- The ‘Accelerating Private Sector Investments in Green Mini-Grids’ report, as a key takeaway from the ARE Energy Access Investment Forum 2023, presents an overview of the Distributed Renewable Energy mini-grids sector in Africa, highlighting its potential to meet the continent’s electricity access challenge.
- The African Development Bank (AfD) report identifies the necessity to overcome challenges in financing, policy, technology, and skills enhancement, necessitating collaborative efforts from investors, funding partners, governments, and the industry.
Distributed Renewable Energy (DRE) solutions, such as green minigrids, are considered a sustainable, cost-competitive solution to expedite electricity to people in Africa who currently lack access. The report highlights widespread deployment of DRE faces key challenges such as financing, growing demand, policy development, skills enhancement, and technological deployment. It calls for active participation from investors, international funding partners, government and the DRE industry to support distribution.
clear policy and regulatory frameworks are required. Private investors often view the lack of enforceable and bankable contracts, regulations and robust governance procedures in Africa as significant risk factors, the report identifies.
Link to the full report HERE
Author: Bryan Groenendaal
