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A Combination of Region-specific Solutions and Disinvestment of Public Power Assets to Build a Diverse Private Energy Mix Will Help Africa Benefit fro
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This Research Service covers the key trends and thought leadership associated with the African Utility Landscape, both from a water and an energy perspective, analysed during the 2016 African Utility Week hosted in Cape Town. Public and private sector leaders were invited to attend streams focusing on: power generation, transmission, distribution, renewable energy, finance stream, water / hydro, metering and nuclear. The African Utility Landscape is faced with outdated infrastructure, the introduction of new technology types such as wind and solar, the introduction of standardised institutional documents such as provided by PowerAfrica, coupled with challenges in the access to funding and financing aspects of project finance. The African utility space is balanced between the old and the new. Old = dated infrastructure; new = new business models, new economies of scale, new financing options and interest from the global market. It is vital that both the public and the private sector have a firm grasp on what is needed to ensure commercial and operational success going forward Some of the key industry challenges include:Lack of local knowledge, lack of access to funding, lack of economies of scale, lack of standardised contracts and institutions. All of these can be overcome by tracking market trends and planning accordingly on both the public and the private sector side. To conclude, the purpose of the research service is to provide oversight of the sub-Saharan themes and developments in the power and water utility space. Specific trends include: introduction of new technologies, new business models, cost reflective tariffs, increased levels of privitisation, standardisation.Challenges include: lack of economies of scale, public sector red-tape, access to funding / financing, dated infrastructure, competing markets.Opportunities include: modular solutions, digitisation, technology leapfrogging, localisation.
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