1
Solar PV is by far the most popular technology in development to date,
followed by wind, geothermal and CSP. Despite the small amount
of MW under construction, significant progress occurred since the
beginning of 2014 with some flagship projects being commissioned
such as the Olkaria I-III-IV geothermal projects in Kenya (306 MW),
the first grid-connected solar PV plant in Rwanda (8,5 MW), the
Adama II wind project in Ethiopia (153 MW) or large projects having
reached financial close such as the Lake Turkana wind project in Kenya
(310 MW). This is in addition to the 1 800 MW of grid-connected solar
and wind power projects having been commissioned in South Africa
under the REIPPPP.
There is still a shortage of expertise among government
decision-makers and the relevant public institutions in sub-Saharan
Africa. Corruption is still present in a lot of countries. Poor long-
term planning often obliges governments to implement expensive
short-term solutions. The lack of a clear and stable regulatory frame-
work promoting private investment is jeopardising the bankability of
these projects.
What the market needs is to find new creative funding schemes
which will improve the bankability of RE power projects. Examples
such as the IFC’s recent ‘Scaling Solar Programme’ and the ‘Scaling Up
RE in Low Income Countries Programme’ are going in this direction.
It is important that the power technology that will be adopted
makes economic sense for the country and helps it reach a sustainable,
diversified and affordable electricity generation mix. Factors such as
dispatchability, construction lead times, environmental impact and
benefits to local communities must be considered and compared with
alternative technologies.
Furthermore, it is essential that governments strike a balance
between grid-connected and off-grid power solutions, or centralised
and decentralised power systems. Each country must look at its
indigenous resources and what makes more sense economically,
taking into consideration externalities such as fossil fuel subsidies,
environmental impact, dependence on finite fossil resources, but also
electricity affordability, especially for disseminated rural populations.
Conclusion
There is much opti-
mism in the market for
the development of RE
power projects in sub-Sa-
haran Africa. Countries are in
various stages of liberalisation
of their electricity sector. Many
governments are trying to establish
new regulatory frameworks and
contractual structures to allow IPPs
in the power generation sector, which
will greatly facilitate the adoption of RE
power projects. However, some issues
continue to restrain the development of these
projects. Strong government support, including
a long-term vision, good energy planning, and a
real desire to involve the private sector is essential
for the successful implementation of RE power
projects in sub-Saharan Africa. If one can combine
these with innovative financing structures, which
allow circumventing the bankability and scaling
issues, then one can expect to be proud of what
this will bring for our future generations
References
[1] REN21: Renewables 2015 – Global Status
Report.
[2] Large-scale RE power development
opportunities in sub-Saharan Africa – A
story about bankability, affordability,
and grid capacity. 2015. Frost & Sul-
livan.
[3] IRENA: Estimating the Renewable
Energy Potential in Africa. 2014.
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ENERGY EFFICIENCY MADE SIMPLE 2015