WRITTEN QUESTION E-1730/02

by Karin Junker (PSE) to the Commission

(17 June 2002)

Subject: Possibilities for promoting renewable energies in development cooperation

During the Forum on Development Strategies, held by the Kreditanstalt für Wiederaufbau and the Deutsche Investitions- und Entwicklungsgesellschaft on 11 April 2002 in Brussels, Antonio Garcia Fragio, speaking on behalf of the Commission's Directorate-General for Development, noted that 90 % of Africans had no access to electricity.

Although support for the energy sector is not a main objective of development cooperation, it should be given increased priority over the energy projects currently supported by the EU.

Given the depletion of fossil fuel reserves, and in order to combat the climate change, it is becoming increasingly important that the developing countries, too, use renewable energy sources. According to Rolf Seifried, an expert from the Kreditanstalt für Wiederaufbau, we may assume that the future increase in global energy consumption will be caused mainly by developing countries. Their share will rise to 45 % by 2020 (compared to 34 % in 1997).

Can the Commission answer the following:

- What action has the Commission taken to promote renewable energies under EU development cooperation?

- What plans does it have in this respect?

- What strategies exist in this connection, with particular regard to the ACP States?

Answer given by Mr Nielson on behalf of the Commission

(8 August 2002)

The Honourable Member correctly points out that energy is not amongst the six priority sectors of Community development policy. Furthermore, the approach to energy within development co-operation is to ensure that the most sustainable energy solution is chosen in each case (from an economic (life-cycle costs), social, environmental and institutional perspective) to improve access to energy services for the achievement of poverty eradication. The cost of renewable energy can act as a barrier to their widespread introduction in developing countries. In a number of cases renewable energy will be the most appropriate choice economically, for example often in remote rural areas where this for all pratical purposes simply means using fuelwood, while in others it may not. Current trends suggest that the economics of renewable energy sources can make them more affordable for the developing nations in the future

There have been a number of successful examples of Community development co-operation using renewable energy, for example the significant Regional Solar Programme in the Sahel (EUR 50 million in its first phase) using photovoltaics for water pumping, (now being extended to a second phase), a EUR 15 million programme using photovoltaics to provide electricity to remote school in South Africa, solar energy for islands in Kiribati, etc.

The Commission is currently working together with the Member States to develop a Community energy initiative, to be launched in Johannesburg at the World Summit on Sustainable Development (WSSD). Renewable energy will feature as one of the options for activities under this initiative.

The size and the scope of work to be undertaken by the new partnerships under the Union energy initiative will develop over time, depending on the demand from the developing countries for the activities offered through the initiative. The initiative would focus on activities (on a national or regional basis as deemed appropriate by partner countries) in the following areas: institutional capacity building, technical co-operation, transfer of knowledge and skills, market development, including facilitating adequate forms of public-private partnerships, and facilitation of co-operation with financial institutions, and integration of energy into other sectors.

Regarding African, Caribbean and Pacific (ACP) states, it is interesting to note that so far very few of the ninth European Development Fund (EDF) ACP Country and Regional Strategy Papers, developed by the beneficiary countries/regions themselves, feature a strong role for energy. Following the WSSD the Commission will be organising a meeting for African officials to raise awareness of the role of energy (including renewables) in social and economic development, and to further develop partnerships for the Union energy initiative. Awareness raising is central to the development of the initiative in view of the limited demand.

Finally, for a more complete description of Commission views on these issues, the honourable Member is invited to study the Commission's comments on Energy Co-operation with the development countries(1) adopted on 17.7.2002.

(1) COM(2002) 408.