Utility Regulators in Africa have identified power system flexibility, leveraging on Regional electricity trade, accessing global climate financing, and integrating least-cost financing as major factors that need to be worked on to enhance the operation in the power sector in Africa.
At the second PURC Regulatory conversation in Accra, players advocated for power sector reforms as African countries work toward transitioning to zero carbon emissions.
Director of Energy Financial Solutions, Policy, and Regulations at the African Development Bank, Wale Shonibare said regulators must remain responsive to fast-changing technologies and disruptive business models.
“Energy transition means more electrification as we move from fossil molecules to electrons. For this reason, investments in distribution and transmission networks have become very critical. So, as we promote universal access to electricity and build out last-mile grid connections, we must avoid asset mismatches that often lead to an increase in power system losses,” Mr Shonibare admonished.
He added that issues surrounding regulatory independence must be tackled.
“For many decades Africa’s power sector has faced numerous challenges which include low access rates, low reliability, high cost, lack of maintenance, lack of investment, unaffordable subsidies, and lack of financial sustainability.
Most of Africa’s public utilities are in financial distress and they struggle to cover their operating cost and cannot finance the required tax or expenditure to maintain their operations.
It is very important that we find the right ballot between complete independence and having no independence at all, ” He remarked.
