Despite the enormous need for investment in new transmission and distribution capacity and rehabilitating existing infrastructure, there is precious little private sector involvement in African utilities. The old model of state-dominated, vertically-integrated utilities has conspicuously failed to expand access or lower costs, yet it continues to exercise a hold over governments, writes Marc Howard.
In every country and region of Africa the addition of more transmission capacity will open new IPP opportunities, allow more wind and solar to be added, will stimulate trade making generation projects more bankable, and of course will bring power to more businesses and people, improving lives and stimulating economic growth.
Detailed planning, better financial models, and improved regulation are finally being put in place at utility, power pool and multilateral institution level. The test is whether serious money will follow.
African Energy is following what could be the single most important phase of African power markets development.
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Transmission investment - can new schemes unlock Africa's power markets?
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