SolarQuarter - Africa Nov-Dec 2021

AFRICA

Empowering, Insightful, Engaging

Volume 1 | ISSUE 1 | nov-dec 2021 W W W . S O L A R Q U A R T E R . C O M

IN WEST AFRICA IN 2021?

I N S I G H T S

WHAT ARE THE OPPORTUNITIES AND CHALLENGES FOR SOLAR UPTAKE IN AFRICA? VISION 2030: WHAT IS THE RENEWABLE ENERGY ROADMAP FOR THE AFRICAN CONTINENT?

W W W . S O L A R Q U A R T E R . C O M

CONTENTS NEWS 04 AFRICA NEWS

INTERVIEW 10

12 ANRE GOUS

FEMI ADEYEMO

MD, ACES AFRICA

16

14 FOUNDER & CEO, ARNERGY

18 HADYR KOUMAKPAI

WILLIAM VAN WYK

COUNTRY MANAGER, FIMER SOUTH AFRICA

CHIEF EXECUTIVE OFFICER, KENYA RENEWABLE ENERGY ASSOCIATION

IVAN XIE

SALES MANAGER, AFRICA GROWATT NEW ENERGY

22

20 ANDREW AMADI

GENERAL MANAGER AFRICA AT JA SOLAR

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PUBLISHING JAN FOURIE

DR. SEGUN ADAJU

CEO, CONSISTENT ENERGY LIMITED AND PRESIDENT, RENEWABLE ENERGY ASSOCIATION OF NIGERIA (REAN)

GENERAL MANAGER SUB-SAHARAN AFRICA, SCATEC

Firstview Media Ventures Pvt. Ltd.

EDITING

24

25 OMAR BERRAK

FELIX WU

SALES DIRECTOR, NW AFRICA, LONGI SOLAR

28

30 SALES & BUSINESS DEVELOPMENT MANAGER FOR SUB-SAHARAN AFRICA (SSA), GOODWE POWER SUPPLY TECHNOLOGY CO.,LTD.

27 KEVIN ROBINSON

SALES DIRECTOR ISRAEL, LONGI SOLAR

ANDREW TYLER

33

26 SALES DIRECTOR - SS AFRICA, LONGI SOLAR

32 PHYLLIS YANG

DIRECTOR OF SOUTHERN AFRICA, SUNGROW

MANAGING DIRECTOR, JUWI RENEWABLE ENERGIES (PTY) LTD (SOUTH AFRICA)

CONTENT Sadhana Raju Shenvekar Anand Kumar publishing@firstviewgroup.com

SAMMY BOROTHI

BUSINESS DEVELOPMENT MANAGER, SSA, JINKO SOLAR

DESIGNING Radha Buddhadev Neha Barangali design@firstviewgroup.com

INSIGHTS ADVERTISING

WHAT ARE THE OPPORTUNITIES AND CHALLENGES FOR SOLAR UPTAKE IN AFRICA?

34 VISION 2030: WHAT IS THE RENEWABLE ENERGY ROADMAP FOR THE AFRICAN CONTINENT?

36 HOW SOLAR CAN HELP MEET AFRICA'S ELECTRICITY NEEDS?

37

RICHARD DOYLE

Ashwini Chikkodi Nikita Salkar editorial@firstviewgroup.com

GUEST COLUMN

INCENTIVIZING THE SOLAR INDUSTRY IN NIGERIA - A PATHWAY TO A MORE SUSTAINABLE ENERGY MIX

40 WHAT ARE THE CURRENT SOLAR INSTALLATIONS IN WEST AFRICA IN 2021? WHAT IS THE MARKET OUTLOOK FOR 2022?

42 WHAT ARE THE CURRENT SOLAR INSTALLATIONS IN WEST AFRICA IN 2021? WHAT IS THE MARKET OUTLOOK FOR 2022?

Smriti Charan Andrew Ferreira advertise@firstviewgroup.com

CIRCULATION Sadhana Raju Shenvekar

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Advertise with us Contact: Smriti Charan e: smriti@firstviewgroup.com W W W . S O L A R Q U A R T E R . C O M

