Renewables will ease, not solve, Africa's energy woes

Subject

Green energy in Africa.

Significance

Power firm GSC Energy on February 10 announced it will begin work on a 2.2 billion dollar solar power plant in Cameroon in the second half of 2015. Reflecting a marked uptick in green energy investments, other projects -- such as a new biogas plant in Kenya -- have already begun feeding power directly into national grids, prompting renewed enthusiasm from policymakers.

Impacts

• State guarantees for power utilities to keep them afloat is expanding the contingent liabilities, and thus fiscal risks, of many states.
• 'Green building' approaches will grow in popularity where incentives exist, and may draw on indigenous construction methods.
• Falling diesel prices will likely drive demand for -- and sales of -- individual generators and partially ease pressure on national grids.