative fully operational by the end of the year.
  Once [we] do that, we believe it will be possible to start gathering resources to speed up some of the main regional projects in the renewable energy [sector]. There have been many [speeches] and conferences, [but] now it’s time to go straight to the jungle and start implementing some of the projects, and there are some very good projects in West Africa.
  What are some of the projects of the aRei and where will it source the sizable funding needed to achieve the 2020 target?
  You have, for example, [the] Sambagalou[hydroelectric power plant in Senegal], in West Africa, that will have not only a good impact in terms of producing and providing more renewable energy to a couple of countries, but also some collateral positive effects on agriculture.
  The initiative will basically [focus on] co-funding some of the projects, providing guarantees, or beefing up the preparation of some of the projects[so that they have] a bigger impact at the regional level. So we expect [the AREI to be] nimble and quick in co-financing some of the projects. I don’t think the initiative will be able to do it alone, because some projects require a sizable amount of money, but China has basically agreed to support the AREI in terms of providing guarantees and [facilitating] project preparation, and this is something that will be discussed in December, after the COP22 in Marrakech.
  What are the nature and the benefits of the cooperation between the aRei and China’s renewable energy industry?
  The AREI will sign a memorandum of understanding [with the International Cooperation Center of China Renewable Energy Society] and the China-Africa Alliance of Renewable Energy Industries (CAAREI) will be established soon. There are some very important members in the alliance. I think in December we will have more clarity on the nature of that relationship, but we have received a commitment from China [that it will be] an important player supporting African renewable energy.   The benefit [of the cooperation] is to be able to increase capacity and potential in a country such as Guinea[with] 6,000 MW. We require some funding and there are opportunities to build six or seven sizable dams with regional impact. [Another benefit] is to move quickly into implementation and not waste a lot of time on project preparation, [and] speed up the goals of having a sizable part of African energy through renewable energy by 2020.
  What are some of the things that the CaaRei can bring to Guinea?
  [The first thing is] capital, because China is committed to put resources behind some of these projects, whether it’s equity or debt. [Secondly,] I would say, access to technology in a speedy manner. We have also been surprised to see the number of players in [China’s] solar energy [industry], there are some very [big] ones, if you [look at] companies like [State Grid Corp. of China], which is also a member of the alliance. As you know, the distribution is very important, it is not [enough] to produce energy, but it is also [essential] to be able to distribute the energy, even in rural areas. So the issue of grid and smart grid [will] be very important for Africa in the next few years.
  What are some of the advantages that set China apart as a partner?
  I think it’s the predictability, the speed, and the commitment of the China relationship. These aspects are something you would find quite easily when you come and engage with Chinese partners. Sometimes those types of reform or commitment around climate change are also a matter of agenda, so you need a partner who will understand and has the ability to go in a speedy way to provide the support.
  The type of financial resources you can get from China at this point is an important element for Africa to further[tap] into its renewable energy. It requires some negotiations, and Chinese are tough negotiators, but I think [it is a] partner you can rely on to keep the momentum in this sector.
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