Brighter outlook for African power output

Power utility companies and stakeholders across Africa anticipate a brighter and different outlook for the sector in the decade ahead, according to a new report from market analyst Price Waterhouse Coopers (PwC).

A variety of 51 senior power and utility sector executives from 15 African countries took part in PwC’s Africa power & utilities survey, reporting continued concern about some of the immediate risks to the power system, but emphasising long-term optimism about the prospects for electricity in Africa.

Two thirds (67%) of those PwC interviewed cited ageing or badly maintained infrastructure as a high or very high concern. Encouragingly, many felt this situation would improve, with only 39% predicting that it would be a similarly high or very high concern in five years’ time. 

PwC Africa Power & Utility Leader, Angeli Hoekstra, said “there is much to be optimistic about and the results point the way to improvements ahead. But security of electricity supply and cost reflective tariffs continue to be the number one challenges. Until they are resolved, power systems will remain stretched, as investments in the power sector will be limited. Addressing cost reflective tariffs while ensuring social equity is a key challenge.”

The survey also highlights the energy transformation that is taking place, as the market vision for the future will be a mixture of large scale centralised generation and local mini grid and off grid distributed generation according to the vast majority of survey participants (83%).

“Technological and regulatory change and new investments present very exciting opportunities to increase electrification access and electricity supply,” says Hoekstra.

New businesses and business models will be created and Africa will leapfrog into a better and more sustainable energy future if all stakeholders in the sector, from customers to governments, new businesses, regulators and utilities embrace the opportunity, she concludes.