Hydroelectricity Projects in Africa

Despite Africa being home to 17 per cent (%) of the world’s population, it accounts for just 4 per cent (%) of global power. The African continent has vast natural resources, but access to electricity across the continent is limited and uneven. Among these resources are abundant water bodies, which means there is a massive potential for more hydroelectricity projects in Africa.

According to the IEA, Africa’s population without access to electricity increased in 2021 after experiencing a decline for the past six years. Only three countries in West and Central Africa are on track to provide electricity for their populations by 2030. It is estimated that by 2070, the West African Power Pool (WAPP) region will represent one-third of the continent’s total population, with over 1.5 billion people.

With her energy demand growing twice as fast as the global average, Africa has the opportunity to be the first continent to develop its economy using renewable and efficient energy. The African continent is vastly rich in renewable energy sources, one of which is hydropower. This low-cost source of clean electricity generation presents an opportunity for economic development and the achievement of the Sustainable Development Goals (SDGs), and in the near future, it will become an essential resource for Africa as the global shift towards net-zero progress.

Hydropower potential exceeds current and medium-term energy demand in Africa. According to the International Renewable Energy Agency (IRENA), the cost of electricity from new hydropower projects remains among the cheapest renewable energy sources globally. The continent is estimated to have up to 350GW of hydropower potential, but as of 2021, the installed capacity of hydropower was 38 GW, with only 3GW of pumped storage installed capacity. This represents about 17% of total electricity generation, but it also means that only 11% of the potential has been tapped. This is an incredibly low rate considering that in the US and Europe, 60-80% of hydropower potential has been utilized.

Hence, this means that there is much work to be done to fully maximize the opportunity to develop more hydroelectricity projects in Africa. Various countries on the continent have set ambitious hydropower targets and also have significant hydropower projects on-going. For example, Nigeria, which has an installed capacity of 2.1GW and a potential of 14.7GW, has set hydropower development targets of 12,801 MW by 2030. Notable on-going projects in the country include the Mambilla and Zungeru Hydropower projects, with capacities of 3,050MW and 700MW, respectively.

Other projects across Africa include the Batoka Gorge Hydroelectricity Scheme on the Zambesi river, which will have an installed capacity of 2.4GW, the Grand Ethiopian Renaissance Dam on the Nile river for 6.4GW, the Caculo Cabaça Dam in Angola for 2.2GW, and the Rufiji Hydropower Dam in Tanzania which will have an installed capacity of 2.1GW.

The International Energy Agency (IEA) says that Africa will require more than US$300 billion in investment to achieve universal electricity access by 2030. In addition, according to a recent survey by Ernst & Young, 44 % of businesspeople in Africa identified inadequate infrastructure as one of the key constraints to doing business in the region. This is a clear indication that as Africa continues to grow, energy infrastructure development must top the investment agenda.

So, the question then becomes, how can funding be sourced to encourage the development of more hydroelectricity projects in Africa?