Chapter 6. Policy Measures and Programs
6.3 RE Technology Deployment Program
6.3.2 On-Grid RE Deployment Program
study has overlooked biomass in its pre-feasibility study discussions, a demonstration project for biomass should be prepared separately.
Site selection
A small hydropower demonstration project is given priority, as it has demonstrated the best economics among the RE sources in the pre-feasibility studies. Among the five sites discussed in the pre-feasibility study, the Monatele and Nkongsoung regions were found to be economically feasible at an electricity price of 85 CFA F/kWh. Obviously, priority should be given to regions with higher feasibility and urgency of energy supply. Among the small hydropower sites, the region of Nkongsoung is recommended to be developed on priority as it had the highest economics of an IRR of 28.5%. When an IRR of a project is higher than the discount rate, 10%, then the project can be regarded as economically feasible.
The Bamenda and Bertoua regions were found not to be economically feasible for a solar demonstration project at an electricity price of 125 CFA F/kWh. However, their economics are very close to the cut-off point, and can be candidates for demonstration projects if a favorable PPA contract is granted. In this regard, the region of Bamenda is suggested for the demonstration project, as it has had an IRR of 9.8%, the highest IRR of all regions. An alternative would be developing both regions and prioritizing the region preferred by investors.
Once the small hydropower and solar projects are selected and put on construction, the next step is to plan for developing a wind-power demonstration project, and candidate sites should be selected. Multiple sites should be selected from the map of wind resource potential of Cameroon, meeting the criteria of abundant wind resources, connection to the electricity grid, and proximity to regions with high energy demand. Under the Cameroon REMP study, certain equipment was used to measure the wind power potential at the Bapou site, which could be utilized to measure the wind potential of candidate sites. A pre- feasibility process should follow to select the optimal site for the demonstration project.
As regards biomass, country-specific conditions must be considered in selecting the optimal technology (forest, agricultural by-product, or animal waste biomass), followed by the selection of multiple candidate sites that have an abundance of biomass resource potential and urgency of electricity demand. Separate pre- feasibility studies should be conducted, identifying the feasibility for each site and selecting the site with the highest feasibility as the candidate site.
Program implementation
Using the pre-feasibility study results for small hydropower, solar PV, wind power, and biomass power
feasibility studies should be conducted following steps given in the Annex II, and provided to investors.
When selecting and securing support from investors has been determined, full-scale feasibility studies should be undertaken based on the pre-feasibility study results, followed by the actual construction of the demonstration project. Examples of the demonstration project models with foreign supports in foreign countries are summarize below for reference.
Small hydropower demonstration project, Indonesia
• Site: Mountainous village near Bogor, Indonesia
• Project details: Construction of small hydropower plant and an elementary school
• Project structure and financing: PPP with investment from KOMIPO (US$300,000) and KOICA ODA (US$300,000)
• Results: 350 households supplied with power
Solar PV demonstration project, Galapagos Islands
• Site: Santa Cruz Island, Galapagos Islands, Ecuador
• Capacity: 1.5 MW, project cost: US$10 million
• Project finacing: KOICA ODA
• Participating organizations: BJ POWER and others
• Results: Supplies 1/3 of the total electricity use of the Santa Cruz Islands
Sere wind farm, South Africa
• Site: Western Cape, South Africa
• Capacity: 100 MW, Project cost: US$375 million
• Project details: 46 units of 2.3 MW wind turbines, 44 km of gridlines
• Project financing: AfDB ($265 million) and Clean Technology Fund ($100 million) loan
• Operator: Eskom (Electricity Supply Commission of South Africa)
• Results: Annual power production of 298,000 MWh
Biogas demonstration project, Vietnam
• Project details: Biogas production facility (2 set), Generation facilities (4 set, 20 kW)
• Project method: East Asia Climate Partnership (grant, US$200 million from years 2008~2012)
• Participating companies: Hana TEC, Ho Chi Minh City Agriculture Corporation
• Results: 640 MWh per year to households in the region
Roadmap
Small hydropower, solar PV, biomass, and wind power demonstration projects to be carried out in sequence per year for each RE source. Using the results of the pre-feasibility study, the optimal candidate site should be selected, followed by acquiring investors with expertise in project development and operations. Afterwards, the investor should be consulted in the construction and operations.
