The international tradeshow and conference on power generation, electricals and Industrial electronics. 10-12 August 2017 GHANA INTERNATIONAL TRADE FAIR CENTRE

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POWER SECTOR OPPORTUNITIES IN SUB-SAHARAN AFRICA

  • More than 1 terawatt of base load potential
  • USD 800 bn needed in capital
  • 40% new capacity from gas; 25% from RE sources

The power sector in sub-Saharan Africa offers a unique combination of transformative potential and attractive investment opportunities.

In most countries, electricity is provided by expensive diesel generators with prices ranging from three to six times what grid consumers pay across the world.

Sub-Saharan Africa is starved for electricity. The region's power sector is significantly under-developed, whether it is energy access, installed capacity or overall consumption. "Thestakes are enormous. Indeed, fulfilling the economic and social promise of the region,and Africa in general, depends on the ability of government and investors to developthe continent's huge electricity capacity," says a McKinsey & Co. report (Feb 2015).

Power Africa, the recently launched US-aided program envisages the addition of 10,000 MW across 6 countries,Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzaniaof clean,

efficient electricity-generation capacity. The program opens up opportunities in expanding mini-grid and off-grid solutions and building out power generation, transmission, and distribution structures, enhance energy resource management capabilities, etc.

NIGERIA

The Federal Government of Nigeria estimates that the country requires 40,000 MW of additional capacity to address the country's energy needs and support wider economic development. With current installed capacity at 7,500 MW, plugging this gap will require USD 10 bn of investment across the electricity supply chain by 2020.

The government plans to increase the supply and use of gas across the country, with a total investment of about USD 25 bn. Nigeria also hopes to start exporting power beyond the West African region to Central and South African countries, based on the delivery of the country's electricity transmission super grid, estimated to cost about USD 5 bn. The levels of investment required to enable energy transition are significant.

COTE D'IVOIRE

Cote d'Ivoire has recently regained its standing as a regional energy exporter. As a member of the West African Power Pool (WAPP), the country has increased its exports of electricity to neighboring Benin, Togo, and Burkina Faso.

Currently, 67% of the electricity comes from thermal power utilizing natural gas. A quarter is generated from hydropower. Though natural gas production is expected to increase by 60% in the next 10 years, electricity demand is projected to surpass the capacity of existing gas reserves.Cote d'Ivoire also has significant renewable energy potential in wind, solar, biogas, and mini-hydro.

There are significant opportunities for foreign investors in the energy sector, particularly in renewables, given the gap between demand projections and existing supply.

CAMEROON

Cameroon has the second largest hydropower potential in Africa, after the Democratic Republic of Congo, with an estimated capacity of 12,000MW, principally in the Sanaga basin representing more than 115 bn KWh. So far only 721 MW have been developed. Apart from hydropower, the main installed network capacity (298MW) comes from thermal power plants.

The Government of Cameroon has planned to install hydropower facilities with capacity estimated at 720MW by 2020. New hydropower projects are in the pipeline such as Nachtigal (330MW developed by Electricite de France) and Memve'ele (200 MW developed by Sinohydro China) which are under development and Song Mbengue (950MW), Kikot (350MW), Bini Warak (50MW), Njock (170MW), Ngodi (475MW), Song Dong (250MW), Nyamzom (375MW) which are projected. These programs are supported by among others the African Development Bank and are aimed at attracting new investment in the sector.

LIBERIA

Cote d'Ivoire has recently regained its standing as a regional energy exporter. As a member of the West African Power Pool (WAPP), the country has increased its exports of electricity to neighboring Benin, Togo, and Burkina Faso.

Currently, 67% of the electricity comes from thermal power utilizing natural gas. A quarter is generated from hydropower. Though natural gas production is expected to increase by 60% in the next 10 years, electricity demand is projected to surpass the capacity of existing gas reserves.Cote d'Ivoire also has significant renewable energy potential in wind, solar, biogas, and mini-hydro.

There are significant opportunities for foreign investors in the energy sector, particularly in renewables, given the gap between demand projections and existing supply.