The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has approved a $1 million grant for the modernisation of Africa’s hydropower fleet.
A statement on the facility indicated that the modernisation of hydropower stations constituted an opportunity to increase generation capacity at a low cost, with relatively short lead times and minimal environmental impact.
Specifically, the $1 million grant will fund the mapping and evaluation of African hydropower facilities’ rehabilitation needs.
In addition, it will also support the preparation of modernisation works for two pilot facilities to a bankable stage, a move expected to add 200MW in generation capacity, create 150 jobs and reduce greenhouse gas emissions by about 300 kilotons of CO2 annually.
Available data on the continent’s hydropower system showed that in recent times modern hydropower had been playing a key role in Africa’s energy transition, reducing reliance on fossil fuels and anchoring larger shares of variable renewable energy sources.
Commenting on the facility and its targeted project, AfDB’s acting director for renewable energy and energy efficiency, Dr Daniel Schroth, said: “This transformative programme under SEFA’s Green Baseload component will specifically capitalise on the significant market opportunity for rehabilitation of Africa’s existing hydropower plants.”
According to development finance institution, the programme will be implemented in partnership with the International Hydropower Association (IHA), which had participated in similar initiatives in Asia and South America.
In his remarks on the intervention, IHA’s head of research and policy Alex Campbell, said: “We are delighted to support the African Development Bank in this important and urgent project to modernise Africa’s hydropower fleet.”
The AfDB manages SEFA and the project is fully aligned with the Bank’s New Deal on Energy for Africa, which aims to provide universal access to energy for Africans and prioritises low-carbon technologies that harness the continent’s hydro, solar, geothermal and wind resources.
