Photo by UNDP Côte d'Ivoire

Biomass for Electricity Generation

Photo by UNDP Cote d'Ivoire

Biomass for Electricity Generation

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
311 to 411 MW of additional biomass energy production capacity by 2030
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11)

Business Model Description

Construct biomass energy facilities using biowaste from cocoa, coffee, cotton, palm oil, and other types of agricultural production to generate energy by combustion. Partnerships with cooperatives, large-scale farmers or food processing industries can be set up to ensure a constant supply. The energy produced can then be sold to the surrounding towns and villages, or to the industrial sector, based on the Electricity Code (article 49), which allows for contracts of purchase. Ashes resulting from combustion can serve as biofertilizers and benefit farmers (19).

Expected Impact

Offer cheaper and greener energy to households and SMEs while generating revenues for farmers.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Savanes
  • Côte d'Ivoire: Gôh-Djiboua
  • Côte d'Ivoire: Comoé
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Montagnes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Development need
Although renewables constitute a more inclusive energy source amid rising national demand and a prevalent energy poverty, production depends mainly on fossil fuels (69% of total). Increases in energy production enabled to triple the share of the population with access to electricity (95%) but the share of renewable energy in the mix, notably hydroelectric, has decreased between 2010 and 2023 (1, 2, 17).

Policy priority
Under the National Renewable Energy Action Plan 2014–2030 the government targets 42% of renewables in the mix by 2030, revised to 45%. It also aims to expand production capacity to 4,000 MW by 2025 and 5,000 MW by 2030. In its NDCs, Côte d'Ivoire pledged to increase electricity production from renewables. Expanding access to energy and renewables is also a central theme of the National Development Plan (Pillar 3) and is a crucial element of Côte d'Ivoire's goal of becoming an upper-middle income country, as set out in its Vision 2030 (3, 4, 5, 17, 18).

Gender inequalities and marginalization issues
While access to electricity has improved, it remains limited in northern areas. Some households in grid-connected settlements do not have access to electricity, and affordability remains a pressing concern. Energy poverty concerns 91% of the rural population (6).

Investment opportunities introduction
Africa's 3rd largest electricity network, Côte d'Ivoire can attract USD 9 billion investments in renewable energy by 2030. Biomass potential equals 16.7 million tons/year from cacao, palm oil, coffee, etc. while solar potential exceeds 1,900 kWh/m². This favors investments at utility scale but also for mini-grid and hybrid applications (7, 9).

Key bottlenecks introduction
Renewable projects are exposed to climatic events such as storms, high winds, floods and landslides which could damage production plants and electricity poles. They also require prior authorization from the Ministry of Energy to ensure alignment with national energy efficiency and sustainability goals, which may involve a lengthy process (9, 19).

Sub Sector

Alternative Energy

Development need
90% of the forests have vanished in 60 years, reducing agricultural productivity. Despite grid connection, high costs hamper electricity access, forcing reliance on fuels. Moreover, the country struggles with droughts, uneven water access (67% rural), and poor food market hygiene, exacerbating health risks. Biowaste recycling and green energies could mitigate these issues (4, 11, 12).

Policy priority
The programs "Electricité pour Tous" and "Accès à l'eau potable en milieu rural" aim for universal access to electricity and drinking water by 2025 and 2030, notably through solar-powered water pumps. These include financial inclusion and the installation of 1,200 water infrastructures. The nation plans to increase solar energy production, targeting an 7-9% share in its energy mix, supported by IFC's Scaling Solar program (8, 9, 14).

Gender inequalities and marginalization issues
In Côte d'Ivoire's northern regions, 87% of households use wood for energy due to high electricity costs, intensifying deforestation despite government subsidies for methane gas, which still pollutes significantly. Additionally, water access is closely linked to income, with informal city settlements and remote villages facing severe shortages, worsening their economic and health challenges (10, 12).

Investment opportunities introduction
Côte d'Ivoire supports investment in infrastructure to achieve universal water access by 2030 with a USD 5 billion pledge. The government also supports renewable energy projects such as the Aboisso biomass plant. Additionally, with financial backing from IFC and AfDB, developments such as the USD 400 million Azito power station have been launched (9, 14).

