The theme for International Women’s Day, 8 March, 2022 (IWD 2022) is, “Gender equality today for a sustainable tomorrow”, recognizing the contribution of women and girls around the world, who are leading the charge on climate change adaptation, mitigation, and response, to build a more sustainable future for all.
Since its establishment African Women in Energy and Power NPC (AWEaP) has been rallying players in Africa’s energy ecosystem to support the participation of women entrepreneurs in Africa’s energy value chains.
Our theme for 2022 is:
Our sponsors are:
Webinar Series for 2022
Our series of webinars aim to disclose new entrepreneurial worlds to women entrepreneurs.
*these dates may change, visit the website for updates
At the webinars you can expect to learn about different African energy markets, specifically you will get insights on:
and their vital role in the direction and realisation of electricity infrastructure and regulatory reform. Utilities play a profound role in creating a market for products, services, solutions and system for the entire electricity value chain. We invite representatives of electricity utilities to share their strategic focus, project pipelines, integration of renewable energy, gender mainstreaming policies and procurement processes.
Original equipment manufacturers (OEMs):
OEMs design and manufacture products, services, solutions and systems sought after by utilities and different large power users. We invite them to share trends in electricity system digitisation, decarbonisation and decentralisation.
Access to finance is one of the most significant barriers to gaining entry into the energy and power sector, more so for women entrepreneurs without any track record. We invite finance institutions to speak of the liquidity pots that exist in each market for energy projects and how entrepreneurs can produce fundable business cases.
Independent Power Producers:
Renewable energy is revolutionising electrification and security of supply in most markets. We invite seasoned IPPs to speak on distributed generation, project development, OEM engagement, managing the procurement value chain within a project, project financing and project compliance. These insights are necessary for first time IPPs.
Building reciprocal value adding networks is fundamental to the success of any entrepreneur. We are a non-competitive platform and organisation. We collaborate with other associations to build a supportive and inclusive energy ecosystem.
Women Entrepreneurs’ Testimony:
Entrepreneurship is the capacity and willingness to develop and participate in a business venture with the intention of making a profit regardless of the financial risks involved. The role of entrepreneurship in any economy is critical, as it contributes to the socio-economic development of societies. We invite women led and owned companies to give testimony on how they are navigating the energy sector in their market.
We believe that unless women know what entrepreneurial opportunities exists in the sector, they will not be able to 1) opt to participate in the sector, 2) choose an areas of focus, 3) align themselves with the relevant actors in the ecosystem; 4) access credible market information 5) organise themselves to participate effectively and sustainably.
Invest 2h30 hours to learn about
different energy sectors in Africa
15 DECEMBER 2022
In September 2022, the new report on employment in renewable energy was published by the International Renewable Energy Agency (IRENA) in collaboration with the International Labour Organization (ILO), during the Global Clean Energy Action Forum in Pittsburgh, USA.
Worldwide employment in renewable energy reached 12.7 million last year, a jump of 700,000 new jobs in one year, despite the lingering effects of COVID-19 and the growing energy crisis, according to a new report. Solar energy was found to be the fastest-growing sector. In 2021 it provided 4.3 million jobs, more than a third of the current global workforce in renewable energy.
With rising concerns about climate change, COVID-19 recovery and supply chain disruption, national interest is growing in localizing supply chains and creating jobs at home. https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_856515/lang–en/index.htm
Click here to download the IRENA report: https://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/documents/publication/wcms_856649.pdf
The benefits of increasing women’s participation in employment and leadership roles has been globally recognised, and gender inequality is recognised as a constraint to economic growth. However, many barriers continue to prevent women from working in the energy industry. Most estimates suggest women account for just 22-25% of total employees in the power sector, and a low proportion work in science, technology, engineering and mathematics (STEM) roles.
It has been suggested there is a correlation between business performance and gender diversity in the workplace, including in the energy industry. Studies have shown that companies with strong female leadership deliver a 36% higher return on equity, and that companies with at least one female executive board member outperformed those with male-only boards. As for the energy sector, it has been demonstrated that a lack of gender equality puts utilities at a disadvantage, with boards with at least 30% women having higher profit margins than those that don’t. It has also been suggested that energy sector organisations that improve gender equality can boost innovation. https://www.energyeconomicgrowth.org/blog/increasing-womens-participation-energy-sector-addressing-challenges
We need a space to discuss gaps and inequalities and to propose critical solutions to advance a gender-just energy transition. ENERGIA, UNIDO and GWNET, together with strategic partners and members of the Gender and Energy Compact, discussed the important role of women and of gender-transformative policies in building a climate-just energy future at the 27th United Nations Climate Change conference (COP27) in November 2022 in Sharm El Sheikh, Egypt.
Inequalities demand urgent, bold responses, and can only be successful if accompanied by adequate financial resources. Women and girls are particularly vulnerable to climate change and suffer from energy poverty, but they are also key agents of change with the capacity of bringing in innovative, bold solutions for climate action. Gender equality and women’s empowerment need to be supported at all levels: women entrepreneurs, women’s access to energy at the last mile, women in the workforce, as well as gender responsive energy/climate policies and gender-balance in decision making processes. https://www.energia.org/cop27-we-must-advance-a-gender-just-energy-transition/
Our webinar this month: Building an inclusive energy sector for a sustainable tomorrow, a look at employment equity in the energy and power sector, will host leaders from Morocco, Tunisia and Cameroon. A highlight of the webinar is the panel discussion on employment equity in the power and energy sector.
We will also showcase 3 testimonies from entrepreneurs in energy from the 3 countries.
Do not miss this webinar. It marks the last event of our successful 2022 webinar series that covered Southern Africa, East Africa, West Africa and now North Africa.
The webinar will be available in both French and English.
You can select your preferredlanguage by selecting the Language Interpretation toggle button on the webinar platform.
23 NOVEMBER 2022
A look at Mozambique’s electricity sector
Mozambique has the largest power generation potential of all Southern African countries. It could generate 187 gigawatts of power from coal, hydro, gas, and wind resources, excluding solar. Most of the power currently generated is from hydroelectric projects, however, coal, gas, and renewable energy sources will have a significant impact in the future, with natural gas expected to provide 44% of total energy generation in the next decade.
Despite Mozambique’s huge potential for generation capacity, only 34% of the population has access to electricity. This is due to an underdeveloped transmission and distribution network, lack of financing and the bureaucracy involved in developing new power projects. Near future energy demand will be driven by industry and business, as most of the population cannot afford current tariffs despite the fact, they are highly subsidized. To mitigate the cost of expanding the grid to rural areas, the Government of Mozambique has made rural electrification development a priority led by the Mozambique Energy Fund Institute (FUNAE), which focuses on smaller off-grid projects of less than 10MW.
