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1
Moreover, the tradition of having fossil fuel subsidies in place in certain
countries, such as Nigeria, distorts the competitiveness of RE power
projects, not reflecting the real levelised cost of electricity of thermal
power plants.
Operating IPPs
Having suitable RE resources is therefore not sufficient. In addition
to the elements cited, investors and developers must also be wary
of the country’s Independent Power Producers’ (IPPs) track record.
Table 1
summarises which countries in sub-Saharan Africa have op-
erating IPPs. The next step is to evaluate if the IPP experience has
been fruitful or not.
In terms of procurement and contracting mechanisms, the global
market trend is currently favouring a competitive bidding process –
such as what has been implemented in the South African REIPPPP
– even though Renewable Energy Feed-in Tariff (REFiT) continues
being adopted mainly in emerging markets. This is the case of Ken-
ya, Uganda, Tanzania, Rwanda, Nigeria, and Ghana, which have all
implemented REFiTs.
Some countries are also adopting a mix of REFiT and competitive
bidding such as in Kenya, Uganda, and Tanzania. REFiTs are some-
times limited to certain types of technologies such as small hydro and
biomass like in Tanzania and Rwanda. The report [1] has combined
eight different quantitative factors including the legal and political
framework, the economic and infrastructure development, as well
as a natural resource assessment [3] performed by the International
Renewable Energy Agency (IRENA) to identify countries with the
best opportunities in terms of large-scale grid-connected RE power
technologies. Small-scale (defined as smaller than 5 MW), off-grid,
and embedded RE generation projects have not been accounted for
and their potential should be considered in addition to the findings
from this report.
Results of the research indicate that best opportunities lie in
South Africa, but also in Tanzania, Namibia, Kenya, Zambia, Nigeria,
and Ethiopia, depending on the RE technology (limited to CSP, solar
PV, wind, or geothermal). Despite not being in the top five ranking,
Ivory Coast and Ghana have also been identified as countries which
deserve particular attention for their large-scale solar PV potential.
In 2014, total RE power installed capacity (including hydro and
biomass) amounted to 27,6 GW in sub-Saharan Africa. Hydropower
represents 85,8% of this amount. Nevertheless, geothermal, solar
PV, and wind power witnessed the highest growth compared to the
previous year, progressively eroding hydropower market share.
As of June 2015, the pipeline of large-scale RE (solar PV, CSP,
wind, and geothermal only) power projects (larger than 5 MW
and excluding North Africa, South Africa, and the African islands)
amounted to approximately 14,7 GW. Only 647 MW started the
construction phase, the rest being in earlier stages of development.
Renewable Energy Support Policies
Historical IPP Presence
Source: Frost & Sullivan
IPP Presence
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Congo-Brazzaville
Cote d'Ivoire
Dem. Republic of Congo
Djibouti
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia, The
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
A good track record of IPPs, either for renewable or non-renewable technologies, is an important supporting
factor to consider as it will help accelerate the involvement of future IPPs aimed to develop large-scale RE
power projects. A lot of countries have put into place reforms to liberalise their electricity sector and open
power generation to IPPs.
Countries with IPP Presence, Sub-Saharan Africa, 2015
IPP Presence
Liberia
Madagascar
Malawi
Mali
Mauritania
Mozambique
Namibia
Niger
Nigeria
Rwanda
Senegal
Sierra Leone
Somalia
South Africa
Sudan
Swaziland
Tanzania
Togo
Uganda
Zambia
Zimbabwe
IPP Present
IPP Presence Soon
IPP Not Present
Table 1: Countries with IPP presence.
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ENERGY EFFICIENCY MADE SIMPLE 2015