Key bottlenecks introduction
Poor road network maintenance may hamper biomass production, as traffic interruptions can halt operations. Additionally, dust accumulation and storms reduce solar plant productivity. Moreover, local residents may struggle to maintain and replace outdated water pumps, compounded by limited access to finance, especially in villages lacking government support (8, 13, 16).

Industry

Biofuels

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Biomass for Electricity Generation

Business Model

Construct biomass energy facilities using biowaste from cocoa, coffee, cotton, palm oil, and other types of agricultural production to generate energy by combustion. Partnerships with cooperatives, large-scale farmers or food processing industries can be set up to ensure a constant supply. The energy produced can then be sold to the surrounding towns and villages, or to the industrial sector, based on the Electricity Code (article 49), which allows for contracts of purchase. Ashes resulting from combustion can serve as biofertilizers and benefit farmers (19).

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

311 to 411 MW of additional biomass energy production capacity by 2030

In Cote d’Ivoire, different sources of biomass are abundant due to agricultural activity, including palm oil waste, cocoa and cotton waste, contributing to a potential increase in energy production capacity from biomass by 411 MW until 2030 (54).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

Depending on the source, biomass energy projects are expected to generate an Internal Rate of Return of around 15% based on the large-scale benchmark projects in Côte d'Ivoire and the Economic Community of West African States (ECOWAS) region (46).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Depending on the source, biomass energy projects are expected to generate positive returns in five to ten years based on the large-scale benchmark projects in Côte d'Ivoire and the Economic Community of West African States (ECOWAS) region (46).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Both biomass projects in Aboisso and Divo require total investments above 200 million euros (USD 216 million). These costs are shared by several stakeholders (34, 36).

Business - Supply Chain Constraints

Disruptions to transport could increase the cost of supplying biomass.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Access to electricity is only 37% in rural areas, and an expansion of the supply is required to meet demographic pressures and a growing industry (21).

Over-reliance on wood and charcoal for energy generation, used by over 60 to 80% of households because it is cheaper, remains highly polluting and emits significantly more CO2 (3, 40).

Air pollution, notably due to charcoal and wood combustion, is associated with 34,000 premature deaths annually in Côte d'Ivoire (4).

Gender & Marginalisation

Northern regions are less connected to the national grid. While over 70% of Ivorians live in villages connected to the electricity grid, just 29% of households use it due to last-mile connection costs and energy prices (3).

Energy poverty concerns 91% of the rural population (4).

Expected Development Outcome

The construction of biomass-fired power plants would increase energy supply and help meet the increasing energy demand due to population growth. The largest power plants can benefit more than a million inhabitants (31).

Transitioning to biomass energy production could improve local health outcomes and reduce environmental impact, as biomass emits less CO₂ compared to conventional energy sources and poses fewer health risks than charcoal and wood burning (23, 49).

"Placing production plants near agricultural areas can ensure a reliable biomass supply and directly benefit nearby rural communities, which tend to face higher rates of energy poverty (6). "

Gender & Marginalisation

As biomass plants can be relatively small in size and provide cheaper electricity, this could provide a solution for the northern agrarian regions.

Primary SDGs addressed

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.1.1 Proportion of population with access to electricity

7.1.2 Proportion of population with primary reliance on clean fuels and technology

7.3.1 Energy intensity measured in terms of primary energy and GDP

Current Value

In 2023, 95% of the population has access to electricity, but in 2022, it was 45.3% in rural areas. These figures also do not account for real use, which is typically lower as some households cannot afford grid connection (17, 48).

The proportion of population with primary reliance on clean fuels and technology was 42.6% in 2022, and 7.4% in rural areas (40).

Côte d'Ivoire's primary energy production per capita was 17.3 GJ or 63% of the African average and 22% of the world average (8).

Target Value

The government's plan for renewable energy (PANER) targets universal access to electricity and 42% of renewable energy in the mix by 2030, revised to 45% (3, 17).