Electricidade de Moçambique (EDM) is the sole utility in the country. Despite two recent tariff increases, EDM is selling power at a loss and had hoped to have a cost reflective tariff by the end of 2019. However, COVID-19 has forced EDM to instead reduce its tariffs to sustain industry and business activities. EDM is also forced to subsidize tariffs to disadvantaged residential consumers, a strategy deemed unsustainable. According to national statistics a third of EDM’s customers, who are concentrated in Maputo and the surrounding province, generate 65% of EDM’s national revenue. Mozambique is a net exporter of energy especially to countries through the Southern African Power Pool (SAPP) – South Africa being the largest importer. EDM is making considerable structural and operational changes to finance its own generation projects especially in loss reductions.
The first Independent Power Projects (IPPs) in Mozambique came online in 2015. These projects have paved the way for future IPP negotiations and, more recently, the standardization of tendering documents. Given EDM’s weak financial capabilities, future IPPs will likely rely on development banks for financing.
The largest power generation plant in the country is the Cahora Bassa hydro dam, operated by the government owned Hidroelectrica de Cahora Bassa (HCB). HCB sells 65% of its existing generation to South Africa, and the remaining 35% is sold to the northern regions of Mozambique and to Zimbabwe. HCB’s operations are located on the Zambezi River in Tete Province.
Mozambique recently commissioned several gas thermal plants, the latest of which is the Gigawatt 120MW plant commissioned in 2015 under a Power Purchase Agreement (PPA) with EDM. According to BMI Research, gas-based generation is expected to increase by 18.1% annually through 2025. Mozambique’s first utility-scale solar power plant, a photovoltaic plant with a capacity of 40MW, was commissioned in Zambézia Province in 2017. There are numerous other greenfield opportunities for both solar and wind projects.
https://www.trade.gov/country-commercial-guides/mozambique-power-generation-transmission-distribution#:~:text=Mozambique%20has%20the%20largest%20power,and%20wind%20resources%2C%20excluding%20solar. Accessed 31 October 2022
A look at Botswana’s electricity market
Botswana currently generates the bulk of its power from coal, and sits on large coal reserves of around 200 billion tons. Botswana also has coal bed methane reserves of 0.15-3.2 trillion cubic feet (tcf) at the Lesedi field. The country also has significant solar potential, with 3,200 hours of sunshine per year, and irradiance of 6,640 Wh/m2/day. Only a portion (450 MW) of installed capacity is available to produce power, and additional demand is met through electricity imports, primarily from South Africa.
The sole power utility, the Botswana Power Corporation (BPC), has also embarked on a distribution network development which includes a rural electrification program of 116 villages, 44 of which had never been covered and the remaining 72 villages are being expanded. With 212 billion tons of coal, coal-fired plants remain the foundation of the GoB’s energy framework and current peak demand of approximately 610 MW. Two power plants near Palapye, about 200 km north of Gaborone, supply the vast majority of the country’s electricity. Morupule B’s current capacity is 600 MW, but it has faced technical challenges and at times has been closed for repairs or operated at partial capacity. As of July 2021, the plant operated at only 29 percent capacity.
There are two diesel operating power plants, Orapa which produces 90 MW and Matshelagabedi, producing 70 MW. Both these are emergency power plants that are used to mitigate any short fall. Additionally, Botswana imports the bulk of its power from South African utility Eskom, and the rest from Nampower (Namibia), Zesco (Zambia), SAPP (Southern African Power Pool), and cross-border to make up for any production shortfalls. Statistics on Electricity Generation and Distribution up to third quarter 2021 show that of Botswana’s 424,703 MWh of imported electricity, 53.7 percent comes from Eskom, 26.7 percent from Zesco, 13.1 percent from SAPP, 4.8 percent cross border and 1.7 percent from Nampower.
In October 2020, the government approved an Integrated Resource Plan (IRP) that provides a roadmap to achieve a reliable, safe, and affordable electricity supply with a target of renewable energy contributing 15 percent to the energy mix by 2030 from its current negligible contribution. Additionally, the country launched a Rooftop Solar (RTS) Program in October 2020 with the assistance of USAID’s Southern Africa Energy Program (SAEP). The five-year project, which is designed to increase the supply of and access to electricity in Southern Africa, will enable domestic consumers to install their own solar systems to generate electricity and sell excess back to BPC. In 2017, BPC signed a contract for a $460 million North West Transmission Grid project to connect the northwestern villages of the country with electricity. The project was completed in 2020 aiming to unlock mining investments previously suppressed due to lack of access to grid power.
https://www.trade.gov/country-commercial-guides/botswana-energy accessed 31 October 2022
The webinar will be available in both Portuguese and English.
You can select your preferred language by selecting the Language Interpretation toggle button on the webinar platform.
19 OCTOBER 2022
In this webinar, we explore developments in the West African Power Pool, and how challenges faced by the power pool members present opportunities for the integration of women entrepreneurs in large and complex electricity infrastructure projects.
Despite considerable economic growth of 5% to 8% annually since 2010 in the member states of the Economic Community of West African States (ECOWAS), the inadequate and unreliable electricity supply in the region continues to be a major obstacle to development. Only about 42% of the more than 340 million people living in the region have access to electricity. In the common electricity market represented by the 15 ECOWAS member states, greater cross-border use of renewable energy and other energy resources could increase and stabilise the electricity supply.
However, the situation is starting to change for the better. Over the past 20 years, a coalition of 14 nations, including Ghana, Chad and Nigeria, has been working to connect those countries’ power grids to one another in order to create a unified power market where electricity can flow from Senegal, in the west, 2,430 km east to Niger and everywhere in between. The West African Power Pool (WAPP) will start to buy and sell electricity depending on their generation capacity and their needs. The idea is that by creating a large unified power market instead of 14 small markets, West Africa can attract more investment in the power industry to build cleaner and more efficient natural gas and hydropower plants.
Our platinum sponsor for this webinar, General Electric, has been delivering technology solutions in the region for years. In the recent past, it established grid-monitoring ‘cockpit’ for the entire region with GE technology. This solution gives the region a clear view of where electricity is flowing at any given moment, not only to facilitate energy trading but to ensure the grid remains stable and countries don’t end up suffering blackouts due to swings in supply and demand. These are some of the solutions that support the advancement of electrification on the continent.
This solution delivered by GE Technology, will enable engineers within the WAPP region, to track the flow of energy and reference digital simulations to model what will happen under different conditions. They’ll be able to tell in advance what will occur if, for example, Ghana buys 200 megawatts of power from Nigeria on a given day and ensure that every country has the power it needs.
What emerges quite clearly from the overview of Africa’s power pools, is that in most regions, the much infrastructure to facilitate cross-border electricity trade is sorely lacking, or where it is present, often inadequate. The differing levels of economic development among country members of some power pools also hampers regional interconnection efforts. Electricity transmission infrastructure, comprising high voltage power lines and other associated infrastructure such as sub-stations, require huge capital investments.
Significant investment is also required to facilitate the construction of power plants which generate the electricity to be traded. Most national budgets of these countries cannot accommodate such massive financing requirements. The advanced technical skills and technologies required for these projects are, more often than not, also lacking. Innovative investment strategies are therefore needed to address these challenges, for instance, through the adoption of public private partnerships (PPPs). Attracting Foreign Direct Investment (FDI) inflows to fund these investments also requires the existence of stable regulatory investment regimes. https://www.giz.de/en/worldwide/29613.html accessed 6 September 2022  https://www.ge.com/news/reports/power-pool-heres-takes-electrify-west-africa accessed 6 September 2022
These factors present challenges and opportunities for WAPP countries. As they partner with investors and technology companies, it is important to also consider how women, youth and persons with disabilities will be afforded opportunities to trade as value adding service providers across existing and emerging value chains.
