Agro-industries and clean energy in Africa (AGRICEN)

Agro industries constitute a major source of rural employment and are significant contributors to the economy of many sub-Saharan African (SSA) countries, and constitute a major source of income for millions of small scale farming outgrowers. Agro industries in sub-Saharan Africa (SSA), such as tea, coffee and sugar estates, already utilise energy for their processing and, on occasions, supply energy to their employees within their estates. Rural communities within and in the vicinity of agro-industrial estates derive several direct and indirect benefits from such cleaner energy investments.

There are a number of reasons why such efforts should be scaled up. First, the concerned agro-industries secure more reliable and lower cost electricity and heat supplies thus lowering their production, increasing their national, regional and international competitiveness and , in turn, protecting and potentially expanding the valuable rural jobs base that agro-industries provide. Secondly, cleaner energy investments provide power to community services and local businesses that benefit local communities. Thirdly, with the right incentives, agro-industries could expand their estate-based mini-grids to not only connect rural households within their estates but also connect surrounding rural communities. Fourthly, agro industries account for a significant proportion of current and projected future greenhouse gas emissions, and thus increased use of energy options provides opportunities to address climate and energy access challenges through carbon credits. However, the potential for cleaner energy development in the region's agro industries remains largely untapped.

There is emerging evidence that African agro-industries, are well placed to overcome common problems that bedevil new small and medium scale minigrid enterprises such as limited access to investment finance (due to absence of a business track record), difficulty in mobilizing and maintaining the required skilled operational/maintenance staff, as well as an inability to generate the revenues required to meet short-term and medium-term costs of electricity supply. However, further evidence needs to be assembled in order to demonstrate the potential value that agro-industries can bring as providers of cleaner energy services in rural areas in sub-Sahran Africa, and why improving the political economy lanscape can help realize this potential.

This proposal brings together a multidisciplinary team to research this relatively new terrain of combining new approaches to political economy analysis with business development, innovation and participatory approaches to understanding the potential role that agro industries can play in widening rural access to cleaner energy options. The project partnership consists of two academic institutions (Surrey in UK and Lilongwe Uni. of Ag & Nat. Res. in Malawi), a leading African energy think-tank (AFREPREN/FWD), two leading independent research centres from UK (Policy Practice, and Gamos), and various research associates from East Africa.

The project is structured around 8 integrated workpackages:
(i) Knowledge review;
(ii) Mapping and convening of multi-stakeholder policy and practice actors;
(iii) Preliminary framework analysis;
(iv) Case studies;
(v) Pilot and feasibility initiatives in four countries: Kenya, Uganda, Ethiopia, Tanzania, and potentially Malawi;
(vi) Analysis and modelling;
(vii) Capacity building of partners and specialised skills for wider agro industry community on cleaner energy;
(viii) Networking and dissemination.

Five reports will be published which will form the basis for papers to conferences of academic & energy practitioners; academic journal articles; and a series of policy briefings for local and national policymakers.There will also be a final workshop aimed at providing key messages from the research for various stakeholder.

Improvements in the deployment of decentralized energy generation and distribution could make a significant contribution to the livelihoods of communities in sub-Saharan Africa's as well as to the evolution of the region's energy system, and carbon reduction efforts. Agro-industries can play a major role in this area. However, effective energy policies and institutions to mobilize these resources effectively are in short supply. This project will have an impact, provided its learnings are effectively transferred to key stakeholders. We will do this directly, with tailored briefings, building on the strong networks the project team has with relevant policy makers and practitioners as follows:

Policy makers and regulators
Central Government institutions lack local knowledge to deliver effective rural energy programmes, but can craft policies that can give rise to effective business models, and encourage wider participation in energy service delivery. The research will provide policy makers and regulators an empirically grounded analysis of effective approaches to delivering and financing low carbon energy systems within the context of their policy, financial and institutional frameworks. The project team will open dialogue with policy makers and regulators as part of the effort to explore where policy and regulatory adjustments will be needed to encourage the participation of enterprises such as agro industries with finance, technical capability and business experience to diversify their investments into the energy sector. The team will provide policy briefings in writing and verbally to these important players.

Non-state actors:
Non-state actors will have access to all research findings, but we recognize high impact will require a proactive approach with concrete recommendations. We propose to do this by speaking at conferences of key NGO networks, as well as through the dissemination networks of established projects.

Locally-based energy companies
These are critical in the effort to scale-up decentralized energy initiatives in sub-Saharan Africa. The project's findings will provide institutional map to entrepreneurs who may require an understanding about the range of actors, institutions and financial resources available to support their commercial interests.

Donors and partners
Donors will play a major role in emerging schemes such as the UN's Sustainable Energy for All initiative. There is new drive from the donor community to address energy access issues in developing countries, but also focusing on projects that can be sustained beyond periods of funding. Agro industries as platforms for clean energy access for poverty reduction represents one important mechanism that shows promise, and this project will ensure that donors that are active in energy issues are well informed about the project's progress.

We also recognize that high quality academic outputs can have a secondary impact through the network of engaged researchers interested in sustainability practice, in which the project team already plays an active role. Five reports will be published which will form the basis for at least four (4) papers to conferences of academic and energy practitioners; four (4) academic journal articles; and five (5) briefings for local and national policymakers - on the potential opportunities for agro-industries to diversify their business practices into energy service provision for surrounding, policy & institutional constraints agro-industries may encounter as energy enterprises, GHG mitigation potential of the range of energy options for agro-industries, review & analysis of financial models for agro-industries, capacity mapping and development to realize the technical potenial of agro-industries.

The project will maintain close links with those who can learn from the research through its annual and final workshops aimed at providing key messages from the research for primary stakeholders.