If the incessant power supply crisis in African countries are to be a thing of the past, an injection of $350 billion will be required as investment into the electricity sector over the decade. This is according to a report by global energy research consultancy firm Wood Mackenzie.
The report titled “Utility evolution in Africa to reshape global electricity access demand”, focuses on the long-standing electricity generation and distribution problems evident especially in Sub-Saharan Africa and recommends the investment be targeted around fiscal and operational bottlenecks in many of these countries. It states further that the number of people in the region without power stood at 600 million, despite the exponential growth experienced in the sector over the last decade.
“Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future but carry important lessons for the next generation of thinking on utility business models globally. “These investment opportunities work around the fiscal and operational bottlenecks posed by some of Sub-Saharan Africa’s state utilities. Service providers are going straight to the bankable segments of residential, commercial, and industrial electricity demand, typically through distributed, renewable, off-grid solutions where the public utility does not feature,” it says.
Countries like South Africa and Nigeria, two of Africa’s largest economies have had widespread electricity generation and distribution issues in recent times. South Africa’s ESKOM is yet to find a lasting solution to its debt crisis while Nigeria’s gas supply to generation companies have been interrupted in the past week, leading to collapses of the national grid.
Countries like South Africa and Nigeria, two of Africa’s largest economies have had widespread electricity generation and distribution issues in recent times. South Africa’s ESKOM is yet to find a lasting solution to its debt crisis and has implemented several levels of load shedding while Nigeria’s gas supply to generation companies have been interrupted in the past week, leading to collapses of the national grid.