Africa needs to have a balanced approach when addressing the energy crisis the region is facing, this is according to Shane Kilfoil, Managing Director of Eaton Africa.
Kilfoil added that the region needed to deal with energy challenges that were impacting on investment prospects, this includes renewable energy.
“Renewable energy has a very key place in Africa generating capacity but we can’t forgo fossil fuels because it is still a large power base we can tap in for the next twenty to thirty years,” he said.
He called for African governments to play a leading role in addressing the energy crisis especially in promoting legislative architecture attractive for Independent Power Producers.
“There needs to be a will for the governments to want renewable energy as part of the overall energy structure. Some countries are further along on this front than others,” added Kilfoil.
“Like any business, investors want to know revenue prospects, how” easy is it to do business in a chosen economy and guarantee of projected revenue in the life cycle of that investment.
Kilfoil said governments can go a long way in simplifying how independent power producers can get power purchase agreements from various governments across the continent.
“Once companies understand the legislative regime and business prospects, they can quickly evaluate if it makes sense to make investment in renewable energy in a particular region.
Kilfoil said most [if not all] of African governments want energy to unlock the economic potential of their countries.