Is Africa set for renewable power revolution?

Although Africa is endowed with fossil and renewable energy resources, which could more than adequately cover its energy needs, it remains the most poorly electrified continent in the world. The proportion of people without electricity in Africa is higher than anywhere else on the planet, with as little as 5% of the population having direct access to electricity in some countries.

This significant challenge does, however, have a massive potential upside. The need to provide electrification to remote communities is one of the key drivers of renewable energy development on the continent.

This is one of the findings in Frost & Sullivan's analysis, entitled: "Mega Trends in Africa: A bright vision for the growing continent". The study is due to be released at GIL 2011: Africa - The Global Community of Growth, Innovation and Leadership, which takes place in Cape Town on 25 August. At the event, delegates will have the opportunity to interact with Frost & Sullivan analysts, and their industry peers, to discuss the opportunities for growth and innovation within Africa's developing renewable power industry.

"The total investment into renewable power in Africa was $3.6 billion by 2010 and is expected to grow to $57.72 billion by 2020," asserts Frost & Sullivan Energy & Power Systems Industry Analyst Ross Bruton. "The key growth sectors will be wind power, solar power, geothermal power and foreign direct investment (FDI) into energy and power infrastructure."

Development of the renewable energy sector in Africa will lead to a diversification of the generation mix, a decreased dependency on a singular feedstock and greater security of supply.

New investments into the continent's electricity infrastructure are also likely to incorporate new technologies and standards. This requirement for smart technologies will mean that ICT development will also need to take place alongside electrification efforts.

"Smart electricity development in Africa will be driven through grid incorporation of renewable power, and technological leapfrogging through investments into greenfield T&D infrastructure projects," Bruton believes. "Smart grids are, however, only expected to play a significant role in key high growth African economies."

Over the next 10 years, renewable energy initiatives will be dominated by wind power projects, such as the Ashegoda Wind Farm in Ethiopia and Tanzania's Singida Wind Farm. Solar power will also show good growth; although this will most likely be through South Africa's Upington solar project and renewed interest in Desertec in North Africa.

"Mega trends in Africa: A bright vision for the growing continent" is an extensive study that highlights the most pertinent macro-economic forces that will shape Africa's development over the next 10 to 30 years. The eight Mega Trends covered by the study, and to be discussed at GIL 2011: Africa, are: "Connecting the unconnected", "urbanisation", "regional integration", "innovation to zero", "renewable power", "new business models", "the responsible revolution" and "future infrastructure".

GIL 2011: Africa will take place on 25 August at the Westin Grand, in Cape Town, South Africa. For more information on joining this unique global community, or to enquire about speaker, sponsorship and media partnership opportunities for GIL 2011: Africa, please e-mail Mani James, at mani.james@frost.com.

Visit http://www.gil-global.com/africa for more information on Frost & Sullivan's Global Community of Growth, Innovation and Leadership.