Market Research Report
Sub-Saharan Africa Power Sector: Market Forecast (2019 - 2028)
|Published by||Northeast Group, LLC||Product code||917173|
|Published||Content info||134 Pages + slides + dataset
Delivery time: 1-2 business days
|Sub-Saharan Africa Power Sector: Market Forecast (2019 - 2028)|
|Published: November 25, 2019||Content info: 134 Pages + slides + dataset||
Economic development in Sub-Saharan Africa is inextricably tied to the growth of its power sector. There are still 600 million people in the continent without access to electricity and therefore unable to contribute to or benefit from the expected gains of the next decade. Meanwhile, the billions of dollars of investment needed to reach these customers will provide an added boon to local economies and the modern infrastructure they provide will help the economies diversify. While the majority of the expected $141bn in investment over the next ten years will come from large-scale generation, there will also be leapfrogging opportunities with micro grids, modern transmission and distribution grids, advanced metering, and additional smart grid infrastructure. If successful Africa's power sector investment plans will be a direct source of economic development and an enabler of future growth.
Yet, while projections remain strong, a number of challenges could thwart these ambitious plans. Most notably, the utilities that will largely be responsible for carrying out power sector investment are almost universally in financial ruin, dependent on multilateral aid and high-interest debt to carry out their investments.
While foreign assistance may help cover the upfront costs of generation, most utilities are currently not in a position to maintain these investments and sustain growth. One of the keys to financial sustainability is efficient and modern metering - the cash register of the power sector. Many African utilities are under-metered and suffer high T&D and collection loss rates. Investment in prepaid - and especially AMI - meters will be critical to sustaining revenues. Smart grid infrastructure will be critical to sustaining Sub- Saharan Africa's rapid growth.
Sub-Saharan Africa power sector: Key takeaways