Africa adds highest hydropower in 2023 amidst $1b AfDB funding

Stakeholders in the hydropower space said bringing institutional funding, including pension funds, into hydropower would do Nigeria a lot of good instead of borrowing or using public funds.

This comes as the International Hydropower Association (IHA) said that Africa added its highest hydropower capacity (two gigawatts) last year.

Despite the development, the continent has only 10 per cent of the continent’s hydropower potential harnessed, the stakeholders said while stressing the need for the government to switch to sustainable generation.

The group said water-related power generation now stands at 40 per cent of Africa’s total electricity generation capacity.

The stakeholders, who noted that finance and infrastructural inadequacies are inhibiting further progress across Africa, said about 60 per cent of installed hydropower capacity in Africa is more than 20 years old.

While hydropower remained the cheapest on the national grid in Nigeria, most plants are built by the government and concession to the private sector, leading to stalling of major projects.

Speaking at a press conference in Abuja, Managing Director of Mainstream Energy Solutions, which controls the largest share of hydropower generation in Africa, Lamu Audu, said continuous investment by the government in the power sector needs to be limited to enable private companies to take the lead.

Audu, stressing the need for an adequate regulatory framework, said state governments under the Electricity Act would thrive if they considered mini hydropower projects due to their financial viability.

In Africa Nigeria currently generates 740MW from hydropower while Uganda generates 408.2MW, the Democratic Republic of Congo 381.7MW and Tanzania 261.7MW even as the stakeholders called for regional cooperation.

The Chief Executive Officer of IHA Eddie Rich noted that with the significant solar power coming onto the African grids, Africa’s hydropower potential must be realised to ensure that reliable electricity supply is balanced and readily available.

“The development of hydropower in Africa is not just about generating electricity; it is about empowering communities, driving economic growth, and charting a sustainable path towards a clean energy future,” said Rich.

Citing recent studies commissioned by the African Development Bank (AfDB) and the IHA that show there is an urgent need for rehabilitating numerous hydropower plants across Africa, the group said the AfDB is leading efforts to upgrade twelve hydropower plants with a $1 billion investment.

With Nigeria’s growing population and energy deficit, another stakeholder, Anton-Louis Olivier, said hydropower could offer Nigeria the needed access to clean energy while reducing energy poverty across the continent.

He equally noted that the cheap cost of hydropower in energy would reduce the burden on the masses and increase the uptake of power.