Unless the current electrification pace is tripled, it would take some African countries over 100 years to fully electrify.
The World Bank in making this prediction, also stated that, at current rates of electrification, over a half billion people in Sub Saharan Africa (SSA) will still be without electricity in 2030,
The multilateral institution has predicted that only eight SSA countries will achieve Universal electricity access by 2030.
In a statement obtained from its website, World Bank said, the lack of energy access greatly inhibits green, resilient, and inclusive development of many countries in SSA.
“The expansion of access through Distribute Renewable Energy (DRE) systems will answer an urgent need quickly and support climate resilience, food security, and human capital development goals,” World Bank said.
To address the challenge, the bank has announced an innovative initiative to accelerate the pace of electrification in Africa to achieve universal access by 2030.
According to the statement, the World Bank, the Multilateral Investment Guarantee Agency (MIGA), the International Finance Corporation (IFC), and other development agencies will promote private investment in DRE systems to electrify targeted areas quickly and efficiently.
“The Distributed Access through Renewable Energy Scale-Up Platform (DARES) calls for joint action by government, private investors, and development agencies to solve Africa’s immediate needs while developing DRE solutions that can be applied globally,” World Bank said.
DRE systems generally involve a solar photo-voltaic station paired with battery storage. In rural communities, these systems can serve a health care facility, for example, or a group of customers such as households or businesses in a village, operating independently from the national power grid. DRE systems can be easily installed, are reliable, and do not require the large investment needed to build a utility-scale power plant.
“Now more than ever we need innovative solutions that close the energy access gap,” the World Bank Vice President for Infrastructure, Riccardo Puliti said.
“Bringing together government and the private sector to support distributed renewable energy can help extend electrification to the most vulnerable while also advancing clean energy,” Pulti added.
DRE is the fastest and most cost-effective mechanism to accelerate clean electricity access on the continent. Over the last 10 years, 20 per cent of all new electric connections in SSA have been through DRE systems. While DRE is now attracting private sector financing, this support is not at the scale that is needed.
“MIGA is in a strong position to support private investment through new and innovative risk mitigation solutions that are fit-for-purpose for the unique risk faced by investors,” MIGA executive vice president, Hiroshi Matano said.
“We look forward to working with Sub-Saharan African countries to create opportunities to combine public and private investment approaches to electrify Africa in the near future,” Matano added.
DARES will leverage World Bank, MIGA, and IFC expertise to create a joint cross-sectoral approach to develop innovative financial and de-risking instruments to be rolled out at a regional level. The platform also provides for significant technical assistance for governments and the private sector and differentiated approaches consistent with unique country contexts and markets.
A key goal in this respect is to tackle barriers to private sector participation to give SSA countries the ability to mobilize DRE systems faster, while making them, greener, more resilient, and inclusive.
DARES will have five core areas: mini-grids, off-grid solar markets, systems for schools and health facilities, solar irrigation and cold chain for farmers, and innovative business models to displace diesel generation and improve access reliability.
The World Bank has an active portfolio of $2.7 billion for DRE access, targeting electrification of about 40 million people.
DARES responds to United Nations Sustainable Development Goal 7, which calls for “affordable, reliable, sustainable, and modern energy for all” by 2030. These core targets are at the platform’s foundation to ensure universal access to Sub-Saharan-Africa.
The impact of this initiative goes beyond electrifying Africa. Electricity is the foundational enabler to address other critical initiatives such as food insecurity, gender equality, climate resilience, and health. Electrification will open more options to solve these issues.
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