Despite dinners in dark dining rooms, power utilities and stakeholder executives across Africa anticipate a brighter outlook for the energy sector.
In a recent Pricewaterhouse Cooper (PwC) report, fifty-one senior power and utility sector executives from 15 African countries said, “there is a medium or high probability that load shedding will be the exception rather than the norm by 2025.”
According to the report, “two-thirds (67%) of those we interviewed cited ageing or badly maintained infrastructure as a high or very high concern.”
Angeli Hoekstra, Africa Power and Utility Leader, PwC, said there is a lot to be optimistic about in the future taking into consideration the energy transformation that is currently happening.
“The market vision for the future will be a mixture of large scale centralised generation and local mini grid and offgrid distributed generation according to the vast majority of survey participants (83%). “
However, according to Hoekstra, “Security of electricity supply and cost reflective tariffs continue to be the number one challenge. Until they are resolved, power systems will remain stretched.”
There was a resounding consensus in the report that power companies will need to change their business models to respond to energy transformation. Many power utility executives believed that “a quarter of these business models will be unrecognisable from the ones operating today”.
Hoekstra substantiated that the new businesses and business models will be created and Africa will leapfrog into a better and more sustainable energy future if all stakeholders in the sector, from customers to governments, new businesses, regulators and utilities will embrace the opportunity.