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Development Effectiveness Review 2014 - Energy

Energy is one of the most essential requirements for Africa’s development. In the 21st century, it is a matter of concern that over 620 million Africans still live without the benefits of an electricity connection. A reliable and affordable energy supply is key to generating the broad‑based and inclusive economic growth needed to make major inroads into poverty; it can transform the lives and livelihoods of Africans, helping them to take charge of their own development.

Energy is also a field of opportunity for Africa. The continent has significant share of the world’s renewable energy sources, of which only a fraction is under development. Africa has the potential to leapfrog over carbon‑intensive technologies and meet most of its future energy needs from renewable sources, putting it firmly on the path to green and inclusive growth.

The African Development Bank has therefore placed energy at the heart of its portfolio. Over the past four decades, we have invested over $13 billion in the energy sector, to boost generation capacity and rural electrification. 

We help African countries build modern energy sectors that are socially, economically and environmentally sustainable.

We will support regional investments that link national electricity systems into regional power pools, to enable power‑sharing across national borders and promote more efficient regional planning of energy infrastructure.

Working closely with our member states and international partners, the Bank will help the continent and its people realise the vision of reliable, affordable and sustainable power for all Africans.

Level 1: Africa’s progress in the energy sector

Over 620 million Africans are living without the benefits of an electricity connection, a situation that limits both their quality of life and their livelihood opportunities. African businesses suffer from high energy costs and unreliable connections that limit their competitiveness. 

Extending access to affordable and reliable energy is fundamental to achieving inclusive growth.

This chapter summarises Africa’s progress towards universal energy access. It looks at electrification rates across the continent; the rate of expansion of national power grids and innovative, off-grid solutions for remote areas; Africa’s abundant clean energy potential and what is required to develop it; measures to improve energy efficiency and to foster regional cooperation in energy; institutional development in the sector; and the emergence of new approaches to financing energy infrastructure.

In this chapter we draw on the indicators from the first level of our Results Measurement Framework. 

Level 2: The Bank’s contribution to the energy sector

This chapter sets out the Bank’s contribution to Africa’s energy needs, looking at policies, strategies and investments to increase access to affordable and reliable energy. We show how our programmes have developed over recent years, with a shift towards clean and renewable energy and a focus on increasing energy efficiency. We also describe how we have fostered regional cooperation and strengthened governance and energy sector reforms. Finally, we explain our efforts to help African countries attract increased finance into the sector, particularly from private sector investors.

To assess the Bank’s contribution to Africa’s energy sector, we will build up our results from the project level. In Level 2 of our Results Measurement Framework for energy operations, we have 15 indicators that aggregate outputs from Bank projects that closed between 2009 and 2013 and for which we have Project Completion Reports. We also look at the results expected in 2014–18 from ongoing projects, giving us a 10-year period of analysis. To help explain these results, we provide examples of our energy projects at work. Lastly, we review some of the lessons learnt from implementing energy projects.

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Level 3: How well is the Bank managing its energy portfolio?

This chapter reviews how well the African Development Bank manages its portfolio of operations in the energy sector, drawing on the 16 indicators in Level 3 of our Results Measurement Framework. 

We assess the quality of our project designs, our generation of new knowledge, our use of environmental and social safeguards, and our progress on addressing gender equality issues across the portfolio. 

We track whether projects are being implemented efficiently, and whether we are complying with our aid effectiveness commitments. We discuss our work to mitigate emissions through clean energy and energy efficiency savings, and examine how we are improving resilience to climate change impacts through our operations.

Level 4: How efficient is the Bank in supporting its energy operations?

Level 4 of our Development Effectiveness Review tracks how well we manage our organisation in order to deliver our energy projects efficiently and effectively, using the eight indicators of our Results Measurement Framework. We set out the changes we have made to our organisational structure and describe the new financing instruments we have developed to promote investment in the sector. We assess progress in creating a conducive working environment. We also look at the placement of energy professionals in the context of the Bank’s wider decentralisation programme.

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