Renewable energy powering electricity sector investment in sub-Saharan Africa

Renewable energy powering electricity sector investment in sub-Saharan Africa

Renewable energy projects, particularly utility-scale grid connected developments, are emerging as an investment bright spot and capacity growth out-performer in sub-Saharan Africa’s wider power market. This will continue over the coming years, underpinned by strong underlying demand for electricity, the lower-risk profile of renewable energy assets compared with conventional power infrastructure, and the continued implementation of government support mechanisms, namely procurement auctions. 

Power interconnectivity high on policy agenda in sub-Saharan Africa, but far from realised

Power interconnectivity high on policy agenda in sub-Saharan Africa, but far from realised

The potential for grid interconnectivity and increased cross-border electricity trading in sub-Saharan Africa is significant. In addition to boosting energy security, it would likely bring down electricity costs and enable greater amounts of renewable energy to be integrated into the power mix, while also providing widespread investment opportunities for companies operating across the power sector. That said, infrastructure bottlenecks, regulatory hurdles and faltering political support remain hurdles to the successful realisation of a pan-African power grid.