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MAINSTREAM PROJECTS TO DELIVER 1.27GW OF CLEAN POWER TO AFRICA

SOUTH AFRICA ANNOUNCES PREFERRED BIDDERS IN 2600 MW RENEWABLE TENDER

Global wind and solar company, Mainstream Renewable Power, announces that 12 of its projects have won preferred bidder status in Round 5 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The wind and solar projects, which have a total capacity of 1.27 GW, represent half of the total allocation in the Round, which was the most competitive to date, being almost four times oversubscribed. The win makes Mainstream the most successful company in the history of the South African renewable energy procurement program, with over 2.1 GW awarded to date. This includes 850 MW of wind and solar generation assets that Mainstream has already delivered into commercial operation across Rounds 1, 3, and 4 of the REIPPPP. The Mainstream-led consortium, named ‘Ikamva’, which means “the future” in Xhosa, will deliver six onshore wind projects and six solar PV projects, including the first REIPPPP project in South Africa’s KwaZulu-Natal province. The projects will produce approximately 4,500 Gigawatt hours (GWh) of green electricity each year, helping to avoid nearly 5 million tonnes of CO2 per annum, once fully operational. They will provide South Africa with critical, low-cost, indigenous power and help deliver a just transition towards its clean energy and climate goals.

The Minister of Mineral Resources and Energy (DMRE) of South Africa, Gwede Mantashe, briefed the media on the latest developments in the Energy Sector. He announced the names of 25 preferred bidders in the fifth bid window (BW5) under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) that targets 2600 MW of solar and wind capacity. Under the program, the bidders will be allocated 1600 MW of onshore wind and 1000 MW of solar capacity. The Government issued the Request for Proposal in April this year and committed to announcing the preferred bid before the end of October. The Department of Energy published a list in August containing the names of 102 bidders; 63 solar and 39 wind projects with a capacity equivalent to 9644 MW. The outcome of the evaluation process has resulted in the selection of 25 preferred bids of which 12 wind and 13 solar bids for procuring a total of 2583 MW. The weighted average price of the preferred bidder for the renewable energy projects is 473 ZAR per MWh, where the weighted average price for wind is 495 ZAR per MWh and for solar, it is 429 ZAR per MWh.

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SOUTH AFRICA RECEIVES $8.5 BILLION TO ACCELERATE THEIR TRANSITION TO CLEAN ENERGY

AWS’ 10 MW SOLAR FARM BEGINS CONTRIBUTING POWER TO SOUTH AFRICAN GRID

A ground-breaking political declaration among South Africa, France, Germany, the United Kingdom, the United States, and the EU, was made in the ongoing COP26 conference in Glasgow to support South Africa with an accelerated “just energy transition”. The declaration on this new ambitious, longterm Just Energy Transition Partnership will support South Africa’s decarbonization efforts by providing financial aid of USD 8.5 billion, with an aim to achieve the target presented in its updated Nationally Determined Contribution (NDC) emissions goals.

Amazon Web Services (AWS), an Amazon Inc. company has announced that the company has completed its first operational solar project in South Africa. Spanning over an area of 20 hectares in the Northern Cape, the project is a single-axis tracking plant consisting of 24,000 bifacial solar modules and expected to generate around 28,000 MWh of energy per year, equivalent to the annual electricity consumption of over 8,000 average South African households. The solar project will contribute to South Africa’s 2030 renewable energy goals and result in avoiding estimated annual carbon emissions of more than 25,000 tons, corresponding to removing around 5,400 cars from the road for a year.

The initial commitment of the amount can be available over the next 3-5 years through various mechanisms including multilateral and bilateral grants, concessional loans, investments, including mobilizing the private sector. The partnership looks forward to preventing up to 1-1.5 gigatonnes of emissions over the next 20 years duration and assisting South Africa to move away from coal and accelerate its transition towards a clean, climate-resilient economy.

