Africa’s Power Transmission Grids Expected to See Funding Surge
TLDR
- BII forecasts private funding influx for Africa's power grids to expand energy access and integrate cleaner sources.
- Traditional funding avenues like World Bank loans may not be sufficient for large-scale grid upgrades, pushing towards more private investments.
- Kenya recently signed a $736 million agreement with Adani Energy Solutions for three new power lines, showcasing private investors' interest in the sector.
British International Investment (BII) forecasts an influx of private funding for Africa’s power grids, a vital step toward expanding energy access and integrating cleaner sources across the continent.
"Transmission in terms of capital needed is the next evolution," said Chris Chijiutomi, BII’s head of Africa. With government fiscal constraints worsening, traditional funding avenues, such as loans from the World Bank, may no longer suffice for large-scale grid upgrades.
BII’s investment strategy through 2026 includes up to $500 million annually in climate finance for Africa, covering renewable energy and transmission projects. Private investors are also already seizing this opportunity. Kenya, for example, recently signed a $736 million agreement with Adani Energy Solutions for three new power lines.
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Key Takeaways
Africa's energy transition depends on grid improvements, and private capital is stepping up to fill funding gaps as government finances tighten. BII’s investments highlight the shift toward sustainable power infrastructure, with a focus on renewables and decentralized solutions as the continent modernizes its energy landscape. While gas projects are limited, renewable solutions—like decentralized solar power and battery storage—are growing in popularity. Global trends in round-the-clock renewables, combining solar, wind, and batteries, may soon reach African markets.
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