Power developments in Africa, February 2017

 

Renewable energy development agreement

ENGIE has partnered with ANER, the National Renewable Energies Agency in Senegal, to accelerate the development of renewable energies in the country. Part of the agreement involves the development of solar energy for individuals in multi-occupancy or individual housing. The aim is to study the initial deployment of these solutions to 11 000 households in the city of Dakar and its suburbs. The main focus will be on photovoltaic solar panels and solar water-heaters. Together, ANER and ENGIE will look into financing solutions for this equipment to facilitate their deployment to clients. As part of this agreement, ENGIE also commits to market energy performance contracts (EPC) to industrial operators and the tertiary sector in large urban communities in Senegal.


Construction of 10 MW PV plant

Following the facility agreement signed in September 2016 with Dutch development bank FMO, Building Energy has achieved financial close for the construction of the 10 MW Tororo solar PV project in Uganda. The $19,6-million project began construction on 14 December 2016, and is expected to be completed by mid-2017. Uganda has one of the lowest electricity consumption per capita in the world, with an average electrification rate of 18,2%. The country’s power sector suffered from a shortage of generating capacity and a lack of reliable and affordable electricity is hindering more sustainable economic growth. In this scenario, the project will also contribute to the socio-economic development of the Tororo area in Eastern Uganda, where it is located.


Power generation project in Benin

APR Energy, a global leader in fast-track power solutions, has signed a contract for a one year project by the Ministry of Energy, Water and Mines in Benin to provide 50 MW of power generation using its fuel-flexible aeroderivative turbines. The turbines will be fuelled by natural gas, with the ability to seamlessly switch to diesel based on cost and availability. Benin currently imports a significant portion of its electricity from neighboring Ghana, Ivory Coast and Nigeria, and this project will allow Benin to grow its economy using domestically produced power. With the 50 MW in Benin, APR Energy will have installed more than 1000 MW of generating capacity in eleven African countries since 2008. The company is playing a significant role in bringing electricity to the people and businesses of Sub-Saharan Africa.


Rwanda’s peat-fired power plant

YUMN Limited has signed finance documents for an 80 MW peat-to-power plant located in the Gisagara District of Rwanda. According to the Minister of Infrastructure, James Muson, together with other energy projects in pipeline, it’s expected that the country’s installed capacity will significantly increase to more than 500 MW in the next five years. Construction of the $350-million plant is expected to be completed in 36 months and by the time the plant comes online in 2019, it may be the biggest power plant in the country, says Muson. YUMN is building the plant under a build operate, own and transfer (BOOT) basis with a 26 year power purchase agreement. The project involves construction and operations of both the peat harvesting facilities and the power generation facilities. The project has a second phase which would add an additional 40 MW of capacity. The power plant is expected to drive transformation in the Rwandan energy sector, and provide much needed economic growth for the country.


Botswana power plant PPA signed

In December 2016 POSCO Energy signed a power purchase agreement (PPA) for construction and operation of a 300 MW coal-fired thermal power plant – the Morupule B Phase II Units 5 and 6 project – with Botswana Power Corporation (BPC) in Gaborone. The plant will begin construction in the first half of this year and will be in full commercial operation starting December 2020. POSCO Energy had been selected as the preferred bidder for the power plant construction project ordered by the Ministry of Mineral Resources, Green Technology and Energy Security (MMGE) of Botswana in November 2015 through international competitive bidding, and has since negotiated with the government of Botswana regarding the key terms of agreement. The project will be constructed near the Morupule coal mine in Palapye, after which the entire quantity of produced power is to be sold to BPC. POSCO Energy is carrying out this project by forming a consortium with Marubeni, a Japanese general trading company, with each holding a 50% share.


Community-owned hydropower project

The Sustainable Energy Fund for Africa (SEFA) (managed by the AfDB) has approved a $992 000 grant for the preparation of 7,8 MW hydropower project in Kenya. The project is based on standard run-of-the-river technology, but features an innovative community ownership structure, where financial returns will also accrue to members of the Mutunguru community in Central Kenya. This project will contribute to Kenya’s objectives of expanding on-grid generation capacity, in particular through harnessing indigenous renewable capacity. Patrick Kimathi of the Mutunguru Hydroelectric Company said that the government considers small hydro a top priority given the wide resource availability, baseload properties, and ease of integration into the grid. By enabling local communities to own and manage commercially viable grid-connected small hydropower projects, the government helps Kenya to increase access to clean, affordable and sustainable energy.

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