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FTC SOLAR ANNOUNCES ITS FIRST PROJECT IN AFRICA FTC Solar Inc, a solar energy company based in Texas, US, announced that it has been allotted its first project in Africa since entering this new market earlier this year. FTC solar entered this innovative agrivoltaic project in Botswana University of Agriculture and Natural Resources (BUAN) campus. The project of around 1 MW has been developed by AAAS Energy jointly with BUAN, with the last stage development and EPC works being undertaken by Soventix, South Africa (Pty) Ltd. The project will provide clean solar power for the teachers and students at BUAN campus working to advance the sciences and local quality of life, with an aim to deal with food and energy security. It intends to support research and data collection pertaining to the agrivoltaic concept – dual use of land in solar photovoltaic power and agricultural purposes.

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HUSK POWER SYSTEMS LAUNCHES SOLAR HYBRID MINI-GRIDS IN SIX NIGERIAN COMMUNITIES The rural energy leader Husk Power Systems has recently launched six solar hybrid mini-grids in several communities in Nasarawa State, Nigeria. The newly launched mini-grids in Nasarawa State will provide clean, reliable, and affordable electricity to about 5,000 households and 500 businesses in Doma and Lafia Local Government Areas (LGAs). stated the company statement. This is the first time that a solar company has deployed multiple solar mini-grids at one time under the Nigerian Electrification Project (NEP), a nationwide initiative funded by the World Bank and the African Development Bank (AfDB), implemented by Nigeria’s Rural Electrification Agency (REA). Last September, Husk Power received financial support from Nigeria’s REA to electrify seven communities in Nasarawa State with solar hybrid mini-grids, as a part of NEP’s performance-based grants. The seventh mini-grid in Sabon Gida, Lafia LGA will come online in 2022, along with a larger pipeline of projects. The mini-grids will not only provide electricity to the local Doma and Lafia households and businesses but also support local agricultural activities.

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EGENCO SELECTS CHINT ELECTRIC TO CONSTRUCT 10 MW SOLAR PROJECT IN MALAWI

DAYSTAR POWER TO INSTALL ROOFTOP SOLAR AT FIVE FACTORIES IN NIGERIA

Electricity Generation Company (Malawi) Limited (EGENCO) has chosen CHINT Electrics Co., Ltd to construct the first phase of the solar photovoltaic plant in the Salima district, located in the Central Region of Malawi. The China-based global energy solution provider has been selected in a tender process launched in 2019 and given the charge to construct the 10 MW solar power plant, which is the first phase of a scalable 20 MW solar power plant. According to EGENCO, the project is funded by its own resources at a total cost of $17 million (~ MWK15 billion). EGENCO has already acquired 110 hectares of land at Nanjoka in Salima district for future scaling up of the plant that may reach up to 50MW. The solar power plant will be implemented with battery storage systems for which a different contract will be procured. The project is part of EGENCO’s strategy to reduce the country’s dependence on hydropower and diversify its electricity mix. It also intends to improve its own power generation mix to 76% hydro-based from the current 95% hydro-based, over the next five years.

Lagos-based energy provider Daystar Power has entered into an agreement with soft drink manufacturer Seven-Up Bottling Company (SBC) to strengthen the power facilities at SBC plants in Nigeria. Daystar is going to install solar power systems with a combined capacity of 10.5 MWp to generate electricity for 5 SBC plants over the next six years. The collaboration of SBC with Daystar began with an initial agreement to build 1.5 MWp of solar power systems in two of its manufacturing plants in Kaduna and Kano. The project has successfully installed two solar PV systems of 450 kWp and 990 kWp in the plants, respectively. With the 5 solar plants to be built, the soft drink manufacturer will have a total of 12 MWp of installed solar capacity at its seven plants, making it Nigeria’s largest company using solar energy to power its operations. Daystar Power estimates that these solar power systems will supply 50% of the total energy consumption during the day, however, the supply percentage will depend on the size of the installation and the amount of sunlight. It is expected that these installations will enable SBC to reduce its emissions by more than 24,000 tons CO2 equivalent over the 20-year life of the two solar plants, with saving up to 40% on its electricity costs in these plants.

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TOZEUR’S SOLAR PLANT NOW OPERATIONAL The first photovoltaic power plant of Tunisia in Tozeur has finally become operational after undergoing several months of delay. The official inauguration will be done in early 2022.

