Facts & Figures SOLAR Energy Facts & Figures SOLAR Energy Kenya Nigeria Cameroon Ethiopia Ghana Rwanda Senegal Tanzania Uganda UNLOCKING SOLAR CAPITAL AFRICA 1 & 2 NOVEMBER 2016 NAIROBI, KENYA 1 Facts & Figures SOLAR Energy Table of Contents p 3. Contact details - Solarplaza team p 4. 1. An event for Africa, in Africa p 5. 2. Regional Overview p 12. 3. Kenya p 18. 4. Nigeria p 25. 5. Cameroon p 31. 6. Ethiopia p 37. 7. Ghana P 42. 8. Rwanda P 46. 9. Senegal P 51. 10. Tanzania P57. 11. Uganda P61. 12. General Summary P62. Sources & Links 2 Facts & Figures SOLAR Energy Contact Details Solarplaza Team Contact details - Solarplaza team 1. An event for Africa, in Africa 2. Regional Overview 3. Kenya 4. Nigeria Dr. Eveline Jansen Jordan Kouzmanoff 5. Cameroon Project Manager Editor 6. Ethiopia [email protected] [email protected] +31 10 3027907 +31 10 280 9198 7. Ghana 8. Rwanda 9. Senegal Borja Gutierrez Szabolcs Magyari Project Manager Editor 10. Tanzania [email protected] [email protected] 11. Uganda +31 10 3027905 +31 10 280 9198 12. General Summary Sources & Links Saul Oost Editor Kristiaan Versteeg Editor Disclaimer: This overview is provided by Solarplaza International BV ("Solarplaza") as a service to its customers on an "as- is, as-available" basis for informational purposes only. Solarplaza assumes no responsibility for any errors or omissions in these materials. Solarplaza makes no commitment to update the information contained herein. This overview is protected by copyright laws, and may only be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner only by accrediting Solarplaza as the source of it and providing a full hyperlink to www.unlockingsolarcapital. com where it was originally published. 3 Facts & Figures SOLAR Energy 1. An event for Africa, in Africa Africa is quickly becoming one of the most significant regions in the global expansion of the PV industry. The high levels of solar irradiation, extreme growing energy demand, increasing developers, IPPs, EPCs & other solar level of commitment by governments stakeholders. Learn more about the in the region to renewable energy program, speakers and more here. generation, and the lack of an established sophisticated energy infrastructure are Key characteristics just some of the factors that are sparking a growing interest from international • 300+ senior executives, finance and stakeholders. project development • Unprecedented depth and focus through The purpose of this report is to provide separate tracks for on-grid, mini-grid and an overview of the key facts and figures off-grid solar financing and development related to some of the key markets as • Guaranteed matchmaking through a prelude to the Unlocking Solar our customized software, interactive networking breaks and a dedicated Capital: Africa conference Solarplaza will be organizing 1-2 November 2016 in matchmaking session; Nairobi, Kenya. • Taking place in Nairobi, one of Africa’s key hotspots (home of one of the largest continental stock exchange markets Solarplaza and GOGLA are proud to and a myriad of local & international announce the organization of Unlocking businesses) Solar Capital: Africa - the unique international platform and 2-day In preparation of the conference, we are conference focusing on unlocking capital bringing you this report to get a more in- for new solar project development in depth look into all the facts & figures of Africa. This event will connect solar the solar PV market in Africa. The report project development and finance & will give an overview of a range of issues investment in the three leading solar related to PV project development electrification segments (On-grid including the demographic landscape, Solar, micro-grids, off-grid lighting and legislation and policies, electricity household electrification). generation and capacity, and more in Unlocking Solar Capital: Africa, the following countries: Kenya, Nigeria, Solarplaza’s 7th event on the continent, Cameroon, Ethiopia, Ghana, Rwanda, will bring together hundreds of Senegal, Tanzania, Mali and Uganda. representatives from development banks, investment funds, solar www.unlockingsolarcapital.com 4 Facts & Figures SOLAR Energy 2. Regional Overview Introduction is very low, the development of Africa’s energy infrastructure is in the hands Africa is one of the largest, relatively of external investors. One of the main untapped, territories in terms of barriers for investors’ entry into African energy investment. Even though most countries is the nature of governmental countries bear a developing or sub- regulations promoting and protecting developing status, the combined GDP investors. There is often very little of Africa amounts to about 800 billion transparency, high levels of corruption USD and there are more than half a and few regulatory institutions to ensure billion people living there (Table 2.1). businesses’ rights. Since investment capital in the country Facts & Figures - Selected Countries* (CALCULATIONS) Combined GDP Approx. 