Latest news with #AlainEbobisse
Arab News
20-04-2025
- Business
- Arab News
How African electrification can be expanded
Too often, the conversation about Africa's energy challenge focuses only on connecting end users. With about half of the people living in sub-Saharan Africa lacking access to electricity, and with four out of five in need of clean cooking solutions, extending electricity connections is indeed an urgent priority. But connecting households and businesses to power sources is only part of the solution. The other part is to ensure that energy supply is both dependable and affordable. Among Africans who do have access to an electricity grid, not even half can count on a reliable supply. Yet without dependable electricity, households and businesses cannot adopt lighting, stoves, computers, irrigation, farming equipment, sewing machines and other devices that could boost prosperity and improve living standards. This is one of the main reasons why electricity demand remains low across the continent. One of the keys to resolving Africa's electricity reliability and affordability challenges is greater investment in grids. The right investments in transmission can help stabilize the grid, reduce outages, improve efficiency and make better use of the lowest-cost sources of energy wherever they are on the continent. Without transmission, all other investments in electricity generation and household connections will likely end up underused. The cost of developing transmission projects is only a small part of the total outlays needed to deliver universal electricity access. The International Energy Agency estimates that sub-Saharan Africa needs annual energy access investments exceeding $30 billion per year between now and 2030 — more than eight times the $3.7 billion invested annually today. To mobilize higher investment in grids, African governments must engage the private sector. That means establishing clear, long-term regulatory and policy frameworks that will attract investors and reduce the cost of financing for new projects. As matters stand, nearly all transmission networks on the continent are operated and financed by state-owned utilities with limited financial resources. We know that this can work. In 2024, Africa's power sector achieved another year of double-digit growth, largely owing to rising private-sector participation. Now, the transmission buildout can follow the same recipe for success. African countries can also look to other developing and emerging-market economies for serviceable models. In Brazil, policy and regulatory reforms initiated in the 1990s opened the country's power networks to private investment. Since then, according to the International Energy Agency, transmission and distribution capacity has more than quadrupled, allowing Brazil to achieve universal electricity access. Public-private partnerships are crucial for closing the massive gaps that persist in energy infrastructure funding. Fatih Birol and Alain Ebobisse Similar models will soon make their debut in Africa. For example, Africa50, a multilateral infrastructure investor and asset manager created by African governments and the African Development Bank, and Power Grid Corporation of India, one of the world's largest transmission infrastructure developers and operators, have co-developed the Kenya Transmission Public-Private Partnership. In collaboration with the Kenyan government, the partnership aims to construct approximately 250 km of new transmission lines to channel renewable energy generated in northern regions to industrial hubs and demand centers in the country's west. Such public-private partnerships are crucial for closing the massive gaps that persist in energy infrastructure funding and implementation. Through regulatory reforms and risk-sharing mechanisms, private capital can help to advance projects that would be challenging to finance otherwise. India has benefited from such models ever since it started deregulating its power sector in 1998. The Tala Transmission project — a partnership between the state-owned Power Grid Corporation of India and Tata Power — is a prime example. Closer regional coordination is also essential. Investing in modern grid interconnectors allows electricity to be traded from countries with excess supply to those with not enough. Such networks can play a major role under emergency conditions, such as the devastating drought crippling Zambia's hydropower output. Already, 12 African countries in the West African Power Pool have permanently synchronized their grids and the South African Power Pool is developing several interconnector transmission lines to support greater integration. Still, Africa will need more dispatchers and planners to make full use of existing regional grid interconnections and lay the groundwork to commission new ones. Greater regional integration will also help investors derisk their projects by expanding their potential pool of customers. Africa will not achieve universal access to reliable electricity without significant investment in transmission infrastructure, but such investment will not materialize without fostering greater private sector participation. Globally, investment in the energy sector is growing, particularly in renewables, electrification and resilient grid infrastructure. But to capitalize on this trend, governments must lead with meaningful policy and regulatory changes. Countries like South Africa, Kenya and Morocco offer clear examples, having successfully attracted private sector energy investment by establishing long-term energy plans and targets, encouraging public-private partnerships and streamlining administrative processes. Developing and emerging-market economies can learn from one another. Those that have delivered near-universal access to electricity have done so by unlocking the necessary capital flows. This should be policymakers' top priority. Once you have secured reliable power, you can pursue economic development and start to improve hundreds of millions of lives.