The government aims to multiply by five the number of households using biogas or solar energy and liquefied natural gas for cooking purposes by 2030, from 6.3 million in 2016 to 33,1 million in 2030 (3).

N/A

Secondary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action
No Poverty (SDG 1)
1 - No Poverty
Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities

Directly impacted stakeholders

People

The population benefits from additional employment in the energy sector. For instance, the Aboisso plant created over 1,000 jobs (34).

Gender inequality and/or marginalization

Rural and poor segments of the population benefit from lower energy prices due to the construction of biomass plants.

Planet

Energy generation from biomass is more efficient than conventional methods, leading to reduced CO2 emissions and a positive impact for biodiversity (36).

Corporates

Firms benefit from cheaper electricity, which can lead to improved competitiveness and higher production intensity.

Public sector

The government benefits from long-term access to renewable energy sources supporting its goal of generating 45% of energy from renewables by 2032 (4).

Indirectly impacted stakeholders

People

The population benefits from employment opportunities due to biomass energy production, as it may stimulate additional economic activity through lower energy prices and the trade of biowaste. The Aboisso plant will generate revenues for 12,000 farmers during 25 years (31).

Gender inequality and/or marginalization

Farmers and rural populations benefit from the selling of biowaste to biomass plants, which generates an additional income and help alleviate rural poverty.

Public sector

Public sector can benefit from increased tax revenues, as formal energy sources like biomass are easier to tax compared to informal sources such as charcoal and firewood, which are often unregulated.

Outcome Risks

Without strict supervision to ensure the enforcement of environmental and worker safety standards, neighbouring communities could face sanitary risks, and energy production might lead to increased CO2 emissions.

The use of agricultural waste for biomass energy could lead to unintended environmental consequences, such as soil degradation or reduced soil fertility, if the removal of crop residues reduces the organic matter that would otherwise decompose and enrich the soil. This could negatively impact agricultural productivity in the long term.

If adequate security measures are not enforced, there is a moderate risk for workers to suffer from explosions and fires caused by the burning of biomass (8).

Biomass energy is not carbon-neutral. Its emission are partly offset by the fact that the carbon released during the combustion is equal to the amount that the plants stored during their lifetime, but this type of energy production emits more than solar or wind, for instance.

Gender inequality and/or marginalization risk: The production of energy from biomass is likely to affect the traditional activities of collecting and trading wood and charcoal, affecting the incomes of local populations.

Impact Risks

Climate variability, especially droughts and floods, could disrupt the supply of biomass feedstock (such as cocoa husks or palm waste) needed for electricity generation, leading to lower than expected energy production and affecting the overall environmental and social impact.

Increased electricity generation from biowaste may limit other valuable uses of biowaste, including as fertilizer, which has been proven to be a low-carbon fertilizer (38).

If production increases by less than demand, and tariffs are too high, biomass energy production could have little impact on energy poverty.

Impact Classification

B—Benefit Stakeholders

What

Biomass energy plants will provide cheaper and more renewable energy while generating additional revenues for farmers selling biowaste.

Who

The main beneficiaries are households, smallholder farmers, and industries, especially in rural areas.

Risk

The vulnerability of agricultural inputs for biomass to climate variability may disrupt anticipated impacts, as climate challenges could reduce the availability of agricultural waste.

Contribution

Using biowaste to produce electricity replaces other uses or practices, such as biocharcoal or combustion, which emit more toxic substances and have a lower welfare effect (44).

How Much

As part of its goal to reach 45% of renewable energy of the mix by 2030, the government aims to add 311 to 411 MW of biomass energy production capacity by 2030 (4, 53, 54).

Impact Thesis

Offer cheaper and greener energy to households and SMEs while generating revenues for farmers.

Enabling Environment

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Policy Environment

The National Renewable Energy Action Plan 2014–2030 (Plan d’action national des énergies renouvelables 2014-2030 or PANER) outlines key objectives for access to clean energy, notably through improved energy efficiency and use of biomass and solar energy (3).