The coming into force of the African Continental Free Trade Agreement (AfCFTA) adds even greater impetus, on the need to increase investment in Africa’s electricity infrastructure, and the need for deliberate, targeted interventions that ensure the inclusion of women-owned and led companies.
Invest time to gain insights into the West African Electricity Region, identify possible opportunities to pursue, and most importantly build networks that will enable you to succeed as an energy entrepreneur in the region.
21 SEPTEMBER 2022
The South African Electrotechnical Export Council (SAEEC) has partnered with African Women in Energy and Power NPC (AWEAP) to deliver a targeted and sector-specific Channel Partner Programme for the energy and power sector. This programme has the objective to recruit and train women owned and managed energy and power companies to become channel partners for technologies, products, renewable energy solutions and systems designated for localisation in South Africa. It also aims to create a database of credible suppliers for South Africa and the global supply chains of Original Equipment Manufacturers (OEMs) operating in the Renewable Energy and Green Tech Sectors in South Africa and the African Continent.
Under this collaborative partnership, The South African Electrotechnical Export Council will be preparing and presenting, on behalf of the electrotechnical sector, an a grant application to the dtic’s Strategic Partnership Program (SPP). This program aims to encourage large private sector enterprises in partnership with government to support, nurture and develop Small Micro Medium Enterprises (SMMEs) within the electrotechnical sector’s Strategic Partner’s supply chain or sector. For the purpose of the dtic SPP grant application process, The Strategic Partner and therefore Applicant will, in this instance, be the South African Electrotechnical Export Council (SAEEC) on behalf of the electrotechnical sector.
African Women in Energy and Power (AWEAP), will leverage its diverse network to recruit SMMEs and OEMs interested to benefit from this programme.
In this webinar, we invite key stakeholders and the dtic to explain the Strategic Partner programme (SPP) in detail, so that industry players can understand be benefits they can enjoy by participating in the programme.
SAEEC and AWEaP aim to deliver a targeted and sector-specific Channel Partner Programme the next 9 years. This programme will recruit between 10 to 20 OEMs and 25-30 women owned SMMEs annually.
The objectives of the Channel Partner Programme are as follows:
- Improve OEM BBBEE Score Card by obtaining maximum points on Enterprise and Supplier Development spend.
- Secure sustainable supplier base for ongoing operations on the African continent, to comply with requirements of AfCFTA.
- Diversify global supply chain – reduce dependence on Asian, European and North American supply chains.
- Create new industries that provide sustainable jobs.
- Establish South Africa as a centre of excellence for technology in the energy and power sector.
- Build a pool of local companies that can supply into new industries and technologies.
- Localise wherever possible to ensure government procurement benefits local industries.
- Establish an industrial base in South Africa that reflects the global trends in the areas of:
- Renewable Energy;
- Green Technology;
- 4iR and consumer electronics;
- Electrical Vehicle Manufacturing.
Through this partnership, AWEaP and SAEEC aim to work with the following stakeholders:
- Member OEM of SAEEC
- OEMs operating in South Africa’s Energy and Power sector
- Eskom and Municipal Electricity Utilities
The channel partner programme aims to support OEMs to develop relationships with SMMEs, and enable them to supply into:
- Power & Electrical : The Green Tech & Renewable Energy Sector
- Greentech- align with work of Trade Forward Southern Africa
- Renewable Energy- align with the South African Renewable Energy Masterplan
- Consumer Electronics: White Goods Manufacturing Sector
- Align with study of dtic sector electrotechnical sector desk and IDC to develop a sustainable supplier base for South Africa’s white goods manufacturers
- Industrial Electronics: Automotive Sector-Vehicle Electrification
- Developing a supply base for the “future” of automotive manufacturing in South Africa.
25 AUGUST 2022
South Africa’s economy and its citizens have been dealt a devastating blow due to the persisting energy crisis. Many stakeholders have volunteered recommendations on how the country can resolve this challenge. However, these divergent views have not yet yielded a solid direction for the country’s energy sector.
In this webinar we bring together energy experts to provide insights into:
- Evolution of the electricity grid and impact of renewable energy uptake;
- Challenges faced by the REIPPPP programme;
- Emerging policy recommendations and what they actually mean for South Africa and its citizens.
In discussing these three key areas, the speakers will shed light on the impact of the proposed policies on South Africa’s socio-economic development targets for the energy sector, with a specific focus on:
The mystery behind the proposed local content exemption for renewable energy projects
- A clear explanation of the proposed exemptions: opportunities, challenges, and proposed solutions.
Mainstreaming marginalised groups within existing and emerging energy value chains: women, youth and persons with disability:
2. Mainstreaming marginalised groups in South Africa’s energy and power sector : opportunities, challenges and proposed solutions
20 JULY 2022
Lesotho’s energy sector is characterized by a reliance on biomass (wood and dung) and imported coal and petroleum. In Lesotho, about 47.0 percent of households have access to electricity, concentrated mainly in urban areas. The government has set a goal of increasing the electrification rate to 75 percent of households by 2022. Lesotho has identified hydropower, wind generation, and solar power as potential renewable energy sources to help reach these targets.
Currently, Lesotho generates 72 megawatts of hydropower through the ‘Muela Hydropower plant. Energy demand, which stands at 145 MW, is satisfied from both domestic generation and through imports from Electricidade de Moçambique (EDM) in Mozambique and Eskom in South Africa within the Southern African Power Pool (SAPP).
The energy sector in Lesotho faces challenges that include: i) low access to modern and clean forms of energy, ii) reliance on imported electricity and fuels (an energy security problem), and iii) dwindling forest reserves. The Government of Lesotho recognizes that these challenges are a barrier to the country’s development and has set targets to expand electricity access to 75 percent and increase the use of renewable energy sources by 200 MW by 2020. The Ministry of Energy and Meteorology aims to ensure guaranteed access of all licenced renewable energy generators (IPPs) of at least 500 kW to the transmission grid at a prescribed fee.
The Lesotho Electricity Company (LEC), Rural Electrification Unit (REU), Muela Hydropower Station (MHP) of the Lesotho Highlands Water Project (LHWP) and Water and Sewerage Company (WASCO) are currently the four entities that are under the regulatory supervision of the Lesotho Electricity and Water Authority (LEWA). https://www.usaid.gov/powerafrica/lesotho
Eswatini’s energy sector has historically been unable to meet the country’s demand, relying heavily on electricity imports from neighboring South Africa. In 2018, the country’s peak demand exceeded its average operational capacity of 61 MW threefold. Despite the shortfall in local generation, the country boasts an impressive electrification rate of nearly 90% and moderate tariffs mostly averaging below €c10/kWh. With a population of less than 1.2 million people, per capita electricity consumption is high at more than 3.5 the Sub-Saharan Africa average.
