Page 11 - AfrElec Week 35

AfrElec NEWS IN BRIEF AfrElec

INVESTMENT Krishnan added: “The surge in need to South Africa for electricity imports –
for flexibility is the most significant trend along with Zimbabwe, Lesotho, Eswatini,
$3.40 trillion to be invested observed across developed markets. System Mozambique, and Zambia.
Namibia relies on energy imports to a
operators are coming under increasing
globally in renewable pressure to manage the system with large extent with most of its electricity supply
uncertain renewable output, declining coal
coming from South Africa and Zimbabwe.
energy by 2030 - Frost & output, and demand-side variability. As a Meanwhile, Botswana has gone from a
result, technologies and solutions such as
country highly dependent on electricity from
Sullivan battery energy storage systems (BESS), gas South Africa to one that produces most of its
electricity but imports still represent some
engines, demand-side response (DSR), and
Frost & Sullivan’s recent analysis, Growth virtual power plants (VPP) are witnessing part of national power consumption. The
Opportunities from Decarbonisation in unprecedented adoption rates amongst ambitious plans thus signal a significant shift
the Global Power Market, 2019-2030, utilities, solution providers, and end for both nations as Eskom faces operational
reveals that the 2020s will be crucial for consumers.” and financial challenges.
all the participants in the power industry FROST & SULLIVAN A top-20 power utility firm by installed
as the transition toward renewable energy generation capacity globally, state-run
is expected to increase, while coal takes a Eskom generates more than 90 percent of
downturn in most developed markets. INVESTMENT South Africa’s power. But it has struggled to
Falling costs and renewable-friendly meet demand with several rounds of severe
energy policies adopted by several countries Namibia and Botswana near power cuts since 2007, stifling Africa’s most
in the six major geographies—North America, industrialized economy.
Latin America, Europe, the Middle East, agreement for 5,000MW Eskom has also been confronted with a
China, and India—are prominent reasons why financial crisis for some time now, which
solar photovoltaic (PV) and wind capacity Namibia and Botswana are nearing an has become a “national debt problem” and
additions are expected to soar this decade. agreement for the development of solar plants is the single largest threat to the economy,
An estimated $3.40 trillion will be invested that will produce up to 5,000MW of power, according to a former finance minister. The
in renewable energy during the next decade, with assistance from the United States Power cash-strapped company is struggling to
including $2.72 trillion in wind and solar. Africa initiative in structuring the deal. emerge from a crisis that stems from declining
By 2030, 54.1% of installed capacity will be There was a “lot of movement” on the electricity sales, ballooning debt, and liquidity
renewable (including hydropower), and 37.9% deal in March before the coronavirus disease problems. It has around $30 billion of
will be a combination of solar and wind. broke out in Africa, disrupting negotiations, debt to service, which accumulated due to
“Decentralisation, decarbonisation, and according to Botswana’s permanent secretary surging salary, fuel and debt-servicing costs,
digitalisation are the three key pillars of of mineral resources and green technology mismanagement, and corruption scandals.
the global energy transition,” said Vasanth Mmetla Masire. “The agreement to be signed
Krishnan, Senior Research Analyst, Industrial will facilitate a full feasibility study that will
Practice, Frost & Sullivan. “The power sector determine the size and the location of the
will witness strong growth in decentralisation plants,” said Tom Alweendo, Namibian mines GAS-FIRED GENERATION
during the decade, with annual global and energy minister.
investment increasing from $53.14bn in 2019 While potentially diversifying power Electricity Production from
to $92.54bn in 2030. Pressure will continue generation in the southern African countries,
to build for further decarbonisation within the project has been tipped to help relieve the Rwanda’s Gisagara Peat-
the power system as the rate of adoption burden on South Africa’s Eskom Holdings
of digital technologies increases in both SOC Limited – the largest utility on the Fuelled Plant to begin in
existing and future plants to boost operational continent. Botswana and Namibia are among
performance.” at least seven regional neighbours that look 2021

The peat power plant under construction in
Gisagara District, Rwanda, is expected to start
production by April 2021, an official in charge
of national power projects has said.
The project, launched in 2017, is expected
to increase national energy production
capacity by up to 40 per cent.
“Actually, had it not been for various
disruptions due to the current Covid-19
pandemic we would have got power before
end 2020,” Théoneste Higaniro, the Head of
Power Generation Projects at REG/EDCL
who overseas projects including peat, methane
gas, hydropower, solar and others said.
“But our assessments during meetings with
the constructor indicate that now, we expect

Week 35 03•September•2020 www. NEWSBASE .com P11