Page 15 - AfrElec Week 19 2022

AfrElec RENEWABLES AfrElec

Off-grid solar struggles to

recover from pandemic

ASIA THE off-grid solar industry has posted slower The report warned that the slowdown in
than expected recovery from the coronavirus growth caused by the COVID-19 pandemic
(COVID-19) pandemic in the second half of meant that an estimated 8mn people had missed
2021, although some countries are displaying out on improved energy access in the last six
limited growth, while others are showing signs months alone.
of a healthy recovery. Since 2010, 380mn people gained improved
Yet the global off-grid market remains access to energy through off-grid lighting prod-
divided, with vast disparities between mar- ucts, while 90mn tonnes of CO2 emissions have
kets and companies, GOGLA, the World Bank been avoided.
Group’s Lighting Global programme, and the South Asia, primarily driven by India, sees a
Efficiency for Access Coalition said in a report. 19% increase in sales compared to the first half
Data from July-December 2021 reveal that of 2021. However, grid expansion means that
affiliates of the two organisations sold close to a return to pre-COVID sales volumes is not
4mn lighting products, of which 2.44mn were expected.
sold for cash and 1.53mn were sold as via Pay- East Africa recorded a 4% increase in sales
As-You-Go. This is a 15% increase in volumes compared to the first half of the year, although
compared to the first half of 2021, though still this was driven by smaller markets in the region,
10% below where global volumes stood during with Kenya recording a 21% dip.
the second half of 2019 before the pandemic. West Africa, driven by Nigeria, recorded an
In total, the lighting products provided 34.6 overall 23% increase in sales, but most West
MW of off-grid capacity. African countries reported decreased sales com-
For example, sales of key off-grid appropri- pared to January-June 2021.
ate appliances such as TVs, fans, refrigeration The report highlighted that reduced cus-
units and solar water pumps decreased by 20% tomer ability to pay, inflation and disrupted sup-
compared to the first half of 2021, with 338,000 ply chains were all holding back post-pandemic
units sold. recovery.
This is mainly driven by lower reported While the sector’s foundations remain stable,
sales of fans in key Asian markets, but also by the game-changers needed to regain and sur-
stagnation in TV sales – particularly driven by pass pre-COVID growth remain elusive. They
lower sales in Kenya, the largest market for this will need to be unlocked to ensure a basic level
appliance. of energy service for all by 2030.
On other hand, PAYGo sales reached a What is needed is more support from gov-
new high of over 1.5mn units sold by affiliates ernments and MDMs if the off-grid solar sec-
between July and December 2021. This was tor is to realise its potential and bring power to
27% higher than in the previous six months. Africans as well as contribute to fighting climate
The main contribution to this growth is a shift change.™
towards more sales of PAYGo solar lanterns.

Week 19 12•May•2022 www. NEWSBASE .com P15