Electricity generation in Africa is acutely inadequate and unreliable
Nigeria for example, a vast nation of 150 million people, has a generating capacity of 4,000 MW. By comparison, New York City alone has a generating capacity of 13,000 MW. The shortfall encompasses both the generation and transmission infrastructure. This shortfall is persistent and structural, and the amount of capital required to ameliorate it is tremendous. Therefore, this problem will not be resolved anytime soon with the usual approach to generation.
Currently, businesses and households that can afford it resort to using diesel generators. Since diesel is sold at world prices, the electricity generated is very expensive, as high as US$0.30 per kWh or more.
The lack of electricity is by far the largest impediment to development in sub-Saharan Africa, and resolving this problem will lead to large-scale wealth creation, and unleash the region’s enormous potential. In addition, the UN has recognized electricity as critical to the development of civil society, with a very positive impact on the lives of women and girls.
Clearly, electricity demand in Africa is large market in urgent need for a solution.