The 10 MW plant is built by algoWatt erstwhile TerniEnergia, a subsidiary of Italian-based Italeaf S.p.A., under a contract signed with the Ministry of Industry, Energy and Mines, and the Tunisian Electricity and Gas Company (STEG). The project is the result of Tunisian-German technical cooperation, funded by German state-owned KfW with a low-interest loan amounting to $13.3 million. Another solar power plant, Tozeur II with 29,000 photovoltaic panels is also under development in the area.

Equipped with 31,000 photovoltaic panels, Tozeur I plant has already begun testing, while the tests of commissioning the Tozeur II will take place within a few days. The rate of progress of the work of the plant of Tozeur I has reached 99% and that of Tozeur II is about 97%.

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GHANA COMMITS TO INCREASE RENEWABLE ENERGY WITH EIGHT SOLAR PLANTS

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KYA-ENERGY INSTALLS SOLAR MINI-GRIDS IN 20 HEALTH FACILITIES IN TOGO Togolese solar energy start-up KYA-Energy Group has constructed solar mini-grids in 20 health facilities across the country. The project is supported by the healthcare electrification grant provided by the United States Agency for International Development (USAID) under the Power Africa initiative. With a total production capacity of 40 KW, KYAEnergy has invested in the solar electrification of these 20 healthcare centers. In addition to the solar power supply, KYA Green Energy Lab has designed and assembled solar-powered automatic handwash stations in the facilities. Cell phone charging tables are also installed by the company in the health facilities in order to generate additional income for the maintenance of the facilities, ensuring the sustainability of the equipment. According to the government’s reports, only 50% of the Togolese population had access to electricity. The government intends to increase this rate to 75% by 2025 and 100% by 2030.

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POLIO LABORATORY IN NIGERIA GETS SOLAR SYSTEM The World Health Organization (WHO) accredited National Polio Laboratory in northern Nigeria got solar panels that will provide an uninterrupted power supply for the facility. The WHO Country Representative, Dr. Walter Kazadi Mulombo commissioned these solar panels in the laboratory which is located at the University of Maiduguri Teaching Hospital (UMTH) in Borno State. With 48 solar panels of 330 W each, 21 KVA inverters, and 24 tabular batteries, the project is intended to provide an uninterrupted power supply for the laboratory for quick testing of acute flaccid paralysis (AFP) samples. The commissioning of these solar panels to power the laboratory is pursuant to the commitment made by Nigeria and 49 other countries to develop climate-resilient and low-carbon health systems at the COP26 in Glasgow, in response to growing evidence of climate change’s impact on human health.

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The Ghanaian government reaffirmed its commitment to renewable energy and sustainable development goal seven (SDG7) with electric utility Bui Power Authority (BPA) plan of constructing eight solar power plants in the country. According to BPA, the project is expected to start early in 2022, with designated sites including the towns of Yendi (Northern Region), Buipe and Sawla (Savannah Region), Zebilla, and Bolgatanga (Upper East Region), and Tumu (Upper West).

These locations are within the proximity of the Ghana Grid Company’s (GRIDCo) substations in the northern part of the country, where the potential solar plants capacity is between 10MWp to 100MWp. This could successfully be connected with the National Interconnected Transmission System (NITS). The capacity of each plant will depend on the size and specifications of investors who have been engaged under an arrangement in which the investors would fund the construction and will be paid later for the state to own the plants. BPA has collaborated with some universities so that new graduates would be involved in various projects.

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ENGIE ACQUIRES STAKE IN XINA SOLAR ONE CSP PLANT IN SOUTH AFRICA French utility company Engie has completed the acquisition of the indirect stake held by Abengoa in the Xina Solar One project in South Africa. With this acquisition, Engie will now hold a 40% equity stake in the 100 MW concentrated solar power (CSP) plant as well as 46% of Xina Operations & Maintenance Company. Located in Pofadder in the Northern Cape province of the country, the Xina Solar One plant provides clean, sustainable, and dispatchable energy to 95,000 plus South African houses. This acquisition brings the total installed capacity of Engie in South Africa to 1,320MW. The other shareholders on Xina Solar One are South Africa-based development finance group Industrial Development Corporation (IDC), pension fund and asset manager Public Investment Corporation (PIC), and Xina Community Trust, having the rest 60% stake equally divided among them. The acquisition enables Engie to become one of the largest independent power producers operating in South Africa with a portfolio consisting of various clean energy plants commissioned in recent years.

