As part of new drive to grow power generation in sub-Saharan Africa (SSA), the US Agency for International Development’s (USAID) Power Africa Coordinator weekend, launched the Gas Roadmap for an additional 16,000MW of gas-fired power by 2030 in the region.
This scheme focuses on nine countries, which have been strategically selected; Côte d’Ivoire, Senegal, South Africa, Ghana, Angola, Kenya, Nigeria, Mozambique and Tanzania.
Business Hilights gathered that the figures are based on those projects that could most likely achieve financial close by the said date.
USAID notes that “Power Africa’s Gas Roadmap estimates US companies could invest in, or compete for, $175 billion worth of gas power projects in SSA, with the potential for at least $5 billion of US exports of liquefied natural gas by 2030.”
The international agency also noted that the benefiting countries were selected due to their relatively large populations, high gross domestic product (GDP), and either because they have local gas resources (in operation or under development) or are planning liquified natural gas (LNG) import projects.
“We estimate that these countries hold the potential for around 16,000 MW (86%) of new gas-fired power generation projects through 2030.”
Gas is highly competitive as a new source of power.
A 2016 study found that prices for gas-to-power could run as low as $0.10/kWh for integrated LNG projects and $0.15/kWh for small-scale and distributed power projects.
Both projected prices are lower than the $0.18/ kWh average cost of generation in sub-Saharan Africa. Recent gas-to-power transactions in Ghana, Nigeria, and Mozambique utilising local gas resources have yielded tariffs of $0.07 – $0.09/kWh.
The Exhibit 8 graph outlines the comparative prices of power generation in sub-Saharan Africa.
