Declining cost of renewable energy technology: An opportunity for increasing electricity access in sub-Saharan Africa

Abstract

Traditionally, electric networks in Africa are dominated by centralized fossil base grids, preponderantly relying on gas, coal and hydro plants for power generation. Analysis of the energy market in sub-Saharan Africa (SSA) have consistently displayed a stunted growth. Previous reports argued that increasing electricity access through expansion of the existing grid is no longer sufficient due to costs, political and economic interests and environmental concern. Other arguments are based on the existence of Islands and mountainous locations not immediately accessible to the utility grid. This situation has lent credence to the argument in support of renewable energy systems. The current decline in the cost of renewable energy technology provides an opportunity to explore this market, given the abundance of this resources in SSA region. However, the assessment of energy climate in SSA suggests that a lot needs to be done in order to avail these opportunities. This paper investigates the challenges, policy issues and financing barriers inhibiting the penetration of green energy in SSA. The study shows that upscaling electricity access requires building of strong institutions to guide against policy inconsistencies. Electrification programs should incorporate capacity building with technology transfer from the outset. Also, it identifies capital expenditure (CAPEX) and operational expenditure (OPEX) phases of projects as the two key failure points in this region.