Power Sector Transition in East Africa (EACOP region) – Insights

Power Sector Transition in East Africa (EACOP region) – Insights

The State of Energy Access and Emissions in East Africa

Eastern Africa has some of the lowest electricity access rates in the world. The access to electricity rates all fall below 50%: Uganda 41%, Tanzania 38%, DR Congo 19%, and South Sudan 7%. In South Sudan, those who have access to electricity often experience blackouts and forced load shedding. Clean cooking rates are also low in Uganda, Tanzania, and South Sudan compared to other East African countries.

Despite its relatively small contribution to global emissions, East Africa’s emissions have grown at a rate of 6.03% per year. Climate change and its impacts are front of mind for many across the region, with over 68% of survey respondents agreeing that climate change is happening and 92% believing their local communities are already feeling its effects.

The proposed East African Crude Oil Pipeline (EACOP) project has been controversial, with concerns raised about its environmental and human rights impacts. However, the governments of Uganda and DR Congo continue to pursue oil and gas development, seeing it as crucial for economic growth and development.

Renewable Energy Potential in East Africa

East Africa has immense renewable energy potential that is largely untapped. The region has an estimated 15,000 MW of geothermal energy potential, with only 900 MW installed as of 2020. Uganda, DRC, and southern Tanzania sit atop the western branch of the East African Rift, which holds significant geothermal resources.

Uganda has an installed solar capacity of 24 MW and hydropower capacity of 813 MW, with biomass accounting for over 89% of its total primary energy consumption. 38% of Ugandans now use solar energy, up from 18% in 2017. Solar home systems (SHS) have been well received in Uganda, contributing over 30% of the country’s total installed solar capacity.

Tanzania receives 2,800 to 3,500 hours of sunshine per year and has significant wind and geothermal potential. The country aims to reach 6,000 MW of renewable energy by 2025. DR Congo’s energy mix is dominated by hydropower, which accounts for 99% of both installed capacity and generation. However, the country has untapped solar potential, with only 1.1 MW of installed capacity.

South Sudan relies heavily on oil for its electricity, with a small contribution from solar. The country has set a renewable energy target of 2,729.5 MW by 2023, which could help it achieve its goal of 69% emissions reduction by 2030.

Barriers and Opportunities for Renewable Energy Deployment

Several barriers impede the rapid deployment of renewable energy in East Africa:

  • Lack of Transmission and Distribution Infrastructure: Many rural and remote areas lack access to the national grid, limiting the potential for large-scale renewable energy projects. This has led to the proliferation of off-grid and mini-grid solutions.
  • Financing and Investment Challenges: The high cost of capital and limited access to financing hinder renewable energy projects in the region. Public-private partnerships and innovative financing mechanisms are needed to unlock investment.
  • Policy and Regulatory Uncertainty: Unclear or inconsistent policies and regulations create risks for investors and developers, slowing the pace of renewable energy deployment.
  • Capacity Constraints: Limited technical expertise and institutional capacity to plan, develop, and manage renewable energy projects is a barrier in many East African countries.

However, the region also presents significant opportunities for renewable energy:

  • Abundant Renewable Resources: East Africa has vast untapped solar, wind, geothermal, and hydropower potential that can be harnessed for electricity generation.
  • Falling Technology Costs: The declining costs of renewable energy technologies, particularly solar PV and battery storage, make these solutions increasingly competitive in the region.
  • Distributed Energy Solutions: Off-grid and mini-grid systems can rapidly expand energy access in remote areas, complementing grid-connected projects.
  • Policy Commitments: Many East African countries have set ambitious renewable energy targets and are working to improve their policy and regulatory frameworks to support clean energy development.
  • Regional Cooperation: Initiatives like the East African Power Pool and the Africa-EU Energy Partnership can facilitate cross-border energy trade and technology transfer.

Country-Specific Renewable Energy Developments

Uganda

Uganda is actively pursuing renewable energy development, with plans to reach 52 GW of installed renewable capacity by 2040. The country is developing large-scale solar, wind, and geothermal projects, while also supporting the growth of solar home systems and mini-grids. Uganda’s Energy Transition Plan aims to achieve universal energy access by 2030 and reach net-zero emissions by 2065.

