Finnish Solar firm make headway in Africa's energy mix

African countries are striving to provide modern energy to all citizens as quickly as possible, with off-grid solar power and mini-grids emerging as promising options. Areva Solar, a Finnish solar manufacturer, is making significant progress in Africa's renewable energy landscape. CNBC Africa recently interviewed Pertti Leppaluoto, the Chief Commercial Officer of Areva Solar, to discuss how a Finnish company is leading the way in solar innovation. Leppaluoto highlighted Finland's unique solar conditions, noting that the country experiences weeks of continuous sunlight in the summer and only a few hours of daylight in the winter. Despite these variations, Finland receives an impressive amount of sunlight annually, comparable to northern Germany. When discussing the cost of solar panels, Leppaluoto emphasized the downward trend in prices over the years. He attributed this cost reduction to technological advancements, increased production volumes, and decreased manpower requirements. As the industry continues to evolve, the Chief Commercial Officer expressed confidence in the ongoing decline of semiconductor costs, which will further drive down overall panel prices. In terms of best practices for solar energy investment, Leppaluoto pointed to countries with transparent and favorable legislation as ideal investment destinations. He highlighted Rwanda as a frontrunner in creating an attractive environment for private sector investment in solar energy, thus reducing investment costs and facilitating financial support from various sources. The issue of grid connection and the associated costs have been a topic of debate, particularly in the context of renewable energy adoption in African nations. Leppaluoto acknowledged the challenges but expressed confidence in the feasibility of integrating solar power into existing grids. He emphasized that many African countries already have the infrastructure necessary for grid connections, which can support the expansion of renewable energy sources. Overall, Areva Solar's presence in Africa represents a significant step towards achieving widespread access to clean energy on the continent. Through technological innovation, cost optimization, and strategic investments, the Finnish company is contributing to Africa's transition to a more sustainable energy mix.