Africa has substantial new and renewable energy resources, most of which are under-exploited. Only about 7% of Africa’s enormous hydro potential has been harnessed. Existing estimates of hydro potential do not include small, mini and micro hydro opportunities, which are also significant. Geothermal energy potential stands at 9000MW, but only about 60MW has been exploited in Kenya.
Estimates further indicate that a significant proportion of current electricity generation in 16 Eastern and Southern African countries could be met by bagasse-based cogeneration in the sugar industry. Based on the limited initiatives that have been undertaken to date, renewable energy technologies (RETs) could contribute significantly to the development of the energy sector in eastern and southern African countries. Renewable energy technologies (RETs) provide attractive environmentally sound technology options for Africa’s electricity industry. RETs could offset a significant proportion of foreign exchange that is used for importing oil for electricity generation in most countries. In addition, renewables are modular and are well suited for meeting decentralised rural energy demand.
The modular nature (i.e. can be developed in an incremental fashion) of most renewable energy technologies and the low investment levels makes them particularly suitable for capital-constrained African countries. Most renewable energy technologies utilise locally available resources and expertise, and would therefore provide employment opportunities for the locals. The success of RETs in the region has been limited by a combination of factors which include: poor institutional framework and infrastructure; inadequate RET planning policies; lack of co-ordination and linkage in the RET programme; pricing distortions which have placed renewable energy at a disadvantage; high initial capital costs; weak dissemination strategies; lack of skilled manpower; poor baseline information; and weak maintenance service and infrastructure.
Africa’s energy sector is best understood as three distinct regions. North Africa, which is heavily dependent on oil and gas, South Africa, which depends on coal and the rest of Sub-Saharan Africa, which is largely reliant on biomass (Karekezi, 2002a). Figures for Eastern and Southern African countries indicate that a high proportion of total national energy supply is derived from biomass energy. Biomass energy, which refers to a wide range of natural organic fuels such as wood, charcoal, agricultural residues and animal waste, is often used in its traditional and unprocessed form.
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Even oil-rich sub Saharan African countries continue to rely on biomass energy to meet the bulk of their household energy requirements: in Nigeria, it is estimated that about 97% of the household energy needs are met by biomass.
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The conventional energy sector, and in particular the electricity sector has not lived up to expectations. The sector is mainly characterised by unreliability of power supply; low access levels; low capacity utilisation and availability factor; deficient maintenance; poor procurement of spare parts; and, high transmission and distribution losses among other problems (Karekezi and Kimani, 2002). The power utilities in Africa have failed to provide adequate levels of electricity services to the majority of the region’s population, especially to rural communities and the urban poor.
Provision of electricity is largely confined to the privileged urban middle and upper income groups as well as the formal commercial and industrial sub-sector. The financial performance of utilities in most African countries is equally unsatisfactory. Sub-Saharan Africa experiences very low levels of access to electricity with the highest levels recorded in South Africa and Mauritius (66% and 100% respectively). Electricity consumption is confined to commercial and industrial enterprises as well as high-income households.
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