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Energy and Power Africa



                    Cornelis van der Waal
                 Business Unit Leader - Africa




Sponsored by:
                                                 We Accelerate Growth


                                                                    1
Africa – Did you know ?

      $1 trillion              60%            30%          7 000MW
        Needed over            The % of     Of Africa’s        Is needed
         the Next 20            Africa’s    Electricity       Every Year in
        Years to Meet         Population    Demand is        Africa to Meet
        Africa’s Power         without       from the            Growth
           Demand             Electricity     Mining            Demand
                                Access         Sector
        > 1%
Africa’s Share of Global RE            250MW                9%                13%
    Investment in 2011                     Is the          Average     Africa Accounts
                                        Additional        Growth in    for 13% of the
                                      Cogeneration         Genset          World's
                                       Planned for        Rental On    Population, but
                                      Africa by 2016         the        Accounts for
                                                          Continent      Only 5% of
                                                                        Global Energy
                                                                        Consumption

                                                  13%                 5.5%
                                                Of the Global       Average
                                              Hydro Potential      Economic
                                              is in Africa (Less    Growth
                                              than 20% of this     Across the
                                                Developed to       Continent
                                                    Date)
So What will Shape this Market?




                      Energy and Power




                                         3
A number of countries have been identified as high potential
  growth areas

            Medium Term Country Opportunity Outlook (Africa), 2012-2017

                          Morocco


                                  Algeria           Libya     Egypt
     Western Sahara

         Senegal Mauritania
                                 Mali       Niger    Chad
       Gambia                                                     Sudan
Guinea Bissau
            Guinea                      Nigeria
 Sierra Leone                                                             Ethiopia
                                                     CAR
                     Liberia   Ghana
                                   Benin                                             Somalia
        Burkina Cote D’Ivoire   Togo                        DRC            Kenya
        Faso                  Cameroon
                                                                               Uganda
                         Equatorial Guinea                          Tanzania
                         Republic of Congo
                                       Gabon      Angola
                                                            Zambia
                                                                                               Current RE Mix in Africa (2011)
                                                                               Mozambique
                                              Namibia
     High Growth                                                             Zimbabwe

                                                                          Botswana
   Medium Growth                                     South Africa



     Low Growth                  * Electricity development driven by
                                 mineral resources

                                                                                                                                 4
The Current Level of Electrification is a Good Indicator of
Economic Expansion Realities in the Medium Term


            Levels of Electrification in Selected African Countries




 High Electricity Access

 Medium Electricity Access

 Low Electricity Access



                                                                      5
Energy Demand and Supply Analysis – Where are the Gaps?




      3000                                                                                25%

      2500
                                                                                          20%

      2000
 MW                                                                                       15%     %
                                                                                                 Growt
      1500
                                                                                                   h
                                                                                          10%
      1000

                                                                                          5%
      500

        0                                                                                 0%




      Energy Deficit in MW   Electricity Demand
                             Percentage Growth for
                             2011                      Note: South Africa's existing power infrastructure
                                                                    is in need of significant maintenance



 Africa’s fast growing markets have significant deficits in their electricity supply, a
               gap which is necessary to fill to fuel its economic growth


                                                                                                         6
Where are the Key Projects?


            22,000 MW of renewable                                                            7,200 MW of
           energy (solar and wind) to                                                         wind power
          be developed between 2011                                                            generation
                   and 2030                                                                     capacity

                                     Morocco
                                                     Algeria


                                                                           Egypt
  2,000 MW Wind
  Power Plant and
  2,000 MW Solar                                                                                1,800MW Gibe III
    Power Plan                                                                                  is currently under
                                           Nigeria                                 Ethiopia        construction
                                                                Mediterranean
                                                               Solar Plan (MSP)       Kenya
                                                                 and Desertec
                                                                 (DII) are the
         650MW combined                                         driving seat for
          cycle gas plant                                       the renewable
              (CCGT)                                            energy growth




