Africa Energy Briefs

South Africa Produces Energy Transition Framework

The South African government has drafted a Just Energy Transition (JET) Framework to guide the country’s transition from a carbon-intensive economy to a green economy.

President Cyril Ramaphosa said the framework is an evidence-based document and a victory for evidence-based policy-making. According to him, the publication of the framework must now serve as a call to action to each of us to embrace the opportunities presented by a low-carbon, inclusive, climate-resilient economy and society.

The PCC has held stakeholder engagements, community dialogues and colloquiums to conduct robust research and analysis and hear views on South Africa’s transition to leave no one behind.

President Ramaphosa hailed the document, adding that the framework has the potential to revolutionize the South African economy.

Benin Appoints Consortium of IPPs to Build 4 Solar Plants

While letting independent power producers (IPPs) access to its energy market, and under a private-public partnership, the Republic of Benin has appointed a consortium to construct four solar power plants (PPP). GreenYellow, a subsidiary of the French group Casino, has joined forces with Egnon Consulting, a consulting firm based in Cotonou, Benin.

The concession agreement was signed on Monday, July 4, 2022, by the heads of the two companies. The consortium will construct four solar photovoltaic plants totaling 50mwp. They will be located in Parakou, Zou department, Djougou and Natitingou respectively.

The solar project is currently under construction and has been in the works since 2019. As a result, GreenYellow and its partner do not have bother about financing as the International Finance Corporation (IFC), and Proparco, a branch of the French Development Agency (AFD) group specializing in private sector financing, are both supporting the project.

Under a 20-year power purchase agreement, the project’s electricity will be sold to the Société béninoise d’énergie électrique (SBEE) (PPA). According to Power Africa, Benin has an installed capacity of only 342mw despite having a population of 12 million (2020).

Nigerian Government Endorses Bank Takeover of 3 Electricity Distribution Firms 

Nigeria government has announced the restructuring of three non-performing electricity distribution companies (Discos) by a private banking facility, Fidelity Bank over the power investors’ poor financial performance.

The Discos include Kano Electricity Distribution Company, Benin Electricity Distribution Company, and Kaduna Electricity Distribution Company. They were considered technically incapacitated and failing to meet their loan obligations with Fidelity Bank Plc.

In a joint statement, the Nigerian Electricity Regulatory Commission (NERC), and the Bureau of Public Enterprises (BPE) announced the removal of the managing directors of two of the three Discos and their immediate replacements.

NERC and BPE said the action became necessary as Fidelity Bank had informed the government that it had activated the call on the collateralised shares of the three companies.

The current takeover of three Discos brings number to six as Yola, Ibadan, and Abuja Discos had earlier lost their initial management to the government.

Also in a statement, the minister of power, Abubakar Aliyu, confirmed the takeover of the Discos, adding that indeed the Discos could not repay loans taken from Fidelity Bank to acquire their asset during the 2013 privatisation, and the bank had activated its right to take over the firms.

Angola to Expand Electricity Access to 50% by 2025

Angola minister of energy and water, Joo Baptista Borges has said the country is increasing its access to electricity from 42.8% to 50% by 2025.  He said energy expansion is underway with the interconnection of the central/south and north/east regions, incorporating at least seven provinces and expanding the distribution network within the country.

He explained that the goal is to achieve at least 72% of the energy matrix’s contribution from clean sources by 2025, assuming the continuous development of the Energy Security Strategy and the construction of projects with new non-conventional renewable energy sources.

He said significant progress was made in electricity production between 2017 and 2022, with capacity reaching six gigawatts, an increase of more than 50%, noting that two electrification projects encompassing the eastern and southern regions were recently approved, benefiting over one million people by installing one gigawatt of photovoltaic energy.

National Strategy for Renewable Energies envisions installing solar plants with a capacity of 55 gigawatts, nearly ten times the country’s current installed capacity.

The factor will be critical in maintaining reservoir levels at the main dams and reducing diesel and gas thermal production.