Agro-industries and clean energy in Africa (AGRICEN)

Lead Research Organisation: University of Surrey
Department Name: Centre for Environmental Strategy

Abstract

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.

Planned Impact

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.
 
Description Through our engagements and non-academic, various organisations are eager to explore collaborations with us. Two notable ones are listed here: i) Tambuzi farm has 22 hectares for horticultural production, with the rest dedicated to sustainable forestry, bee keeping, vegetables and livestock. It has about 19 hectares under floriculture production. Tambuzi is eager to work with AGRICEN to undertake the Cogen and Energy Efficiency feasibility study for supplying energy to surrounding communities. This work is due to begin in April 2017. ii) AGRICEN has been approached by the Ministry of Finance and Economic Development (Ethiopia) to work on some feasibility studies on agroindustries, to be submitted as part of the country's portfolio of project to the Green Climate Finance (GCF).
Sector Agriculture, Food and Drink,Energy,Manufacturing, including Industrial Biotechology
Impact Types Policy & public services

 
Description Founding member of the Africa Renewable Energy Initiative (AREI). The AREI is now established at the African Development Bank
Geographic Reach Africa 
Policy Influence Type Membership of a guideline committee
URL http://www.arei.org
 
Description Award of the project entitled "eCook - a transformational household solar battery-electric cooker for household solar battery-electric cooker for poverty alleviation
Amount £100,000 (GBP)
Organisation Innovate UK 
Sector Public
Country United Kingdom
Start 05/2016 
End 05/2017
 
Description Department for International Development (DfID)
Amount £300,000 (GBP)
Organisation Government of the UK 
Department Department for International Development (DfID)
Sector Public
Country United Kingdom
Start 03/2019 
End 03/2022
 
Description Oxford Policy and Management Ltd (OPML) from its Energy and Economic Growth programme
Amount £250,000 (GBP)
Organisation Oxford Policy and Management Ltd (OPML) from its Energy and Economic Growth programme 
Sector Private
Country United Kingdom
Start 03/2019 
End 02/2021
 
Title Standardization of Energy Surveys 
Description Energy surveys working in developing countries are using different approaches and accounting systems, which makes it difficult to undertake comparative analyses. The ARICEN team sees long term benefits of harmonizing energy surveys in Africa (and Asia and LA) including the idea that if coding is comparable we can gradually grow a meta database that would be useful to researchers. 
Type Of Material Improvements to research infrastructure 
Provided To Others? No  
Impact This work is only being completed, and will be piloted through the various field studies under this research. 
 
Description Agro-industries and Clean Energy in Africa paper 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Policymakers/politicians
Results and Impact The talk stimulated the role energy plays in agricultural transformation. A wide range of issues related to renewable energy systems in agriculture, the challenge of scaling-up, and the role anchor clients play in widening energy access was discussed.

The issue of agro-industries as important players in rural energy access received wide coverage in the discussions. This issue was also mentioned in the conference outcome statement.
Year(s) Of Engagement Activity 2014
 
Description Ethiopian Ministry of Water, Irrigation and Electricity - Advisory group meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact A ministerial advisory group inaugural meeting where energy access challenges were discussed; and plans on how to provide support were explored
Year(s) Of Engagement Activity 2017
 
Description KfW Development Bank, Nepal; Dept. of Anthropology, Durham University; and local instituions in Nepal. The partners contributed in data gathering, analysis and building local partnerships 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Study participants or study members
Results and Impact Short research looking into building resilience in community-based energy. The project takes the premise that distributed energy, such as renewables, can reduce risks and be used in humanitarian responses to disasters. However, there are few studies on the experiences of communities using small-scale renewable energy after major disasters. This project examines the responses of communities after the 2015 earthquakes in Nepal and how energy services could be restored more quickly. This research is 'applied in focus' and provide valuable input into the Nepalese government's reconstruction plans. The research is also 'global in reach' as the results will be of interest to governments of other countries, humanitarian organisations and development agencies.
Year(s) Of Engagement Activity 2016
 
Description Panelist on podcast 
Form Of Engagement Activity A broadcast e.g. TV/radio/film/podcast (other than news/press)
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Panelist on Grand Challenges: Energy. Nature Podcast, Published 3rd July, 2017. To combat global warming, the world needs to change where it gets its energy from. Three energy experts discuss the challenges of transitioning to low carbon energy, and what advances are needed to make the journey possible. This is the final episode in the Grand Challenges podcast series.
Year(s) Of Engagement Activity 2017
URL https://www.acast.com/nature/grandchallenges-energy
 
Description Power People podcast series exploring a range of issues related to the energy transformation Africa needs. 
Form Of Engagement Activity A broadcast e.g. TV/radio/film/podcast (other than news/press)
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Media (as a channel to the public)
Results and Impact Power People is a new podcast series exploring a range of issues related to the energy transformation Africa needs.
Discussion with Max Bankole Jarrett, Africa Progress Panel's Director-in-charge and former presenter of the BBC's award winning Network Africa programme, as he explores the opportunities and potential of energy in Africa through interviews with a dynamic cross section of experts from around the globe including:

- Caroline Kende-Robb, Former Executive Director of the Africa Progress Panel
- Yacob Mulugetta, Professor of Energy and Development Policy at UCL
- Jasandra Nyker, CEO of BioTherm Energy
- Mamadou Kwidjim Toure, Chairman and CEO of Ubuntu Capital Group
- Yariv Cohen, Chairman of Kaenaat, Investor Ignite Power
- Jasmine Samantar and Dina Tagemouati, co-founders of Samawat Energy
- And many more
Year(s) Of Engagement Activity 2017
URL https://soundcloud.com/africaprogresspanel/power-people-yacob-mulugetta
 
Description Stakeholders workshop in May 2016 in Uganda and study visits 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Discussion with stakeholder to understand the state of play with agroindustries and their position in the energy system. The discussion covered issues related to policies, regulation and technology options for Uganda
Year(s) Of Engagement Activity 2016
 
Description WORKSHOP: SUGARCANE LANDSCAPES - understanding opportunities and trade-offs of the EU Sugar reform on markets, uses and opportunities for Developing Countries. 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Study participants or study members
Results and Impact The workshop discussed the EU sugar policy reform, sugar taxes on 'sugary foods', impacts on the availability and cost of sugar and the opportunities and limitations these might present for developing countries. Where previously concerns about the use of sugarcane for food or biofuel have been an issue, the market price of sugar may now encourage indigenous industries for biofuels/biorefineries (e.g. India and Mexico had previously restricted the use of sugar for bioethanol production but are now pursuing biofuel programmes). Using the biofuels model developed by Brazil, sugar cane production can switch between sugar and ethanol depending on market prices and the workshop will consider local initiatives (policies) of countries for developing local biorefineries and bioenergy markets.
Year(s) Of Engagement Activity 2016