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