The country is targeting universal access to electricity by 2022, which, given its relatively small geography and high rates currently is a realistic target. Peak demand is set to grow by about 100 MW to 330 MW by 2025. Meanwhile, installed capacity is set to increase almost sixfold by 2030 to 410 MW, which could see the country move closer to energy independence.
Private companies are active primarily in the generation component of the electricity supply sector in the country. One IPP is already operational and more are planned. The government recently released a coherent IPP policy which provides guidance to sector participants and indicates a generally positive policy direction. Transmission and distribution components remain monopolised in the national utility, however some municipal councils have expressed interest in distributing energy. This may pave the way for unbundling and potential private participation. The country’s most recent Energy Masterplan published in 2018 highlights a national focus on promoting the use of renewable energy and enabling private sector participation to achieve this. https://www.get-invest.eu/market-information/eswatini/energy-sector/
Register to learn about both markets
22 JUNE 2022
A glance at Nigeria’s Energy Market
In 2013, the government of Nigeria (GON) privatized 11 electricity distribution companies (DISCOs) and six generating companies (GENCOs) while retaining 100% ownership of the Transmission Company of Nigeria (TCN) as part of a wider strategy to reform the sector and stimulate growth. The country’s ongoing comprehensive power sector reforms are aimed at expanding capacity, increasing electricity access, and upgrading transmission.
Nigeria’s power generation is mostly thermal and hydro with installed capacity of about 12,522 MW. The country is part of the Economic Community of West African States and part of the West African Power Pool (WAPP), a specialized agency of ECOWAS that includes 14 of the 15 countries in the regional economic community. WAPP was initiated to promote and develop power generation and transmission infrastructures as well as to coordinate power exchange among the ECOWAS member states. Nigeria currently supplies electricity to the Republic of Benin, Togo, and Niger.
The Nigerian power sector will require significantly more investment to achieve reliable power supply. Industry operators estimate that the country will require as much as $100 billion in investment over the next 20 years to main current service. The World Bank is financing a $486 million International Development Association credit for the Nigerian Electricity Transmission Access Project (NETAP), part of the Transmission Rehabilitation and Expansion Program (TREP). The goal of TREP is to support the rehabilitation and upgrade of Nigeria’s electricity transmission substations and lines. This will expand the power transmission network and capacity, allowing distribution companies to improve reliability and supply to consumers. Following the roll out of TREP I, which is fully donor-funded, GON is currently sourcing funding for TREP II, to further increase transmission capacity. TCN has raised over $1.6 billion through TREP.
Other ongoing programs include the Meter Assets Provider regulation which was implemented in 2018. The regulation aims to bring new money into the market to finance meter deployment, closing metering gaps (currently less than 50% of customers are metered), removing estimated billing and related issues, and beginning to alleviate collection-related challenges faced by the DISCOs. Under the differential power distribution policy, GON introduced “the willing seller, willing buyer” electricity distribution policy aimed at allowing electricity to be wheeled directly from the generating companies to willing consumers, including communities, commercial clusters, industrial areas, and hospitality sectors with capacity for full payment. Also, GON recently announced that it plans to sell about 2,000 MW of ‘unutilized’ stranded electricity from Nigeria to four West African countries of Niger, Togo, Benin, and Burkina Faso through the proposed $570 million, 875 km, and 330 kv Northcore Power Transmission Line project. The Northcore project is funded by the World Bank, African Development Bank, and the French Development Council.
The Renewable Energy Master Plan was launched in 2011 and was aimed at increasing the share of renewable energy in the country’s energy mix by at least 13% by 2015, 23% by 2025, and 36% by 2030. It is expected that with current GON focus on renewable energy, the country will see significant growth to meet some of these targets. These energy mix targets will be comprised of:
- 30% capacity from coal (2,200 MW)
- NIPP projects (1,896 MW)
- IPPs (296 MW)
- GON legacy assets (thermal (5.6 GW), hydro: (1.3 GW) and wind (10MW))
In addition, GON is also investing heavily to boost generation through large, medium, and small hydrostatic power plants with total capacity of over 6,024 MW, including:
- Mambilla (3,050 MW)
- Zungeru (700 MW)
- Gurara (11,360 MW)
- Lokoja (750 MW)
- Makurdi (1,000 MW)
- Small hydropower (84 MW)
- Itisi (40 MW)
- Kashimbila (40 MW)
In June 2020, the Government approved $120 million for the continued construction and completion of the Kashimbila multipurpose dam in Taraba State, expected to generate 40 MW and water for the community. The government recently signed a six-year, 1.15 trillion naira (about $3.8 billion) contract with Germany’s Siemen AG for a three-phased electrification project aimed at increasing Nigeria’s power to 25,000 MW. According to the Technical and Commercial Proposal released in May 2019, the first phase of the project will add an additional 2,000 MW to Nigeria’s existing on-grid capacity, significantly reduce aggregate technical, commercial, and collection while achieving improved grid stability and reliability. The scope of work for the first phase would entail transmission and distribution assets upgrades, grid automation, national metering infrastructure, power system simulation, and general technical training. https://www.trade.gov/country-commercial-guides/nigeria-electricity-and-power-systems
Ghana’s vibrant energy market
Ghana has a vibrant power generation sector, with public and private companies involved in it. Reforms in the power sector in the 1980s gradually removed barriers and created a level playing field for the participation of independent power producers in an area which had previously been dominated by public sector participants.
Hydro generation, as well as thermal generation fueled by crude oil, natural gas, and diesel, continue to be the main sources of Ghana’s power supply. Ghana also exports power to Togo, Benin, and Burkina Faso. Ongoing grid expansions, which include the completion of transmission lines and Bulk Supply Points (BSPs) across the nation, will allow further exports to other neighboring countries in the sub-region.
The total installed capacity for existing plants in Ghana is 5,134 Megawatt (MW), with a dependable capacity of 4,710 MW. Thermal generation accounts for the largest share of Ghana’s power generation, representing 66 percent, with hydro accounting for 33 percent.
The state is still heavily involved in the energy sector, with state entities having a controlling presence in the entire value chain. In the generation phase, the entire hydroelectricity component is controlled by the Volta River Authority (VRA) and Bui Power Authority (BPA), with VRA also involved in some aspects of thermal generation along with Independent Power Producers (IPP). Currently, there is a moratorium on the signing of new power purchase agreements (PPAs) for renewable and conventional/thermal power plants. State-owned Ghana Grid Company (GRIDCO) is still solely responsible for transmission throughout the entire country. The final leg of distribution is mainly controlled by the state-owned entities Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCO). A private entity, Enclave Power Company, plays a minor role in the distribution chain.
The electricity access rate stands at 86.63 percent (2021), with 50 percent of rural residents and 91 percent of urban residents connected to the electricity grid. Ghana’s energy sector has significant debt. Challenges within the sector have included excess gas supply and overgeneration of power. The debt within the energy sector, coupled with the high cost of power generation in Ghana, creates a brake on Ghana’s economic development.
