Cogeneration could meet from 1% to 20% of electricity demand in sub-Saharan Africa but its governments have yet to recognise its potential, finds analysis by Frost & Sullivan.
While energy shortages are already boosting cogeneration, it remains undervalued, according to The Emerging Cogeneration Market in Sub-Saharan Africa.
‘Growth in Sub-Saharan Africa cogeneration is driven primarily by energy shortages,’ said Frost & Sullivan’s Energy & Power Systems Industry Analyst Megan Van Den Berg.
‘Companies need to produce their own power to meet electricity demands and most have by-products from processes performed that can be used as fuel or heat.’
The report concludes that the cogeneration market is expected to increase in Sub-Saharan Africa over the next 10 years, especially amongst industries looking to expand into this region. The report covers South Africa, Tanzania, Mauritius, Uganda and the Ivory Coast.
But low electricity tariffs act alongside a lack of infrastructure, high implementation costs and poor government support to hold back investment.
‘The lower priority given to cogenerated power production, when compared to other renewables, and limited government understanding and support, have resulted in a lack of policies that would provide security of investment and tariffs to justify implementation costs,’ added Van Den Berg.
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