السيد. Praveen Umredkar, Partner, and Mr. Harsh Sharma, Senior Associate at شركة سينرجي للاستشارات, share their views on Power Transmission in Africa: Challenges and the Way Ahead.
Africa faces critical challenges in its transmission systems despite advancements in energy generation. Over the last decade, energy investments heavily favored generation projects, neglecting transmission networks, which received a mere 0.5% of total funds. Consequently, Africa lacks adequate infrastructure to distribute generated power, leading to significant supply-demand mismatches and hindering electricity access. To bridge this gap, the continent needs over USD 45 billion in transmission investments in the next eight years, surpassing the USD 41 billion received in total energy investments.
The solution involves two key strategies: encouraging private sector involvement in transmission and restructuring vertically integrated state-owned utilities. Successful models from South America and India highlight the transformative impact of private participation in improving transmission infrastructure. However, the process of unbundling state utilities into independent entities poses significant challenges due to bureaucratic hurdles and financial dependencies. Governments must devise comprehensive policy frameworks to navigate this complex process effectively. Urgent structural reforms are essential to modernize Africa’s grid system, ensuring sustainable electricity distribution and supporting continued economic growth across the continent.
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