In 7 out of 15 Sub-Saharan markets solar power is cheaper than the electricity tariffs, BNEF
Post date: 24/01/2019 - 16:47
»A combination of high electricity tariffs, falling PV prices and a lack of reliability in the grid is spurring sales of on-site solar to business customers in Sub-Saharan Africa,« says a new report by research company Bloomberg New Energy Finance (BNEF), commissioned by Swiss Responsability Investments AG. The study finds that the commercial and industrial (C&I) solar sector in Sub-Saharan Africa »is growing not because of regulatory support – as has been the case in many developed economies – but because of economics.« On-site solar power is cheaper than the electricity tariffs paid by commercial or industrial clients in 7 out of 15 markets in Sub-Saharan Africa (excluding South Africa).
According to co-author Takehiro Kawahara, lead frontier power analyst at BNEF, an »immense energy deficit and crumbling infrastructure makes Sub-Saharan Africa fertile ground for solar.« As of November 2018, developers built a record number of 74 MW serving business customers directly, offering them cheaper power than the grid. Kenya, Nigeria, and Ghana installed 15 MW, 20 MW, and 7 MW respectively as of November 2018.
Responsability-managed funds have financed the off-grid solar sector in Sub-Saharan Africa for five years, focusing primarily on residential customers. The company expects solar to be increasingly deployed on C&I sites, where it often complements diesel power generation.
The full report »Solar for Businesses in Sub-Saharan Africa« will be publicly available shortly on the BNEF website »www.newenergyfinance.com« (search for »Sub-Saharan Africa«).