800,000,000,000 USD Average GDP per Capita Approx. 1,510 USD Combined GDP Growth (2015) Approx. 4.16% Combined inhabitants Approx. 515,000,000 Installed Solar PV Capacity (2015) > 1.7 GW Electrification rate (2012) > 40% Average Horizontal Radiation Africa 1. Tanzania (Approx. 5.6 kWh/m2/day ) 2. Kenya (Approx. 5.4 kWh/m2/day ) (Calculations based on IRENA report, exclusions 3. Uganda (Approx. 5.3 kWh/m2/day ) areas unsuitable for RE taken into account) Energy demand very low. Often times electricity is only accessible for 30-50% of the population Malfunctioning grid structures and a lack consisting of a relatively higher of reach in the overall infrastructure are percentage in urban areas and a very low common phenomena in the sub-Saharan levels in rural regions. Most rural regions region and are key issues to address do not have access to the main grid of for the development of the region. the country. When they do have access, Furthermore, average electrification power supply is often intermittent rates throughout the continent are making it difficult for businesses to 5 Facts & Figures SOLAR Energy businesses to work consistently. These their highly unsustainable nature, have unfavourable present circumstances, proven to be very costly for both African combined with the fact that solar governments and consumers and have PV costs are dropping and projects urged officials to explore other energy becoming more attractive, has resulted in sources. The most widely adopted numerous opportunities for PV projects renewable energy source in sub-Saharan throughout the continent. Furthermore, Africa is hydroelectricity accounting for the easy and quick implementation of 22% of total energy production (Figure Solar PV gives it a competitive advantage 2.1). These sources have proven to be over other renewable energy sources, very competitive alternatives for fossil especially for the electrification of rural fuels due to their high energy yields areas. and low consumer costs. However, not all countries have a geography that Potential for renewables favours a hydroelectricity facility (river / lake at higher altitude); droughts and In many parts of Africa, power is irregular rainfalls have a severe impact, generated by old fossil fuel plants and causing serious problems in power generators. In 2012, 65% of the total supply. Additionally, there is a large energy production came from coal environmental impact from the creation and/or gas sources (Figure 2.1). These of such a hydrodam. power generation techniques, on top of Figure 2.1: Electricity generation by fuel in sub-Saharan Africa in the New Policies Scenario, 2012 vs. 2040. 6 Facts & Figures SOLAR Energy Solar energy can prove to be a viable small scale via in mini-grid and off-grid solution to meet the growing energy initiatives. Presently, 37% of all minigrid demand due to the region’s outstanding and off-grid initiatives has a solar energy inherent characteristics. The sub- component, and this is expected to Saharan region contains countries with grow to 47% in 2040 due to the new some of the continents highest irradiation policies throughout the region (Figure levels in Africa, notably Tanzania, 2.2). This growth will be aided by the Kenya and Ethiopia. These countries collaboration of SE4ALL, Inensus GmbH experience irradiation levels up to 2000 and Energy4Impact. The initiative will kWh/m2/year displaying great potential include market intelligence, investments for Solar PV systems (Figure 2.3). These and support in a technical and advisory potentials are already being tapped on a role. Figure 2.2: Technology mix for mini-grid and off-grid power generation in sub-Saharan Africa in the New Poli- cies Scenario, 2040 Policies and targets PV accounting for three-quarters of the total and concentrated solar power As an intention to move from costly fossil accounting for the rest. The solar fuel sources to renewable sources and to capacity additions increase from an meet the growing energy demand, many average of 0.9 GW per year until 2020 countries have implemented policies and then to an average of 2.2 GW per year that either limit the usage of fossil fuels thereafter. This rate of growth translates or promote renewable energy source. into the biggest compounded average An overview of several policies is shown annual growth rate out of all energy in table (Table 2.3). The solar capacity sources both in electricity generation is projected to exceed 6 GW by 2020 and electrical capacity corresponding to and reach 45 GW in 2040 with Solar 22.1% and 26% respectively, within the 7 Facts & Figures SOLAR Energy projected time frame of 2012-40 (Table products bear relatively high upfront 2.2). Policies promoting the use of Solar costs compared to other renewable energy will be crucial in the country- energy sources. wide adoption process as solar powered Figure 2.3: Global horizontal irradiation map of Africa. 8 Facts & Figures SOLAR Energy Table 2.2: Projected total energy generation and total electricity capacity of Africa under new policy scenario.