Politics
Obama’s Power Africa Initiative Showing Results but Draws Criticism
“To date, our private sector Founding Partners have pledged to develop nearly 10 GW of critical generation projects in the five of the Power Africa focus countries, resulting in over $14.7 billion in investment in these countries’ power sectors,” notes the Power Africa website update.
First Transaction
The first official transaction came in September, when it was announced Power Africa will provide transactional and technical advice to the Government of Ethiopia and the Ethiopian Electric Power Corporation, which entered into a project agreement with Reykjavik Geothermal to establish the Corbetti Geothermal Power Plant – the first independent power project in Ethiopia’s history.
“Power Africa brings significant resources and high-level support to the geothermal efforts in Africa, and we are working to encourage the US geothermal industry to engage in their development.” Karl Gawell, Executive Director, Geothermal Energy Association told AFKInsider. “We recently formed an East African Geothermal Partnership with USAID and the US Energy Association, and it will be a vehicle for channelling US and industry assistance.”
In November, Power Africa supported the initial phase of privatizing the Power Holding Company of Nigeria and is backing efforts to improve operations and maintenance, as well as obtain additional investment for a 2,000 megawatt increase of power generation by 2018.
Power Africa closed on agreements with the Government of Kenya and Aeolus Kenya Ltd. for construction of the 60 megawatt Kinangop Wind Park and is also supporting implementation of a grid management program for integration of renewable energy into Kenya’s grid.
Another recent Power Africa project included approving a loan guarantee for the Kiwira River Hydro Project in Tanzania, which will allow the project to facilitate local commercial finance. Tanzania is the focus of Power Africa’s “Big Results Now!” program, “which is establishing new delivery units within government ministries.”
And the winners of the first round of the GE Africa – USADF Power Africa Off-Grid Energy Challenge were announced in November, resulting in $100,000 grants each to six African-led private companies and organizations in Kenya and Nigeria, including Solar World, Afrisol Energy and Mibawa in Kenya, and Green Village Electricity Projects, Trans Africa Gas and Electric, and Afe Babalola University in Nigeria. The second round is underway.