Ghana published a Renewable Energy Master Plan in 2019 with the aim to achieve the following by 2030:
- Increase the proportion of renewable energy in the national energy generation mix from 42.5 MW in 2015 to 1,363.63 MW (with grid-connected systems totaling 1,094.63 MW).
- Reduce dependence on biomass as the main fuel for thermal energy applications.
- Provide renewable energy-based decentralized electrification options in 1,000 off-grid communities.
- Promote local content and local manufacturing and assembly in the renewable energy industry.
- It is projected that there is the need to procure an additional generation capacity of 225 MW by January 2024 and an additional 200 MW by January 2025 to preserve the security of supply in Ghana.
- There is a stated desire to add more renewable sources such as by harnessing wind power on the coast and establishing solar parks in appropriate areas.
- The government is developing incentives to attract manufacturers, assemblers, and other operators in this subsector.
According to the Ghana Investment Promotion Center (GIPC), the following needs exist in the power sector:
- Street lighting.
- Companies to supply energy-monitoring equipment to better meet the increased requests for power monitoring and tariff analysis from industry in the country.
- Companies to provide an alternative decentralized sustainable energy system that can easily be deployed in remote and deprived communities.
- Companies to provide solar vaccine refrigerators for the preservation of vaccines for child immunization programs in remote and off-grid parts of the country.
- Provision of solar energy systems to schools in off-grid communities.
- New, higher quality and cost competitive energy services to low-income communities for cooking, transport, water heating and other home appliances.
Register to learn about both markets
18 MAY 2022
How to become an Independent Power Producer
Independent power producers (IPPs) are non-utility generators (that are typically not owned by the national electricity company or public utility. IPPs generate electricity for sale to the national electricity network through power purchase agreement (PPA). They can also sell power to a single third-party/ direct customer via a PPA.
IPPs may use the national electricity distribution and transmission networks if mechanisms exist to permit this or via a private wire direct to the customer.
- Many entrepreneurs have often asked the following questions:
- How do I start my business in solar energy?
- How do I become an independent power producer?
- Other opportunities in independent power production that one can pursue?
- It all seems too complicated, too expensive, too exclusive – how can I gain access into the IPP space?
Well, in this webinar we discuss how to become an independent power producer.
We will also showcase two energy markets:
Zimbabwe’s energy market
In 2021, energy supply in Zimbabwe is a mix of hydropower (70%), coal (29%) and renewable energy sources, according to the Zimbabwe Energy Regulatory Authority. Over the past five years, independent power producers (IPPs) have explored alternative energy sources such as solar, wind, geothermal, biofuels and biomass. This was driven by the promulgation of the National Renewable Energy Policy in 2019, whose aim was to raise the share of renewables in the energy mix by creating incentives from supply to distribution and demand, in both urban and rural settings.
Key policy decisions
In 2020, a General Procurement Notice was issued by the Zimbabwe Electricity Transmission and Development Company (the national utility) where it announced its plans to procure 500 MW of photovoltaic (PV) solar energy sources at various locations throughout the country.
- In 2021, the government rolled out the National Development Strategy (NDS) Phase 1 (2021-2025) with the following targets:
- to increase power supply from the current installed capacity of 2317 MW to 3467 MW by 2025;
- to create an Independent System and Market Operator (ISMO) to assist in generation resource planning and buying of power from generators; and to construct an additional 280 km of the electricity transmission and distribution network by 2025.
- It is anticipated that an enabling legislative framework will be amended to take into account the specific requirements of procuring renewables by the utility against the targets set out in the NDS. https://www.dlapiper.com/en/africa/insights/publications/2021/11/africa-energy-futures/africa-energy-futures-zimbabwe/ accessed 20 April 2022
Malawi’s Energy Market
Malawi’s power sector is one of the most severely constrained in sub-Saharan Africa – less than 10% of the population of 18 million is connected to the electrical grid. For the 80% of the people living in rural areas, access to electricity is less than 1%. The total installed capacity for power generation in the interconnected grid of Malawi operated by Electricity Supply Corporation of Malawi (ESCOM) is approximately 362 megawatts (MW), of which 351 MW is hydropower and 11 MW is reciprocal engines (diesel sets). Some off-grid photovoltaic installations exist but are very few. With the majority of Malawi’s hydropower generation derived from the Shire River located south of Lake Malawi, the hydrology of the river determines, to a great extent, the available output of electricity at any time.
Estimates indicate that shortage of capacity frequently exceeds 60 MW, or over 17% of peak demand in Malawi. With no reserve margin and a stressed system, the reliability and quality of electricity supply is poor. Malawi depends on domestic generation, as there are currently no significant interconnections to neighbouring countries.
Considerable investment in new infrastructure is necessary to improve security and regularity in supply and meet a growing demand. To this effect, the Government of Malawi has developed a number of strategies in the energy sector, including power sector reform, rural electrification, biomass energy and renewable energy. The reforms have led to the unbundling of ESCOM into two companies – a generation company (EGENCO) and transmission & distribution (ESCOM Ltd). ESCOM is now the system and market operator (SMO) as well as the single buyer (SB) buyer of electricity generated throughout the country. https://www.privacyshield.gov/article?id=Malawi-Energy accessed 20 April 2022.
Register to learn about both markets
21 APRIL 2022
Uganda is one of the few sub-Saharan African countries to have liberalized and financially viable energy markets, with generation, transmission and supply segments unbundled since 2001. There is an independent Electricity Regulatory Authority that undertakes sector regulation and oversight. The largest distribution company, UMEME, is privately owned and has a 20-year concession for distribution and retail. The country, however, is divided into 13 rural service territories, and 6 of these are being managed by small distribution companies. Independent power producers (IPPs) currently account for nearly 60% of generation capacity. Issues with integrated planning and the financial ecosystem persist: https://www.usaid.gov/powerafrica/uganda
In Uganda, Biomass is still the most important source of energy for the majority of the Ugandan population. About 90% of the total primary energy consumption is generated through biomass, which can be separated in firewood (78.6%), charcoal (5.6%) and crop residues (4.7%). Electricity is contributing only 1.4% to the national energy balance while oil products, which are mainly used for vehicles and thermal power plants, account for the remaining 9.7%. Concerning electricity generation, Uganda has an installed capacity of 822 MW, mostly consisting of hydropower (692 MW; 84%): https://energypedia.info/wiki/Uganda_Energy_Situation
An analysis of current data from Uganda’s electricity distribution company – against general reports from the previous era – reveals that Uganda’s power sector is in much better shape than before. There is a significant increase in generation capacity, the number of power producers, financial viability, consumer connections and relative reliability.: https://theconversation.com/why-merging-ugandas-electricity-sector-agencies-is-a-bad-idea-170968
The Electricity Regulatory Authority (ERA) estimates that as of December 2020, installed electricity capacity in Uganda was 1,268.9 megawatts (MW) with demand at 737 MW, leaving a surplus of 532 MW. The government in 2019 commissioned the 183 MW Isimba Hydro Power Dam, and the 600 MW Karuma Hydro Power Dam is slated to come online by January 2022, after over two years of delays. The addition of the Karuma Hydro Power Dam is projected to boost Uganda’s total capacity by 48% and leave potentially over 1000 MW of excess power generation capacity. However, analysts believe a large suppressed demand exists, particularly among industrial consumers, due to Uganda’s unreliable transmission and distribution systems. Despite these energy projects, Uganda has one of the lowest electrification rates in Africa, primarily due to: an overreliance on biomass sources in the energy mix, constrained electricity transmission and distribution infrastructure, limited access to off-grid solutions, limited productive use of energy, and uncoordinated intra- and inter-sectoral planning. In urban areas, 57.2% of Ugandans have access to electricity; however, access drops to 10% in rural areas, and it is only 22.1% nationwide. Uganda has approximately 3,101 km of transmission lines, which the government aims to increase to 4,354 km by 2025. https://www.trade.gov/country-commercial-guides/uganda-energy
Rwanda is endowed with natural energy resources including hydro, solar, and methane gas in Lake Kivu in the west of the country. It currently has 225 MW of installed generation capacity and 53% of the country has access to electricity. Issues of affordability of off-grid solutions persist, but the Government of Rwanda, development partners and the private sector are working together to address this challenge. https://www.usaid.gov/powerafrica/rwanda#:~:text=Rwanda%20is%20endowed%20with%20natural,country%20has%20access%20to%20electricity.
