By Our Reporter
Power utility companies and stakeholders across Africa anticipate a brighter and different outlook for the sector in the decade ahead, according to a new report from PwC. Fifty one senior power and utility sector executives from 15 African countries took part in PwC’s Africa power & utilities survey. They report continued concern about some of the immediate risks to the power system, but are also optimistic about the longer term prospects for electricity in Africa.
Two thirds (67%) of those we interviewed cited ageing or badly maintained infrastructure as a high or very high concern. Encouragingly, many felt this situation would improve, with only 39% predicting that it would be a similarly high or very high concern in five years’ time. And looking ahead to 2025, they anticipate definite step changes in a number of key issues:
An overwhelming majority (96%) say there is a medium or high probability that load shedding will be the exception rather than the norm by 2025.
Indeed, nearly three quarters (72%) are confident enough to rate that scenario as a high probability.
94% say there is a medium or high probability that, by 2025, the challenge of finding a market design that can balance investment, affordability and access issues will have been largely solved.
70% expect cross border electricity flows to be significant by 2025, accounting for a third or more of electricity generated.
Angeli Hoekstra, Africa Power & Utility Leader, PwC, said, “There is much to be optimistic about and the results point the way to improvements ahead. But security of electricity supply and cost reflective tariffs continue to be the number one challenges. Until they are resolved, power systems will remain stretched, as investments in the power sector will be limited. Addressing cost reflective tariffs while ensuring social equity is a key challenge.
