About The Africa Energy Investment Summit
We are excited that you have decided to join us for our Africa Energy Investment Summit 2016. As you know, our continent has enormous potential, not only to ensure a better livelihood for its people, but also to be a major play¬er in global markets. Increasing access to modern forms of energy is crucial to unlocking faster economic and social development in sub Saharan Africa, according to the International Energy Agency. Investment in the energy sector could unleash an extra decade of growth.
The Energy Sector forms a significant portion of the economies of all African countries, and as a sector it can therefore bring about major continental development priorities, such as economic growth, boosting of further infrastructure development and investments, rapid industri¬alization and economic diversification, sustainable resource and environmental management, and creating jobs, human security and shared prosperity. The Energy Sector can also pro¬vide opportunities to millions of the continent’s young people entering Afri¬ca’s labour markets every year.
The African Union, New Part¬nership for African Development, African governments and Multilateral organisation, etc. have put Africa’s Energy Sector as one of the key pillars for Sub Saharan Africa’s prosperity.
At this conference, participants will get to hear from various policy makers, academics, government representatives, energy sector professionals, investors and investment bankers, etc. on new initiatives in the whole energy sector, the technology trends, investments opportunities, etc.
The theme for 2016 edition of the conference is "Unleashing Africa’s potential through energy sector investment"
So we hope that you are also excited and we look forward to welcoming you at the conference in Washington DC, USA.
Energy sector is key to powering prosperity in sub-Saharan Africa
In the IEA’s first comprehensive analysis of sub-Saharan Africa, it finds that the region’s energy resources are more than sufficient to meet the needs of its population, but that they are largely under-developed. The region accounted for almost 30% of global oil and gas discoveries made over the last five years, and it is already home to several major energy producers, including Nigeria, South Africa and Angola. It is also endowed with huge renewable energy resources, including excellent and widespread solar and hydro potential, as well as wind and geothermal.
In an “African Century Case”, the IEA report shows that three actions could boost the sub-Saharan economy by a further 30% in 2040, and deliver an extra decade’s worth of growth in per-capita incomes by 2040.
Tapping Africa’s potential as a secure energy supplier
Energy, and particularly electricity, is a key resource for economic and social development. Basic services like education, sanitation and communication rely on electricity, without which there is no lighting in schools, no refrigeration of food and no power for modern technologies.
But the United Nations Development Programme (UNDP) estimated in 2005 that 1.6 billion people still had no access to electricity.
Most of these people live in the least economically advanced countries. Over 75% of the populations of around 20 African countries have no access to electricity. This situation is shared in Myanmar, Afghanistan, North Korea, Papua New Guinea and Cambodia.
Key Issues in Africa’s Energy Sector
Low access and insufficient capacity - Some 24 percent of the population of sub-Saharan Africa has access to electricity versus 40 percent in other low income countries. Excluding South Africa, the entire installed generation capacity of sub-Saharan Africa is only 28 Gigawatts, equivalent to that of Argentina.
Poor reliability - African manufacturing enterprises experience power outages on average 56 days per year. As a result, firms lose 6 percent of sales revenues in the informal sector. Where back-up generation is limited, losses can be as high as 20 percent.
High costs - Power tariffs in most parts of the developing world fall in the range of US$0.04 to US$0.08 per kilowatt-hour. However, in Sub-Saharan Africa, the average tariff is US$0.13 per kilowatt-hour. In countries dependent on diesel-based systems, tariffs are higher still. Given poor reliability, many firms operate their own diesel generators at two to three times the cost with attendant environmental costs.
Shortcomings in the power sector threaten Africa’s long term economic growth and competitiveness. The cost to the economy of load-shedding is equivalent to 2.1 percent of GDP on average.
Africa’s chronic power problems have escalated into a crisis affecting 30 countries. This tolls heavily on economic growth and productivity
The entire installed generation capacity of Africa’s 48 Sub-Saharan countries is just 68 gigawatts, no more than Spain’s. As much as one-quarter of that capacity is unavailable because of aging plants and poor maintenance.
