Study: Sub-Saharan Africa ready for major renewable energy investment

International consulting firm Frost & Sullivan finds that Sub-Saharan Africa is primed for renewable energy investment.

South Africa, Tanzania, Namibia, Kenya, Zambia, Nigeria and Ethiopia are all ripe for investment in grid-tied solar, wind, and geothermal projects, while Ivory Coast and Ghana were also marked for large scale solar development.

"Certain governments across Africa are striving to frame clear regulatory and institutional frameworks in order to rapidly deploy renewable energy power technologies as they have recognized the potential for large-scale renewable energy development," Frost & Sullivan Energy & Power Systems Industry Analyst Celine Paton said. "Prominent challenges to these efforts, however, include the bankability of the projects, limited grid capacity and the affordability of electricity. Poor long-term planning often compels governments to implement expensive short-term solutions."

Frost & Sullivan cited International Finance Corporation's Scaling Solar Programme as well as the Climate Investment Fund's Scaling Up Renewable Energy in Low Income Countries Programme as two examples of solutions already working to address the funding gap for renewable energy projects.

Projects accounting for about 647 megawatts of renewable power are already underway. This figure is about 4 percent of the total power production value of the queue of Sub-Saharan renewable energy projects, which would produce an estimated 14.7 gigawatts.

The Frost & Sullivan report is one in a series of energy-related reports on African countries produced by the company for its Energy and Power Growth Partnership Program. The studies are released by subscription and include detailed market analysis and industry trends based on study and interviews.