Sub-Saharan Africa offers opportunity for a $193-billion investment in renewable energy sector by 2031, including utility-scale wind, solar, storage and transmission projects, which may yield an internal rate of return of 15% to 21%, much higher than with similar projects in Europe and the United States, according to a new study. “Africa represents a significantly underserved market,” states the new research from Wood Mackenzie, a global consultancy firm. While Africa accounts for almost 20% of the world’s population, almost 600-million people in the region, or about half the population, have no access to electricity, the study shows, noting that the continent currently attracts just 3% of global energy investment. Sub-Saharan Africa, where massive underinvestment in electricity infrastructure has created a persistent lack of electricity access, is in urgent need of the implementation of large-scale renewable energy projects. The study has also showed that while South Africa, Nigeria and Kenya offer the largest solar-power markets, Uganda offers the best returns on renewable-energy projects, though capital costs are still far higher than those in Europe and the US.