In Sub-Saharan Africa, just one person in five has access to electricity. If current trends continue, fewer than 40 percent of African countries will reach universal access to electricity by 2050.
Per capita consumption of electricity in Sub-Saharan Africa (excluding South Africa) averages only 124 kilowatt-hours a year and is falling. The rate of consumption is barely 1 percent of that in high-income countries. If entirely allocated to household lighting, it would hardly be enough to power one light bulb per person for six hours a day.
More than 30 African countries are now experiencing power shortages and regular interruptions in service, leading many to rely on very costly leased generating plants as an emergency stopgap (see figure). Frequent power outages mean big losses in forgone sales and damaged equipment—6 percent of turnover on average for formal enterprises, and as much as 16 percent of turnover for informal enterprises unable to provide their own backstop generation. The economic cost of power shortages can amount to more than 2 percent of gross domestic product. For some countries, it has shaved as much as one-quarter of a percentage point off annual per capita GDP growth rates.
Global Leaders' Views...
Investing & Developing Sub Saharan Africa's Infrastructure - Energy (Power & Electricity)
News & Insights in Africa's Energy Sector
Power Africa is one of President Barack Obama’s highest priorities for Africa for his second term, and there are 12 U.S. Government agencies that are bringing different tools to help achieve Power Africa’s goal of significantly increasing the number of people in sub-Saharan Africa with access to electricity. To make that happen Power Africa initially[…]
Lynn Tabernacki is the director of Renewable Energy and Sustainable Development at the Overseas Private Investment Corporation (OPIC), a U.S. government agency designed to support U.S. investment in emerging markets.
Listen to an interview with Jito Kayumba, Partner at Kukula Capital based in Lusaka, Zambia. The interview focused on Zambia and the wider Sub Saharan Africa region’s energy sector, the opportunities in the sector, investment climate, policy & regulatory frameworks. Jito is one of the speakers for the upcoming Africa Energy Investment Summit 2016 which[…]
Symbion Power Lake Kivu Ltd, a subsidiary of American firm Symbion Power LLC, on Tuesday signed a 25-year power purchase agreement (PPA) with the Rwanda Energy Group (REG) for a 50 Megawatt (MW) methane gas to power project. The official signing involved Symbion Power CEO Paul Hinks, REG CEO Jean-Bosco Mugiraneza, and Minister of Infrastructure[…]
US-based Symbion Power LLC, is currently looking for partners in the construction of a $1.3 billion (about Sh2.7 trillion) power plant in Mtwara that will see Tanzania exporting electricity to a number of countries in the region. Speaking after attending the Powering Africa conference on Friday, the Symbion chief executive officer, Mr Paul Hinks said[…]
International Monetary Fund (IMF) has said that Zambia’s electricity price hike will ease power shortages that have put pressure on the economy of Africa’s No. 2 copper producer. Reuters reports that Zambia’s economy is likely to grow by less than 5 percent in 2015 due to the power crunch, which has hit output at mining[…]
Both feed-in tariffs and competitive auctions are playing an important role in procuring on-grid renewable energy for sub-Saharan African countries. Innovative energy solutions are needed to help address Africa’s infrastructure shortfall, which has resulted in over 600-million people on the continent still lacking access to electricity. In response, a number of countries in sub-Saharan Africa[…]
President Edgar Lungu has announced a raft of austerity measures aimed at fiscal consolidation in line with measures suggested by the International Monetary Fund during its recent staff visit. President Lungu has also revealed that a decision on whether Zambia will access budget of payment support from the IMF will be made in March when[…]
25th World Economic Forum on Africa, Cape Town June 2015 Panel discussion hoste by CNBC Africa Nhlanhla Nene, South African Finance Minister Cliver Katete ,Finance & Economic Planning Minister of Rwanda Antony Jenkins, Barclays CEo, UK Donald Kaberuka, Former President of the African Development Bank Makhtar Diop, Vice President for the World Bank’s Africa Region.
