Africa’s power sector is facing many challenges, mainly due to insufficient generation capacity which has limited electricity supply, resulting in low access. The main obstacle to the increase in electricity generation capacity is the high cost of producing electricity, forcing governments to subsidize consumption.
The most cost-effective way of generating electricity is through large power plants, which allow for economies of scale. In Africa, the power generation industry is dominated by costly small-scale power systems. Although small-scale power generation systems are useful for connecting remote areas to the national grid, they lead to higher transmission and distribution costs, mainly arising from electrical losses.
Is renewable energy going to fix this for Africa and if so in what ways and how quickly can the impact be realized especially since each country has its own agenda in addressing this regional issue?