Close to 600 million sub Saharan Africans are not connected to an electric network. The total production of energy on the continent which has a population of just over 1 billion is less than that of Spain. As well as their considerable potential in terms of energy efficiency Smart Grids in Africa represent an opportunity to develop infrastructure at a minor cost and in line with modern energy constraints and historical specificities.
A village in Africa equipped with solar panels – Photo credit : Daltoris[1] on Flickr in CC
Electricity networks are still underdeveloped in Africa. The cause: connection charges are among the highest in the planet. The African consumer pays 14-13 euro cent pour KWh whereas the price in asia is 4 euro cent. “A woman living in a village in the north of Nigeria spends around 60 to 80 time more per unit of energy than an inhabitant of New York or London” according to the African Development Bank (ADB).
Yet more than on any other continent, Africa has considerable wind power, hydraulic and photovoltaic potential. In some parts of the continent the potential of photovoltaic power is twice what it is in central Europe. Africa has a context that is more than conducive to energy transition and Smart Grid technologies.
A new deal for energy in Africa
A new deal for energy in Africa was announced during COP21. This deal has four objectives:
- increase the production of the network with an addition 160 GWH in additional capacity by 2025 ;
- increase the transmission of the network and the connections of the network in order to create 130 new connections by 2025 (i.e. an increase of 160% compared to today) ;
- increase the production outside the network to add 75 million connections by 2025 (i.e. 20 times what the number today), and
- increase access to clean energy to 130 million homes.
The African Development Bank anticipates financing this deal to the tune of 12 billion euros in the coming 5 years.
A centralised approach could co-exist with a decentralised approach in rural zones. The opportunities created by Smart Grids could lead Africa towards a new production model with distributed small and medium sized installations.
Hence, network operators and electricity producers will have at their disposal a hight diversified “technology tool box” which will make it possible to respond more precisely to rural needs:
- Extension of the network to areas with greater needs that justify higher investments in lines ;
- microgrids with a local thermal or hybrid production if the resource is available in areas with corresponding levels of demand ;
- Distributed individual production for populations and isolated villages[2].
This decentralised approach which relies heavily on Smart Grid technologies naturally raises the question of the evolution of the regulation of the sector, e.g. authorising industrial production for its own needs and resale of the surplus production at a competitive price, or by allowing production by private individuals to connect to the grid and benefit from clear pricing mechanisms.
Hence, according to the French Development Agency (Agence Française de Développement – AFD), the putting into effect of a clear regulatory framework is a precondition for the engagement of operators to develop access to energy in rural zones.
An African Smart Grids summit
The technical, economic and regulatory issues surrounding African networks are now discussed on an annual basis during the Africa Smart Grid Forum. The last edition took place in Cairo from 5 to 7 March. The aim of the Forum is “to highlight the potential of smart grids to accelerate access to electricity for the African people and stimulate business opportunities.”
This Forum was co-organized by the Egyptian Ministry of Electricity and Renewable Energy and the African Electrotechnical Commission (AFSEC). Dr. Tuan Tran Quoc (University of Grenoble Alpes, CEA / INES), Laurent Schmitt (Grid Solutions GE), Xavier Yang (EDF) and Philippe Monloubou (ERDF CEO and president of Think Smartgrids) were among the speakers.
ITEMS International for Think Smartgrids
[1] Flickr – https://www.flickr.com/photos/38523511@N00/5574348334/
[2] World Bank, 2015
[3] African Smart Grid Forum – http://africasmartgridforum2016.org/fr