Interview with

Jasandra Nyker

Not much gets said about renewables in Africa. A massive expansion of photovoltaics, wind power and biomass facilities here could alleviate poverty and bring regional autonomy. INSPIRE spoke to South African energy expert Jasandra Nyker about achievements and hurdles on the path to the “green continent”.

Ms Nyker, the potential for renewables in Africa is huge. Is it being used?

Jasandra Nyker: 2010 was a key year. Many, but not all, of the countries in Africa began to develop the regulatory framework for renewables. And as a result, over the past 15 years, we've seen significant increases in the installation of renewables.

Which countries stand out in particular?

Jasandra Nyker: North Africa, especially Egypt and Morocco, are leaders in this field. Kenya is also a good example. 90% of its electricity generation is based on renewables – especially geothermal, wind and hydropower. South Africa has about 8 gigawatts of renewable energy generation already installed, and several additional gigawatts are under construction. Ethiopia is an exceptionally strong hydropower market and is building up a large wind portfolio. And many of these projects are now being augmented by battery storage.

That sounds great. But aren’t there major hurdles to increasing the development of renewables in many countries?

Jasandra Nyker: Yes, of course. Perhaps the biggest hurdle is lack of financing in many countries. Medium-sized power plant projects with up to 25 megawatts of capacity are affected most. The projects could be implemented quickly, but there isn’t the capital.

In Europe, we often hear that Africa has far too few power lines that are of poor quality. Is it even possible to expand renewables?

Jasandra Nyker: There is actually congestion in the distribution networks – just as there is in Europe. A large part of the continent has no power grid. The existing lines are not designed for renewables. Adapting the power grid to the new requirements requires a lot of capital.

What is the legal framework? Can investors rely on it?

Jasandra Nyker: That is definitely a big problem. Politics and regulatory affairs are full of uncertainties. And credit risk undermines investors' confidence. In the past two decades, 90 percent of borrowers were energy suppliers. Most of these companies in Africa are of low credit standing. This is detrimental to the investment climate. Add to that the foreign exchange risks. Most projects are in local currency, but the loans are in hard currency.

Are there enough local experts for these projects?

Jasandra Nyker: Many countries lack technical expertise and there is also a deficit in terms of project development. But countries like Egypt, Morocco and South Africa have made fantastic progress in these areas and are training local experts. A lot is happening, truly.

You can find the complete interview in our INSPIRE magazine.