Tanzania

Tanzania has set a target of 6,000 MW of renewable energy by 2025. The country is developing utility-scale solar, wind, and geothermal projects, while also investing in mini-grids and off-grid solutions to expand rural electrification. Tanzania’s National Energy Policy and Electricity Act provide a supportive regulatory framework for renewable energy deployment.

Democratic Republic of Congo (DRC)

DRC’s energy mix is dominated by hydropower, which accounts for 99% of installed capacity and generation. The country has significant untapped solar potential, with only 1.1 MW of installed solar capacity. DRC’s government has set a goal of increasing electricity access to 32% of the population by 2030, primarily through the development of hydropower and solar projects.

South Sudan

South Sudan has set a renewable energy target of 2,729.5 MW by 2023, which could contribute to its goal of 69% emissions reduction by 2030. However, the country faces significant challenges, including a lack of grid infrastructure, ongoing conflict, and heavy reliance on oil for electricity generation. Distributed solar solutions could play a crucial role in expanding energy access in South Sudan.

Financing Renewable Energy in East Africa

Access to financing remains a significant barrier to renewable energy development in East Africa. The region has historically received a small share of global renewable energy investments, with only 0.5-1.7% of total investments going to Uganda and less than 0.5% each to Tanzania and DRC.

To address this challenge, various financing mechanisms and initiatives have emerged:

  • Public-Private Partnerships: Collaborations between governments, development finance institutions, and private investors can help de-risk renewable energy projects and mobilize larger-scale investment.
  • Climate Funds and Grants: Initiatives like the Scaling Up Renewable Energy Program, the Green Climate Fund, and the African Green Finance Facility provide concessional financing and technical assistance to support renewable energy deployment.
  • Innovative Financing Models: The proliferation of mobile money and microfinance has enabled the growth of pay-as-you-go and other consumer financing solutions for off-grid solar products.
  • Local Financial Institutions: Banks and credit unions in the region are establishing renewable energy-focused credit lines and working with off-grid companies to finance end-users.

Despite these efforts, the region still requires significantly more investment to meet its renewable energy goals and expand energy access. Addressing the high cost of capital, improving policy and regulatory frameworks, and building local capacity will be crucial in attracting greater investment.

The Role of Regional Cooperation and Partnerships

Regional cooperation and international partnerships are crucial for accelerating the energy transition in East Africa. Initiatives like the East African Power Pool, the Africa-EU Energy Partnership, and the African Circular Economy Alliance are working to facilitate cross-border energy trade, technology transfer, and the development of a circular economy.

Development partners and international organizations are also playing a key role in supporting the region’s renewable energy development. For example:

  • The World Bank has provided financing and technical assistance for rural electrification, mini-grid, and solar irrigation projects across East Africa.
  • USAID has supported improvements in renewable energy access and institutional capacity building in countries like the DRC.
  • The European Union is exploring opportunities for green hydrogen cooperation and has committed to partnering with Africa on climate finance and green technology deployment.

These partnerships and coordinated efforts are essential for overcoming the region’s energy access challenges, harnessing its abundant renewable resources, and ensuring a just and equitable transition to a low-carbon future.

Conclusion

The power sector transition in East Africa presents both significant challenges and immense opportunities. While the region grapples with low electricity access rates, high reliance on fossil fuels, and the impacts of climate change, it also holds vast untapped potential for renewable energy development.

By leveraging its solar, wind, geothermal, and hydropower resources, and investing in distributed energy solutions, East African countries can rapidly expand energy access and transition to a more sustainable energy future. However, this will require overcoming barriers related to financing, infrastructure, policy, and capacity constraints.

Through regional cooperation, international partnerships, and a concerted effort to attract investment and deploy innovative technologies, East Africa can realize its renewable energy potential and chart a path towards universal energy access and a low-carbon economy. The insights and examples provided in this article offer a glimpse into the region’s energy transition journey and the critical role that builders, designers, and industry professionals can play in shaping a more sustainable future.

For more information and resources on renewable energy and sustainable construction practices, visit the Local Builder London website.

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