Africa stands on the brink of utilizing its water resources to propel sustainable development and economic growth through a transformative shift towards clean energy.
The urgent need to accelerate the development of hydropower is explained by the fact that only 10% of the continent’s hydropower potential has been exploited.
In 2023, hydropower development nearly doubled from the previous year, with 2GW installed across Africa.
Key contributors to this growth were Nigeria (740MW), Uganda (408.2MW), the Democratic Republic of Congo (381.7MW), and Tanzania (261.7MW).
Public-private partnerships are driving the financing and development of major projects. Additionally, regional cooperation initiatives are gaining traction, opening new opportunities for hydropower development. However, challenges like limited access to finance, market volatility, and governance issues hinder further infrastructure growth.
Recent studies commissioned by the African Development Bank (AfDB) and the International Hydropower Association (IHA) highlight the urgent need to rehabilitate numerous hydropower plants across Africa.
The AfDB is spearheading efforts with a substantial US$1 billion investment aimed at upgrading twelve hydropower facilities.
The latest World Hydropower Outlook, a comprehensive report by the IHA, underscores Africa’s significant growth potential in hydropower. However, the report also stresses the critical need for increased global collaboration and investment to fully realize this potential.
“With significant solar power being integrated into African grids, realizing Africa’s hydropower potential is crucial to ensure a balanced and reliable electricity supply,” said Eddie Rich, CEO of IHA. “The development of hydropower in Africa goes beyond electricity generation; it’s about empowering communities, driving economic growth, and paving a sustainable path towards a clean energy future.”
Even though governments, industries, and financiers show promising commitment to developing renewable energies, a significant global capacity gap persists.
“By fostering strategic partnerships and pioneering investment frameworks, we can unlock the capital necessary to realize Africa’s hydropower potential. We need to turn aspirations into action, propelling Africa toward a future powered by clean, sustainable energy,” said Eng. Lamu Audu, Managing Director/CEO of Mainstream Energy Solutions Limited and Vice-Chair of IHA.
The 2024 World Hydropower Outlook reveals significant insights into Africa’s hydropower landscape. Currently, Africa boasts a total installed hydropower capacity of 42GW, with hydropower serving as the backbone of electricity supply and providing 40% of the power in sub-Saharan Africa.
Additionally, Africa has a total pumped storage installed capacity of 3.4GW. Innovative storage solutions are set to enhance grid stability, addressing the inadequate infrastructure and technological constraints that hamper hydropower development. These advancements are expected to drive further renewable developments, such as wind and solar.
However, challenges remain. The goal is to expand electricity supply by 50% by 2030 and quadruple it by 2050. One significant hurdle is the issue of off-taker creditworthiness, which complicates project financing and causes delays.
In summary
1. The upcoming release of the World Hydropower Outlook on June 12, 2024, reveals a 2GW increase in hydropower capacity in Africa this year. However, only 10% of the continent’s hydropower potential has been tapped into.
2. Challenges such as limited access to finance and inadequate infrastructure are hindering further development across Africa. This continent still faces issues related to accessing clean, secure, and affordable energy and water.
3. 60% of Africa’s installed hydropower capacity is over 20 years old, indicating the need for modernization and expansion efforts.
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