Despite plentiful sunshine, solar panels getting cheaper by the year and demand for power skyrocketing; the newness of the technology, bureaucratic hurdles and investor fear of uncharted territory have however held back the rollout of solar plants across Africa, Reuters reports.
Solar is less than 1% of Africa’s power generation. Outside of South Africa and Algeria there are only a few utility-scale solar photovoltaic (PV) plants on the continent, the largest being a 20 MW plant in Ghana. “We are seeing the same trends everywhere in sub-Saharan Africa,” said Silvia Macri, analyst at IHS Markit. “There’s no experience with these projects, and not much clarity around the political framework.” Lenders want dependable cash flows, but in many countries weak legal frameworks, unclear land rights and poor transmission infrastructure make this hard to guarantee, Macri said.
However few projects have beaten the odds and others may require time to fulfill their potential. A different plant in Ghana was completed in April by Chinese company BXC, and a 10 MW plant in Uganda is almost built, led by firms in Paris and Dubai. Nigeria signed its first solar power purchase agreements in July for 14 large-scale plants after four years of negotiations. They are now meant to close financing within a year, and finish construction 18 months later. “To be honest, some might need more time,” said Yesufu Alonge, head of power procurement at Nigeria’s bulk trader.
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