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AZELIO GETS ORDER OF $1.2 MILLION FOR ENERGY STORAGE FROM SOUTH AFRICA

MALAWI’S SALIMA SOLAR POWER PLANT STARTS OPERATION

Azelio has secured an order to supply eight units of its energy storage system with 1.3 MWh of storage capacity from South African-based mixed farming company Wee Bee Ltd. The order is valued at nearly $1.2 million over 15 years including expected price increases. As per the contract, the Swedish renewable energy equipment developer, Azelio will deliver the energy storage units by the end of this year. The installation work and commissioning will be done by Azelio in collaboration with its UAE-based partner ALEC Energy. Wee Bee Ltd. has an annual energy consumption of around 1.9 GWh and requires a reliable and cost-effective energy supply for its day and night operations. With a current grid connection that is unreliable, expensive, and fossil-based, Aelio’s energy storage system in combination with solar photovoltaics will reduce annual CO2 emissions equivalent to 323 tons compared to the grid and also secure the energy supply constantly.

Malawi’s first utility-scale PV plant, the Kanzimbe solar power station also known as Salima solar power plant is now connected to the national grid. The 60MW project is located in the Salima district of Malawi spreading over an area of 170 hectares and capable of producing 154 GWh of electricity per year. The solar photovoltaic power plant is the result of a public-private partnership (PPP) project originally developed by JCM Power Corporation, Matswani Capital, and InfraCo Africa, a part of the Private Infrastructure Development Group (PIDG).

The Dutch development bank, FMO, subsequently invested in the construction. JCM Matswani Solar Corp Ltd, the Malawi Special Purpose Vehicle is 75% owner of the project whereas Infraco Africa Ltd owns the remaining 25%. The solar power plant demonstrates Malawi as an attractive destination for private sector investment in the energy sector and provides a unique opportunity for the country to leapfrog over investment in expensive and outdated fossil fuels.

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FMO AND OTHER FINANCIERS PROVIDES LOAN FOR FOUR SOLAR PLANTS IN BURKINA FASO Dutch entrepreneurial development bank, FMO has announced its participation in the construction of four solar power plants in Burkina Faso. The bank will be funding a total amount of €90 million consisting of four loans for these solar projects with a combined capacity of 110MWp. The solar plants will be set up at Nagréongo in Oubritenga Province, Kodeni (near BoboDioulasso) in Houet Province, Tenkodogo in Boulgou Province, and Dédougou in Mouhoun Province. Three of these four projects have been signed, while the signing of the fourth project is in progress. The first three projects are partially financed through the Access to Energy Fund, a joint initiative of FMO and the Dutch government, whereas the fourth is partially financed by the Building Prospects Fund, the FMO-Dutch government fund for private investments in infrastructure in developing countries. Other financial facilities include €21 million funds from the Interact Climate Change Facility (syndication between AFD, the EIB, and EDFIs) and another €15 million from AFD’s subsidiary Proparco. The financing round exemplifies the Team Europe approach, allowing the European Union to enhance coordination and work better among its member countries.

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SONATRACH TO BUILD A 10 MW SOLAR PLANT FOR ITS OIL SITES IN ALGERIA The National Company for research, production, transport, processing and marketing of hydrocarbons (Sonatrach) has planned to build a solar photovoltaic plant in the Hassi Berkine basin (Ouargla Province), Algeria. The proposed project will be launched in 2022 and supply its oil sites in the region. The Central Director of New Resources of Sonatrach Group, Youcef Khanfar has mentioned this 10MWp solar project on the sidelines of the tenth edition of the International Energy and Hydrocarbons Exhibition (NAPEC 2021). The planning and construction work of the plant will begin soon with the help of Sonatrach’s own funds. The state-owned oil company of Algeria, Sonatrach is the largest oil & gas company in Africa and provides 30% of Algeria’s gross national product (GNP). Its subsidiaries employ 80,000+ people who work to consolidate its position as the leading exporter of natural gas in the Mediterranean basin. The group has already worked on a solar installation in the same region, in partnership with the Italian energy company ENI. Sonatrach is combining its efforts to set up photovoltaic installations that correspond to the plan of the Algerian Government to initiate its energy transition roadmap based on Renewable Energy Development and Energy Efficiency Promotion.

