# Renewable Energy Communities in Africa: A Case Study of Five Selected Countries

Mathew Anabadongo Atinsia, Kankam O. Adu-Kankam, Felix Amankwah

Diawuo

► To cite this version:

Mathew Anabadongo Atinsia, Kankam O. Adu-Kankam, Felix Amankwah Diawuo. Renewable Energy Communities in Africa: A Case Study of Five Selected Countries. 14th Doctoral Conference on Computing, Electrical and Industrial Systems (DoCEIS), Jul 2023, Monte Da Caparica, Portugal. pp.52-64, 10.1007/978-3-031-36007-7_4. hal-05473092

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# Renewable Energy Communities in Africa:
A Case Study of Five Selected Countries

Mathew Anabadongo Atinsia³,⁴, Kankam O. Adu-Kankam¹,²✉,
and Felix Amankwah Diawuo³,⁴

¹ School of Science and Technology, UNINOVA – CTS and LASI, Nova University of Lisbon,
Campus de Caparica, 2829-516 Monte de Caparica, Portugal

k.adu@campus.fct.unl.pt

² School of Engineering, University of Energy and Natural Resources (UENR), P. O. Box 214,
Sunyani, Ghana

³ Regional Centre for Energy and Environmental Sustainability (RCEES), UENR, Sunyani,
Ghana

mathew.atinsia@uenr.edu.gh

⁴ School of Energy, Department of Renewable Energy Engineering, UENR, Sunyani, Ghana

**Abstract.** It is claimed that the success of Renewable Energy Communities (RECs) depends on sound policies that provide security to community investments and investors, as well as reliable sources of funding, good community organization, and how the community is governed. These elements facilitate the participation of the citizen and are key to the growth and survivability of any REC. It is further claimed that sound policies can drive novel and viable business models, innovative financing and remuneration schemes, the adoption of smart technologies, social acceptance, and, most importantly, increase in citizen participation. In Africa today, RECs are in their infancy stages of development and require immense attention. To better understand and characterize how RECs in Africa are developing, a systematic literature review is carried out on five selected cases located in South Africa, Malawi, Cameroun, Togo, and the Ivory Coast. The study aims to analyze how governmental policies, organizational structures, types of governance, ownership schemes, sources of funding, the composition of the communities, and types of renewable energy resources (RER), are facilitating the development of these RECs in Africa. How value is created and shared amongst members of the community is also considered. The findings of this study show that RECs in Africa are faced with the challenges, of inadequate governmental policy frameworks, unsustainable financial models, and low community ownership, and the dominant RERs are solar and biogas. Other findings include low levels of citizen engagement, participation, and knowledge about RECs.

**Keywords:** Renewable Energy Communities · Policy Framework · Financial Model · Resource Ownership · Community Organization · Sources of Funding
# 1 Introduction

Electrical energy is claimed to play a crucial role in the everyday lives of humans in contemporary society [1]. This has resulted in a heavy reliance on energy across many sectors of today's society [2]. However, the bulk of the electricity that is used to satisfy these surmounting needs of society is fundamentally generated from fossil fuel sources, which have been declared environmentally unfriendly, and unsustainable and contribute to an increase in temperature and the emission of greenhouse gases [3]. Data from the dominant literature in this area indicate that the presence of carbon dioxide in the atmosphere today is 40% higher than it was in the nineteenth century [4]. Furthermore, the rate at which the earth's natural resources are being depleted to meet the insatiable needs of man, in this case, electrical energy, is very alarming [5]. Due to the problematic nature of fossil fuel sources, experts have recommended the transition to renewable energy sources (RES) as a viable alternative [6].

Transitioning from fossil fuels to RES is a step towards a more sustainable and cleaner energy system [5]. The integration of RES could help to promote energy democracy, energy decentralization, and energy justice [7]. This means allowing people to make their own decisions in terms of their energy generation and use [8]. Again, considering the ongoing changes in the organization of energy systems (the energy transition) in the direction of increased penetration of RES in the energy systems, it is observed that RECs are gradually becoming a key component of the power grid [9]. However, the success of RECs depends on many other things, including sound government policies, reliable funding sources, good governance, and good organization [9, 10]. For instance, considering best practices around the world, particularly in Europe, legal frameworks/policies such as the Renewable Energy Directive (REDII) offer protection to citizens and communities across Europe by providing the appropriate environment, that facilitates local investments in renewable energy projects [11].

