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African Energy Community
Topic Started: Jul 6 2014, 04:29 PM (191 Views)
Vonar Roberts

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Prime Minister Augustin Matata Ponyo
Democratic Republic of Congo

Ladies and gentlemen,
I would like to propose the creation of the African Energy Community. This community would see investment by the more developed members of the African Union into sustainable wind and solar energy projects across the African continent. Revenues from said investments would go towards building transmission lines, maintaining the existing energy generation capacity, and enable future expansions of Africa's largely untapped power generation potential. I believe that through such a program we can secure African energy security for decades to come, provide clean energy to the African continent, and build a new potential source of export revenues for African nations across the continent.

I yield the floor
Edited by Vonar Roberts, Jul 6 2014, 04:32 PM.
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Nuked
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Prime Minister al-Thanay
State of Libya

I am interested to hear more about your proposition. How would the projects be divided between the nations? Would you get a return on your investment?
Edited by Nuked, Jul 9 2014, 12:36 PM.
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Vonar Roberts

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Prime Minister Augustin Matata Ponyo
Democratic Republic of Congo

Mr Thanay
I have some statistic for your consideration with regards to the untapped African energy potential.

Access to modern, renewable energy enables countries to create better lives for its people – from lighting streets to reduce crime, providing electricity to manufacture local goods, as well as cleaning and pumping water throughout the country.

An energy deficit has effectively stunted Africa’s development, with an estimated 70 percent of people in sub-Saharan Africans without reliable access to electricity. In Gabon and Nigeria for example, manufacturing struggles as electricity remains costly and inconsistent. According to the African Development Bank (AfDB), manufacturers in sub-Saharan Africa experience an average of 56 days of shutdown time per year due to power outages.

Fossil fuel-based power generation is the most expensive form of energy globally, yet it is the largest source of electricity generation in Africa. This is the least of concern for a continent simply trying to boost its total power capacity from the current 147 GW, according to the African Development Bank, which is equivalent to the total capacity installed in Belgium, and what China installs every one to two years.

Solar Power
Solar Power in Africa has the potential to provide all of the world's energy, by using only a small portion of the Sahara Desert. Recent positive developments in this sector include the Democratic Republic of Congo building alongside France a 50 mw solar power farm in the town of Mbanza-Ngungu. Senegal pledged to meet more than 30 percent of its rural energy requirement through solar power. Mozambique and Zimbabwe are among those following Senegal’s lead to combat their energy deficit. According to Mozambique’s Energy Ministry, more than $15 million has been invested in solar power. From this investment total, $13 million came solely from Fundo de Energia, which is under the auspices of the Mozambique Ministry of Energy. In rural Rwanda, mini-solar projects provide energy access to local schools and farmers, who would otherwise be without power.


Wind Power
Wind is far less uniformly distributed than solar resources, with optimal locations positioned near special topographical funnelling features close to coastal locations, mountain ranges, and other natural channels in the north and south. The availability of wind on the western coast of Africa is substantial, exceeding 3,750 kW·h, and will accommodate the future prospect for energy demands. Central Africa has lower than average wind resources to work with.


Hydro Power
Africa has thousands of miles of waterways and enormous untapped hydro electric generation potential, a prime example of the potential of our continent's hydro electric potential is in the Democratic Republic of the Congo where the proposed 8 Grand Inga series of dams on the Congo river has a combined capacity of 40,000 MW, or enough clean energy to power around 80% of the continents needs.


I believe the advantages of every African, our mines, our businesses, and our industry having access to clean energy and a integrated power grid far outweighs any costs, however if our common interest in energy independence is not enough the investors would own a reasonable percentage of the project represented by how much they contribute overall to Africa's future. With regards to dividing the investments I think the investments can be divided by 22, with the fund having a minimum capital level of $5 Billion. This will result in African countries receiving investments into clean energy every two and a half years.
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iceviking
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Ms Tina Joemat-Pettersson, MP

South African Energy Minister


We agree with this in principle, we believe we can harness enough energy in Africa to help every African, we need to come together and harness the power, we can harness the sun , the sea and the wind. South Africa is ideal for Wind power due to the prevailing winds of the Cape, we have set up several wind farms and will monitor their progress, maybe we can have an all Africa Energy supply, which can divert power from countries that produce too much and transfer it to countries that need it.
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Vonar Roberts