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SAPVIA AND MESSE FRANKFURT TO ORGANIZE BIGGEST SOLAR AND ENERGY STORAGE EVENT IN AFRICA The launch of the first-ever Solar Power Africa Trade Show and Conference to be held in February 2022 has confirmed South Africa’s position in driving the continent’s transition to clean energy. Dedicated solely to solar power and energy storage, the three-day event is organized by Messe Frankfurt, the leading trade fair and event organizer, in partnership with the South African Photovoltaic Industry Association (SAPVIA). The event is going to be held at the Cape Town International Convention Centre (CTICC). The trade show is expected to attract over 100 exhibitors and the attendees will benefit from direct access to expert insights and solutions to a range of energy-related challenges, as well as key trends and developments in the renewable energy sector. The event is presented in partnership with two of the world’s top solar power and related industry shows – Solar Power Events (SPE), North America’s premier organizer for energy events, and SNEC, the Shanghai-based leading PV tradeshow. The event has received the endorsement of the South African solar industry’s leading membership body SAPVIA.

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RENEWABLE ENERGY FACILITY FOR SOLAR EQUIPMENT PURCHASE LAUNCHED IN NIGERIA In a joint partnership, the Nigerian impact investment company All On, Odyssey Energy Solutions, and the newly-launched Global Energy Alliance for People and Planet (GEAPP) have set up a global aggregated procurement program, called Demand Aggregation for Renewable Technology (DART) for renewable energy companies. The All On-managed DART program supported by a $10 million fund will ensure reliable, affordable, and high-quality solar products reach the marginalized communities in Nigeria. The solar companies already approved by the Rural Electrification Agency (REA) for the Nigeria Electrification Project (NEP) will get this fund for debt funding to purchase lower-cost solar equipment through the DART. The objective of the DART program is to accelerate the growth of the renewable energy market, empowering people and businesses in Nigeria. The program looks for combining demand pooling and aggregated purchasing of solar-powered equipment, access to affordable finance, and coordinated logistics processes to unlock economies of scale for solar-related companies and achieve cost savings for the customers. The program launched in Nigeria will be followed by pilot programs in four additional nations in Africa.

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INTERVIEW

ANRE GOUS MD, ACES AFRICA

I believe the future is bright for distributed solar in Africa; the industry will only grow from strength to strength.

In an interesting chat with SolarQuarter Africa magazine, Anre Gous- MD, ACES Africa gave us the company’s background and the recent major projects executed. He also informed about the key learning and policies that other African regions should adopt from South Africa to push their solar industry forward along with the future growth aspects of distributed solar over the next few years.

Can you give a bit of background about yourself and the company?

ACES Africa was established in 2003 by our CEO, Charl Gous. From 2003 to 2012, the company specialised in electrical engineering and electrical contracting. I then joined the company in 2012 after my studies at Stellenbosch University, where I studied and completed my degree in Marketing and Business. During my first year at ACES, we had more enquiries around Renewable Energy and Solar PV in particular, so in 2015 I decided to lead the renewable energy drive within ACES Africa and we started an entire Solar PV division in the company. I led business development within ACES and also led our BiPV (Building Integrated Photovoltaic) division from inception to 2020. Since 2015, ACES Africa has grown into one of Southern Africa’s most trusted Solar PV companies, having implemented over 180 C&I projects across 6 countries in Africa with over 50MWp energized in that time. Our team has also consulted with many of South Africa’s leading energy and engineering companies on renewable energy systems. In early 2021, I was appointed as Managing Director at ACES and together with our new head of business development, Seraj Chilwan, spearheaded the growth and strategy for ACES into Africa as a whole. We pride ourselves on being one of Southern Africa and of Africa’s leading Solar PV installation companies and leading the development of clean energy access for Africa as a whole.

