Page 7 - AfrElec Annual Review 2021

AfrElec FEBRUARY AfrElec

solar companies, are already eyeing up Africa. Mini-grids
For example, consultants PwC in 2020 pub- The AFSIA report says that 2021 looks promis-
lished research on unlocking South Africa’s ing for mini-grid developers once the effects and
hydrogen potential. PwC said that South Africa limitations of the coronavirus (COVID-19) pan-
could become an exporter of cost-effective green demic become more manageable.
hydrogen to the world. The continent has seen many attempts by
The PwC report highlighted that hydrogen its various governments to foster the growth of
development in South Africa had been largely mini-grid projects. Among the notable efforts,
driven through the initiatives of the mining sec- Togo floated a tender for 317 mini-grids across
tor over the past decade. the country, backed with West African Devel-
Anglo American Platinum has developed a opment Bank financing. Benin is also moving
fuel cell electric vehicle (FCEV) mining truck at ahead with mini-grid projects, with nearly 119
the Mogalakwena mine, while Impala Platinum mini-grids awarded to bidders, which are at dif-
has an FCEV forklift fleet at the Springs refinery. ferent development stages.
Looking ahead, the report calls for the In December last year, the African Devel-
government to adopt an effective strategy opment Bank (AfDB) approved a $20mn con-
and roadmap, accompanied by clear minis- cessional investment from the Sustainable
terial direction and effective and transparent Energy Fund for Africa (SEFA) to establish the
regulation. COVID-19 off-grid recovery platform. The
Hydrogen also needs investment incentives platform would support energy access compa-
such as a fast-track licensing process. nies that commercialise and deploy solar home
The government should also sign collabora- systems, green mini-grids, clean cooking and
tion agreements with established hydrogen pro- other decentralised renewable energy solutions
ducers such as Japan and Germany in order to through these partners.
gain access to the latest technology. Earlier, the African Union Commission and
the International Renewable Energy Agency
C&I (IRENA) had agreed to promote renewable
The report also stressed that commercial and energy across the African continent and bolster
industrial (C&I) solar projects now attracting Africa’s response to the COVID-19 outbreak.
growing interest. AFSIA data suggests that C&I Solar offers both utility-scale supplies and
could represent 30-40% of all solar capacities decentralised potential, as well as offering a
installed in the coming years. solution to developing hydrogen across the
There are more than 6,200 large-scale, C&I continent.
and mini-grid projects across the continent, of With Africa aiming to provide univer-
which 2,400 are already in operation. sal access to power this decade and industry
For example, the AFSIA identified 734 ser- demanding more reliable supplies to drive eco-
vice stations across 29 countries that are now nomic growth, solar expansion is key to Africa’s
running partially or fully on solar energy. energy future.™

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