Thursday, 30 July

Dear <<First Name>>

The economic slowdown resulting from the COVID-19 pandemic is reducing power demand globally, which in turn is increasing financial strain on utilities, an impact particularly pronounced across Africa where many utilities are already stretched. 

This, along with the broader trend towards cost-reflective tariffs on the continent, is likely to lead to increased consumer electricity tariffs in the short to medium term. 

Just this week, a court ruling declared South Africa’s beleaguered state utility Eskom would effectively be able to recover a R69 billion (£3.2 billion) shortfall previously disallowed by the country's regulator over a three-year period. This is almost certainly going to mean substantial price hikes for its customers.

Unless tariff hikes are implemented gradually and are met with associated improvements in service provision, they could be met with backlashes from consumers across the region.

Renewable energy has an important role to play in rebuilding a stronger power sector, reducing the wholesale cost of power for utilities and, due to their distributed nature, also holding the potential to reduce losses through transmission and distribution. Whilst renewables alone cannot answer utilities’ breadth of problems, the sector should be front and centre of plans to build a more resilient and sustainable power sector for the future.

Cheers

Geoff

Managing Director, Camco Clean Energy

West Africa

Chad: SNE to build solar PV power plant in Kalam-Kalam (Afrik21)
- Installation will mark the first phase of a solar energy project supporting rural development.

Côte d’Ivoire: Solar home systems supplier Lumos receives funding from FMO (Afrik21)
- The Dutch development finance corporation’s support will enable rural electrification in the country. 

Nigeria: Siemens signs contract to help expand Nigeria's grid to 25GW (ESI)
- Pre-engineering work will help optimise transmission and distribution systems.

Southern Africa

South Africa: Eskom wins tariffs hike case, overruling energy regulator (ESI)
- Decision will allow Eskom to recover R69 billion over a three-year period.

South Africa: Energy sector stakeholders urged to cooperate (ESI)
- New platform to be established to engage all stakeholders.

East Africa

Ethiopia: Aid organization is seeking mini-grid developers (PV-Magazine)
- Mercy Corps calling for EOI to power three refugee camps on Somalian border.

Kenya: KenGen looking to install solar plants in the reservoirs of three dams (Afrik21)
- Norwegian company Multiconsult to conduct feasibility studies at the Kamburu, Kiambere and Turkwell dams.

Tanzania: TANESCO awards Multiconsult contract for conducting studies (ESI)
- Studies will be related to the 222MW Rumakali and 358MW Ruhudji hydropower and transmission lines projects.

Uganda: EIB to provide US$12.5 million loan to Fenix as part of new off-grid solar scheme (ESI)
- Loan will help finance acquisition of 240,00 solar home systems.

Africa - general

General: Bboxx and Canal+ team up to provide PAYG service to rural households (PV-Magazine)
- Customers in the DRC and Togo can receive solar power and access to 100+ TV channels in the combined offer.

General: Countries urged to allocate 25% of stimulus spending to renewable projects (Engineering News)
- Governments provided with a unique opportunity to make large-scale investments in renewables.

West Africa: World Bank programme will enable electricity trade throughout region (ESI)
- US$300 million in IDA credits and grants will support reforms that will help promote electricity trade.

Rest of World

Batteries: PG&E and Tesla to start building world’s largest battery (PV-Magazine)
- The 182.5-MW/730-MWh energy storage system could eventually expand to 1.1GWh.

Wind: UK wind output hits record 64TWh in 2019 (renews.biz) 
- Total wind generation rose by 13%, with onshore capacity increasing by 6.5%.

Wind: EU wind capacity grows by 5.1GW (renews.biz)
- Onshore wind makes up majority of growth with 3.9GW increase.

Currencies