What is needed to electrify 300m Africans by 2030?

• Mission 300 is an initiative led by the World Bank and the African Development Bank which have made $40 billion in funds available to electrify 300 million people in Africa by 2030. The energy summit in Darees Salam Tanzania is to culminate in the signing of the Dar es Salaam Energy Declaration committing African countries to accelerate electricity access.

• About 600 million people in Africa lack access to electricity–roughly half the population of Africa. The majority live in rural areas far from the grid lines. Extending the grid to such areas is more expensive than off-grid options. African countries have adopted a hybrid electrification model – using both grid and off-grid solutions – to ensure appropriate and targeted solutions and reduce electrification costs.

• Our take: The private sector's influence on Africa's energy future is far greater than it may seem… Read more (2 min)

Zambia’s first solar PV wheeling project nears financial close

• The Ilute solar project will serve as a pilot for GreenCo's (a renewable energy buyer and trader) energy aggregator model under Zambia's electricity company’s (ZESCO), open grid access framework. GreenCo will purchase electricity from the project under a 25-year Power Purchase Agreement (PPA), selling the energy into the Southern African Power Pool's (SAPP) Day-Ahead Market (DAM).

• GreenCO received grid connection approval from ZESCO in December 2024 and will utilise ZESCO's transmission lines to wheel power to SAPP.

• Our take: Countries need to harmonise their policies to allow for power wheeling between their national power utilities and the private sector… Read more (2 min)

SA’s power utility to hike price by 57% in three years

• The challenge has mainly arisen from Eskom's ageing coal generation fleet, which accounts for over 80% of its total generation. The heavy maintenance required has burdened Eskom with high costs, pushing it into financial losses. In 2023, Eskom's total debt reached $23 billion, forcing the utility to increase prices to recoup investment costs.

• This trend in South Africa is similar to that in other African countries, where national power utilities face challenges due to ageing technology and inefficient revenue collection mechanisms, costing them millions of dollars. Nigeria, Kenya, and Ghana's power utilities have all been struggling with financial losses.

• Our take: Electricity prices in Africa are set to continue rising, driven by ageing infrastructure and subsidy cuts as governments grapple with debt repayments… Read more (2 min)

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