Firstly, the REDII provides a dedicated definition for RECs as legal entities, for citizens and small to medium-sized enterprises to set up renewable energy (RE) projects and engage in energy-related activities, organized democratically to provide benefits to the local community [11].

Secondly, the REDII includes enforceable rights to protect participants investing in renewables, such as producing, selling, sharing, storing, and self-consumption of RE, without unfair charges or procedures, and accessing energy markets directly or through a third party. In addition to this member states are obliged to also create enabling frameworks that provide access to finance and technical expertise, build capacity for local authorities, and remove unjustified barriers to community projects [11]. Considering this, it can therefore be argued that the existence of this directive has helped RECs to flourish very well in Europe. Currently, there are over 7,700 RECs in Europe and still counting [12]. Similar policies have facilitated the growth of RECs in other countries such as Great Britain, with RECs numbering over 420. The same is the case in Australia with over 100 cases [13].

However, in Africa, the idea of RECs is new and emerging. Its growth is slow and needs attention on several fronts [14]. A report by IRENA and AfDB [15] points out that less than 3% of global renewable energy jobs are in Africa. Also, Africa has a low rate of access to clean cooking and electrification technologies, with only 46% having
access in 2019 representing 906 million people [15]. Therefore, it is envisaged that the idea of RECs could expedite access to electricity and decrease energy poverty and injustice in Africa. However, to better understand the prospect of RECs as a panacea to energy poverty and injustice in Africa, it is relevant to understand how these communities are being formed, financed, and governed, the types of RES that are available and the level of involvement of the local indigenes. For these reasons and more, this work uses systematic literature reviews to analyze 5 selected REC cases located in South Africa, Malawi, Cameroun, Togo, and the Ivory Coast. The justification for the selection of a case was based on geographic location. Some attempt was made to identify and select a case from all the geographical/geopolitical regions of Africa namely west, south, east central and north of Africa. This was to ensure that there was an even spread and fair representation. However, there were some challenges finding cases that were located in northern part of Africa. To help address these problems, the following research questions are defined,

RQ1: What governmental policies are currently in place to support the development and sustainability of the selected REC cases?

RQ 2: How are these RECs organized?

- What system of governance is adopted to govern these RECs?

- Who are the owners and what resources do they own in these RECs?

- What are the sources of funding for these RECs?

- What are the compositions of these RECs?

- How is value created and how does it benefit the local community?

- What RER are mostly found in these RECs?

## 1.1 Related Work

This section focuses on related works that will form part of a broader work in future works. In [14], a systematic review is conducted on 46 RECs in Sub-Saharan Africa (SSA). The finding of the research indicates most of the communities in SSA are not sufficiently empowered to institute and manage their energy projects. This calls for further research to be made on how SSA countries can create innovative and supportive regulatory environments and develop models that can help them to institute and manage their projects. In [16] a comprehensive study was conducted on the barriers and opportunities with RE development in Africa. This research found that the development of RE is hampered by groups of factors such as poor institutional framework and infrastructure, high initial capital costs, weak dissemination strategies, lack of skilled manpower, poor baseline information, and weak maintenance service. A similar study that examined the challenges and opportunities for RE deployment in sub-SSA was carried out [17]. Some of the challenges that were realized from the study are inadequate technical, financial, and human resources, weak institutional and regulatory frameworks, and socio-political barriers. The study recommended that there is a need to strengthen the institutional and regulatory framework that will support the development of community energy projects. The author further recommended that there is a need for capacity building, harmonization of financial resources, and enhancement of energy security. A study was conducted
on four renewable energy projects located in four different communities in Ethiopia. The outcome shows that the use of decentralized renewable energy systems have improved livelihood concerning income; productive use, health, and education affected men and women differently [18]. The findings further suggest that there is a need for procedural justice measures, such as community consultation and participation, to create a sense of community ownership. This, in turn, can lead to the long-term sustainability of these projects. Another study in [19] highlighted the importance of a decentralized renewable energy system in achieving UN energy access goals. It confirms that added value approach in mini-grid planning is capable of ensuring sustainability and promoting the development of energy access projects. Another study which is aimed at producing a strategic framework for the development of smart cities by transforming urban communities into smart-energy systems through a gradual process. This study proposed a strategic framework for the development of smart cities by gradually transforming urban communities into smart-energy systems. The developed framework considers social, technological, and economic aspects and also uses a bottom-up approach for decision-making. The proposed decision constructs provide feasible practical solutions for smart transformations to enhance the sustainability, livability, and revitalization of a community [20].

