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Financing Clean Energy Access in Sub-Saharan Africa : Risk Mitigation Strategies and Innovative Financing Structures.

Bibliographic Details
Main Author: Michoud, Bruno.
Other Authors: Hafner, Manfred.
Format: eBook
Language:English
Published: Cham : Springer International Publishing AG, 2021.
Edition:1st ed.
Series:SpringerBriefs in Energy Series
Subjects:
Electronic books.
Online Access:Click to View
Table of Contents:
  • Intro
  • Foreword
  • Acknowledgements
  • Contents
  • About the Authors
  • 1 Introduction
  • References
  • 2 Energy Access in Sub-Saharan Africa: General Context
  • 2.1 The Importance of Energy
  • 2.1.1 The Root Causes of Energy Poverty
  • 2.1.2 Energy, Welfare and Economic Development
  • 2.1.3 Climate Change and Price Volatility
  • 2.1.4 Health and Gender Considerations
  • 2.2 The Financing Gaps
  • 2.3 Current Investment Trends
  • 2.3.1 Electricity Access
  • 2.3.2 Clean Cooking
  • References
  • 3 Risk Analysis and Mitigation Strategy Identification
  • 3.1 Investment Opportunities in the Clean Energy Sector
  • 3.1.1 Stand-Alone Systems
  • 3.1.2 Mini-Grids
  • 3.1.3 Medium- and Large-Scale Power Generation Plants
  • 3.1.4 National Grid
  • 3.1.5 Clean Cooking Systems
  • 3.2 Identification of Core Stakeholders
  • 3.2.1 Capital Providers
  • 3.3 Identification of Investment Risks
  • 3.3.1 Investment Risks
  • 3.3.2 Risk Management as a Dynamic and Context-Dependent Process
  • 3.3.3 Risk Definition
  • 3.3.4 Risks Associated with Investment Opportunities
  • 3.4 De-risking Strategies and Risk Mitigation Actions
  • 3.4.1 Four Different Spheres of Interest
  • 3.4.2 Risk Mitigation Strategy Identification
  • References
  • 4 Public Policies and Initiatives in the Energy Sector
  • 4.1 The Importance of Energy Policies
  • 4.2 National Energy Planning
  • 4.3 Public Sector Initiatives
  • 4.3.1 Governance and Management Practices
  • 4.3.2 Market Information
  • 4.3.3 Standards of Quality
  • 4.3.4 Administrative Procedures
  • 4.3.5 Pipeline Facilities
  • 4.3.6 Capacity Building
  • 4.3.7 Awareness Campaigns
  • 4.3.8 Rural Energy Agencies
  • 4.3.9 Grid Arrival and Access to the National Grid
  • 4.4 Utility Reform
  • 4.5 Tariff Setting
  • 4.5.1 Mini-Grids
  • 4.5.2 National Grid
  • 4.6 International Cooperation and Partnerships
  • 4.6.1 Regional Power Pools.
  • 4.7 Fiscal Incentives
  • 4.8 Subsidies
  • 4.8.1 Subsidies in the Clean Energy Sector
  • 4.8.2 Subsidy Reform
  • 4.9 Priority Sector Lending
  • 4.10 Obstacles and Opportunities for a Fast and Comprehensive Implementation-The Political Economy of Policy Implementation
  • References
  • 5 Direct and Indirect Investments in the Energy Sector
  • 5.1 The Role of Public Finance
  • 5.2 Traditional and Alternative Financial Instruments
  • 5.2.1 Grants
  • 5.2.2 Debt-Like Instruments
  • 5.2.3 Equity-Like Investments
  • 5.3 Special-Purpose Investment Vehicles
  • 5.4 Alternative Financial Structures
  • 5.4.1 Blended Finance
  • 5.4.2 Crowdfunding Platforms
  • 5.4.3 Structured Finance
  • 5.4.4 Financial Structures for Large and Complex Energy Projects
  • References
  • 6 Capital Markets for the Financing of Clean Energy Access in Sub-Saharan Africa
  • 6.1 Green Bonds
  • 6.1.1 Other Financing Opportunities in the Bond Markets
  • 6.2 A Price on Carbon: Carbon Pricing and Carbon Finance as Sources of Capital
  • 6.2.1 Clean Development Mechanism (CDM)
  • 6.2.2 Voluntary Carbon Markets (VCMs)
  • 6.2.3 Carbon Market Shortcomings
  • 6.3 The Financial Sector and Capital Markets in Africa
  • 6.3.1 The Development of Capital Markets
  • 6.3.2 African Banking Systems
  • References
  • 7 Risk Mitigation Instruments Targeting Specific Investment Risks
  • 7.1 Guarantee Instruments and Insurance
  • 7.1.1 Guarantees Issued by Governments
  • 7.1.2 Political Risk Guarantees and Insurance
  • 7.1.3 Credit Risk Guarantees
  • 7.2 Currency Risk Mitigation
  • 7.3 Liquidity Risk Mitigation
  • 7.3.1 Public External Liquidity Facilities
  • 7.3.2 Liquidity Guarantees
  • 7.3.3 Internal Liquidity Facilities
  • References
  • 8 Business Model Adaptation
  • 8.1 Strategies for Risk Transfer
  • 8.2 Strategies for Risk Avoidance and Compensation.
  • 8.2.1 Customer Risk in the Off-Grid and Clean Cooking Sectors
  • 8.2.2 Power Utilities and Low-Income Households
  • 8.2.3 Political Risk
  • 8.2.4 Strategic Partnerships
  • 8.2.5 Operational Risk
  • 8.2.6 Social Acceptance Risk
  • 8.3 External Consulting
  • References
  • 9 The Role of Multilateral Agencies and Development Banks
  • 9.1 Capacity Building, Technical Assistance and Advisory Services
  • 9.1.1 Public Sector
  • 9.1.2 Project Developers
  • 9.1.3 Financial Institutions and Capital Providers
  • 9.2 Direct Investments
  • 9.3 Mobilisation Tools
  • 9.4 Stakeholder Engagement and Management
  • 9.5 Business Model Evolution
  • References
  • 10 Conclusions and Policy Recommendations
  • 10.1 Creating an Enabling Investment and Business Environment
  • 10.2 Improvement of Risk-Reward Profiles of Investment Opportunities
  • 10.3 Deployment of Mechanisms Aimed at Catalysing Private Capital
  • 11 Further Areas of Work
  • 12 Annex
  • 12.1 Annex 1: Definition of the Tiers of the Multitier Framework (MTF) Initiative
  • 12.2 Annex 2: Population With Access to Electricity and Clean Cooking In African Countries
  • 12.3 Annex 3: Risks Associated With Investment Opportunities and Stakeholders
  • 12.4 Annex 4: De-risking Matrix
  • 12.5 Annex 5: Carbon Tax and Emission Trading Systems (ETS)
  • 12.6 Annex 6: MSCI Market Classification Framework and Requirements
  • References.

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