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Find all the economic and financial information on our Orishas Direct application to download on Play StoreThe electrification implemented by state companies has not enabled the continent to catch up. But the boom in technological and financial innovations is now favoring the development of renewable energies. A boon for private investors. Nearly half a billion Africans still live without electricity. After a decade of steady progress, the electrification rate worldwide has reached 89% and 153 million additional people have been connected to electricity each year. But the situation in the most isolated regions and in sub-Saharan Africa remains particularly worrying, since 573 million people still live there without electricity. The finding comes from a joint report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNDESA), the Bank and WHO, published in May 2019. Africa must therefore fill its gap, at a time when the world is studying the possibilities of transitioning to less polluting energies in the face of climate change. "Climate change is unfortunately combined with an energy problem on the African continent where 65% of the population does not have access to energy", recalled Jean Louis Borloo, former minister and founding president of the Energy association. for Africa, during the Africa Security Forum summit organized last December in Rabat. Make way for independent producers In Africa, the energy sector and more specifically that of electricity is confronted with difficulties related to planning, management, financial aspects and lack of human resources. This considerably limits the ability of national electricity companies to recover the cost of investments and ensure a solvent balance sheet. The performance of most companies is hampered by debts and large deficits, which can range from 200 million to 25 billion, according to the AfDB's 2018 report on power sector reforms in Africa. The document revealed that African countries undertook, from the 1990s, electricity sector reforms adapted from the “standard model” proposed in particular by the World Bank. They have retained, to a large extent, the traditional structure of integrated monopoly companies in their electricity sector, although most have integrated Independent Power Producers (IPPs). The steady decline in solar and wind energy prices over the past decade has, in fact, prompted these African states to resort to various variable renewable energy generation technologies that are now well established. Towards an energy mix For most African countries, opening up generation to private investment has been an important factor in adding renewable energy to national grids. Over the period 2008-2018, more than 42% of new capacity additions were made via IPPs, by photovoltaic solar energy and more than 37% by other renewable energies, in particular wind power, hydroelectricity, biomass and geothermal. "Africa is lucky to have the resources and experience of others, it should from these elements develop its own model of energy development, without having to copy existing models", advocated Cyril Musila, university professor specialist in sustainable development and head of the department of doctrinal studies and strategic research at CHESD in the DRC. The various technological and financial innovations have triggered changes. The old business model of centralized grid-based generation services has proven ineffective in meeting demand from rural and remote areas, pushing countries to invest more in renewable energy. Across the continent, almost all countries have, over the past decade, invested in photovoltaic power plants, hydroelectric works or developed partnerships for the electrification of remote areas thanks to blockchain technologies such as solar kits, fostering the emergence of local champions like M-Kopa in the field in Kenya. The development of an energy mix based on RE has produced convincing results.
African countries with the highest energy accessibility rates, including Algeria, Egypt, Morocco, have used a combination of RE-focused on-grid and off-grid solutions. “Renewable energies obviously cannot replace other energy sources overnight. Their integration can only be gradual and planned for the very long term. African countries should work in this direction now, which would allow them to enter the solar era", analyzes Brahim El Moussaoui, expert advisor in energy management and manager of the engineering company Gring-Cotec, At Casablanca. Exploiting the strengths of each country Each region has its own strengths and predispositions in terms of the development of renewable energies. If in most arid countries solar off-grid mini-grids prove to be the most effective, for the Great Lakes region, known for its abundant rainfall and its rivers, micro-dams are recommended to meet energy needs. "The Great Lakes region - and Central Africa in general - has dense forest, good rainfall, waterfalls, and all the predispositions required to develop low-cost hydroelectric energy," said Cyril Musila. Faced with climate change, the growing demand for electricity in particular, it is the energy mix that is today at the heart of public policies, but also of independent producers and donors. States, private renewable energy operators, fossil fuel majors and banks have constantly innovated over the past few decades to provide solutions and support the development of energy diversification policies.
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