East Africa Power CEO: Africa needs a robust regulatory environment to deliver clean & affordable energy

Africa is a continent full of potential and promise, yet one in three people still lack access to electricity. For many, this means relying on kerosene or spending hours in darkness. This lack of access is even more pronounced in rural areas, where almost 87% of those without electricity reside. However, as Africa shifts its focus towards promoting climate investments and renewable energy, the dream of universal energy access is becoming more attainable. To delve into Africa's future in renewable energy, CNBC Africa's Ridhima Shukla sat down with Dan Kling, the CEO of East Africa Power, to discuss the importance of a robust regulatory environment in delivering clean and affordable energy to the continent. As Kling pointed out, attracting capital to the region hinges on the presence of favorable regulatory frameworks and conducive public-private partnerships. He emphasized the potential of hydropower projects in meeting the growing energy demands of Africa's burgeoning population and expanding economy. Kling highlighted the need for each country to develop least-cost power development plans tailored to their unique natural resources within power pools. He stressed the significance of reliable policies, integrity of utilities, and honoring power purchase agreements to attract the trillion dollars in investment needed over the next two decades. Kling also underscored the role of private sector investments in driving the growth of renewable energy projects, particularly in the hydro and solar power sector. By focusing on smaller, bankable projects, Africa can build a track record of successful deliveries and attract larger investments. Moreover, he emphasized the importance of public-private partnerships in securing project financing and enabling skills and technology transfer to the continent. As Africa looks towards a post-COVID green recovery, the potential for renewable energy in driving economic and social impact on the continent is immense. The path to universal energy access in Africa lies in embracing robust regulatory environments, fostering public-private partnerships, and maximizing private capital investments in the renewable energy sector. With the right frameworks in place, Africa can unlock its energy potential and pave the way towards a sustainable future.