Southern Africa power generation investment up to $233 billion by 2027

• 9 years ago (2015-10-06)
• David Flin

Africa 320 Renewables 776

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The Southern African Development Community (SADC), a regional trade bloc, will invest between $114 billion and $233 billion from 2012-2027 to improve electricity generation, as part of plans to ramp up renewable energy projects, according to the 2015 SADC Renewable Energy and Energy Efficiency status report. The report also said: “The related transmission investment costs to support new generation capacity are estimated at $540 million, not including already planned transmission interconnectors and national backbone lines.”

The region, which contains around 300 million people, faces significant energy shortfalls, with problems including low rates of electricity penetration and ageing power plants. Blackouts occur daily in some countries, hampering economic growth. In South Africa, Eskom is forced to cut electricity frequently owing to supply shortages. Zimbabwe and Namibia also face shortfalls.

The energy crunch and the impact of coal-fired power plants on the climate have led to a push across the region to diversify the energy mix to include renewable sources, such as solar, wind, and hydro.

Christine Lins, Executive Secretary at the Renewable Energy Policy Network for the 21st Century, said: “Renewables provide needed energy services in a sustainable manner, more rapidly, and generally at lower cost than fossil fuels. Their potential for the African continent is significant.” Biomass remains the major source of energy in most SADC countries, with wood and charcoal accounting for over 45 per cent of the final energy consumption in the region.

The report noted that renewable energy in southern Africa was increasing rapidly, accounting for around 23.5 per cent of generation, with hydropower, with an installed capacity of just under 12,000 MW, the major source. The report said: “Current potential hydro resources in the region amount to just under 41,000 MW, not including major expansion on the Congo River.”