Invest in Africa (digital - reduced)

Engie perspective
Above: Power
Corner - mini-grid
Left: Tarfaya – 301
MW wind farm
of Portugal. A lack of access to the
network, particularly in rural areas, hamper
the development and could be a catalyst
for a rural exodus.
However, ENGIE believes that
Africa’s access to energy is at a turning
point. There are definitely a number of
positive evolutions that can be identified.
Some African countries have developed
excellent regulations which could serve
as a benchmark for other countries. A
stable regulatory framework attracts
foreign investors and industries. These
will serve as an accelerator for the
national development.
Another factor is the structural decline
in the production costs of renewables
particularly in wind and solar. Investors
nowadays look at renewable energies as a
low-risk and attractive investment to add
to their portfolio provided that the Power
Purchase agreements are solid. Moreover
it is crucial that investments should be
made in technologies which are the most
cost efficient, taking into account the local
availability of RES (solar irradiation, water,
wind, biomass, storage) and the local
conditions. We need a market design that
optimises and secures the investments in
RES, both centralised and off-grid and to
have tariffs which are full cost reflective.
Africa will indeed need both
centralised and decentralised energy
solutions. As baseload is required, the
mix of solutions will depend on the
progress of storage systems.
ENGIE aims at further developing its
centralised solutions. Currently we have a
portfolio of thermal and renewable assets.
We built Tarfaya (301 MW), Africa’s largest
wind farm to date. In South Africa ENGIE
operates Aurora Wind Power, a 98 MW
wind park and 2 PV plants of 21 MW. We
are constructing Kathu, a 100 MW
Concentrated Solar Power plant. ENGIE has
a long-standing gas expertise, particularly
in Algeria and Egypt (E&P and LNG). Within
the gas value chain we are examining
opportunities for developing infrastructure
and gas-to-power installations.
The changing energy world also
creates a particularly favourable
environment for the development of
energy services in Africa. For engineering
and consulting, ENGIE has a historical
presence on the continent via its subsidiary
Tractebel. With regard to facility
management and energy efficiency
services, we have built over the years
strong positions in Morocco and Algeria.
Advancement of new technologies
will give a boost to decentralised power
generation for isolated companies and
rural villages. At ENGIE we are looking at
several business models for this.
PowerCorner is ENGIE’s easy-to-set up
standalone containerised energy solution
for rural village electrification. It includes
generators, PV systems and lithium ion
batteries. The first PowerCorner has been
installed in a Tanzanian village in which
customers pay for electricity via mobile
money. Next to that we launched a plan
to deploy solar kits in several African
countries and we want to optimize the
supply of electricity to telecoms
infrastructure in Africa.
Improved technology, comprehensive
centralised and decentralised legal
frameworks, capex reduction, access to
finance and integration of solutions in
digital platforms will be decisive factors for
the success of rural electrification in Africa.
With ENGIE we can bring our technical,
legal, financial and institutional skills.
Local anchorage and the development
of a resolutely partnership-based
approach with African communities,
clients and governments is a priority.
We want to listen to and understand
the needs of our stakeholders in order
to best respond to them.
Africa faces huge demands for
energy and infrastructure . As a company
we will make the necessary investment
decisions that will deliver sustainable
solutions in a controlled risk environment
to achieve our global goal of providing 20
million people with electricity by 2020.
ENGIE has been present in Africa for
over 50 years, where it operates in the
fields of electricity, natural gas and
services. ENGIE is also present through
its solidarity investment fund, “ENGIE
Rassembleurs d’Énergies”, which invests
in sustainable energy access projects for
vulnerable populations.
www.engie-africa.com
Contact
ENGIE Africa
1, place Samuel de Champlain
Faubourg de l’Arche
92390 Paris La Défense Cedex