Africa’s power and energy industry is looking promising and would rebound as new opportunities are set to change the narrative, a new study has shown.
The outlook study captures the status of the African power and energy industry and the publisher’s expectations from it in 2023 (based on its observation of key trends over the past few years and anticipated future trends).
Universal access to electricity has been central to the African development story, with power being critical to the continent’s economic growth.
As more than 600 million people (or 44 per cent of the population) lack access to electricity, Africa is racing to add capacity to electrify rural communities and secure baseload supply in urban and industrial zones.
The study also explores the investment avenues available for market participants during Africa’s electrification drive. In addition, it examines other opportunities likely to arise on the back of the continent’s efforts in terms of decarbonization and the management of the evolving power demand.
Opportunities will arise due to a net capacity addition of more than 243 GW in the pipeline, easy access to financing for renewable projects, and several incentives earmarked to attract foreign investments.
Strategic partnerships and local knowledge are not only critical factors for market success but are also legal requirements.
The study shows that great opportunities are coming in establishing local solar PV value chain, and micro grid system for data centers.
There are emerging opportunities in energy storage and value chain, energy infrastructure and modernization investments.
The study sees major trends shaping the African Power and Energy Industry especially in the area of Renewable Hotspots, Hydrogen for Export, Growth of Energy Storage Technologies and the Africa-EU Partnership as well as accelerated growth of Pan-African Energy Infrastructure.