Speaking to ESI Africa at African Utility Week, Takehiro Kawahara, Senior Associate, Bloomberg New Energy Finance, UK shares expert insights regarding the current landscape for commercial industrial solar in Sub-Saharan Africa.
In some countries such as Nigeria, countries are having to deal with frequent and long lasting outages, which means many companies are relying on costly diesel generators.
With the cost of solar and batteries rapidly declining over time, solar can provide a viable alternative solution.
When comparing the cost of diesel-generated electricity to solar hybrid, the hybrid option demonstrates that diesel consumption can be reduced, which has economic benefits, as well as benefits for reliability of supply.
The trend towards solar in both residential and commercial spaces will continue.
Solar hybridisation for the commercial industrial sector such as in the case of clinics, schools and shopping malls, will continue to grow in popularity. However, many of the smaller companies still face challenges hindering them hybridising their energy supply systems.
Many new investments are being made into Africa however, the trends leans to off-grid solar systems for residential customers, where market growth is most prevalent.
One of the main obstacles to growth in this market is the lack of funding . Project bankibility and sound risk management strategies will increase investment into the continent.