THE power deficit we are experiencing at the moment is a national emergency and as such, we all have a role to play in trying to address this matter and reduce the deficit, says Zambia’s energy minister Dora Siliya. Addressing journalists at her office yesterday, Siliya said everyone had a role to play in reducing[…]
Zambian state-owned power company ZESCO is expected to complete all contracts related to the Power Purchasing Agreement next month with EMCO Energy Zambia, which is expected to construct a 600MW coal-fired power station in Sinazongwe District. Establishment commencing soon Times of Zambia reported that over the next two months, EMCO Energy Zambia is expected to[…]
In Tanzania, the country will have the opportunity to explore the market for mini-grids with $5 million of financial assistance provided by the International Finance Corporation (IFC), the private sector arm of the World Bank Group. According to a report by AllAfrica.com, about 60% of the country’s power supply is mainly dependent on hydro power, resulting[…]
In Botswana, the government is looking into expanding the country’s energy mix by tapping into their abundance renewable energy sources, enabling their goal of becoming a regional powerhouse and major power exporter in the next few years. The diamond-rich nation currently imports between 80MW and 150MW from South Africa, with the result that the economy of[…]
Boost investment in Africa’s energy for a triple win for people, power and planet, Annan report urges
Cape Town: African governments, investors, and international financial institutions must significantly scale up investment in energy to unlock Africa’s potential as a global low-carbon superpower. That is the main message of a new report from Kofi Annan’s Africa Progress Panel, Power, People, Planet: Seizing Africa’s Energy and Climate Opportunities. The report calls for a ten-fold[…]
Renewable energy suppliers are seeking to explore opportunities in Sub-Saharan Africa due to global surplus stocks and services, claims new analysis from a Frost & Sullivan report released today. The report, ‘Large-Scale Renewable Energy Power Development Opportunities in sub-Saharan Africa’, explains that international renewable energy (RE) power developers are looking to invest in Africa as[…]
The board of the African Development Bank (AfDB) has approved a $50 million investment to become an “anchor investor” in a multinational power company with bases in Nigeria and Zambia. The AfDB said it is backing CEC Africa Investments Limited (CECA), which “seeks to acquire and develop distribution and transmission assets and complementary greenfield generation[…]
“We have been involved in the renewables sector for over 13 years and advise across the full project life cycle.” Interview with Michelle T Davies, Head of Clean Energy and Sustainability at Eversheds, one of the world’s largest corporate law firms and gold sponsor at the upcoming African Utility Week and Clean Power Africa. What[…]
Lusaka, Zambia (Capital Markets in Africa) – International Finance Corporation (IFC), a member of the World Bank Group, has signed a memorandum of understanding with the Industrial Development Corporation of Zambia to explore development of two 50 MW solar PV independent power projects in Zambia through the Scaling Solar program. The projects would be Zambia’s first[…]
Southern African Development Community (SADC) member states have been called to produce strategic plans to transition their electricity supply industries towards cost-reflective tariffs by 2019. This was concluded at the 34th meeting of SADC Energy Ministers Conference, recently held in Johannesburg. The meeting prioritised long-term solutions such as improving the sustainability of the sector, creating[…]
Commercial operation has begun at the independent gas-fired Dedisa Peaker Power Project in South Africa. The 335 MW gas-fired plant is located in the Coega Industrial Development Zone, Port Elizabeth. The power plant which was constructed at an estimated cost of US $0.26bn was an initiative of the Department of Energy. The Dedisa peaker Power[…]
In East Africa, the low rainfall has forced hydropower plants in Tanzania to switch off as capacity has dropped by 20%, hampering the plants’ ability to operate efficiently, Kenya’s national broadcaster KBC reported on the weekend. Elements affecting water level According to Badra Masoud, head of communication at the ministry, the closure of the dams[…]
In West Africa, Turkish powership manufacturer, Karadeniz Holding, has subsidised a Karpowership project through a Power Purchase Agreement (PPA) with the Electricity Company of Ghana. The project dubbed: “Power of Friendship for Ghana” is the first Powership project in Africa and seeks to meet the electricity demand of Ghana. The signing took place in June[…]
