• Link to Facebook
  • Link to X
  • Link to LinkedIn
  • Link to Instagram
  • Link to Youtube
  • Link to Mail
Relocation Africa
  • ABOUT US
    • COMPANY INFORMATION
    • SUSTAINABLE DEVELOPMENT
    • BROCHURES
    • UPCOMING EVENTS
    • TESTIMONIALS
  • SERVICES
    • MOBILITY
    • IMMIGRATION
    • RESEARCH
    • REMUNERATION
    • TRAINING
  • KNOWLEDGE CENTRE
    • News Posts
    • Blog
  • RESOURCES
    • Webinars Mobility
    • Webinars Immigration
    • Relocation Africa Coffee Book
    • Relocation Africa Recipe Book
  • LOCATIONS
  • CONTACT US
    • MEET THE TEAM
    • CALL OR CONNECT
    • CAREERS
    • COST REQUEST
  • Menu Menu
Andrew Stegmann
Africa, News

Opinion: African Grid Operators That Don’t Open Up to Solar Risk Being Left Behind

African grid operators that don’t put solar power onto their systems risk being bypassed as prices for solar production and storage continue to fall, John van Zuylen, CEO of the Africa Solar Industry Association, tells The Africa Report.
 
There are already many places where solar energy is the cheapest option says Van Zuylen, who is based in Kigali. That means the prospect of “a significant uptake of solar in the African energy mix, grid-connected but probably mostly off-grid. By rejecting solar, the national utilities may create themselves a new problem: losing their reliable customers.” Less than 1% of the world’s solar capacity is in Africa.
 
According to the Institut Montaigne in Paris, sub-Saharan Africa is the world’s only region where demographic growth since 2000 has been faster than the speed at which populations are being given access to electricity.
  • Only around 10 solar power plants of more than 5MW have been connected to the grid in the whole of sub-Saharan Africa, excluding South Africa, the Institut says.
  • Africa has been largely absent from the global solar power plant deployment, which constitutes a “collective failure”, the Institut argues.
  • It’s only going to get worse if nothing is done: in 2040, almost 95% of the world’s population without access to electricity will be in sub-Saharan Africa, the Institut says.
Many African national grids are in poor condition and cannot absorb more than 20-30MW in a single location, limiting opportunities, Van Zuylen says.
  • For grids that don’t have these technical constraints, questions about risk-sharing, government guarantees and bankable off-take agreements have significantly limited the number of projects coming to fruition, he adds.
  • Meanwhile, solar home systems and mini-grids still require heavy subsidies to provide electricity at affordable prices for rural populations, which are often the ones with the lowest available income.

Urban subsidies

National grids are best placed to do something about it. According to a global outlook for solar power to 2024 published by SolarPower Europe in June, African utilities with access to an urban customer base may be able to finance connections for poorer rural households by subsidising them with revenue collected in cities.
  • Projects situated near these urban centres are more bankable due to economies of scale, the possibility of future capacity expansions and a lower risk of under-utilisation, SolarPower Europe says.
Some countries are becoming supportive of solar. Van Zuylen points to the example of Senegal, which this month removed VAT on all solar products, including water pumping systems.
  • The decision is part of a strategy that seeks to achieve universal access to electricity in Senegal by 2025.
  • Institut Montaigne says that of the 10 plants connected to sub-Saharan grids, four are in Senegal.
The best thing to do for grid operators is to “guide and accompany a smooth integration of solar in their grids,” Van Zuylen says. “If they do not do so, it could very well be that more and more customers will gradually disconnect from the grid completely as solar plus storage is not only reliable but also increasingly cost-competitive.”

The Bottom Line

Foot-dragging national grids risk being left behind as falling prices for solar and storage equipment have the potential to be a game-changer.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Share this entry
  • Share on Facebook
  • Share on X
  • Share on LinkedIn
https://www.relocationafrica.com/wp-content/uploads/2020/08/american-public-power-association-XGAZzyLzn18-unsplash-scaled.jpg 1704 2560 Andrew Stegmann https://www.relocationafrica.com/wp-content/uploads/2020/09/relocationafricagroup.jpg Andrew Stegmann2020-08-28 09:55:042023-02-21 11:55:18Opinion: African Grid Operators That Don’t Open Up to Solar Risk Being Left Behind
You might also like
FIDI 2022: Highlights & Learnings
Cape Town Launches Free Electric Car Charging Station
Third Wave of COVID-19 infections hit Africa
South African Government to Allow Municipalities to Source Their Own Power
Kenya Immigration News 7/10/2024
Opinion: Digital Access The Key to Achieving Sustainable Development Goals in Africa
  • Understanding the State of Global Mobility: An African PerspectiveApril 29, 2025 - 10:00 am
  • Insights on Semigration: A Personal Journey from Durban to Cape TownApril 7, 2025 - 10:18 am
  • The Growing Trend of Semigration in South Africa and Its Impact on the Corporate WorldApril 7, 2025 - 10:09 am
  • Supporting Expatriates’ Mental Health and WellbeingJanuary 22, 2025 - 10:00 am
  • Overcoming the Top 5 Challenges in Global Mobility for 2025 in AfricaJanuary 9, 2025 - 10:00 am
  • Spreading Joy and Hope: Our CSR Initiative with Sisters IncorporatedDecember 19, 2024 - 9:49 am
  • Bridging Generations: Harnessing Intergenerational Teams for Innovation and CollaborationOctober 28, 2024 - 11:04 am
  • Insights from the HR Summit Conference 2024October 15, 2024 - 1:38 pm
  • Kenya Immigration News 7/10/2024October 7, 2024 - 8:38 pm
  • Relocation Africa Appoints René Webster as General ManagerOctober 4, 2024 - 3:46 pm
  • Relocation Africa Appoints René Webster as General ManagerOctober 4, 2024 - 3:21 pm
  • Kenya Immigration News 5/09/2024September 5, 2024 - 4:27 pm
  • Encouraging Empowerment Through Work Shadowing: From A Human Resources ViewpointJuly 26, 2024 - 3:22 pm
  • A Personal Story from Our Marketing Associate – Moving Back Home to South Africa as an ExpatJuly 8, 2024 - 12:14 pm
  • Immigration Update 5/07/2024July 5, 2024 - 10:59 am
  • Mali – Travel GuideJuly 1, 2024 - 9:26 am
  • Relocation Africa’s Sustainability Materiality AssessmentJune 5, 2024 - 3:24 pm
  • Sierra Leone – Travel GuideJune 3, 2024 - 2:23 pm
  • Gambia – Travel GuideMay 6, 2024 - 12:49 pm
  • Niger – Travel GuideApril 18, 2024 - 12:46 pm
© Copyright - Relocation Africa
  • Contact Us
  • Upcoming Conferences
  • Testimonials
  • Newsroom
  • Digital Brochure
  • Privacy Policy
Link to: Financial Emigration: Changes to the Withdrawal of Retirement Funds in South Africa Link to: Financial Emigration: Changes to the Withdrawal of Retirement Funds in South Africa Financial Emigration: Changes to the Withdrawal of Retirement Funds in South... Link to: Relocation Africa Nigerian Immigration Interview With Kunle Obebe Link to: Relocation Africa Nigerian Immigration Interview With Kunle Obebe Relocation Africa Nigerian Immigration Interview With Kunle Obebe
Scroll to top