❙ Table 6-10 ❙ Small hydropower demonstration project
2017 2018 2019 2020 2025 2025~
Selecting site and
investor
Feasibility study and initial project design Demonstration project
and operations
❙ Table 6-11 ❙ Solar PV demonstration project
2017 2018 2019 2020 2021 2021~
Selecting site and
investor
Feasibility study and initial project design Demonstration project
and operations
❙ Table 6-12 ❙ Biomass demonstration project
2017 2018 2019 2020 2021 2022~
Selecting site and
investor
Feasibility study and initial project design Demonstration project
and operations
❙ Table 6-13 ❙ Wind power demonstration project
2017 2018 2019 2020 2021 2022~
Sites Selection and
potential
Pre-F/S and selection of optimal project site Investor selection and
feasibility study Construction and
operations
Financing strategies
Financing strategies focus on development financing, such as ODA, EDCF, or MDBs from foreign countries, especially with technology leadership. The budget from MINEE or the Rural Electrification Fund should be tapped by matching funds when necessary. PPP-type projects should be conducted jointly with leading companies with high-level technical expertise and capacity.
6.3.2.2 RE project development program to achieve deployment targets 6.3.2.2.1 Background
The most ambitious and appropriate means for reducing GHG emissions, as announced by the Cameroon government in the INDC, is deploying RE. This REMP proposes multiple policy measures and programs required to achieve the RE deployment targets set in the INDC. The most significant aspect of these methodologies is the actual development, construction and operations of the RE projects. Renewable energy supply should be increased through these projects to reach, at the minimum, the announced targets, to meet the increasing electricity demand, and, furthermore, to replace the aging and planned fossil-fuel generation capacities.
In view of the global trend of RE technology cost being much higher than that of fossil fuel energy, the targets set by Cameroon are quite ambitious, particularly in the context of the financing capabilities of the government and the relevant market conditions. RE projects to meet deployment targets must be organically connected to the overall electricity development plan for Cameroon. Moreover, the actual project execution requires the cooperation of both domestic and foreign market participants. The experience and technology acquired through the various demonstration projects could be significant assets in the execution of this RE deployment project.
6.3.2.2.2 Objective
The objective of this program is to present a path to achieve the working RE deployment targets of the REMP by showing the specific directions and processes for developing RE projects by source in each phase that are required to achieve the long-term RE deployment targets of the REMP.
6.3.2.2.3 Implementation strategies A. Contents of the program
Deployment targets by phase and RE source
❙Table 6-14❙ RE installed capacity targets of REMP
(unit: MW) RE sources Short term
(2017~2025)
Mid term (2026~2030)
Long term
(2031~2035) Total
PV 63.0 169.4 624.9 857.3
Wind Power 29.8 28.9 40.9 99.5
Small Hydropower 50.7 150.0 342.6 543.4
Bioenergy 24.2 84.6 271.3 380.1
Total 167.7 432.9 1,279.7 1,880.3
Source: KEEI
Formulation of RE project development plans
To construct the electricity generation facilities for each RE source in the short, medium, and long term, a separate power generation development plan is required. The development of RE will be limited by the national grid conditions, such as the transmission and distribution infrastructure, to which the RE generation facilities will be connected, and any development that overlooks this factor could result in adverse effects to the stability of the national grid, for example, the collapse of the whole national electricity system.
