This is according to a new market analysis performed by Transparency Market Research, which has attributed this to small-scale hydro plants having productivity over 90%, making it the most favourable renewable energy source.
Small hydropower development
To explore the market status and future development of small hydropower, the study analysed a few African countries, titled Small Hydropower Market- Africa Industry Analysis 2016-2024.
According to the report, small hydro plants in Africa have huge potential, as limited numbers of small hydropower stations are in operation, which makes a positive impact on the market.
In addition, the substantial expansion of hydropower and the increasing prominence placed on hydroelectricity in developing regions are anticipated to be key drivers of the African small hydropower market.
The report also added that the overall competitive scenario within the African small hydropower market is probable to remain diverse over the coming years.
The African small hydropower market’s potential capacity is projected to reach 49,706.1MW by 2024, after escalating at a compound annual growth rate of 19.2% during the forecast period of 2016 to 2024.
In terms of geography, the market is segmented into Ghana, Morocco, Nigeria, South Africa, Tanzania, Zambia and the rest of Africa.
Among these, Zambia and Ghana show high potential for small hydro power adoption.
Other factors driving the small hydro plant market include the low cost associated with the overall generation of hydropower.
Furthermore, the research describes that today one of the bigger concerns in the world is the provision of greener energy when it comes to power generation.
Lastly, the study found that, off-grid power generation is a highly desirable and viable alternative to solve the energy crisis in Africa.
Accordingly, the need for off-grid electricity in the future is growing constantly.