South Sudan launches first solar plant with battery storage

From the newsletter

Ezra Group, a South Sudanese family-run conglomerate, last month announced the launch of South Sudan's first major renewable energy project. The 20 MW solar PV plant, located in Juba, the capital city, will have a 14 MWh battery energy storage system & will connect 16,000 households in the world's least electrified country.

• This project marks South Sudan's first public-private partnership (PPP) in the renewable energy sector. Ezra Construction and Development Group, a subsidiary of the Ezra Group, undertook the development and financing of the project independently.

• South Sudan, which gained independence in 2011, faces significant challenges in electricity generation. The country's current installed capacity is estimated at only 200 MW, with solar power contributing 48 MW. This falls far short of the needs of its population, exceeding 11 million, with only an estimated 8.4% having access to electricity.

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• Globally, countries are adopting renewables as the push for clean energy and climate action keeps growing. Several African countries are moving swiftly in embracing renewables. South Africa leads the pack with over 10.6 GW of installed renewable energy capacity, followed by Egypt at 6.7 GW and Morocco at 5.4 GW.  However, some countries, such as South Sudan, Benin, Burkina Faso, Botswana, and Burundi, are just beginning their renewable energy journeys, with total installed capacities below 100 MW.

• Neighbouring countries like Kenya, Uganda, and Ethiopia have made significant strides in adopting renewables. Kenya's major investments are going towards geothermal and solar, while Uganda and Ethiopia focus on hydropower.

• The choice of technology varies depending on resource availability. South Sudan has a high potential for hydropower, which could reach 2,590 MW in sites situated along the White Nile River. Five potential sites have been identified: Bedden (720 MW), Fula (1,080 MW), Lekki (420 MW), Shukoli (250 MW), and Juba Barrage (120 MW). The country also has abundant sunlight, receiving approximately 2,788 hours annually, which is about 7 hours and 37 minutes per day.

• Building such projects, especially hydropower, takes time due to challenges in licensing and permitting, with land acquisition often being a major obstacle. Recently, most mega-hydropower projects have struggled to attract foreign investment, as seen in Egypt and with the Democratic Republic of Congo's 40 GW Grand Inga Dam, the world's largest planned hydropower project.

• South Sudan is planning to build a 500 MW solar power plant in agreement with the United Arab Emirates. It also plans to invest in the 1,080 MW Grand Fula hydropower project. At the same time, it plans to construct international transmission lines with its neighbours, Uganda and Ethiopia.

• The Uganda-South Sudan interconnector will run from the recently completed Karuma hydropower plant to Juba. This project has received funding from the African Development Bank (AfDB) and will be constructed by the Uganda Electricity Transmission Company Limited (UETCL) at a cost of $142.5 million. The interconnector aims to facilitate power exchange of up to 1,000 MW in both directions, with Uganda targeting to export 481 GWh by 2028.

• The Ethiopia-South Sudan interconnector will have a transmission capacity of 400 MW and will cover a distance of 357 km at 230 kV. The project has received funding from the African Development Bank, and an advert for a feasibility study was rolled out last week.

Our take

• South Sudan's move to allow private sector participation in energy generation is a big step in opening up the energy market. Public-private partnerships have been used as a tool to finance major energy projects that governments would otherwise not afford. Given that South Sudan still suffers from huge debts, despite its oil export revenue, the private sector can help in meeting its energy investment needs.

• The option of pursuing international electricity purchases, particularly from its neighbours, will help solve their immediate needs. But this is also an opportunity for them in the future to export electricity to other countries when they have excess generation.

• South Sudan may struggle in actualising its hydropower dreams. However, it can decide to go the Ethiopia route of domestic financing and finance the projects locally from its domestic resources like tax and oil revenue. This, of course, will take time given its small population and GDP. But it can act as a first step to attract foreign investment.