It Would Take $835 Billon To Fix sub-Sahara Africa Endemic Power Problems
If the sub-Saharan African continent were to run optimally with no power problems and interruption, it would require an energy investment worth US$ 835 billion. This amount is what is need to fix all the power generation, transmission and distribution plant, given the deadline for completing all this is the year 2040. Africa’s most populous nation, Nigeria would require $350 billion to fix all its power problems by the year 2030.
The above stats is according to, McKinsey & Company – research and consulting firm. The company revealed this finding a report dubbed Electric Power & Natural Gas report; this report features the economic potential of growth of sub-Saharan electricity sector.
The report further revealed that it would require up to $490 billion of funding for the region to install new generating capacity, and an additional $345 billion to facilitate transmission and distribution. The research also found out that regional integration, power pools, and renewable energy could be a game changer that will redefine the sub-Saharan Africa energy landscape over the next 25 years.
“We found that significantly increasing regional integration could save more than $40 billion in capital spending, and save the African consumer nearly $10 billion per year by 2040, as the Levelized cost of energy falls from $70 per megawatt-hour to $64 per megawatt-hour. Higher levels of integration would result in larger region I gas options being favored over some of the small in-country solar and wind additions, leading to an increase in carbon emissions.
If sub-Saharan Africa aggressively promotes renewables, it could obtain a 27 percent reduction in CO2 emissions; this would result in a 35 percent higher installed capacity base and 31 percent higher capital spending (or an additional $153 billion)”
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