Africa adds 2GW of hydropower capacity in 2023 but stark gap remains

Africa nearly doubled its hydropower development in 2023 compared with 2022, but only 10% of the continent’s hydropower potential is harnessed, according to the International Hydropower Association.

Africa is poised to harness the power of its water resources to drive sustainable development and economic growth through a transformative clean energy transition, IHA said. With so little of its hydropower potential harnessed, accelerating hydropower development has never been more urgent. 

In 2023, 2GW of hydropower was installed across the continent. Countries that heavily contributed to the development were Nigeria (740MW), Uganda (408.2MW), Democratic Republic of Congo (381.7MW) and Tanzania (261.7MW). 

Public-private partnerships are facilitating the financing and development of major projects. Simultaneously, regional cooperation initiatives are gaining momentum, offering promising avenues for hydropower development. However, limited access to finance, volatility and governance issues inhibits further infrastructure development. 

Recent studies commissioned by the African Development Bank (AfDB) and IHA show there is an urgent need for rehabilitating numerous hydropower plants across Africa and the AfDB is leading efforts to upgrade 12 hydropower plants with a $1 billion investment. 

The latest World Hydropower Outlook, a report by IHA, shows that Africa has a significant opportunity for growth but urgently needs more global collaboration and investment. 

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“With significant solar power coming onto the African grids, it is imperative that Africa’s hydropower potential is realized to ensure that reliable electricity supply is balanced and readily available. The development of hydropower in Africa is not just about generating electricity; it's about empowering communities, driving economic growth, and charting a sustainable path towards a clean energy future,” said Eddie Rich, chief executive officer of IHA.

Despite encouraging signals that governments, industry and financiers are developing renewable energies, there is still a considerable deficit in global capacity.

“By fostering strategic partnerships and pioneering investment frameworks, we can unlock the necessary capital to realize Africa's hydropower potential. We need to turn aspirations into action, propelling Africa towards a future powered by clean, sustainable energy,” said Eng. Lamu Audu, managing director/CEO of Mainstream Energy Solutions Limited and vice-chair of IHA.

The launch of the Africa section of the 2024 World Hydropower Outlook is a precursor to the release of the full report on 12 June 2024, IHA said. 

Highlights of the Africa release of the 2024 World Hydropower Outlook include:  

• Africa has 42GW of total installed hydropower capacity. 
• Hydropower is the backbone of electricity supply, providing 40% of the power in sub-Saharan Africa.
• 3.4GW total pumped storage installed capacity.
• Innovative storage solutions for grid stability will improve the inadequate infrastructure and technological constraints that hamper hydropower development and escalate renewable developments like wind and solar. 
• The challenge is to expand electricity supply to 50% higher by 2030 and four times higher by 2050.
• Off-taker creditworthiness is complicating project financing and causing delays.

Originally published on hydroreview.com

Listen to this episode of the Energy Transitions podcast for exclusive insights from Eddie Rich concerning the sustainable future of hydropower in our clean energy system.