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Africa: Solar Energy the Way to Go - Report
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The Nation (Nairobi)
26 June 2008
Posted to the web 26 June 2008
Kaburu Mugambi
Nairobi
African electricity companies need to develop solar energy to meet growing demand for power, according to a report by audit firm PricewaterhouseCoopers.
The report, titled Utilities Global Survey 2008 says that utility companies continue to face the challenge of meeting the growing demand for power driven by economic growth experienced in the last few years.
Due to a fast-developing economy, Kenya's demand for power has increased from 987 megawatts in 2006 to the current 1,049 megawatts.
Short supply
With expanding populations and economic growth, the need for additional power infrastructure is acute but materials, contracting resources and skills are in short supply, according to the report.
The need for investment in additional capacity and resources in all areas of the electricity supply value chain has seen countries, governments, business and other investors working together to develop solutions and take action to deal with current supply shortages in the region.
The survey respondents are more optimistic about the outlook for key pan-African initiatives compared with last year's survey. The likelihood of co-operation between utility companies to form a common power pool is rated much higher than in 2007 and respondents are also more optimistic about the prospects for cross-border transactions.
In contrast, though, respondents are more pessimistic about the prospects for legislative harmonisation and about demand-led development of alternative energy sources
Survey respondents expect increased demand for electricity in the next few years to spur both new investment in generation capacity and a return to service of stations that were previously mothballed.
The need for new capacity continues to be highlighted by regular power outages in many countries throughout Africa.
Future impact
Alternative sustainable energy sources and rising fuel costs will affect electricity pricing in the region in the future. Survey respondents expect solar and hydropower, in particular, to have an impact in the future energy mix.
The potential for both in Africa is substantial and the big increase in expectations around solar, compared to last year's survey, reflect the greater optimism among respondents that technological progress will accelerate the impact of this source of power.
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The report came as a regional meeting, the 16th Congress of the Union of Producers,Transporters and Distributors of Electric Power in Africa was taking place at the Safari Park. The two day conference was launched on Monday by President Kibaki who announced that the country's power output would be raised by 2000 megawatts.
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