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Figure 6. Electricity generation by source in sub-Saharan Africa Trends, Challenges and Opportunities 140 120 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 Fossil fuel 2004 2005 Hydroelectric 2006 2007 2008 Non-hydro renewables Source: UNEP 2012c Technology improvements and related cost reductions in renewable electricity generation yield large opportunities for developing countries to tap their vast national resources, not only to meet their domestic energy needs but also to export electricity. In the short term, electricity exports to neighbouring countries are more feasible particularly in view of the high costs of transmitting electricity over long distances. This is especially the case where the necessary electricity transmission infrastructure is currently inadequate (see section 6.3.4). In the medium- and long-term, inter-regional long distance exports of electricity from developing countries could also become an increasingly viable option (see Box 14). In the following sub-sections, the potential for trade in individual renewable energy sources is outlined. Hydropower exports A notable example of national hydropower development can be found in Laos. According to the Lao Department of Energy and Mines, hydropower exports amounted to about 30 per cent of Laos’ total exports in 2008 (DEM 2012). Another example is from the Democratic Republic of Congo (DRC), where the Inga Dam is expected to generate more electricity than the DRC could use, thus enabling significant amounts to be exported to neighbouring countries. There is also significant hydropower potential that could be developed in the Nile Basin, elsewhere in the DRC, and Guinea’s Fouta Djallon (OECD 2012). There is a growing market for electricity generated from hydro plants as highlighted by research from IRENA on South Africa’s future energy needs: “In addition to indigenous renewable production, South Africa will import significant amounts of renewable electricity. The Lesotho Highlands Power Project will generate 6 GW of wind power and 4 GW of hydropower, mainly for export to South Africa. This is equivalent to nearly one- quarter of South Africa’s total current energy supply. The Grand Inga and other large projects will also find a large export market in South Africa in the coming decades” (IRENA 2012). However, in several cases hydropower development has come with serious environmental risks and social costs, as discussed in Section 6.2.2. Wind energy and solar power exports A key example of the future potential of wind energy exports in Asia is Mongolia’s first 50 MW wind farm. This is currently under construction and is set to generate an estimated 5 per cent of the country’s 237 Billion kwh Renewable EnergyPDF Image | Renewable Energy
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