The report presents the results of the second edition of the Electricity Regulatory Index (ERI) for Africa, covering thirty-four countries. The first edition was published in 2018, covering fifteen countries. The ERI measures the level of development of the regulatory framework for the electricity sector in African countries – rather than the level of development of the electricity sector itself. It is prepared for two main objectives:
The ERI is made up of three pillars, or sub-indices.
Renewable technologies are evolving at a rapid pace and have seen a dramatic decline in the costs associated with its procurement. This provides the opportunity for corporates to reap the benefits of procuring renewable energy directly from generators through the use of a power purchase agreement (corporate PPAs). Corporate PPAs aim to provide corporates with lower or more stable electricity costs and grid reliability and can contribute significantly to their sustainability targets.
Despite these benefits, corporate PPAs have struggled to take off in sub-Saharan Africa, commonly as a result of regulatory challenges. That being said, there are signals that several markets are evolving and opening up the potential for corporate PPAs. More regulators are considering options to change their power markets to favour this energy transition.
Baker McKenzie’s new report, Opportunities for Corporate Procurement of Power in Sub-Saharan Africa unpacks the opportunities, challenges and possible structures of corporate PPAs in Ethiopia, Ghana, Kenya, Namibia, Nigeria, South Africa, Tanzania, Zambia and Zimbabwe. The report is intended to serve as an enabling tool to facilitate the expansion of corporate PPAs in these countries.
Download the whole report here
Source: Africa Energy Portal, AEP
The African Union Commission (AUC) is working on the establishment of continental energy and ICT markets in Africa.This was disclosed at the second Program for Infrastructure Development in Africa (PIDA) policy dialogue conference that was held from September 24-26 in Malabo, Equatorial Guinea. At a high-level panel discussion on continental frameworks for PIDA-II program Cheikh Bedda, Director of Infrastructure and Energy, disclosed that the AUC is planning to launch a continental energy market in ten years’ time. Bedda noted that the continental energy market would benefit all member states. “We all should collaborate to establish the continental energy market,” he said. He also noted that PIDA is working on fair investment projects on renewable energy.
Delegates have deliberated on the draft regulatory framework of electricity market in Africa. The African energy market aims at interconnecting African states through electric power transmission lines. It creates the platform by which member states that can generate surplus electric power can supply power to countries which have energy deficiencies. According to the African Development Bank (AfDB), Sub-Saharan Africa currently has 14 percent of the world’s population and accounts for four percent of global energy investment. In Africa more than 600 million people do not have access to electricity. Analysts at the AfDB note that several countries, including Ethiopia, Gabon, Ghana and Kenya, are on track to reaching universal electricity access by 2030.
The power grids of East and Southern African countries will be interconnected in the next two to three years after completion of various high voltage lines, paving the way for regional trade, a senior Kenyan energy official said on Tuesday. Power shortages and outages are common across both regions and businesses often complain that poor or erratic supplies discourage investors and push up prices of local products, as many firms end up relying on costly diesel generators.
Connecting national grids would provide a bigger pool of energy resources and mean one country can tap idle supplies in another. Joseph Njoroge, the principal secretary in the energy ministry, said high voltage lines linking Ethiopia, Tanzania and Uganda to Kenya were expected to be ready in at most the next three years. “In the next two to three years, we will have interconnections with several neighbouring countries in the region,” he told an East African power conference. “Thereafter, we will be able to come up with a configuration that enhances demand in terms of the region.”