## 2 Contribution to Connected Cyber-Physical Spaces

A cyber-physical space environment is a network of interconnected digital and physical systems that work together to enable seamless data exchange and decision-making [21]. This environment includes a range of technologies such as the Internet of Things (IoT), sensors, actuators, automation systems, cloud computing, and data analytics [22]. In a cyber-physical space environment, physical systems are connected to digital systems, creating a “smart” system that can monitor, analyze, and respond to changes in the environment in real-time [22]. This environment can be used in various applications, such as smart cities [26], intelligent transportation systems [23], and smart grids [24]. The goal of a cyber-physical space environment is to enhance efficiency, reduce costs, and improve the quality of life for individuals and communities. RECs have the potential to significantly contribute to a connected cyber-physical space in Africa. According to a report by the United Nations Economic Commission for Africa (UNECA) on the potential of RE in Africa, it was found that RE can lead to the creation of smart grids that optimize energy use and reduce waste, as well as decentralized energy systems to power local communities [25]. These systems can also be integrated into smart grids to create a more resilient and reliable energy infrastructure. Additionally, the energy data generated by local communities can be collected, analyzed, and used to improve energy efficiency and reduce costs, as noted in a report by the International Renewable Energy Agency (IRENA) [15] and Africa development bank (AfDB) [15] on the RE Market Analysis which also covers the role of RE in African development [15]. RECs can therefore contribute to the development of e-mobility infrastructure by providing charging stations for electric vehicles, reducing reliance on fossil fuels, and promoting sustainable transportation. Overall, the development of RECs in Africa can help create connected cyber-physical spaces that promote sustainable energy use and reduce the carbon footprint of African communities.
# 3 Methodology

A systematic literature review method [26–28] was used to provide an unbiased and comprehensive selection of cases. The selection followed a rigorous and transparent process of searching and analyzing academic and non-academic literature related to RECs in Africa. The process was in four stages. The first stage comprised the case selection which was guided by the combination of key words from columns 1,2 and 3 of Table 1. Each keyword in column 1 was used t in combination with the keywords in columns 2 and 3. The search engines that were consulted included Scopus, Google Scholar, Google Search, Science Direct and others from books and YouTube. Cases that met the initial criteria were forty-eight. Out of this number thirty-eight were taken out because they were constituted of publications that mentioned RECs in Africa. For most of these cases, the sources of information were shared information online. The second stage was the case screening stage where the cases that were out of the study scope were excluded. The criteria for case inclusion was that (a) the case must be geographically located in Africa, (b) the case must be active, (c) the sources of energy must be of renewable source, (d) the case must be a community based and provide evidence of the social, economic, and environmental benefits to the community. The criteria for a case to be excluded was that the case falls outside the inclusion criteria. At this stage, three cases were excluded. The third stage was the eligibility stage. This entailed cases that fit in the scope of the study. At this stage, seven cases were considered. Further screening was done to see if they met the inclusion and exclusion criteria. Two cases were taken out because they did not meet the inclusion criteria. The final stage is the case inclusion stage were the five cases that met the inclusion criteria were retained for analysis.

