Senegal signs Just Energy Transition Partnership deal after South Africa, Indonesia & Vietnam

Subject : Environment

Section: International convention

In the news:

Senegal has become the fourth country after South Africa, Indonesia and Vietnam to sign the JET-P deal, with the International Partners Group comprising France, Germany, the European Union, the United Kingdom and Canada.

Details:

The deal was announced June 22, 2023 and will mobilise 2.5 billion euros for Senegal in new and additional financing over an initial period of 3-5 years.
The partnership will offer significant opportunities for investment from the private sector, sovereign wealth funds and philanthropic foundations.
Senegal’s new nationally determined contributions, which were to be published at COP30, will reflect the climate ambitions undertaken in this deal.
A high debt burden coupled with the high cost of capital makes renewable energy unaffordable in many developing countries.

Senegal’s effort for Renewable energy:

The current share of renewable energy in Senegal is around 31 per cent of the installed capacity. A 2015 Senegal government planning document had set a target of 20 per cent renewable energy in the electricity mix by 2020 and 23 per cent in 2030.
The same year, a new target for 30 per cent of photovoltaic and wind in the electricity generation mix was set for 2025. The 20 per cent target for renewable energy production in the electricity mix was achieved by 2021.
As of 2020-21, the total installed capacity for power generation in Senegal was around 1.2 to 1.5 gigawatts, generating 5.6 terawatt-hours of electricity. The country currently relies heavily on imported fossil fuels to meet its energy demands.
Senegal adopted a gas-to-power strategy in 2018.

About Just Energy Transition Partnership (JETP):

JETP, an initiative of the rich nations to accelerate the phasing out of coal and reducing emissions.
The JETP initiative is modelled for South Africa, to support South Africa’s decarbonisation efforts.
It aims to reduce emissions in the energy sector and accelerate the coal phase-out process.
JETP makes various funding options available for this purpose in identified developing countries.
The JETP was launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU)
Following that G7 has announced a similar partnership in India, Indonesia, Senegal, and Vietnam.
India’s stand – India argues that coal cannot be singled out as a polluting fuel, and energy transition talks need to take place on equal terms.