According to a new Wood Mackenzie Ltd report titled “Utility Evolution in Africa to Reshape Global Electricity Demand,” this is the case.
“These investment opportunities work around the fiscal and operational bottlenecks posed by some of Sub-Saharan Africa’s state utilities,” according to the report, which was released on Thursday (17th March) by the UK-based energy and consultancy group. Service providers are focusing on the bankable segments of residential, commercial, and industrial electricity demand, typically through distributed, renewable, off-grid solutions that do not include the public utility.”
According to research, the number of people in the region who have access to electricity has increased dramatically over the last decade, but approximately 600 million still do not.
To meet the United Nations’ goal of universal access by 2030, more progress is needed not only in grid link-ups, but also in off-grid systems that use sources such as solar energy.
“Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future, but also carry important lessons for the next generation of thinking on utility business models globally,” WoodMac analyst Benjamin Attia said.
Electricity demand in Sub-Saharan Africa has more than doubled in the last 15 years and is expected to nearly quadruple by 2050. According to a Wood Mackenzie report, rising demand is being driven by three fundamental macroeconomic trends: population growth, rapid urbanization, and structural economic transformation.
The report also blamed Africa’s long-standing electricity access issue on massive underinvestment in the region’s electricity infrastructure. It stated that with the right investments, Sub-Saharan Africa has the potential to change the trajectory of electricity demand and supply not only in the region but globally.
The intriguing part is that falling renewable energy costs, combined with innovative business models, may make it easier to bridge the investment gap and provide reliable and affordable energy access throughout the region.
Source: Africa news
