The rise of grid-scale renewables in Africa
Source: Neil Ford · AFRICAN BUSINESS MAGAZINE · | September 18, 2020
Sub-Saharan African countries, in general, have been relatively slow to embrace renewable energy, but falling costs are making it increasingly attractive in comparison with more established power sources. As a result, grid-scale projects are being developed in an increasing number of African countries. Neil Ford reports
Source: African Business Magazine
The uptake for grid-scale renewable energy across Africa is uneven. Predictably, the larger economies that boast the most significant growth, as they seek to meet fast-growing demand and diversify away from fossil fuel at the same time. South Africa, Egypt and Morocco are among the leaders.
These countries also tend to have relatively sophisticated regulatory environments and financial markets, which enable Independent Power Producers to feel confident about investing.
But the modular nature of solar and wind projects – and the speed with which they can be built – are also making them a more attractive proposition in countries with fewer financial resources, as these renewables allow them to expand generation through more manageable projects.
Hydropower is also firmly back in vogue in some parts of Africa, offering a relatively cheap way to produce a lot of electricity, if the reservoirs and rivers are full. Whether the effects of global warming on rainfall patterns in the region will be kind to hydropower producers remains to be seen.
In the East African Rift Valley, another option is open – Geothermal power. So far, it’s Kenya taking the lead, but others, including Uganda, are keen to get involved.
North Africa: solar rivals wind.
Two of the most mature markets for renewable energy investment on the African continent, Egypt and Morocco, are also among its largest.
Morocco has led the way, focusing initially on wind. Five new wind farms have been developed under the 850 MW Integrated Wind Energy Project: Boujdour, with 300 MW, Midelt (180 MW), Jbel Lahdid (200 MW), Tiskrad (100 MW), and Tangier II (70 MW).
Boujdour is the most recent, with Enel Green Power and Nareva Holding signing a contract with the Moroccan Agency for Sustainable Energy (Masen) for the development in November 2019.
There are now 16 wind farms operating in Morocco, along with eight hydro schemes. But while these have made the biggest contributions to Morocco’s renewable energy capacity so far, solar is catching up fast. The 500 MW-plus Noor solar complex in Ouarzazate is already the world’s biggest concentrated solar power (CSP) project.