Therefore, expansion plans for transmission and distribution facilities must accompany such plans. Even if there were sufficient transmission and distribution capacity, intermittence in the RE power source, such as solar and wind, leading to rapidly dropping outputs, could have catastrophic results such as grid failure. To prevent such problems occurring, flexibility resources, such as emergency backup power or ESS must be acquired in advance. Plans to acquire such flexibility resources or expanding the transmission and
power supply, such as PDSE or PDSEN, and set after appropriate analyses.
Deploying RE to off-grid rural areas must be conducted in accordance with the plans of PDER. The 2016 PDER, updated recently, contains plans for development of electricity generation facilities for balanced power supply to citizens across the country, as well as expansion plans for RIS, RIN, and RIE by 2035 in accordance with the development plans.
However, the plans proposed by PDSE (or PDSEN) and PDER fall short in achieving the INDC RE deployment targets and the phase-specific working targets proposed in this REMP. Therefore, the previously planned fossil-fuel energy-generation projects should be replaced with RE, followed by revisions to expansions of the transmission and distribution capacities, and plans to acquire flexibility resources.
First, the portion of generation installed capacity required to deploy rural areas should be assigned to the construction targets set forth in the PDER, with the rest contained in PDSE (or PDSEN) construction plans.
PDSE (or PDSEN) and PDER should review and reset construction targets for RE construction by phase.
As regards short-term plans, the regional power demand should be considered and specific construction plans should be set for each RE resource. ‘Specific’ as used in this context refers to the project site, RE sources, and generation capacity. The RE projects set in the updated PDSE (or PDSEN) and PDER should be spearheaded by above-mentioned subsidiary organization (CNREC or CREDS) under the supervision of the MINEE.
RE Project development and construction process
The US Department of Energy (DOE) proposes the following five steps for the development and construction of a RE project. Cameroon could customize the five step approach considering its own conditions, such as the legal, institutional and regulatory framework of Cameroon. Specifics given in the US DOE’s five step approach, such as site development, resource potential estimation, and pre-feasibility analysis should be undertaken based on methodologies provided in the Annex II and equipment used to develop this REMP.
[Figure 6-15] Concept map of five–stage model of RE project development and construction
Source: DOE Office of Indian Energy
Phase 1: Project potential – project site, size, RE resource, and market potential
[Figure 6-16] Key objectives and tasks in Phase 1
Phase 2: Project options – Role, business structure, and legal/institutional considerations
[Figure 6-17] Key objectives and tasks in Phase 2
Source: DOE Office of Indian Energy
Phase 3: Refinement
[Figure 6-18] Key objectives and tasks in Phase 3
Source: DOE Office of Indian Energy
Phase 4: Implementation
[Figure 6-19] Key objectives and tasks in Phase 4
Source: DOE Office of Indian Energy
Phase 5: Operation and Maintenance
[Figure 6-20] Key objectives and tasks in Phase 5
B. Roadmap
First, PDER and PDSE should be updated, reflecting the REMP RE deployment targets. Following this update, planning for development of RE projects to be undertaken in 2020 should be formulated in 2019, followed by the execution of these projects in 2020, as well as the simultaneous planning for development of RE projects to be undertaken in the following year. This process should be repeated annually to meet the short-term deployment targets between 2020 and 2024. Medium- and long-term RE projects should be developed based on the same process.
❙ Table 6-15 ❙ RE project development and construction roadmap
2017 2018 2019 2020~ 2026~ 2031~
PDER update
PDESN update ST RE project
preparations Execution of projects
& further preparation MT RE project
preparations Execution of projects
& further preparation LT RE project
preparations Execution of projects
& further preparation
Notes: ST, MT, and LT mean short-term, mid-term, and long-term, respectively.
C. Financing strategies
Funding could be obtained from sources including the development finance offered to LDCs by developed countries and international organizations (such as ODA, EDCF, or MDBs), or international climate funds (such as GCF, CDM, and SCAF). Other sources include domestic financing sources, such as the RE fund backed by the Cameroon government, or microfinance. PPP is an additional option.