SUSTAINABLE INDEPENDENT POWER PRODUCTION IN MIDDLE-INCOME AFRICAN COUNTRIES

Year 2019, Volume: 11 Issue: 2, 1 - 19, 01.07.2019

D Nel

Abstract

The energy sector in many African countries faces challenges such as
supplying electricity to the public in a sustainable manner, demand
and supply challenges, institutional and governance challenges,
private investment obstacles, unequal supply of energy, rolling
blackouts, and grid maintenance and infrastructure challenges. These
challenges are coupled with and linked to other social and basic
service delivery challenges in a developmental context. New
renewable delivery modes through independent power production
(IPP) present a window of opportunity for massive investments in
Africa. The aim of this paper is to determine the potential for IPP, as
well as the barriers for the sustainable management thereof in selected
upper middle-income countries in Africa. A cross-case study method
is used. Content analysis was used to analyse 13 middle-income
African countries. Country case studies were conducted on upper
middle-income African economies. Country profiles comprise
Angola, Botswana, Gabon, Ghana, Kenya, Lesotho, Mozambique,
Namibia, Nigeria, Rwanda, Tanzania, Uganda, and Zambia. The
following criteria were used to identify barriers: energy technology,
investment, socioeconomic development risk, sovereign risk, policy
drivers, policy content, legislative basis for IPP, management of
stakeholders, and governance risk. Barriers include economic,
political, and sovereign risk, as well as maintenance and grid
expansion challenges. The need to help the environment, as a driver,
is not strong. The strongest current drivers are pricing, cost, and
market incentives. The benefits of managing natural resources and
facilitating sustainable development exist but are implicit.

Keywords

Independent power production, renewable energy investment, sustainable development

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