Monday, April 7, 2014

Bringing Electricity to Africa


On the heels of the massive Three Gorges Dam in China the Democratic Republic of the Congo (DRC)plans to build the largest dam in history on the lower end of the Congo River.[i] The Grand Inga Hydroelectric Project has the potential to be truly game changing in the development of Africa – with a total output of 40,000 megawatts versus The Gorges Dam’s 22,500.[ii]
 
A quick snapshot of energy in Africa:

  • Low access and insufficient capacity – Roughly 24% of the population of sub-Saharan Africa has access to power vs 40% in other low income countries 
  • Poor reliability – There are power outages on average 56 days per year.
  • High costs – Sub-Saharan Africa has an average tariff of US$0.13 per kilowatt-hour vs. US$0.04 to US$0.08 in other parts of the developing world.[iii]
The stark reality is that much of Africa is without power and power is a key ingredient to the economic development of a region and this project is a big step towards alleviating this challenge.

However, for all of the projects benefits it comes with great costs. Firstly, the proposal is estimated to cost a whopping US$80 billion and is being funded by numerous organizations: The World Bank, African Development Bank, and the European Investment Bank.[iv] More importantly for all of the clean energy that the project will create it will also require large swaths of the forest to be cut down, change sedimentary movement, and create breeding grounds for mosquitos. All the while providing little energy for the 80+ percent of the rural communities that currently lack electricity.

Is this project worth it? I don’t know, but if the project becomes a reality there is little doubt that it will provide reliable energy for the development of Africa’s largest cities and corporations. I think the real question is, are there better alternatives such as solar, wind, thermal, or nuclear -- Africa contains 18% of the worlds recoverable uranium.[v]


Beyond The Grand Inga Project:

The World Bank and other organizations have set forth ambitious goals to bring light to the continent. The World Bank alone has over US$3 billion invested across 48 projects. President Obama just recently committed US$7 billion in financial support over the next five years.[vi]  There are also start-ups popping up throughout the continent with the aim of providing renewable energy to rural areas. For example, Barefoot Power® has been working on creating high quality and low-cost solar powered lamps, specifically for individuals living in rural communities.[vii]



[iv] Grand Inga Hydroelectric Project: An Overview http://www.internationalrivers.org/campaigns/grand-inga-dam-dr-congo

2 comments:

  1. Do they have projections as to how much less expensive energy will be after the dam is built?

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  2. I have limited experience/knowledge of these large-scale projects, but can provide an anecdote from my time in Lesotho. There is a dam project that is taking place there that will provide energy, employment and revenue. I haven't done the research, but from our discussions with locals in the community closest to the project, much of the energy will actually be supplied to South Africa, which is a revenue-generating opportunity for Lesotho. The dam contract has been awarded to a Chinese company who will import labor in for the project, but for those from Lesotho who will be employed for the duration of the project, what jobs will come next? There is much discussion about job creation while the construction takes place, but less certainty about the jobs that will remain in the community once it is complete. And what other negative impacts come with the project? Truthfully, the communities closest to the project are bracing themselves for higher incidences of HIV and tuberculosis. What does "development" cost these communities?

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