The sun shines generously on Africa, and solar energy can become one of the most important tools for economic development for this continent. It can not only provide electricity to rural areas of the continent, but can also do it inexpensively, contributing to the creation of new enterprises, medical and educational institutions.
Solar panels are rapidly falling in price
In addition, according to the estimates of researchers, electricity can be supplied to all of Europe.
But the main value underlying this energy source is that it can be locally mined and locally consumed. In the early years, the cost of solar technology was expensive, but today, solar panels have spread, and their cost has dropped significantly and has become affordable.
At the same time, capital markets were created in conditions of receiving distributed energy, and now the methods of obtaining it have completely changed.
Lack of power lines is a positive factor
Africa is not burdened with telecommunication lines, and as a result, it immediately switched to mobile communications, which have successfully developed even in poor countries. The same can be said about providing the country with electricity: the lack of power plants will make the installation of solar panels more real.
Many companies are starting a business that brings solar technology to rural African communities. They contribute to the development of local entrepreneurship, their efforts have already led to the provision of clean electricity to 2 million people. Over the next 5 years, their goal is to reach 10 million people.
Cheaper production of solar cells makes a difference
According to Lazard's financial advisor, utility prices for solar energy have fallen 86% over the past decade. What $ 70,000 would cost 10-15 years ago can be built today for less than $ 10,000. As technology becomes more widespread, it becomes more cost-effective.
In order to consider this issue in the investment perspective, you need to know that about 600 million people in Africa do not have access to electricity and most of them are in rural areas - places that are not accessible to centralized transmission and distribution systems. Therefore, solar installations combined with energy storage and micro-grids can fill this void.
Africa already receives 74 megawatts of solar energy. This is cheaper than a centralized, network-connected system could provide. The greatest progress has been made by Kenya and Ghana.
In Kenya, the government uses government funding tools, which include grants and subsidies, to offset the high cost of infrastructure and stimulate economic development.
Particularly relevant is the "solar program" for areas of Central and South Africa.