On Wednesday, the Zimbabwean government called on large manufacturers and companies in the mining sector to reduce their power consumption by 25%. This comes as a response to the country’s current power challenges, TimesLIVE reported. Intensive power users to act The companies called to action by the Zimbabwean Electricity Transmission and Distribution Company (ZETDC) include Mimosa,[…]
Things are looking bright for East Africa this season. At least that’s the case for the solar as a service startup Off Grid Electric and its customers. Tanzanian-based solar company Off Grid Electric has raised a massive US$16-million (about R184-million) lead by the US alternative energy giant and NASDAQ-listed, SolarCity, the UK’s Zouk Capital as[…]
The president of the African Development Bank, Akinwumi Adesina, says energy is his biggest priority. The newly inaugurated president wants to raise $55 billion of investment into energy projects. Speaking to Dan Keeler of the Wall Street Journal last month, Adesina told Keeler: “The number one issue is energy. Today in Africa most of those[…]
WHILE South Africans bemoan regular electricity load shedding‚ a new report points out that the current power crisis in sub-Saharan Africa offers a huge investment opportunity. The report from McKinsey and Company‚ titled ‘Brighter Africa: The growth potential of the sub-Saharan electricity sector’‚ concludes that while the sub-Saharan African power sector faces many challenges there[…]
Powerful alliances were made Monday when the President of the United States, Barack Obama, and the President of the African Development Bank Group (AfDB), Akinwumi Adesina, shook hands, sealing a commitment to continue to work together to propel Africa to new level of energy sufficiency. The leaders bonded over their mutual desire to see the[…]
Zimbabwe’s richest man and founder of Econet Wireless, Strive Masiyiwa is spearheading a drive to bring more investment into Kenya. “Kenya has strong skills and a lot of people who can be trained and be developed which is what we want. I have always been comfortable about investing in Kenya and encouraging others to invest,”[…]
SkyPower Signs US $2.2 Billion Agreement to Develop and Build 1 GW of Solar Energy Projects in Kenya
SkyPower, the world’s largest developer and owner of utility-scale solar photovoltaic (PV) energy projects, today signed a landmark agreement with the Kenyan Ministry of Energy and Petroleum for the development of 1 GW of world-class solar projects to be built in four phases in Kenya over the next five years. The monumental US $2.2 billion agreement[…]
An EU-backed private equity fund plans to invest in renewable energy firms across sub-Saharan Africa. The EU has unveiled plans to partner up with a Paris-based private equity firm to invest in energy companies across Sub-Saharan Africa. The EU-backed Electricity Access Fund, which will be directed by Astor Capital Partners, a Paris-based private equity[…]
The deal is the first initiative Nigeria’s Akinwumi Adesina has announced in his new role as head of Africa’s leasing development financier. AFRICAN Development Bank President Akinwumi Adesina, who took over this month, said he’s aiming to eliminate Africa’s energy deficit by 2025 by mobilising $55 billion of investment. Termed the “New Deal for Energy[…]
Extract from the speech to parliament Earlier, i addressed the short-term solutions to the current power shortages being experienced across the country. Let me now turn to the long-term solutions which are in line with government’s long-term goals. Government has partnered with the government of the republic of zimbabwe to explore the possibility of developing[…]
Sierra Leone to increase power generation capacity tenfold by 2017. Unbundles National Power Authority (NPA)
Sierra Leone‘s Energy Ministry on Wednesday presented documents marking the completion of months of work aimed at transforming the country’s power sector. Sierra Leone started the “unbundling” process earlier in 2014, during which its national power company, the National Power Authority (NPA), was divided into two entities: the Electricity Generation and Transmission Company (EGTC) and[…]
South Africa could tap into its natural gas reserves to expand its energy mix and support growth across the economy, recommended McKinsey Global Institute Gas-fired power plants could help make up for deficits in South Africa’s power supply. (Image source: Dualfreq/WikimediaCommons) Gas-fired power generation alone could add US$12bn to South Africa’s GDP, estimated the McKinsey[…]
Five solar power projects, valued at a total of US$250mn, have been licensed by the Zimbabwe Energy Regulatory Authority (ZERA) The five solar power projects are expected to generate about 160MW of power together. (Image source: Lance Cheung/Flickr) Taken together, the five projects are expected to produce 160MW of power. According to ZERA CEO, Gloria[…]
