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IPP, Licensing and Market Reforms in Sub-Saharan Africa’s Energy Landscape, 2018

IPP, Licensing and Market Reforms in Sub-Saharan Africa’s Energy Landscape, 2018

The access to electricity in Africa is well below the global average, presenting a significant opportunity for the development of the energy supply industry, largely in the form of private sector investments in electricity generation. Many African governments are under immense pressure to improve the quality and reliability of electricity supplied within their respective countries. At the same time, however, governments face major constraints in finding suitable financing options and profitable business models that will ensure quality services in the energy sector. The growing pressure on the energy sectors of various African countries is primarily a result of the following 3 factors: non-performing revenue generation systems, aging infrastructure and a lack of finances available to fund new projects.

The power sectors in African countries are monopolized by a single public utility responsible for the generation, transmission and distribution of electricity. The continuously increasing load being placed on public utilities and the need for private sector investments have highlighted the imperative need for energy sector reforms that will present an enabling environment for Independent Power Producers (IPPs) and subsequently create the opportunity for a healthy and competitive energy sector to flourish in Africa. For this study, we have looked at such reforms in South Africa, Tanzania, Kenya and Nigeria, to understand the role that IPPs have played in each country in terms of power generation, investment and overall structure of the power sector.

Initially, this study will discuss the drivers and restraints to IPPs in Sub-Saharan Africa. Next, this research will provide an overview of the power sector and move on to discuss the impacts and outcomes of energy sector reforms, outline the contribution of IPPs and analyse the retail tariffs and licensing requirements for IPPs across each region. Lastly, this study will look at the investment opportunities that can be and have been created by the proliferation of IPPs in each region.

With many countries unbundling their power generation and distribution sector, the market environment can now be easily regulated by governments and so the quality of service is expected to be improved significantly.

Key Issues Addressed
What is the current status and future development potential of independent power producers?
What are the licensing requirements for an IPP programme in Africa?
What are the current tariff structures in place in Africa?
What are the market reforms that govern the energy sectors in Africa?
What will be the key drivers and challenges to the development of IPP in the region?


  • Executive Summary
    • Key Findings
    • Executive Summary-CEO's Perspective
  • Introduction
    • Research Scope
    • Key Questions this Study will Answer
    • Sub-Saharan Africa-Economic Outlook
      • Table IPP Market: GDP, Sub-Saharan Africa, 2015-2018
      • Table IPP Market: Real GDP Growth (at Market Prices), Sub-Saharan Africa, 2015-2022
    • Market Overview-Power Sector
      • Table IPP Market: Access to Electricity, Sub-Saharan Africa, 2018
  • Market Drivers and Restraints
    • Market Drivers
    • Drivers Explained
    • Market Restraints
    • Restraints Explained
  • Country Overviews-South Africa
    • Electricity Supply Industry
    • Power Sector-Overview
    • Market Reforms in the Energy Sector
    • Tariffs Applicable for IPPs
    • Total Power Generation vs IPP Generation
      • Table IPP Market: Power Generation Capacity, South Africa, 2012-2016
    • Energy Purchasing Targets for IPPs
      • Table IPP Market: Distribution of Power Generation, South Africa, FY2014-FY2017 and FY2021
    • Projection of IPP Projects
      • Table IPP Market: Current and Future Capacity Addition in IPP Projects, South Africa, 2010-2030
    • Future Investment in Renewable IPP
    • Future Investment in Non-Renewable IPP
  • Tanzania
    • Electricity Supply Industry
    • Power Sector-Overview
    • Structure of Power Sector in Tanzania
    • Market Reforms in the Energy Sector
    • Total Power Generation vs IPP Generation
      • Table IPP Market: Comparison Between Installed Capacity of TANESCO and IPPs, Tanzania, 2017-Beyond 2020
    • Status of Electricity Tariffs
    • Licensing Requirements for IPPs
    • IPP Power Generation Expansion Plan
    • Major IPP Projects
      • Table IPP Market: Major IPP Projects, Tanzania, 2018
  • Kenya
    • Electricity Supply Industry
    • Power Sector-Overview
    • Total Power Generation vs IPP Generation
      • Table IPP Market: Power Generation Capacity, Kenya, 2012-2017
    • IPP Power Generation Expansion Plan
    • Market Reforms in the Energy Sector
    • Licensing Requirements for IPPs
      • Table IPP Market: Licensing Requirements for IPPs, Kenya, 2018
    • Tariffs Applicable for IPPs
    • Major IPP Projects
      • Table IPP Market: Major IPP Projects, Kenya, 2018
  • Nigeria
    • Electricity Supply Industry
    • Power Sector-Overview
    • Privatisation Status of Power Generation Companies
      • Table IPP Market: Privatisation Status of State Owned Generation Companies, Nigeria, 2018
    • Market Reforms in the Energy Sector
    • Licensing Requirements for IPPs
    • Tariffs Applicable for IPPs
      • Table IPP Market: Feed-in Tariff, Nigeria, 2016
    • Major IPP Projects
      • Table IPP Market: Major IPP Projects, Nigeria, 2018
  • Growth Opportunities and Companies to Action
    • Growth Opportunity 1-IPP Infrastructure
    • Growth Opportunity 2-IPP Infrastructure
    • Strategic Imperatives for Success and Growth
  • The Last Word
    • The Last Word-Three Big Predictions

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