About half of Rwandans currently have access to electricity (close to 100 percent in urban areas but less than 35 percent in rural areas). In a bid to position Rwanda as a services hub for east and central Africa, the Rwandan government committed to a large number of power purchase agreements with independent power producers to increase generation capacity. With supply projected to exceed demand by approximately 200MW in 2024, the government is shifting its focus to increasing access, stimulating demand, and strengthening the transmission network. By 2024, Rwanda plans to supply electricity to 100 percent of the population (52 percent through grid expansion and 48 percent through off-grid technologies). It has also targeted making improvements to the grid network (including reducing system losses and improving reliability) and connecting with neighboring countries and importing and exporting power across borders. https://www.trade.gov/country-commercial-guides/rwanda-energy
Rwanda set a target of having 100% electricity access by 2030, with 50% of the population having access to the highest tiers (3-5) and the deployment of both on-grid and mini-grid access. https://www.se4all-africa.org/seforall-in-africa/country-data/rwanda/
The electricity supply of Rwanda is composed of domestic generation and the imported electricity from neighbor countries and regional shared power plants. The source of energy used is from the following sources: hydropower plants, thermal power plants (Diesel and Heavy fuel generators), methane gas and solar energy. In order to solve the problem of power deficit known recently, the government rented thermal power plants as provisional solution. https://www.mininfra.gov.rw/digital-transformation-1-1
Register to learn about both markets
24 MARCH 2022
Tanzania relies on several energy resources for its power generation. About 45% of the country’s electricity comes from hydro. However, poor rains in the past few years led to water shortages that affected the turbines generating electricity. As such, Tanzania embarked on a deliberated measure to forge an energy mix which will ensure reliable availability of power for the economy. This deliberate measure involves promotion of increased use of renewable energy technologies (solar, wind, biomass, wastes, micro hydro), natural gas and other locally available energy sources including coal and geothermal. As of the year 2021 Tanzania’s total electricity supply was 1605.86 MW.
Peak electricity demand in the country is expected to roughly quadruple by 2025 to 4,000 MW. To help meet this demand, Tanzania is targeting installed capacity of 10 GW by 2025. Meanwhile, the country is aiming to nearly double electrification rates to 75% by 2033.
Since the 1990’s Tanzania has endeavored to reform its electricity sector to attract greater levels of private participation. Despite policy, regulatory and legal reforms, public-private partnership (PPP) project structures are generally still preferred over structures where IPPs have full ownership. The country does allow private participation in generation and distribution of electricity. Several IPPs and smaller projects are providing critical capacity, however suboptimal competitive conditions persist.
The industry continues to develop with several projects and companies reaching milestones. A local solar kit supplier in March 2020 passed the 1.5 million mark of people electrified. Construction of 11 solar minigrids are underway on a cluster of islands in Lake Victoria as part of the first phase of an ambitious 200 MW rural electrification project
Key players in the Tanzanian Energy Sector
Ministry of Energy (ME) – ME is mandated to develop energy and manage the energy sector. It is responsible for the formulation and articulation of policies to create an enabling environment for stakeholders in the sector. The ME plays an essential policy guidance role, complementing the other major players (i.e., the REA, TANESCO, EWURA, TPDC, private companies, and financiers).
Energy and Water Utilities Regulatory Authority (EWURA) – EWURA is an autonomous, independent regulatory authority established by the Energy and Water Utilities Regulatory Authority Act. It is responsible for the technical and economic regulation of Tanzania’s electricity, petroleum, natural gas, and water sectors.
Tanzania Electric Supply Company (TANESCO) – TANESCO is a vertically integrated utility owned by the Government of Tanzania and is the country’s principal electricity generator, transmitter, and distributor. Currently, it provides the vast majority of the effective generating capacity to the national grid, and is responsible for transmission and distribution, serving customers on the main grid and in 18 isolated grids.
Tanzania Petroleum Development Corporation (TPDC) – TPDC is the state-owned corporation through which ME implements its petroleum exploration and development policies.
Rural Energy Agency (REA) – REA is an autonomous body under ME that became operational in October 2007. Its principal responsibilities are to (i) promote, stimulate, facilitate, and improve modern energy access in rural areas to support economic and social development; (ii) promote rational and efficient production and use of energy and facilitate the identification and development of improved energy projects and activities in rural areas; (iii) finance eligible rural energy projects through the Renewable Energy Fund (REF); (iv) prepare and review application procedures, guidelines, selection criteria, standards, and terms and conditions for the allocation of grants; (v) build capacity and provide technical assistance to project developers and rural communities; and (vi) facilitate the preparation of bid documents for rural energy projects.
Kenya has an installed capacity of 2,3 MG. Whilst about 57% is hydro power, about 32% is thermal and the rest comprises geothermal and emergency thermal power. Solar PV and Wind power play a minor role contributing 2%. However, hydropower has ranged from 38-76% of the generation mix due to poor rainfall. Thermal energy sources have been used to make up for these shortfalls, varying between 16-33% of the mix
Kenya’s current effective installed (grid connected) electricity capacity is 2,990 MW. Electricity supply is predominantly sourced from hydro and fossil fuel (thermal) sources. This generation energy mix comprises hydro at 838 MW, geothermal at 863 MW, 2% from biogas cogeneration, wind at 437 MW and solar at 173 MW. 8.6 million households in Kenya have been connected to the grid at the end of 2021, i.e, to over 75 percent of its population. https://energypedia.info/wiki/Kenya_Energy_Situation
Access to electricity has increased dramatically in Kenya over the past 20 years, reaching almost 3/4 of the population today. The Last Mile Connectivity Project of the Rural Electrification Authority aims to deliver universal access by 2022.
Kenya has seen one of the fastest increases in electrification rates within sub-Saharan Africa since 2013: by 2018, 75% of the population had access.