                      World’s 3rd
                          largest
                    supercritical coal                           South Africa                                    428km
                                                                                                             transmission
                       fired plant
                                                                                                              line project



                                                                                                                         7
RE Planned Growth


             Installed Capacity 2011                                              Planned Capacity by 2020
                                                                                            Kenya, 1 852
                  Algeria, 29   Kenya, 250                                                                   Ethiopia, 857
                                                                       Algeria, 4 600                           Tanzania, 274
                                       Ethiopia, 14                                                          Uganda, 114
                                                                                                                Rwanda, 104
                                          Tanzania, 32
Egypt, 567                                   Uganda, 56                                                         South Africa,
                                           Rwanda, 7                                                               6 000
                                         South Africa,
                                             10                    Egypt, 7 350

                                     Morroco, 300
                                                                                                     Morroco,
              Tunisia, 115                                                          Tunisia, 650      4 000



                 1,380 MW                                                            25,800 MW

         Wind                                 Solar           Geothermal                            Biomass



                             >                            >                        >
                                                                                                                           8
Distributed Power and Africa – The Next Best Thing?



                                                                                             Key
  Installed Power Rental (2011)
              70MW                                                                         Suppliers
                                                           Installed Power Rental (2009)
                                                                       100MW
                                                           New Equipment Sales (2009)
                                                                    $13.9 Million




                                                       Installed Power Rental (2011)
       New Equipment Sales (2009)
                                                                   408MW
              $900 Million
                                                       New Equipment Sales (2009)
                                                                 $16 Million




                Installed Power Rental (2012)
                                                           New Equipment Sales (2009)
                            393MW
                                                                  $14.5 Million
                New Equipment Sales (2009)
                         $101.8 Million

                                                New Equipment Sales (2011)
                                                      $164.3 Million




                                                                                                       9
South Africa in Focus


  South Africa – Focus                          Renewable Energy:
                                                17GW by 2030
                                                Solar: PV and CSP a combined target
        Eskom 5 year $40 billion                of 9.4GW
                                                Wind: 8.4GW target with a key focus
           Investment Budget -                  on localisation
                                                Other: 1000MW of small hydro,
                          13% Transmission      municipal waste to energy and
                           55% Generation       biomass
                           13% Distribution
                               New IPP’s Licenced in 2012:
                                 8% Other

           2030 - 9.6GW Added 31 RE Projects
                       Nuclear 3,725biddingup for allocation at present with
                               more
                                    MW is
                                            rounds expected shortly
           In excess of $50 billion expected
                                 before 2025
                 Significant opportunity for
                                                Distribution Backlog (2012):
               nuclear equipment suppliers      $4.3 Billion
            Significant opportunity for local   Poor infrastructure management the past 15
                             manufacturers      years has created a significant opportunity
                                                Key focus on transformers, switchgear, smart
                                                metring and cables




                                                                                               10
Conclusions




              11

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Gil 2012 Africa Mega Trends Africa Energy & Power by Cornelis van der Waal

