Top African countries to invest in renewable energy
Investments in Renewable Energy sources in Africa over the past developing years are viewed with expanding enthusiasm as an effective means toward energy independence and as well stimulate economic growth.
Across the globe a multi-fold of policies, therefore, are implemented to promote renewable sources. We want to emphasise the choices or options for renewable energy investment, to shed new light on RE investment decisions, and how they are influenced by renewable energy policies.
In this article we have listed the 5 African countries where Renewables are thriving and set out as viable investment opportunities to venture in.
Kenya is undoubtedly one of the top leading countries of solar power systems installed per capita. A good number of Kenyans are turning to solar power on an annual basis as opposed to making connections to the country’s electric grid, owing to the fact that there is an abundance of solar power in Kenya.
At the Energy sector level, Kenya has a strong sector institutional structure upheld by experienced government agencies and a solid private area. According to a Validation workshop for the National action Agenda and investment Prospectus, the Government of Kenya has introduced special Renewable Energy tariffs and Power Purchase Agreements to ensure returns on investment and also facilitate borrowing by private sector investors. The government is providing Partial Risk Guarantees (PRG) for investors and de-risking investment e.g. for Renewable Energy generation projects by undertaking resource development and feasibility studies. In addition, it provides the necessary grid infrastructure to distribute power and reach consumers, even subsidising consumer connections to enhance demand.
Morocco is known to have a vast period of sunshine up to 350 days a year, hence the decision to invest in solar energy production. The first phase of the world’s biggest concentrated solar plant recently opened in Morocco and in combination with their wind and hydro production facilities, is predicted to produce sufficient energy for more than one million Moroccan households by 2020.
For solar projects, MASEN (Morocco’s Agency for Solar Energy) not only acts as the offtaker but also takes a minority equity stake in projects. MASEN also provides debt financing for the Independent Power Producers (IPPs) through multilateral agency funds borrowed by the Moroccan government.
Of the different sources of renewable energy, i.e. solar, wind and hydro, solar photovoltaics (PV) and concentrated solar power (CSP) offer the best opportunity for investment in view of the government’s high aspirations and plans for the sector. Moroccan Solar Plan has set a target of developing 2,000 MW of solar capacity by 2020, comprising solar PV and CSP. The onus is on the private companies in collaboration with the government through PPP to achieve this target by 2020. Thus based on Business Opportunities Report for
Morocco’s Renewable Energy Sector of the Netherlands Enterprise Agency.
South Africa has one of the world’s fastest development rates for renewable energy investment. $10.7 billion has already been invested in the South African economy with another $4.7 billion to be invested over the next three to five years when construction of 27 renewable power projects will eventually commence.
The fundamental driver for renewable energy projects in South Africa remains the Renewable Energy Independent Power Production Procurement Programme (REIPPPP) of the Department of Energy (DoE).
One of South Africa’s largest renewable energy projects, The R12 billion solar farm consisting of a solar plant area, which covers 4.5 square kilometres, with 384,000 mirrors, uses patented parabolic trough technology, with curved solar panels tracking the sun’s movement, storing the energy in a molten salt storage system that will allow the plant to keep producing electricity 4.5 hours steadily in absence of solar radiation.
In spite of her rich source of hydrocarbons, Algeria has seen expanded interest to harness the developmental potential of its renewable energy sources. To buttress this, the government has enunciated an ambitious plan in March 2017 to develop a 4-GW solar project (see analysis). The initiative is part of the broader National Development Plan for Renewable Energies, which was launched in 2011 and amended in 2015 with the aim of achieving 22 GW of renewable energy generation capacity by 2030. The programme is expected to mobilise $120bn (€100.1bn) in investment and significantly boost the share of renewable energy to the country’s energy mix from 2% to 27% by 2030.
Some of the ongoing projects includes:
- NEAL Company: 150 MW hybrid power station (solar/gas), with 34 MW solar.
- Development of the market of solar energy water heater carried out by APRUE (Promotion of the Rational Use of Energy) to equip
- 5500 houses and 16,000 m square in the tertiary sector.
- Rural electriﬁcation program: provide photovoltaic electricity to 16 villages with a total of 800 houses (0.5 MW).
Solar energy is a hugely attractive, viable and emerging renewable energy source in Ghana due to ecological and social elements.
In a bid to make an empowering investment climate for renewable energy, the government of Ghana put in place several policies and regulatory measures, including the Renewable Energy Act 2011 (Act 832).
According to Business Opportunities Report for Ghana’s Renewable Energy Sector of the Netherlands Enterprise Agency, The Ghana government has created a conducive environment for business in the Renewable Energy (RE) sector by putting the following in place such as;
Explicit Feed-in Tariffs (FITs) for energy generated by renewable sources.
Ghana Investment Promotion Centre, which is a one stop shop for all investment enquiries and assistance.
Potential of Bio energy
Bio energy is seen as one of the potential renewable energy sources that could benefit the country’s power system, this includes the likes of biomass, biofuel, and municipal waste-to-energy. With an end goal to improve its national electric matrix, the nation implemented a National Electrification Scheme to give general access to power continuously 2020.
In conclusion, Research and evidence demonstrate that various countries have lots of potential assets that could be used as sustainable power source, including sun oriented, wave, bio vitality, and hydro control. Progressing endeavours from private and open areas just as government strategies all durably make more open doors for sensible development on sustainable power source. This favourable viewpoint will unquestionably help moderate the present vitality emergency that Ghana is looked with and further lead to financial development.
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