Private Investment Key for Power Generation

By on May 18, 2015 in Power with 0 Comments

Private investment and technological advances are key to boosting power generation in Africa where an estimated 600m people lack access to electricity. Bloomberg reports that this is according to Amos Hochstein, special envoy and coordinator for international energy affairs at the US State Department who said: ‘There is not enough money in any government to solve this problem. This is not a government problem.

The role of the government is to restructure and reform and create an enabling environment for the private sector to come in and operate.’ The report notes that SA, Nigeria and Ghana are among countries facing energy deficits, leading to regular blackouts that stifle economic growth. The International Energy Association estimated in a report last year that the world’s poorest continent would need an additional $450bn in investment by 2040 to halve outages and provide universal access in urban areas.

Norman Ndaba, power and utilities sector leader at accounting firm EY said: ‘Africa still produces less than 5% of global electricity and that’s not tenable. The demand is there, the supply is there, but there is no market. We can’t afford power on the current basis using the current technology.’ ‘I’m hoping that in the next 10 years there will be a technology breakthrough that will dramatically drive down costs,’ he said.

Source: Bloomberg

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About the Author

About the Author: Eugene Obiero is the founder of The Africa Resources Post and its predecessor The East African Energy Blog. Eugene has been writing and blogging on energy and extractives in Africa since June 2012. He is based in Nairobi, Kenya and works for Camco Clean Energy (http://www.camcocleanenergy.com/ ) as Senior Manager Africa Projects. He specializes in market entry strategy, research, financial advisory and project management. Eugene has an MBA from The Warwick Business School, University of Warwick (UK). The posts on this blogsite are Eugene's and do not necessary reflect the thinking of his employer, Camco Clean Energy. .

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