Africa’s energy market is suffering from the “Energy Trillema” – Securing energy, and still providing sustainable and affordable power for everyone. The lack of energy generation, energy transmission and electrification is a major boundary for the development of most of African countries. While African southern countries’ population reaches to almost 1 billion, only a small percentage enjoys electricity. According to KPMG 2014 power’s report, those areas are producing 10% power than other developing countries in the world. The amount of power that is generated could barely enough to light a small light bulb for 3 hours a day.
Countries in Sub-Saharan Africa have varyingly low levels of electrification. Approximately 42% of the population of Sub-Saharan Africa has access to electricity. The main reasons for low rural electrification levels is the low in-country generation capacities coupled with weak, damaged or underdeveloped electricity transmission and distribution infrastructure.
With such low electrification rates compared to elsewhere globally, rural electrification is high on the agenda in most Sub-Saharan Africa countries, as the energy situation has a far reaching impact on key social issues such as primary healthcare and education. But the problem with these projects is that often the grid extension adds a significant cost to the overall project and prohibits the extension.
Therefore, in an increasing part of the rural areas, “of grid” solutions are preferred, which allows access to electricity but don’t need grid connection. The off-grid power solutions are ideal because these could place small generators more closely to the end-user and thereby mitigate transmission challenges. This is exactly Fundtribute’s main vision.