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Prime Minister Augustin Matata Ponyo
Democratic Republic of Congo

We would like to thank the honorable ms Pettersson for her and South Africa's support in this endeavour. If there are no objections from the honorable members of this chamber I will instruct our foreign minister to begin the process of drafting a agreement for review and eventual ratification.
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Vonar Roberts

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Prime Minister Augustin Matata Ponyo
Democratic Republic of Congo

I have before me a rough draft of the African Energy Community general agreement. Feel free

Quote:
 
African Energy Community General Agreement

Preamble
This Agreement is a voluntary compact between the member states of the African Union in order to promote the development of clean, renewable energy as well as sustainable economic growth across the African continent.


Article 1: Creation of African Energy Fund
The African Union authorizes the creation of the African Energy Fund (AEF). The African Energy Fund is a base fun that all nations can choose to invest into, and of which the funds will then be used to finance the construction of solar, and wind power sites, as well as the necessary transmission lines. Funds from the African Energy Fund will also be used to finance the upkeep of said utilities.


Article 1.1 Financing
It is our goal to have a initial investment from African countries of $5 Billion USD., and the fund has two primary methods of being replenished. 1: direct national investment, which involves a state declaring that it intends to invest X number of dollars into the fund. Over the long term investors who invest into this fund will see at least a 5% return on investment. 2: Percentage of revenues from existing projects. The African Energy Fund may own up to 25% of the Solar or wind projects that are built using funding from the African Energy Fund. This is to ensure that it has the ability to fiance continued operations over the long term.


Article 1.2 Instillation policy
With 54 members of the African Union the program will be broken up into 2, thus presuming all 54 nations join in 2016 and 2017 27 nations will receive a percentage of $1 Billion worth of Solar panel installation in 2017 and 27 nations will receive a percentage of $1 Billion worth of Solar Panel installation in 2018 at which point a report on the progress of the African Energy Fund will be made to the General Assembly of the African Union. $350 Million a year will be spent on regional power grid integration, as well as the construction of transmission lines. $80 Million will be spent every year on maintenance. $250 Million will also be allocated towards the development of wind power.


Article 2: Creation of African Energy Company
The African Energy Company will be founded, and will alongside domestic utilities handle installation and maintenance of said Wind and Solar facilities. The African Energy Company will handle the instillation, and maintenance of facilities that are funded through the African Energy Fund.


Article 2.1 Employee relations
African Clean Energy Company will be mandated to employ at least 80% of its workers from whatever country it is operating in. In the event that the country has a minimum wage the African Clean Energy Company will pay the workforce 25% more then the minimum wage. If there is no minimum wage the African Clean Energy Company will pay the workforce at least $4.00 a hour, and will also ensure that the workers have a hour worth of breaks. Limits of 15 hours will also be placed on the maximum shift length that any one worker will be allowed to work in a day (24 hours), and if there are religious groups that require church visits on for example a Sunday members of that religious group can request that day off without fearing termination.


Article 3: Development of African manufacturing capabilities
While the initial contracts for the construction of Solar and wind power facilities are expected to be contracted out to European, American, Brazilian, and Chinese companies over time the African Union will develop its own capabilities to produce Solar and Wind power through the African Clean Energy Company. 5% of the funds from the African Energy Fund will go towards the construction of Solar and wind production centers in developed African countries.
Edited by Vonar Roberts, Jul 29 2014, 09:24 AM.
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iceviking
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Ms Tina Joemat-Pettersson, MP

South African Energy Minister


We find it acceptable .
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Nuked
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Prime Minister al-Thanay
State of Libya


We would sign such an agreement.
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Vonar Roberts

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Prime Minister Augustin Matata Ponyo
Democratic Republic of Congo
With no major objections I have taken it upon myself to post the treaty for ratification here.

The next step after the ratification process is complete will be to commit money to the fund so that the newly created African Clean Energy Company can get started with planning and construction. The Democratic Republic of Congo will commit $50 Million a year to this project, and we have plans to increase our contributions to $100 Million a year by 2020.

Edited by Vonar Roberts, Jul 29 2014, 09:29 AM.
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Jos1311
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Head Admin
Where will these African states find the funding for this projects? As the far majority of governments will not be able to provide any substantial contribution to the fund.
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