SEFA takes hydropower modernization to the next level as an accelerator of the energy transition in Africa | African Development Bank Group

At the Africa Energy Forum in the Kenyan capital, the Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank, has shown hydropower as a key element to meet the increasing demand for renewable energy.

The Africa Energy Forum took place in Nairobi from 20-23 June, organized by Energy Net with support from the Government of Kenya, the African Development Bank, IFC and other partners.

A session entitled ‘Hydropower Modernization to Accelerate Africa’s Energy Transition’ stated that the renovation of the existing hydropower infrastructure offers an attractive opportunity. This is because greenfield hydropower projects have a high initial cost and significant environmental and social impacts, leading to long lead times before commissioning.

Dr. Daniel Schroth, African Development Bank Director for Renewable Energy and Energy Efficiency, who led the session, said: “Updating existing hydropower resources is an accelerator for the energy transition in Africa and increases the availability of shippable renewable energy in a relatively short time. time period while providing opportunities for integrating variable renewable energy sources, such as floating solar energy.”

The event also marked the launch of a flagship report titled “Africa Hydropower Modernization Program: Continent-wide Mapping of Hydropower Rehabilitation Candidates.” The report was prepared by the African Development Bank under SEFA’s Africa Hydropower Modernization Program (AHMP) in collaboration with the International Hydropower Association (IHA) under SEFA’s Africa Hydropower Modernization Program (AHMP). The report provides a comprehensive assessment of what is needed to modernize hydropower infrastructure across Africa and pave the way for renewable energy generation on the continent.

Eddie Rich, CEO of the International Hydropower Association, said: “The potential for hydropower modernization in Africa is significant and it is a relatively easy way to provide much-needed access to electricity and clean water. We encourage governments to promote sustainable development and encourage hydropower modernization through financial and market mechanisms that reward flexibility, accelerate renewable energy development through streamlined permitting and licensing, and embed hydropower sustainability practices in government regulation.”

The report found that of the 87 hydropower stations screened, 21 are in need of a major and 36 a medium renovation, representing an installed capacity of 4.6 GW and 10 GW for modernization respectively. To meet these modernization needs, SEFA prioritizes providing technical and financial support to these projects, while coordinating closely with partner institutions for additional support.

“The Africa Hydropower Modernization Program, together with this groundbreaking report, paves the way for accelerated investment in Africa’s aging hydropower fleet. Hydropower modernization is not just about upgrading infrastructure – it is about decarbonising and increasing the flexibility and resilience of energy systems, essential ingredients for a successful energy transition,” said João Cunha, Head of SEFA at the African Development Bank.

The event also included an interactive panel discussion with key stakeholders including Matteo Bianciotto, Senior Policy Manager at the International Hydropower Association; Marcelino Gildo Alberto, Chairman and CEO of Electricidade de Mozambique; Atinuke Taiwo, Executive Director & General Counsel at Mainstream Energy Solutions; Eluma Obihuaku, Senior Vice President and Head of Power at Africa Finance Corporation; and Angela Nalikka, African Development Bank Division Manager for public-private partnership and advisory.