Yahoo
09-04-2025
- Business
- Yahoo
Government makes unprecedented $500 million move to jumpstart power supply: 'Game-changer'
According to an Innovation Village report, Nigeria may be heading toward a cleaner and brighter future. The Nigeria Sovereign Investment Authority (NSIA) is partnering with several sustainability-focused groups to launch the $500 million Distributed Renewable Energy (DRE) Nigeria Fund. This initiative aims to fund and expand Nigeria's distributed renewable energy projects through customized financial instruments, including investments from the private sector and domestic investments like funds from insurance companies and pensions. While Nigeria is rich in renewable energy resources, financial and regulatory hurdles have impeded development. Through the DRE Nigeria Fund, the NSIA and its collaborators hope to address these challenges and create a more sustainable financial ecosystem for clean energy projects in the country. Nigeria holds significant potential for clean energy solutions, yet over 85 million people in the country don't have access to electricity, according to the World Bank. The initiative will focus on investing in renewable energy projects like mini-grids, energy storage technologies, and solar home systems to make power more accessible and reliable for Nigerian residences and businesses. "With the DRE Nigeria Fund, we are creating a scalable model to attract global investments, drive industrial development, and enhance energy access for millions of Nigerians and Africans at large," said Aminu Umar-Sadiq, managing director and CEO of NSIA. The DRE Nigeria Fund is just the beginning. Similar country-specific funds are also expected to be established under the broader DRE Africa Platform. Inspired by the Nigeria fund, it aims to promote the growth of renewable energy projects in multiple nations across the African continent. The DRE Nigeria Fund and DRE Africa Platform both align with the global shift toward sustainable, resilient energy solutions. With the success of these initiatives, Nigeria is positioning itself as a leader in Africa's transition to clean energy. This can get the attention of global investors who see the long-term profitability of supporting sustainability-focused projects. What does this mean for investors? As the world transitions to a cleaner economy, more investment and growth opportunities for individual investors and the U.S. market emerge. Investors are already beginning to recognize the potential of clean energy and that sustainability-focused businesses are outperforming dirty fuel stocks in long-term growth. Despite past criticisms of ESG investing as greenwashing, clean energy solutions like this one show that the clean economy remains strong and financially smart. "This is a strong partnership with solid partners that can be a game-changer in accelerating investment in distributed renewable energy across Africa," said Africa50 CEO Alain Ebobisse, per Innovation Village. Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
15-03-2025
- Business
- Yahoo
Major company set to launch first region-wide off-grid power initiative — here's what it entails
Africa50 is setting up several green funds for $700 million, including the first region-wide initiative for power companies as part of regional governments' efforts to boost electricity access and shield against global warming, Bloomberg reported. The Casablanca, Morocco-based investment platform plans to invest — through the Alliance for Green Infrastructure in Africa fund — $500 million in climate-friendly projects in sectors ranging from renewable energy to transportation, according to Africa50's head Alain Ebobisse, cited in the report. "You can catalyze $10 billion worth of investments," he said, adding that the first close would occur in the first half of the year. In a first for the continent, Africa50 also intends to create a $200 million fund for companies that provide distributed renewable energy, like solar-powered mini-grids and home systems, which will be known as Africa Solar Facility. Meanwhile, a Nigeria-focused fund for distributed renewable energy is in the works, Bloomberg explained. Africa50, which runs Africa50-Project Development, Africa50-Project Finance, and the Africa50 Infrastructure Acceleration Fund, hopes to tap the $2.3 trillion held by African institutions, Ebobisse said. UN data shows that around 600 million Africans, or nearly half the continent's population, still lack reliable access to electricity, which limits the provision of basic services like healthcare and water. "We need to look at multiple sources of power generation. We need to look at in each country that we're focused on, each country that we're investing in: What is its comparative advantage?" Africa50's Chief Operating Officer Tshepidi Moremong said in a video shared on Facebook by Devex in late January. "Is it solar? Is it hydro? Is it gas to power?" A long-term growth opportunity for investors in Africa and beyond, the deployment of off-grid power infrastructure can help bridge the gap in energy access, improve the economic resilience of local communities by creating jobs in the sector, and, on a larger scale, secure the continent's position in the global transition to a low-carbon, environmentally friendly economy. "We invested in off grid in Africa since 2014 and still hanging in there with the skin of our teeth. Waves of support and enthusiasm have come and gone with mostly the same cast of characters and on the whole without real success," engineer and angel investor Tara Lindstedt wrote on LinkedIn. "Truly hope this time it happens." How often do you worry about your energy bills? Every day A few times a week A few times a month Only when I pay it Click your choice to see results and speak your mind. Per Ebobisse, quoted by Bloomberg, Africa50 is about to complete the financing of Africa's first large-scale public-private partnership on electricity transmission lines and is set to pursue similar projects in Mozambique, Tanzania, and Gabon. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