Zambia’s power generation major Copperbelt Energy Corporation (CEC) has signed an investment deal worth US$220mn with the government of Sierra Leone to build a 128MW power plant in Freetown The new plant to be set-up in Sierra Leone will have a capacity of 128MW. (Image source: Oranvirincy/Flickr) The plant will be constructed in Wellington in[…]
Sierra Leone is seeking billions from the private sector to overhaul its electricity industry with the aim of increasing output 10-fold by 2017. According to Deputy Energy Minister Martin Bash-Kamara on Saturday, Sierra Leone is seeking $3.5-billion of investment from the private sector to overhaul its creaking electricity industry with the aim of increasing output 10-fold[…]
Job losses, production cuts of between 40 and 60 per cent in the mines and other industries are fast becoming a reality for the country’s economy as the power deficit worsens. Within two weeks, three mining companies – NFCA, Ground Focus Mining and CNMC Luanshya Copper Mines where 1,640 jobs have been put on hold[…]
Earlier this month, the AfDB president Akinwumi Adesina, addressed a delegation of ministers representing more than 40 nations in Paris to push for a ‘New Deal on Energy in Africa’ to solve Africa’s energy crisis. During the address, the AfDB president also called for a binding agreement toward limited carbon dioxide emissions at the forthcoming[…]
In East Africa, Kenya’s Garden City Mall, home to ‘Africa’s largest’ carport solar photovoltaic (PV) system, started powering its energy needs through the completed installation in August. This is according to project developer Solarcentury. The solar energy will be used to power the centre’s lights and escalators and additional infrastructure and fittings. Solar PV power[…]
On Monday, GE and state-owned Beijing-based Machinery company Sinomach, signed a memorandum of understanding to establish a clean power initiative, to double electricity access in Sub-Saharan Africa. The MoU states that the joint venture will enhance cooperation for projects in Africa’s clean energy sector; jointly develop, invest and finance clean energy projects under the Power Africa initiative;[…]
On Wednesday, the African Development Bank (AfDB) Group Board approved a $121 million loan and grant to assist the Ugandan Government to improve the electricity access for rural households, businesses and public institutions. Investing in economic development This move is expected to facilitate economic growth, improve livelihoods and access to social services in rural communities,[…]
In South Africa, mining entrepreneur Patrice Motsepe has established an energy and power company, African Rainbow Energy and Power (Arep), which will be headed up by former Eskom CEO, Brian Dames. The power company was started to help bridge the current energy gap in Sub-Saharan Africa while stimulating public-private partnerships in the region’s energy sector,[…]
The International Finance Corporation (IFC), a member of the World Bank Group, has signed a MoU with the Industrial Development Corporation (IDC) of Zambia to explore the development of two 50MW solar photovoltaic (PV) independent power projects through the Scaling Solar programme. The Scaling Solar programme offers a comprehensive package (see below) implemented across[…]
President Barack Obama’s trip to Kenya and Ethiopia has focused on trade, investment and entrepreneurship. One of the highlight of the visit occurred this past weekend when he hosted the Global Entrepreneurship Summit in Nairobi, where thousands of top business leaders, entrepreneurs and politicians gathered to discuss opportunities and challenges in today’s Africa. Obama called[…]
August 26, 2015, Libreville, Gabon As Prepared by Dana J. Hyde, Chief Executive Officer Good afternoon. What a pleasure it is to be here in Gabon—with friends and partners from across this great continent and the U.S.—to celebrate the successes of AGOA over the past 15 years and chart a course for the future.I want[…]
State-owned development funds from Norway and Britain have teamed up to build additional power plants in sub-Saharan Africa (SSA) and increase electricity generating capacity in the region by “at least 5,000 megawatts (MW)” over the next 10 years.09 Feb 2015
Norfund, the Norwegian Investment Fund for Developing Countries, and CDC, the UK’s development finance institution, said that through their new partnership, Norfund will acquire a “significant minority” stake in Globeleq Africa from the Actis infrastructure 2 fund for a cash consideration of around $225 million, “subject to completion adjustments and including capital to further fund two expansion projects”.
