Africa Requires $350 Billion To Expand Electricity Generation And Distribution

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Africa Requires $350 Billion To Expand Electricity Generation And Distribution
Africa Requires $350 Billion To Expand Electricity Generation And Distribution

Between now and 2030, Sub-Saharan Africa would require $350 billion in investment to improve electricity generation/distribution and potentially solve the region’s long-standing electricity access problem.

According to a new Wood Mackenzie Ltd report titled “Utility Evolution in Africa to Reshape Global Electricity Demand,” this is the case.

“These investment opportunities work around the fiscal and operational bottlenecks posed by some of Sub-Saharan Africa’s state utilities,” according to the report, which was released on Thursday (17th March) by the UK-based energy and consultancy group. Service providers are focusing on the bankable segments of residential, commercial, and industrial electricity demand, typically through distributed, renewable, off-grid solutions that do not include the public utility.”

As per research, the number of people in the region who have access to electricity has increased dramatically over the last decade, but approximately 600 million people remain without power. To meet a United Nations goal of universal access by 2030, more progress is needed not only in grid link-ups but also in off-grid systems using sources such as solar energy.

“Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future, but also carry important lessons for the next generation of thinking on utility business models globally,” said Benjamin Attia, an analyst at WoodMac.

According to research, the number of people in the region who have access to electricity has increased dramatically over the last decade, but approximately 600 million people still do not. More progress is needed not only in grid link-ups, but also in off-grid systems using sources such as solar energy, to meet a United Nations goal of universal access by 2030.

“Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future, but also provide important lessons for the next generation of thinking on utility business models globally,” said WoodMac analyst Benjamin Attia.

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The intriguing part is that falling renewable energy costs, combined with innovative business models, may make it easier to bridge the investment gap and provide reliable and affordable energy access throughout the region.