<table><caption>**Table 1.** Keywords combination for the selection of cases.</caption><thead><tr><th>Column 1.</th><th>Column 2</th><th>Column 3</th></tr></thead><tbody><tr><td>Renewable energy</td><td rowspan="5">Community</td><td rowspan="5">Africa</td></tr><tr><td>Decentralized energy</td></tr><tr><td>Green energy</td></tr><tr><td>Local energy</td></tr><tr><td>Distributed energy</td></tr></tbody></table>

# 4 Results and Discussion

## 4.1 Governmental Policies

The purpose of RQ1 is to find out what governmental policies are supporting the development of RECs in Africa. To help answer this question, we reviewed available information on energy policies in the five selected countries. The outcome is shown in Table 2. According to the table, these countries have government policies that support the general development and deployment of RE. However, specific policies that are in support of
RECs were not found. This is a major concern as the absence of such policies may imply there is no legal protection or security for investors and the local communities, should they decide to invest in RECs locally. The development and implementation of policies and legal frameworks can be a good enabler for the stability and growth of RECs. Other benefits may include increased investor confidence, increased numbers of REC projects and subsequent access to clean energy, reduced reliance on fossil fuels, and improved energy security. It is however recommended that policymakers in Africa may have to consider the development of some regulatory frameworks to protect RECs in Africa.

<table><caption>**Table 2.** Renewable Energy Policies</caption><thead><tr><th>Country</th><th>General Governmental Policies in Support of Renewable Energy</th><th>Specific Governmental Policies that support RECs</th></tr></thead><tbody><tr><td rowspan="2">South Africa</td><td>Renewable Energy Independent Power Producer Procurement Program (REIPPPP). [29]</td><td rowspan="2">None found</td></tr><tr><td>Integrated Resource Plan (IRP). [30].</td></tr><tr><td rowspan="2">Malawi</td><td>Nationals Energy Policy [31]</td><td rowspan="2">None found</td></tr><tr><td>Renewable Energy Feed in Tariffs (REFITS) [32]</td></tr><tr><td>Togo</td><td>Rural Electrification Program [33]</td><td>None found</td></tr><tr><td>Cameroon</td><td>National Policy, Strategy, and Action Plan for Energy Efficiency. [34]</td><td>None found</td></tr><tr><td>Ivory Coast</td><td>National Energy Efficiency Action Plan (PANEE). [35]</td><td>None found</td></tr></tbody></table>

RECs in Europe are guided by the REDII which mandates every member state to give priority to these communities [11]. The RED II provides the necessary legal backing to set up these projects and engage in energy-related activities to provide benefits to the local community [11]. Furthermore, REDII provides the capacity to invest in renewables, such as producing, selling, sharing, storing, and self-consuming RE, without unfair charges or procedures, and accessing energy markets directly or through a third party.

## 4.2 Organization

Using REDII as a reference, RECs are supposed to be legal entities that operate autonomously without any interference from government authorities or encounter any bureaucratic governmental process. Such communities are considered best practices because they are fully autonomous. RQ2 aimed to investigate the organizational structure of RECs in Africa. The organization was classified under 5 key headings. These include (a) how the community is governed, (b) who owns what, (c) how they are funded, (d) their composition and (e) how value is created and how it benefits the local community. The outcome of the analysis is shown in Table 3 and are discussed in the following chapters.
<table><caption>**Table 3.** The organisation of RECs in the selected cases.</caption><thead><tr><td>Name of REC</td><td>System of governance</td><td>Owners of the project/resources</td><td>Sources of funding</td><td>Composition of the REC</td><td>How are Values created and benefits</td></tr></thead><tbody><tr><td>Cookhouse Wind farm [36]</td><td>Not mentioned</td><td>African Infrastructure Investment Managers (AIIM) and the Local Community Trust. Old Mutual</td><td>African Infrastructure Investment Managers (AIIM) and the Local Community Trust</td><td>African Infrastructure Investment Managers (AIIM) and the Local Community Trust</td><td>Not mentioned</td></tr><tr><td>Sitolo Community solar grid [37]</td><td>Not mentioned</td><td>Malawi Government UNDP & GEF</td><td>Malawi Government UNDP & GEF</td><td>Malawi Government UNDP & GEF</td><td>Not mentioned</td></tr><tr><td>Solar Microgrid Avétonou [37]</td><td>Not mentioned</td><td>Togo Rural Electrification and Renewable Energy Agency (AT2ER)</td><td>Togo Rural Electrification and Renewable Energy Agency (AT2ER)</td><td>Togo Rural Electrification and Renewable Energy Agency (AT2ER)</td><td>Not mentioned</td></tr><tr><td>Togolese Smart Solar Kiosk [38]</td><td>Not mentioned</td><td>EkoEnergy</td><td>EkoEnergy</td><td>EkoEnergy</td><td>Not mentioned</td></tr><tr><td>Mezam division domestic biogas [39]</td><td>Not mentioned</td><td>UNDP</td><td>UNDP</td><td>UNDP</td><td>Not mentioned</td></tr></tbody></table>