  • 1. Energy and Power Africa Cornelis van der Waal Business Unit Leader - Africa Sponsored by: We Accelerate Growth 1
  • 2. Africa – Did you know ? $1 trillion 60% 30% 7 000MW Needed over The % of Of Africa’s Is needed the Next 20 Africa’s Electricity Every Year in Years to Meet Population Demand is Africa to Meet Africa’s Power without from the Growth Demand Electricity Mining Demand Access Sector > 1% Africa’s Share of Global RE 250MW 9% 13% Investment in 2011 Is the Average Africa Accounts Additional Growth in for 13% of the Cogeneration Genset World's Planned for Rental On Population, but Africa by 2016 the Accounts for Continent Only 5% of Global Energy Consumption 13% 5.5% Of the Global Average Hydro Potential Economic is in Africa (Less Growth than 20% of this Across the Developed to Continent Date)
  • 3. So What will Shape this Market? Energy and Power 3
  • 4. A number of countries have been identified as high potential growth areas Medium Term Country Opportunity Outlook (Africa), 2012-2017 Morocco Algeria Libya Egypt Western Sahara Senegal Mauritania Mali Niger Chad Gambia Sudan Guinea Bissau Guinea Nigeria Sierra Leone Ethiopia CAR Liberia Ghana Benin Somalia Burkina Cote D’Ivoire Togo DRC Kenya Faso Cameroon Uganda Equatorial Guinea Tanzania Republic of Congo Gabon Angola Zambia Current RE Mix in Africa (2011) Mozambique Namibia High Growth Zimbabwe Botswana Medium Growth South Africa Low Growth * Electricity development driven by mineral resources 4
  • 5. The Current Level of Electrification is a Good Indicator of Economic Expansion Realities in the Medium Term Levels of Electrification in Selected African Countries High Electricity Access Medium Electricity Access Low Electricity Access 5
  • 6. Energy Demand and Supply Analysis – Where are the Gaps? 3000 25% 2500 20% 2000 MW 15% % Growt 1500 h 10% 1000 5% 500 0 0% Energy Deficit in MW Electricity Demand Percentage Growth for 2011 Note: South Africa's existing power infrastructure is in need of significant maintenance Africa’s fast growing markets have significant deficits in their electricity supply, a gap which is necessary to fill to fuel its economic growth 6
  • 7. Where are the Key Projects? 22,000 MW of renewable 7,200 MW of energy (solar and wind) to wind power be developed between 2011 generation and 2030 capacity Morocco Algeria Egypt 2,000 MW Wind Power Plant and 2,000 MW Solar 1,800MW Gibe III Power Plan is currently under Nigeria Ethiopia construction Mediterranean Solar Plan (MSP) Kenya and Desertec (DII) are the 650MW combined driving seat for cycle gas plant the renewable (CCGT) energy growth World’s 3rd largest supercritical coal South Africa 428km transmission fired plant line project 7
  • 8. RE Planned Growth Installed Capacity 2011 Planned Capacity by 2020 Kenya, 1 852 Algeria, 29 Kenya, 250 Ethiopia, 857 Algeria, 4 600 Tanzania, 274 Ethiopia, 14 Uganda, 114 Rwanda, 104 Tanzania, 32 Egypt, 567 Uganda, 56 South Africa, Rwanda, 7 6 000 South Africa, 10 Egypt, 7 350 Morroco, 300 Morroco, Tunisia, 115 Tunisia, 650 4 000 1,380 MW 25,800 MW Wind Solar Geothermal Biomass > > > 8
  • 9. Distributed Power and Africa – The Next Best Thing? Key Installed Power Rental (2011) 70MW Suppliers Installed Power Rental (2009) 100MW New Equipment Sales (2009) $13.9 Million Installed Power Rental (2011) New Equipment Sales (2009) 408MW $900 Million New Equipment Sales (2009) $16 Million Installed Power Rental (2012) New Equipment Sales (2009) 393MW $14.5 Million New Equipment Sales (2009) $101.8 Million New Equipment Sales (2011) $164.3 Million 9
  • 10. South Africa in Focus South Africa – Focus Renewable Energy: 17GW by 2030 Solar: PV and CSP a combined target Eskom 5 year $40 billion of 9.4GW Wind: 8.4GW target with a key focus Investment Budget - on localisation Other: 1000MW of small hydro, 13% Transmission municipal waste to energy and 55% Generation biomass 13% Distribution New IPP’s Licenced in 2012: 8% Other 2030 - 9.6GW Added 31 RE Projects Nuclear 3,725biddingup for allocation at present with more MW is rounds expected shortly In excess of $50 billion expected before 2025 Significant opportunity for Distribution Backlog (2012): nuclear equipment suppliers $4.3 Billion Significant opportunity for local Poor infrastructure management the past 15 manufacturers years has created a significant opportunity Key focus on transformers, switchgear, smart metring and cables 10