THE East African region has emerged as a focal point for major international players eyeing substantial opportunities in both renewable energy and fossil fuel projects. Boasting an array of renewable resources and backed by robust policies and declining technology costs, the clean energy market in East Africa is witnessing heightened attention from investors. Moreover, infrastructure reforms and regional market dynamics are set to expedite the deployment of various clean energy projects across the region.
Investment prospects in South Sudan: a spotlight on decentralised energy solutions
With a significantly low electrification rate, South Sudan stands as a prime contender for accelerated investment in decentralised energy solutions. The country’s emphasis on enhancing rural energy access and stimulating industrial development presents lucrative openings for regional and international partners. Solar mini-grids, seen as a scalable energy solution, are poised to transform South Sudan’s energy landscape, countering its heavy reliance on diesel-powered generators.
Additionally, as one of Africa’s prominent oil producers, South Sudan is actively seeking capital and technological infusion to expand its upstream sector. Recent multi-billion-dollar agreements, such as the partnership with US-based Caltech Investment, signal the country’s ambition to bolster its petroleum industry and associated infrastructure. Plans also encompass empowering the local workforce and transforming the national oil company, Nilepet, into an integrated energy operator by 2027.
Tanzania’s diverse energy drive: renewables and natural gas
Tanzania has set ambitious goals to elevate its renewable energy share to 50 percent by 2025. Implementation of various programs supporting solar, geothermal, and hydropower projects align with these objectives. Notable investments, including the Africa Renewable Energy Fund’s contribution to a solar plant in Singida and finance agreements for hydropower plants, highlight Tanzania’s commitment to clean energy initiatives.
Simultaneously, Tanzania is actively pursuing natural gas exploration and development. With significant reserves at hand, partnerships with global giants like Equinor, Shell, ExxonMobil, and China National Offshore Oil Corporation indicate the country’s intent to bolster its natural gas sector through large-scale LNG facilities and offshore exploration activities.
Uganda’s energy transition plan and dual development strategy
Uganda recently unveiled an Energy Transition Plan aimed at enhancing energy access rates and necessitating substantial clean energy investments. The country’s renewable sector has been steadily attracting investments, evident from commitments made during global summits like COP28.
However, Uganda’s energy landscape is dual-focused, eagerly anticipating the commencement of oil production from the Lake Albert Development in 2025. To leverage its estimated 6.5 billion barrels of oil reserves, Uganda is actively seeking foreign investment to establish the necessary infrastructure for oil monetization.
The upcoming 2024 Invest in African Energy (IEA) forum in Paris is set to unite industry experts, providing a platform to explore diverse resource development strategies across East Africa. This forum aims to foster networking, spotlight country opportunities, and facilitate crucial deal-making initiatives, paving the way for a dynamic and sustainable energy landscape in the region.