### 4.2.1 System of Governance

From Table 3, it can be seen that all the REC cases did not mention any specific governance system that is being used unlike the cases found in the European Union. The absence of a clearly defined system of governance for these REC cases is concerning. This may raise issues of transparency regarding how well the local community is represented in decision-making processes. Again, the absence of well-defined governance structures can lead to confusion and misunderstandings about the roles and responsibilities of different actors involved in the RECs. There is therefore a need to investigate further to ascertain if this is the case for the majority of RECs in Africa.
### 4.2.2 Who Owns What?

Table 3 shows that the owners of all the energy resources (the entire project) in these cases are the financiers of the project, which is normally the case. However, the observed financiers in these cases are not from the local communities. This means the local communities do not own anything in these projects and therefore they may have limited control over the projects. The absence of community ownership in these RECs is concerning as it can restrict the benefits to the local community, and this can lead to a sense of disempowerment, alienation and disenfranchisement.

### 4.2.3 Sources of Funding

From Table 3, it can be seen that the selected cases are principally funded by NGOs, governmental agencies, and charitable organizations. There is no indication that the funds are generated locally, or that the local communities have some stake or shares in these projects. This is likely to affect ownership and the buy-in of the local communities since the sense of ownership may not be strong, even if it is present. Moreover, relying solely on external sources of funding is risky and may be unsustainable, as these projects may be stalled or cease to operate if the source of funding is curtailed. Furthermore, the fund owners may have their priorities and objectives, which may not always align with those of the local communities or the region as a whole. This, therefore, suggests the need to consider alternate financing schemes like “build, operate, and transfer” that can enable ownership of the project to be transferred to the local communities after a certain agreed period, or the project could be loaned to the community to be paid-off over a certain defined period so that the communities can take ownership and manage these projects in the best interest of their community.

### 4.2.4 Composition

From Table 3 it can be seen that these RECs lack diversity in their composition. In these communities, you don't find diversity in the composition of the community. In all these cases, the community is composed of one or two entities who are usually the financiers and who also double as owners of the projects. For instance, comparing the case with similar RECs like Wildpoldsried in Germany, [39], it is observed that the community is comprised of (a) Project financiers, (b) a grid management company, (c) research partners, (d) smart grid markets solutions provider, (e) research and grid technology partner, and (f) consumers. It appears that the financiers of the projects in the studied cases play a monotonous role in these communities. The observed composition might affect the resilience of the community. For instance, when only project funding agencies are involved in RECs, the focus may primarily be on funding and project implementation, rather than addressing the broader social economic, and environmental issues in the community. Moreover, the absence of local representation in these communities can affect the acceptance of these projects in the local communities. Local communities often have unique insights and knowledge about local challenges and opportunities, which can be crucial in shaping effective local development strategies.
### 4.2.5 Value Creation and Its Benefit to the Local Community

In other cases, across Europe, like [41, 42] it can be observed that value is created in the form of electrical energy and related services. In the observed cases, value is also created in the same way. For instance, the energy generated by the cookhouse wind farm is sold to Escom Holdings SOC. However, it is not clear how the local community benefits from the value that is created from the sale of electrical energy. Since there is limited involvement of the local communities in these RECs, likely, they may not benefit adequately. The concern here is that this can lead to exploitation and may subject the project to opposition and NIMBYism. There is therefore a need for RECs to prioritize the creation of other values in the form of job creation and community investment. In this case, there is a win-win situation for both and community and the project which can lead to success.