The National Rural Electrification Program (Programme National d’Electrification Rurale or PRONER) outlines specific objectives per region to increase electricity access rate, with a budget of 400 bn FCFA (USD 665 million). Renewable energies, notably biomass, serve as support for the grid, particularly in localities which experience voltage drops exceeding 10% (3, 32).

The National Energy Efficiency Action Plan ("Plan d’Action National d’Efficacité Énergétique" or PANEE) targets improvements in energy efficiency across various sectors from 2016 to 2030. This plan aims to reduce energy losses and promote biomass energy for both national electricity generation and as a sustainable alternative to charcoal and wood for household fuel use (33).

Côte d'Ivoire's Nationally Determined Contributions (NDCs) stress the development of biomass plants as a key strategy to reduce greenhouse gas emissions. A major objective of the country's revised climate strategies is the reduction of short-lived climate pollutants (SLCPs), such as methane, black carbon, and fine particles (4).

Financial Environment

Financial incentives: Development partners such as the United States Trade and Development Agency (USTDA) and the International Finance Corporation (IFC) provide grants and loans for feasibility studies, and/or power plants construction (2, 27, 35).

Fiscal incentives: The 2018 Investment Code provides fiscal incentives for investments in renewable energies, including exemption from various commercial and profit taxes. It also offers an exemption from patents and licenses contribution and an 80% to 90% reduction of employers' contribution (41).

Regulatory Environment

Energy sector is liberalizing production while maintaining a monopoly on distribution. No feed-in tariff exist but Côte d'Ivoire enforces Power Purchase Agreements where the government commits to buying energy at a set price for typically 25 years, ensuring stability for energy producers (2, 37).

Law No. 2014-132 (Electricity Code of 2014) supersedes the Electricity Law of 1985. This code facilitates private involvement in electricity generation, transmission, distribution, and retailing, thereby dismantling the state monopoly (46).

Decree No. 2016-782 outlines the modalities surrounding electricity production, transport, dispatching, distribution and commercialization concessions, including the creation of a dedicated steering committee to supervise the negotiations (22).

Decree No. 2016-783 outlines the regulations applicable to the sale of energy from an independent power producer to the state or eligibility clients (51).

"Decree No. 2016-786 outlines the rules applicable to electricity pricing. The sale prices of electricity are set and revised by an interministerial order to ensure the financial balance of the electricity sector, covering the revenues of concessionaires and public service missions (25). "

Marketplace Participants

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Private Sector

Meridiam, EDF, Companie Ivoirienne d'Electricité, CI Energies, CIPREL, Azito, Aggreko, Biovéa, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI).

Government

Autorité Nationale de Régulation du Secteur de l’Électricité (ANARE-CI), Ministère des Mines, du Pétrole et de l'Enérgie, Ministère de la Salubrité, de l’Environnement et du Développement Durable, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

US Trade and Development Agency (USTDA), Proparco, International Finance Corporation (IFC).

Public-Private Partnership

The Aboisso plant was developed under a public-private partnership (PPP) model, with the Biovéa Energie consortium of private enterprises awarded a 25-year concession under a Build-Operate-Transfer (BOT) framework (47).

Target Locations

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country static map
rural

Côte d'Ivoire: Savanes

The Savanes district produces large quantity of cotton, the region's leading culture and source of revenues. The Boundiali biomass plant highlights the market potential of the region (28).
semi-urban

Côte d'Ivoire: Gôh-Djiboua

Gôh-Djiboua is among the leading agricultural districts in Côte d'Ivoire, especially for the production of cocoa. In addition, it already hosts two biomass plants, in Divo and Gagnoa (29).
semi-urban

Côte d'Ivoire: Comoé

The largest biomass plant is located in Aboisso, in the Comoé district. The district is also an important producer of fruits and vegetables, representing an opportunity for biomass-generated electricity.
semi-urban

Côte d'Ivoire: Bas-Sassandra

Bas-Sassandra is among the first districts in Côte d'Ivoire in terms of cocoa production, also producing coffee, oil palm, and hevea (30).
rural

Côte d'Ivoire: Montagnes

Energy poverty is particularly high in the Montagnes district, reaching 64.41% in the Cavally region and 63.7% in the Tonpki region (6).

References

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