More African homes, businesses powered by off-grid solutions
Recent analysis indicates a growing trend of homes and businesses in Africa adopting off-grid solutions for their energy needs, a factor that was previously overlooked in earlier assessments of electricity access on the continent. The World Energy Outlook 2023 highlights a notable increase in the use of solar power by households and businesses worldwide.
The Africa Solar Industry Association’s (AFSIA) Africa Solar Outlook 2023 report, released earlier this year, revealed that around 1 GW of new solar capacity was installed on the continent. The commercial and industrial segment, in particular, experienced a remarkable year-on-year growth of 61.5%. Notable installations included an additional 949 MW of solar energy across the continent in 2022, marking a 14% increase compared to the 833 MW added in 2021.
Per estimates from state-run utility Eskom, South Africa alone witnessed the addition of over 1,000 megawatts (MW) of private solar capacity within two months in 2023. This surge in solar installations in the first half of the year surpassed the capacity added in the preceding six months, underscoring not only South Africa's but also the broader continent's considerable solar power potential.
Key Takeaways
The shift towards decentralized, non-grid solutions such as solar home systems and Pay-As-You-Go (PAYG) models is transforming electricity access in Africa. These approaches have proven to be highly adaptable to the diverse and often remote landscapes of the continent, offering a more cost-effective and rapidly deployable alternative to traditional grid extensions. The model, in particular, is playing a pivotal role in making solar energy financially accessible to a larger number of households. By allowing users to pay for their energy consumption in small, manageable installments, it addresses financial barriers that may otherwise hinder access to clean energy. Notably, Kenyan PAYG operator M-KOPA has expanded its operations to Soweto as part of its broader expansion across Africa. Several countries, including Côte d’Ivoire, Kenya, Ghana, and Senegal, are approaching their targets for universal access to electricity, underscoring the potential of these innovative approaches.
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