Authors: APET Secretariat

This post is the 7th in a series of blogs made available by the Secretariat on behalf of the AU High-Level Panel on Emerging Technologies (APET) and the Calestous Juma Executive Dialogues (CJED).

Recently, there has been significant progress made by innovators towards cost reductions of modern electricity generation. The focus on cost reductions has been aimed at energy storage and control technologies. Consequently, this has enabled the development of microgrids that can incorporate renewable energy sources.[1] Simultaneously, novel business models were also being developed to enable disadvantaged consumers to access electricity. One of those innovations has been the utilization of mobile smartphone-based payments. However, the fact remains that over 640 million Africans, which is equivalent to two-thirds of the continent’s population, still lack access to reliable electricity. Unfortunately, energy poverty continues to undermine Africa’s socio-economic growth. Ultimately, this hinders the development of self-sufficient local communities. Thereby, threatening Africa’s stability and security. Furthermore, there is an enormous urban-rural divide, with about 60% of the urban population having access to reliable electricity, compared to only 15% of the rural population. Therefore, microgrids are emerging as an effective off-grid solution that can close the energy poverty gap and supplement the existing electrification programme in Africa.

The Agenda 2063, which summarizes Africa’s development aspirations over a 50-year period, is pioneering for a 50% increase access towards electricity and 50% increase of electricity generation and distribution. Africa also aspires for 70% of Africans having access to electricity by 2023 as well as 30% improvements in energy efficiency.[2],[3] Notably, Africa’s low electrification rates are attributed to inadequate infrastructure. Moreover, the cases where the infrastructure exists, cost of access to electricity remains extremely high. Therefore, expanding the national microgrid networks and quantity so to reach the unconnected population remains the most logical and viable option towards achieving the “Africa We Want”.

Nonetheless, when dealing with rural communities that are far from the grid, sparsely populated, and in remote areas, the grid expansion becomes uneconomically expensive. To address this challenge, several African countries are investing significantly towards microgrid infrastructure for energy generation so to transform and achieve their national socio-economic development aspirations. To this end, the positive impact that these microgrids bring to the development plans of the continent cannot be overemphasized. For instance, microgrid generated electricity has been vitally instrumental in keeping delicate vaccines and medicines frozen in rural clinics and hospitals. Furthermore, microgrid generated electricity has greatly powered the mushrooming small businesses across the continent such as barbershops, bars and grocery shops. Consequently, this has tremendously improved the economic well-being of local communities. In addition, off-grid electricity has ensured that leaners without reliable electricity can be able to study at night. Notably, through microgrid generated energy, several rural communities are able to operate flour grinding mills, which has been impossible in the past. Most importantly, a widespread adaptation and adoption of renewable energy mini-grid electricity generation in Africa will help conserve the environment.

The African High-Level Panel on Emerging Technologies (APET) has recommended that Africa’s Member States harness microgrid technology for their socio-economic transformation of the continent.[4] APET further suggested that policymakers and decision-makers in governments and the private sector adapt and contextualize microgrids implementation for Africa’s realities. This should take into account factors such as site selection, the expected number of connections per site, and both the demand and willingness to pay. Furthermore, it remains crucial to consider additional factors such as the expected return per connection and the development of skills and capacities that addresses the under-served communities. Most particularly, this capacity strengthening should address the role of the “informal sector” in supporting microgrid implementation. The above-mentioned elements could mitigate against cases reported in some countries where microgrid installations have suffered from improper operation and maintenance. This will, therefore, help communities that can barely realize the intended benefits of microgrids.

To achieve these aspirations of microgrids, it is important for Africa’s Member States to secure harmonized regulatory frameworks for microgrid development. These frameworks could focus, among other things, on investment laws, public-private partnerships, sustainable tariff structures, and cross-border interconnection. Moreover, microgrid implementation should be based on multi-sectoral collaborations. This is because sectors such as agriculture, health, education, water and sanitation, and social welfare are directly and significantly impacted by energy, most particularly, in Africa’s rural areas. Therefore, there is a need to devise a holistic approach and stimulate bankability of microgrid projects, through robust frameworks of incentives that can potentially enhance private sector investment.[5] Additionally, energy projects should also increase women’s participation through the acquisition of enabling policies that promote the employment of women in technical aspects of microgrid energy operations and maintenance. Finally, higher education and research institutions should also be supported towards research, development and innovation programmes that focus specifically on renewable energy, microgrids and associated generation, energy storage (next generation batteries) and distribution technologies.

In conclusion, numerous African countries have observed rapid and meaningful economic growth in the last decade. Therefore, to ensure the sustainability of this growth, these economies should develop accessible, affordable, and efficient energy. Thus, there is a need for urgent investment and research that are required to increase the scalability of microgrids in rural and highly dense areas. This will significantly help prevent mass power outages such as the ongoing load shedding in most African countries. Ultimately, it is now or never for the continent to completely harness this emerging technology. Hence, Africa should not miss this fantastic opportunity for robust socio-economic development.

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[1] https://energy4impact.org/news/kiva-loan-facilitates-growth-powergen-micro-grids-grid-communities-across-kenya

[2] IRENA (2017), Accelerating Off-grid Renewable Energy: Key Findings and Recommendations from IOREC 2016, International Renewable Energy Agency, Abu Dhabi.

[3] NEPAD WEEKLY, A weekly digest of NEPAD Agency news and information.

[4] High Level APET Report, Micro-Grids empowering communities and enabling transformation in Africa

[5] S. Booth, X. Li, I. Baring-Gould, D. Kollanyi, A. Bharadwaj, P. Weston, Productive use of energy in African micro-grids: technical and business considerations: https://www.nrel.gov/docs/fy18osti/71663.pdf.