Solar power gains momentum in green energy drive

As global leaders continue to convene for this year's COP27 in Egypt, the focus is fast shifting towards building capacity for renewable energy. Together, a sense of what market watchers are expecting as the forum made its debut on Africa's soil, CNBC Africa spoke to George Alluru, the Managing Director of Ecoener. From the business perspective, in terms of those trying to invest in renewable energy in Africa, much more finance is expected to be put on the table. This COP conference is anticipated to focus more on implementation rather than purely discussion, with a commitment to projects and funding aimed at enabling renewable energy integration into the grids. Solar power is a key player in the conversation around providing electricity to the nearly 800 million people in Africa who are not yet connected to the grid. With abundant solar radiation across the continent, both grid and off-grid solutions can be implemented, ranging from small systems in rural areas to large-scale projects connecting to the grid. However, the challenge lies in the intermittent nature of solar energy, requiring investments in grid strengthening activities such as battery storage and transmission network improvements. In East Africa, the current state of solar penetration is promising but has significant room for growth. In countries like Kenya, Uganda, and Tanzania, solar installations on the grid range from 40 to 160 megawatts, with the potential for expansion into the gigawatts. Investments in mini-grids, isolated systems powered by solar energy, are also on the rise, providing electricity to towns and villages. Furthermore, the pay-as-you-go solar model, pioneered in Kenya, allows low-income individuals to access essential services like lighting and phone charging through affordable payments. The affordability of solar investments comes into question, as it requires substantial capital. However, in comparison to the high cost of not having electricity, the investment in solar presents a cost-effective solution. Mechanisms such as the pay-as-you-go model for domestic systems and auction processes for grid-scale projects can make solar energy more accessible and economical. Countries like South Africa have implemented successful auction programs like the Renewable Energy Independent Producer Program to streamline the procurement of solar projects, ensuring cost-efficiency and investor confidence. Ultimately, solar power stands as a beacon of hope for Africa, offering a pathway to energy independence and sustainable development.