Kenya aims to reach full access by 2022; the grid would be the principal least-cost solution for the majority of the population (mainly in the south) still lacking access.
Kenya is the fourth largest economy in sub-Saharan Africa, with an estimated nominal GDP of $75 billion in 2017. The story of Kenya’s power sector is one of solid performance with a steady growth trajectory. For its population and per-capita GDP, Kenya is performing well in terms of power generated with a per-capita power consumption of 178 kWh (2017e) compared to 126 kWh in Nigeria, which has a per-capita GDP nearly 3 times higher. Moreover, Kenya has remarkable renewable resources, as evidenced by its track record as one of the lowest cost developers of geothermal power in the world. Kenya has also aggressively pursued connections, having more than doubled electricity access from 32% to 73% of households in 5 years. Kenya aims to achieve universal access by the year 2020.
Generation: The installed capacity as of 2017 stands at 2370MW, a significant growth from 1800MW in 2014 but still low for a country with a population of 48 million. GOK is pursuing efforts that will increase power supply and lower the cost of electricity by injecting cheaper renewable energy sources such as geothermal, wind and solar; addition of coal to the energy mix and weaning off the more expensive HFO plants. It is expected that generation will reach 5000MW by the year 2020 with the bulk of it coming from geothermal, coal, wind and solar. The sector presents opportunities for trade & investment, especially in renewable sources like geothermal, solar and wind, where Kenya has excellent potential.
Around 30% of Kenya’s installed capacity is owned and operated by Independent Power Producers (IPPs) across 15 plants, including 3 small-scale hydro plants, 1 geothermal plant, 1 Biomass plant and 10 fuel oil plants. The remaining 70% capacity is owned and operated by KenGen, which is 70% government owned.
Renewable Sources: Over 70% of Kenya’s electricity is generated from renewable / clean energy sources. Of these, geothermal remains the most significant source as the country focuses on increasing geothermal capacity and weaning off thermal sources. Unlike other renewable sources, geothermal is baseload stable power and is reliable and widely available. Today, Kenya’s vast geothermal potential, estimated at 10,000MW, remains relatively unexploited with current installed capacity at 652MW. This notwithstanding, Kenya today is the 8th largest geothermal producer in the world and is home to the single largest geothermal power plant, the 280MW Olkaria IV plant. Most generation is being carried out by government with only 1 IPP operation in the sector, US firm Ormat producing 140MW and the rest being produced by state owned KenGen. Government efforts in geothermal production seem to be paying off with various projects currently underway by both the public and private sector at that should realize over 1100MW capacity by 2022.
Wind is another key growth area. Kenya is estimated to have a wind power potential of 3000MW, but generation stands at 25MW. The Lake Turkana Wind Power plant, a 310MW project will be the single largest wind plant in Africa once completed and is the single largest private investment in Kenya’s history valued at $690m. The construction of the 400km transmission line by KETRACO to evacuate the power has experienced delays owing to challenges in gaining wayleave access from land owners. However, it is envisaged that the project should be ready to inject power to the grid by end of 2018. Additionally, GE Energy is the technology supplier for the 100MW in Kipeto wind power plant, an OPIC funded project that should start construction in 2018. KenGen’s 80MW wind project in Meru has been put on hold owing to permitting and land rights issues. It will be important for future investors to engage early with communities to ensure acceptance and ownership at community level.
Although Kenya has yet to have grid connected solar, the country has a high potential for solar power given the high irradiation levels available throughout the year. Currently, the Rural Electrification Authority (REA) is constructing East Africa’s largest solar plant at 50MW funded by the Chinese and scheduled for completion in 2018. The government of Kenya has signed contracts for construction of an additional 325MW in new solar capacity that should begin coming online from 2020. There is also a huge untapped demand for off-grid solar connecting communicates located far from existing transmission infrastructure. Plans are also underway to connect off-grid diesel stations to solar-hybrids to lower power costs.
Kenya signed a nuclear power deal with China in 2015 which will enable Kenya to obtain expertise and technical support. In addition, Kenya signed a partnership agreement with 3 top South Korean nuclear power firms as well as cooperation agreements with Russia and Slovakia. All this is in readiness for Kenya’s plans to become a nuclear power producer by 2027 with a 1000MW plant. Kenya is working together with IAEA as it builds capacity towards this end. Other developments include construction of the first ever coal fired power plant. A consortium of firms, including the Chinese, has received approval to set up a $2billion 1050MW coal plant, a project that has raised numerous environmental concerns as it is located near a UNESCO World Heritage site. GE is said to be a technology supplier for this project.
Transmission: The aging transmission and distribution networks largely contribute to approximately 16% system loss of the power generated. To address this, KETRACO is in the process of constructing ~4,500 km new lines, more than doubling the transmission network and introducing Kenya’s first high-voltage 400 kV and 500 kV DC lines as well as 3 major regional interconnectors to Ethiopia, Uganda, and Tanzania. Beyond these lines that are under construction, KETRACO is planning a further ~4,200 km of lines to expand and strengthen the grid. In addition, Kenya Power is building in redundancies, reducing losses and adding in smart technologies to help strengthen the grid.
Kenya is also keen to begin selling surplus power to her neighboring countries and has jointly embarked on an interconnection program to connect Kenya to Uganda and Rwanda on one side, and Ethiopia and Tanzania. Kenya signed an agreement to sell 30MW to Rwanda beginning fall 2015 and plans to increase this as more power is added to the grid. Kenya has also signed an agreement with Zambia to sell power in 2017.
Distribution: Kenya Power (KP) is currently the sole distribution company in Kenya. It operates Kenya’s interconnected grid, as well as several off-grid stations in the northern regions of the country. As the single off-taker in the country, KP negotiates Power Purchase Agreements (PPAs) with generation providers and distributes to consumers. Most impressively, KP has nearly doubled access in Kenya over the last 5 years, from 26% of households in 2013 to 73% in 2017, meeting best-in-class benchmarks globally. KP has been assisted in this effort by the Rural Electrification Authority (REA). Founded in 2006, REA’s mandate has been to accelerate the pace of rural electrification across all 47 counties. Since its inception, REA has helped move rural electrification from 4% to 32% of rural households, largely through its efforts to connect ~60,000 public facilities (mostly primary schools) around the country and all household consumers within 600 meters of those facilities.
Register to learn about both markets
23 FEBRUARY 2022
DEMOCRATIC REPUBLIC OF THE CONGO
The Democratic Republic of the Congo (DRC) is the 11th largest country in the world. The population is nearly 85 million, with over 12 million people living in the capital city, Kinshasa. The DRC is endowed with large mineral resources and has the potential to install up to 100,000 MW of hydropower capacity. Issues with the utility, independent regulatory body, off-grid framework, high taxes, VAT and import duties all contribute to DRC’s low access rate. https://www.usaid.gov/powerafrica/democratic-republic-congo
About 44% (44,000 MW) of the total hydroelectric potential of DRC, is concentrated at the site of Inga, located at 150 km from the mouth of the Congo River.