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Please give our readers brief insight about the recent major projects done by your company in Africa.

ACES Africa has implemented some groundbreaking projects, especially in Africa, more particularly in Kenya. We developed and built Africa’s largest BiPV skylight in Nairobi for I&M Bank Kenya in 2019. The skylight is made from 2300m2 of transparent BiPV glass which generates clean energy for the Bank’s head office during daylight hours and promotes green energy and reduces carbon emissions to promote a sustainable building. We also are currently developing similar projects for the likes of Microsoft, Mediclinic, and others across Africa. We recently in 2020 won the bid to supply Mediclinic Group (ACES Africa inks deal with Mediclinic Group) with Solar PV on ten of their private hospitals throughout South Africa and Namibia.

What is the current situation with regard to the solar sector in South Africa and the solar market throughout the wider region?

The solar sector in South Africa is booming at the moment. With President Ramaphosa’s announcement on lifting the embedded generation cap from 1MW to 100MW; every sector is considering alternative clean energy sources in order to be less reliant on coal-based energy sources. Not only for a cleaner energy future but also to be more independent from the current energy provider; Eskom and its troubles with load shedding; impacting our economy greatly.

Businesses are now seeing that solar PV does make business sense with returns on investment in the commercial and industrial sectors reaching below 5 years now. The wider region is following suit; neighboring countries such as Namibia and Botswana have national strategies and plans to build renewable energy generation plants; a large portion of that being solar. We have already seen several tenders in the market from not only the public sector but from the private sector too; for example the mining sector in Southern Africa.

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| AFRICA Your company has been doing projects across Africa, what is the major challenge you face in most of the African countries which you believe should be addressed immediately?

Africa is an exciting continent for solar to thrive and be part of our daily lives; we are blessed with immense amounts of direct sunlight and sun hours. However in saying that, we need the right structures in place in order for solar to grow across Africa. Some of the major challenges we have faced thus far are skilled labor, logistics, procurement, grid instability, and political will.

ACES has tackled these challenges head-on and has found solutions, especially in our projects in East Africa, to make projects work in the region. We have partnered with skilled and experienced local partners, we are finding more innovative ways to procure the equipment for the site, and so on.

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INTERVIEW

South Africa has emerged as a front runner in solar power Africa, what are the key learning and policies that other African nations should adopt to push their solar industry forward?

There are certainly key learnings and policies that other African nations can adopt that will benefit the solar industry, the local economy, and the energy generation of that country. I believe one of the fundamental policies that should be considered is a feedin tariff with the local energy provider. In the South African context, for example, several municipalities are now incorporating a Small Scale Embedded Generation (SSEG) tariff to allow producers to feed excess electricity back into the grid. With the growth of solar in a country, standards need to be adhered to, which can be taken from international and regional standards or best practices; accreditation of installers or developers; an industry association; relevant training, and so on.

What is the scope/future of distributed solar in Africa for the next 5 years?

I believe the future is bright for distributed solar in Africa; the industry will only grow from strength to strength. I foresee growth in the number of megawatts built, price per watt decreasing year on year, also due to the technology becoming more costeffective. I see more of our youth getting involved in this thriving industry, becoming the young professionals of the future; whether it be as technicians, developers, sales and marketing, project managers, business managers, and so on. Solar developers will have to become experts in micro-grids, generator, and battery integrated systems and systems that will include the Internet of Things (IoT).

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INTERVIEW

FEMI ADEYEMO FOUNDER & CEO, ARNERGY

Arnergy launched Ruralbase, a IP65 rural telephony product that powers cell towers across rural regions in Nigeria."

In an insightful interview with SolarQuarter Africa, Femi Adeyemo Founder & CEO, Arnergy gave us interesting facts about the company’s background and successful contribution to the industry.

He also gave us insights into the challenges and opportunities for solar in West Africa and Arnergy’s growth and expansion plans.

Can you give us a bit of background about your company? What was the aim and vision when you first started this company?

