Accelerating energy access in Africa: a unified approach for Lusophone countries
The quest for universal energy access in Africa is more than urgent — it's essential — given its role in social development and economic transformation. To meet the daunting challenge of providing affordable electricity to 570 million unelectrified Africans by 2030, we must triple our efforts, connecting 90 million people each year. While grid expansion will continue to play its part, the more rapid reduction in the electrification backlog will require the deployment of the full suite of technology solutions with a far greater emphasis on off-grid solutions, including green mini-grids (GMGs) and solar home systems (SHS).
The International Energy Agency (IEA) has laid a clear path of off-grid electrification: to electrify 81 million households in Sub-Saharan Africa by 2030, we need an annual investment of USD 25 billion, and much of this investment needs to be directed into the growth of GMGs. Given the financial constraints across the continent, it's evident that relying solely on traditional, centralized public utility-type electrification methods won't cut it. We must instead pivot towards more privately financed and operated GMG business models that not only attract commercial capital but do so in a way that remains affordable for the average consumer.
Despite the pioneering role of SHS companies in electrifying off-grid households and attracting development and commercial finance into the sector, they cannot provide the level of service required to support more productive activities both within and beyond the households. GMGs potentially offer a far higher level of service, which can support a range of consumptive and productive activities across various customer segments, including households, businesses, institutions (mainly education and healthcare facilities), as well as social infrastructure. However, GMGs face their own challenges, with regulatory hurdles and commercial viability issues stalling their growth.
Confronted with these challenges, the Sustainable Energy Fund for Africa (SEFA) is pioneering several GMG market development initiatives designed to address GMGs' challenges and de-risk the market for further investment and growth. One such initiative is the Africa Mini-grid Acceleration Programme (AMAP), which fosters an environment conducive to mini-grid growth across the continent through a range of targeted technical assistance interventions. AMAP has developed a customized set of diagnostic and supportive tools and resources to assess the requirements of GMG country and regional markets, as well as designs and executes the necessary technical assistance interventions to address these market shortcomings. It focuses on strengthening the entire GMG ecosystem, including public sector preparedness (policy, regulation, planning, site identification and feasibility studies, assessing financial options & requirements, GMG procurement support, amongst others), improved access to finance through developing innovative financial instruments (RBFs and guarantee instruments) as well as providing support to building capacity within the private sector. AMAP's role is to advance country and regional GMG markets to the stage where they can attract and support GMG investment programmes.
In a significant stride towards addressing the specific needs of Lusophone African countries, SEFA has recently partnered with ALER to implement components of AMAP in Mozambique, Angola, Cape Verde, and Guinea-Bissau. This collaboration underscores our commitment to tailored solutions that respect these regions' unique contexts and challenges. Through this partnership, we aim to develop and strengthen the green mini-grid (GMG) markets, leveraging ALER's in-depth knowledge of the renewable energy sector to facilitate interventions ranging from policy support to stakeholder coordination and GMG feasibility studies.
The importance of this partnership cannot be understated, marking a pivotal moment in our collective effort to accelerate access to clean electricity and achieve sustainable development goals across several Lusophone regional communities. This initiative is not just about lighting homes but is a beacon for socio-economic development, gender inclusion, and environmental sustainability, expected to enable the delivery of electricity to millions, create thousands of jobs, and significantly reduce greenhouse gas emissions.
As we look ahead, the journey to a fully electrified Africa by 2030 is fraught with obstacles but also brimming with potential. By fostering innovative business models, facilitating strategic partnerships, and driving investment in scalable, sustainable energy solutions, we edge closer to turning the vision of universal energy access into a reality. Together, let's light up Africa, one household at a time.
João Duarte Cunha
Manager of Sustainable Energy Fund for Africa at the African Development Bank