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Energy minister and Sonatrach veteran Abdelmadjid Attar is among those criticising the state energy giant for performing well below expected levels, dragging down the wider Algerian economy with it. Pressure is growing for the government to deliver an investor-friendly business environment and for Sonatrach to revise its long-term strategy and management structures, writes Jon Marks.

President Tshisekedi’s successes in outflanking his powerful predecessor Joseph Kabila gives hope that a more inclusive economic recovery is possible. But while investors look again at opportunities around the vast country, and the president has high hopes for mega solar schemes and Grand Inga, DRC remains problematic, write Jon Marks and François Misser.

While DRC locals wait for access to sustainable energy, the government is getting excited about massive Inga dam developments which in the past have attracted attention to the detriment of smaller schemes. After President Félix Tshisekedi took the African Union (AU) revolving presidency on 6 February, a European analyst commented it was “an open secret that he will be trying to use this position to seek support for the Inga III project, and beyond that for the Great Inga projects.”

Norwegian developer Scatec ASA has completed a senior unsecured green bond issue worth €250m ($304m). The bonds will mature in August 2025 and have a coupon of three months Euro Interbank Offered Rate plus 250 basis points, currently 1.96%.

Kenya Power has started pre-qualifying contractors interested in hybridising 23 diesel power generators in northern Kenya. “Until very recently all sites were run on diesel generator sets but some have an existing mix of solar and wind turbines… The final numbers of retrofit sites may differ as depending on the results of the ongoing studies and the final construction budget,” the prequalification notice says.

Energie des Grands Lacs (EGL) is set to launch studies for the development of the Ruzizi IV regional hydropower plant  on the Ruzizi River, which forms the border between the Democratic Republic of Congo and Rwanda. The international organisation formed under the auspices of the Economic Community of the Great Lakes Countries has issued a general procurement notice for consulting services to study the technical, economic, financial and institutional feasibility of the 287MW run-of-river project as well as assess the environmental, social and climate change impacts and determine appropriate mitigation measures.

The Beyond the Grid Fund for Africa (BGFA) will launch a call for proposals from micro-grid developers in Mozambique later this month. BGFA will provide total funding of €6.7m ($8m) to projects over a four-year period. The projects will be developed under a pilot licensing framework developed by Mozambique’s Energy Fund.

Patrice Motsepe’s African Rainbow Energy and Power (AREP) has acquired a 40% stake in South Africa’s SOLA Group, becoming the largest individual shareholder in the company. AREP made the announcement on 4 February but the transaction was finalised in late 2020. Two AREP directors will join SOLA’s board.

Equinor has written down the book value of its Tanzania LNG project by $982m, amid questions over future global LNG demand and continued concerns about Tanzania’s business environment. Equinor’s partner ExxonMobil has been seeking a buyer for its stake for some time. Equinor said that, while progress had been made in recent years on the commercial framework, overall project economics had not yet improved sufficiently to justify keeping it on the balance sheet at its previous value. 

The World Bank Group (WBG) board on 5 February approved $500m for the $1.7bn Nigeria Distribution Sector Recovery Programme (DISREP). The project aims to reset the electricity sector in the country, where distribution companies (discos) have been locked in a cycle of under-investment and low revenues, not helped by inadequate and unreliable supply from the grid.

Campaigners have attacked the proposed development of the 2,400MW Batoka Gorge hydroelectric scheme on the Zambezi River, arguing the dam will destroy tourism and that the coronavirus pandemic has prevented proper consultations with affected communities, writes Tonderayi Mukeredzi in Harare.

Kenya Electricity Generating Company (KenGen) on 27 January announced a Ksh 13.9bn ($126.8m) profit before tax for the year to June 2020, thanks to revenues from Olkaria V and proceeds from geothermal drilling in Ethiopia. Profit for 2018/19 was Ksh 11.6bn. In October 2019 KenGen clinched a $43.8m contract to drill 12 geothermal wells for Tulu Moye Geothermal Operations, following an earlier $69.3m agreement with Ethiopian Electric Power for drilling at Aluto-Langano.

Kenya Power (KPLC) is looking to install captive solar PV facilities for commercial and industrial (C&I) customers, in a move to counter recent grid defections by large power users who are increasingly opting for grid-tied solar to slash their energy bills.

Seplat Petroleum Development Company Plc announced on 1 February that it had raised $260m of debt to fund completion of the Assa North-Ohaji South (ANOH) gas processing plant project in Imo State. Seplat is building the plant alongside Nigerian National Petroleum Corporation (NNPC) subsidiary Nigerian Gas Company through their 50:50 joint venture company ANOH Gas Processing Company (AGPC).

Off-grid solar company Solarise Africa announced on 9 February that it had signed a partnership agreement with turnkey energy firm Centennial Generating Company.