South Africa Procurement News Notice - 39536


Procurement News Notice

PNN 39536
Work Detail Solar mini-grids can provide high-quality, uninterrupted renewable electricity to underserved villages and communities across Sub-Saharan Africa, At the same it can be the least-cost solution to close the energy access gap on the continent by 2030, Climate action efforts can make use of solar mini-grids that offer a lower greenhouse gas emission alternative compared to diesel-fuelled systems and kerosene-based appliances. The World Banks Mini Grids for half a billion people: Market outlook and handbook for decision makers notes that to realise the full potential of solar mini grids, governments and industry must work together to systematically identify mini-grid opportunities, drive costs down, and overcome barriers to financing. Five Market Drivers identified by Handbook to drive mini-grid sector reach full market and development potential • Reduce the cost of electricity from solar hybrid mini grids to $0.20/kWh by 2030. This would put life-changing power in the hands of half a billion people for just $ 10 per month. • Increase the pace of deployment to 2,000 mini-grids per country per year, by building portfolios of modern-mini grids instead of one-off projects. • Provide reliable electricity service to customers and communities and this would generate the demand for 3 million income-generating appliances and machines and expand services at 200,000 schools and clinics. • Leverage development partner funding and government investment to "crowd in" private-sector finance. Potentially, this could raise up to $127 billion in cumulative investment from all sources for mini-grids by 2030. • Establish enabling mini-grid business environments in key access-deficit countries through light-handed and adaptive regulations, supportive policies and reductions in bureaucratic red tape. Bringing solar mini-grids into the mainstream The World Bank gauges that around 658 million people still lack access to electricity across Sub-Saharan Africa. Globally, nearly 8 out of 10 people without electricity live in Africa. At the current rate of progress, 595 million Africans will remain unconnected in 2030. Gabriela Elizondo Azuela, Manager of the World Banks Energy Sector Management Assistance Program (ESMAP) says while Africa remains the least electrified continent, it also has the biggest potential for solar mini-grid deployment. "Solar mini-grids can reach populations today that would otherwise wait years to be reached by the grid. They have the potential to transform the power sector in Sub-Saharan Africa. Through World Bank operations and advice to governments, ESMAP is helping take mini-grids from a niche to a mainstream solution." Davis Chirchir, Kenyan Cabinet Secretary Ministry for Energy and Petroleum points out that the country has started deploying mini-grids to specifically service communities that are not connected to their main grid. "Currently we have about 62 mini-grids that are fully operational and 28, which are under construction. We hope to deploy more mini-grids to close the energy access gap and ensure universal access to electricity by 2030."
Country South Africa , Southern Africa
Industry Energy & Power
Entry Date 01 Mar 2023
Source https://www.esi-africa.com/renewable-energy/solar/solar-mini-grids-to-close-energy-access-gap-across-africa/

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