### 4.2.6 Types of Renewable Energy Resources Available

The final aspect of the study is about the types of RE resources that are available in these REC cases. The outcome is shown in Table 4.

<table><caption>**Table 4.** RECs and their respective Energy Resources</caption><thead><tr><td>REC</td><td>Energy Resources</td></tr></thead><tbody><tr><td>Cookhouse Wind Farm [36]</td><td>Wind</td></tr><tr><td>Sitolo Community Solar Grid [37]</td><td>Solar</td></tr><tr><td>Solar Microgrid Avétonou [37]</td><td>Solar</td></tr><tr><td>Togolese Smart Solar Kiosk [38]</td><td>Solar</td></tr><tr><td>Mezam Division Domestic Biogas [39]</td><td>Biogas</td></tr></tbody></table>

From Table 4 it can be seen that the renewable energy resources utilized in these communities are wind, solar, and biogas, indicating limited exploits for more renewable energy sources. However, it should be noted that other green energy technologies like storage, biomass, and hydro, have not been widely utilized in these communities and could be further explored to enhance the operations of renewable energy communities (RECs) in Africa. Also, other types of solutions can be looked at like smart cities, smart grids and microgrids.

#### Limitations

This review was limited by (1) Not many cases of REC in Africa. (2) Difficulty of finding cases in North Africa and (3) Insufficient online information on the internet. Hence these limitations may affect the generalizability of the findings and the feasibility of the proposed recommendations. Nonetheless, this study serves as a foundation for future research on RECs in Africa.
# 5 Conclusion and Future Works

The objective of the study is to analyze how governmental policies and organizational structures are helping RECs. Concerning governmental policies, the outcome shows that there are general policies to support renewable energy and energy efficiency in the related countries. However, regarding RECs, there seem to be no such policies in place, With the. Organisational structures it is also found that the studied cases are funded and owned by NGOs, charity organizations, and government agencies. This defeats the democratic dimension of RECs. Again, the system of governance is not clearly defined and the value that is generated is not known to benefit the local communities.

Considering the outcome of the study, it might be a good idea to consider emulating the successful cases or best practices that occur around the world, so that RECs in Africa can be well developed to provide the expected benefits to their local communities. The need for a comprehensive framework that encompasses the legal, governance, funding and composition of RECs in Africa is urgent. This will create a friendly environment for RECs to operate smoothly without challenges. Moreover, African governments need to have regional strategies that give RECs more priorities.

This initiative can begin at the regional level of the African continent. Currently, there are 8 regional economic blocks in Africa. These include (a) the Arab Maghreb Union (AMU), (b) the Community of Sahel-Saharan States (CEN-SAD), (c) the Common Market for Eastern and Southern Africa (COMESA), (d) the East African Community (EAC), (e) Economic Community of Central African States (ECCAS), (f) Economic Community of West African States (ECOWAS), (g) Intergovernmental Authority on Development (IGAD), and (h) the Southern African Development Community (SADC). Each block is responsible for the development of a sustainable and economic environment for member countries.

It is recommended that perhaps it is time to initiate dialogues at these levels of decision-making, regarding the development of RECs in Africa, taking into consideration the context of community in the African sense. It is also recommended that proper financial models could be developed to support the growth and development of RECs in Africa.

In future works, we aim to expand this study by (a) increasing the number of cases, (b) organizing focus group discussions (physically or virtually) with owners/actors or members of these communities to solicit their views and input towards the development and proposition of a comprehensive framework and policy guidelines for the establishment and operation of RECs in Africa. This work and the proposed future works form part of the preliminary ongoing PhD work which is planned to focus on renewable energy communities in Africa. At this preliminary stage of the work, the interest of the researcher is to gain understanding of the current situation of RECs in Africa.

**Acknowledgement.** The authors acknowledge the contributions of the University of Energy and Natural Resources, and the UNINOVA CTS (FCT program UIDB/00066/2020 and UIDP/00066/2020) for supporting this work with their research facilities and resources.
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