The available capacity at Inga is guaranteed all year because of a high flow of the Congo River (42,000 m 3) and its regularity, the watershed of the river being situated astride the equator.
The series of rapids encountered at Inga makes it the largest deposit of hydroelectric power in the world concentrated in one single point.
DRC’s Energy Potential
The low generation cost of Inga hydro potential remains its true asset:
- In terms of installed capacity: from 671 USD / kW to 339 USD / kW;
- In terms of energy: 1.44 US Cents / kWh to 1.08 US Cents/ kWh.
Clean, cheap and affordable energy
The development of hydro-potential of Inga is considered as a sustainable solution to the problem of power deficit for many countries in the SADC region and the entire African continent
The DRC is interconnected to many countries in the regions. The main interconnection liaisons are
- Interconnection to SAPP system via Zambia from south Katanga ;
- Interconnection with Rwanda and Burundi from Ruzizi 2 hydropower plant in Kivu province (East of DRC);
- Interconnection with Congo Brazzaville from Kinshasa;
- Interconnection with Angola in project.
DRC’s Electricity Utility
The national power company is Société nationale d’électricité (SNEL). The DRC a member of three electrical power pools: SAPP (Southern African Power Pool), EAPP (East African Power Pool), and CAPP (Central African Power Pool).
A major oil-exporting country and OPEC member, Angola is sub-Saharan Africa’s third-largest economy. Increasing the access to electric power is a high priority for the Government of Angola, which has set targets of 9.9 gigawatts (GW) of installed generation capacity and a 60% electrification rate by 2025. Large-scale projects implemented in 2017/18 include the Soyo combined cycle natural gas plant (750 MW), and the Lauca hydroelectric project (2.1 GW). In 2014, mapping studies identified the potential for 55 GW solar power, 3 GW wind power, and 18 GW in hydropower throughout the country. Certain issues, such as the creditworthiness of utilities, cost-reflective tariffs, and local currency risk will need to be addressed. https://www.usaid.gov/powerafrica/angola#:~:text=A%20major%20oil%2Dexporting%20country,60%25%20electrification%20rate%20by%202025.
Increasing electric power availability to diversify the economy and meet the increasing energy demand of a growing population is among the Angolan government’s highest stated priorities. In order to achieve a targeted 9.9 GW of installed generation capacity and a 60 percent electrification rate by 2025, the government has instituted an ambitious infrastructure plan. Current installed capacity is estimated at 5.01 GW. However, according to the Ministry of Energy and Water projects, total generation capacity was supposed to reach 6.3 GW by the end of 2018 and would consist of 64 percent hydropower (4 GW), 12 percent natural gas (750 MW) and 24 percent other fossil fuels (1.5 GW). The Government of Angola expects to reach the 6.3 GW capacity once the Soyo (gas) combined cycle plant (750 MW), and the Laúca hydroelectric project (2.1 GW) are fully online. For these and future projects, external financing and private project development will be key, especially given current government budget restraints and the economic downturn.
Demand for renewable energy
Current electrification rates are estimated at 43 percent in most cities and less than 10 percent in rural areas. As a result, both businesses and residents rely heavily on diesel generators for power. The government’s announcement to reduce government subsidies and the resulting higher fuel and electricity prices over the coming years are expected create demand for alternative energy solutions.
Angola holds great potential for renewable energy production. Mapping studies completed by the Ministry of Energy and Water in June 2014 identified potential for 16.3 GW solar power, 3.9 GW wind power, and 18 GW in hydropower throughout the country. To address rural demand, the government is pursuing the development of small-scale off-grid projects, using both fossil fuels and renewable technologies (small hydro, solar, wind, and biomass).
Angola’s Transmission infrastructure
Angola’s transmission infrastructure is made up of three separate grid systems (northern, central, and southern), in addition to isolated grids in the east. The northern grid runs 400kv and 220 kv lines, and covers Luanda, Uige, Bengo, Zaire, Malange, Kwanza Norte, and Kwanza Sul. The central network includes 400 kv lines from Benguela,to Bie and Huambo. The southern grid serves Huila and Namibe and uses 220kv lines. Plans exist to link the grids through a north-central-south backbone and expand the grid from 3,354 km to 16,350 km by 2025. However, the three main power production plants Lauca, Capanda and Cambambe are interconnected, and are also connected to one or two of the transmission lines; thus, creating some interconnectivity and redundancy of the three grids.
Angolan Electricity Utilities
Angola created three public utilities operating under the Ministry of Energy and Water. These public utilities include:
PRODEL, (Empresa Pública de Produção de Electricidade): the national production company,
RNT (Empresa Rede Nacional de Transporte de Electricidade) the national transmission company,
ENDE, (Empresa Nacional de Distribuição de Electricidade) the national distribution company.
In addition, the purview of GAMEK (Gabinete de Aproveitamento do Médio Kwanza), the utility company responsible for implementing and managing the hydro projects in the Kwanza river, was expanded to include oversight of the development and construction of most major power projects in the country.
The electric sector restructuring also sought to establish greater autonomy and strengthen the role of the regulator IRSE (Instituto Regulador do Sector Eléctrico) in providing oversight of sector activities. IRSE continues to build technical and financial capacity. In June 2019 electricity subsidies were cut by 85 percent leading to retail rate hikes of 77 percent. https://www.privacyshield.gov/article?id=Angola-Electric-Power-Generation
Register to learn about both markets
3 FEBRUARY 2022
Namibia lies in the southern part of the African continent. It borders the Atlantic Ocean to the west, Angola to the north, Zambia to the north-east, Botswana to the east, and South-Africa to both south-east & south.
- There are around 1 million Namibians lack access to electricity, which means that almost half of the country is without access at all (~53% has access & ~47% has no access)
- Namibia’s top energy sources are petroleum, hydropower, imported electricity, and imported coal. The country’s own internal resources supply less than one-third of its needed energy requirements.
- Namibia has high potential for solar, wind and biomass generation. Invade bush is widely spread in the country’s northern parts, which allows a large scale bioenergy-based production capacity
South Africa has a large energy sector, being the third-largest economy in Africa. The country consumed 227 TWh of electricity in 2018. The vast majority of South Africa’s electricity is produced from coal, with the fuel responsible for 88% of production in 2017.
On 12 August 2021 Minister Gwede Mantashe, Minister of Mineral Resources and Energy released an exemption which raises the registration threshold for self-generation facilities from 1MW to 100MW (TUCKER, 2021). The newly gazetted regulations exempt embedded generation projects up to 100MW from having to apply for licences from the National Energy Regulator of South Africa (Stoddard, 2021). The raising of the threshold is a crucial step to allow companies in energy-intensive sectors such as mining to launch their own power projects to reduce their reliance on Eskom.
The expectation is that these embedded generation projects will mostly be sourced from green energy, reducing the carbon footprint of South African industry, which is crucial to maintain global market share (Stoddard, 2021). As a result there is a rapid emergence of Independent Power Producers
This has been widely heralded as unlocking significant opportunities for the private sector and that it should assist in introducing additional generation capacity into the stressed South African grid.
Register to learn about both markets