Independent Power Producers- An Answer to the Power Woes in AfricaSummary
Independent Power Producers (IPPs) have attained significant growth in Africa. Most countries in the region have opened their power sectors for private participation since 1994. This comes to light with about 15 independent power projects currently in place in east Africa alone with major concentration in countries like Kenya, Tanzania and Uganda. The remaining region is still going through reforms in their power sector while making an effort to bring in private project developers. The reforms that are being rolled out will play a significant role in establishing independent sector regulations, a multi year tariff structure and incentives for greater private sector participation. The private participation is also expected to rise with IPPs sighting potential unexplored energy resources such as geothermal, coal, gas and hydropower available in abundance for power generation. The African economy has been growing due to the availability of mineral resources. The industrial and economic growth has put immense pressure on electricity demand that is growing at a rate of 10% per annum. The majority of the present installed capacity comes from the hydropower plants that have not been able to provide reliable electricity, due to fluctuating water levels, inefficiency and lack of investment to bring in new equipment. On the other hand, the state utilities also lack financial resources for the development of additional capacity to meet the demand, therefore, creating an avenue of opportunity for the IPPs. The governments of various countries in the region are increasingly opening up to partner with IPPs to develop power projects. This trend will immensely impact the sector by reducing the prevalent political risks of doing business, attracting increased investments by IPPs. Owing to the current market trends, it is evident how important the role of IPPs will be to end the present power struggles in Africa.Scope
Reasons to buy
- Market prospects for IPPs in Africa
- Key issues influencing the growth of IPPs in Africa
- Future and current market prospects offered by IPPs to power generation in Africa
- Opportunities for IPPs in utilizing unexplored energy resources
- Identify key growth and investment opportunities for IPPs in Africa
- Gain insights in the growth potential offered by the private and foreign investments in power markets of Africa..
- Developing strategies and policies for IPPs market penetration
- Facilitate decision-making based on upcoming market developments in the African power sector.