As children throughout the United States head back to school, it’s a good time to remember that schoolchildren throughout Africa often attend schools with no electricity. In areas that do have the utility, frequent power outages are a constant reminder of the need for dependable access to electricity.
In June, U.S. policymakers announced two initiatives aimed at increasing electricity production in Africa. President Obama launched Power Africa, an initiative that makes a $7-billion U.S. commitment to the energy sector in six African countries. And Representatives Ed Royce (R-CA) and Eliot Engel (D-NY) introduced the Electrify Africa Act in the House, which sets a goal of providing access to electricity for at least 50 million people in sub-Saharan Africa by 2020. Both initiatives place increasing investment by U.S. companies in Africa at their center.
With only 30% of people in Africa having access to electricity, it’s little wonder Tesla’s Powerwall home-storage batteries are being touted as the next big revolution for African energy. In countries like Nigeria diesel-powered generators are the default back-up for chronic, daily national power cuts. Tesla’s Powerwall battery works as a back-up that is not reliant on fossil fuels. It stores renewable energy like solar and wind and can last more than 24 hours. All this at no cost other than the upfront cost of the Powerwall itself.
Story courtesy of thegaurdian Continue reading “What does Tesla mean for energy in Africa?” »
Quietly and in incremental steps an energy megaproject is taking shape in one of Africa’s least-developed countries, the Democratic Republic of Congo.
The Democratic Republic of Congo (DRC) controls the headwaters of the Congo River, the deepest and second-most powerful river in the world, and therefore a powerful potential hydroelectric resource. But less than 10% of the DRC’s population has access to electricity.
The proposed Grand Inga Dam would produce 40 000 megawatts (MW) of electricity, roughly twice the capacity of China’s Three Gorges Dam and equal to the entire installed generation capacity of South Africa. The dam and its distribution network are expected to require $80-billion in funding.
Who will benefit?
Planners and policymakers envision the dam at the heart of a continent-wide network. This network will build on regional power pools that link many countries, allowing them to buy, sell and move electricity through an international grid. The Grand Inga Dam would provide electricity to the Southern African Power Pool, established in 1995 by the Southern African Development Community, a regional grouping of 15 countries spanning from the DRC to South Africa.
But the current plans raise serious social and economic concerns. Its advocates claim the network, anchored at Grand Inga, will directly address the problem of energy poverty in the DRC, will contribute to the energy security of the DRC and the continent as a whole, and will contribute to regional economic co-operation.
Its opponents claim that the project is not focused on the DRC and its citizens but on mining interests in the DRC and the Southern African region as a whole. In other words, it may be prone to the resource curse.
This refers to a distinct historical pattern: countries rich in resources often perform worse than resource-poor countries in terms of economic development, social wellbeing and good governance.
(12 Jun 2015 00:00 Mail & Guardian Story by Nathaniel Green, Benjamin K Sovacool, Kathleen Hancock)