I founded Arnergy in 2013 and it’s now the leading renewable energy company in Nigeria delivering reliable and sustainable solar energy solutions for SMEs, large businesses and homes. We launched with a mission to deliver energy solutions for productive use at scale. We do this by deploying products, services and systems that power homes and business operations and improve economic outcomes for our clients.​ Arnergy leases and sells solar energy systems -solar panels that are connected to lithium batteries that essentially serve as solar-powered generators and power storage. The technical equipment is accompanied by a proprietary software platform, called SolarBase that allows clients to monitor and control their energy usage in real-time.

Due to frequent and consistent interruptions in Nigeria’s national electricity grid, there is a growing demand for energy providers that could leverage clean, off-grid energy solutions to provide a sustainable, uninterrupted and reliable source of electricity. Nigerians spend around $14bn annually fuelling petrol and diesel generators, an energy source that is neither cheap nor environmentally friendly. These

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challenges could no longer be ignored, Arnergy was left with no other choice than deploy innovative products and solutions for Nigerians.

In 2019 Arnergy raised $9million in a Series A financing round, which was led by Bill Gates’ Breakthrough Energy Ventures, with participation from the Norwegian Investment Fund for Developing Countries (Norfund), EDFI ElectriFI and All On. This funding allowed Arnergy to scale, targeting more businesses and households to adopt our solar energy solution.

Arnergy’s aim since inception has been to ensure that solar energy becomes a critical part of Nigeria’s energy transition, away from a dependency on fossil fuels to create growth and development as part of a sustainable and green economy. Through targeting reliability and the productive use of energy, Arnergy believes that solar solutions can fill the energy gap in the market and can power Nigeria and Africa and other emerging markets into a sustainable future.

A word about your recent successful contributions to this industry?

Arnergy’s solar energy systems have proven to be an extremely suitable solution for a wide range of business, commercial and household energy needs, across urban and rural areas in Nigeria. In 2019, we built a custom containerized solar energy solution for the Kolo Hospital Modification Project financed by Shell in partnership with General Electric. Arnergy deployed a 40kWp rooftop solution with a storage capacity of 180kWh. The guaranteed electricity supply renewed the confidence of all stakeholders in the hospital’s ability to deliver quality service.

A major obstacle to socio-economic growth within rural communities in Nigeria is the lack of access to internet and mobile connectivity, compounded by unreliable electricity supply. Arnergy launched Ruralbase, a IP65 rural telephony product that powers cell towers across rural regions in Nigeria. Through its Ground/Pole Mount System, developed in-house, Arnergy was able to establish electronic communication devices deployed to remote areas across the country in a very cost and energyefficient manner.

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| AFRICA What are the current challenges and opportunities in the solar sector in West Africa? How can these challenges be faced?

With average sunshine of 6 hours per day, solar energy across West Africa is an extremely viable way for the country to meet its electrification and sustainability targets.

However, in order to achieve those targets, there are still some challenges the region's energy sector has to overcome.

Arnergy works closely with the Nigerian government and the Rural Electrification Agency and is extremely supportive of the efforts that they have made in recognizing the importance and the potential of solar energy in the country. Initiatives such as the ‘Willing Buyer Willing Seller’ scheme point to encouraging signs that there are proactive steps being taken to reduce reliance on the energy grid and to decentralize power generation.

However, across Africa, the legal and regulatory frameworks around the renewable and solar energy sector must be more conducive to attracting large-scale investment into the industry. The creation of an investor-friendly ecosystem for solar energy and renewables, in general, should accelerate solar adoption across the continent.

There is also a need for increased education around the benefits of solar energy so that

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local players like Arnergy can fill the capacity gap in the market. During the early years of Arnergy, a lot of time, effort, and energy were spent convincing customers about the viability of solar. Although we have made great strides over the last few years, with our education efforts being spearheaded by the fact our customers save 25% of their energy costs in comparison to spending on diesel generators, much more awareness around the benefits of solar would be extremely beneficial in addressing any remaining skepticism. One of the ways to increase awareness around solar energy in the region is to highlight the progress of indigenous companies like Arnergy within the industry.

Arnergy has a focus on increasing the local production, assembly, and servicing of solar energy equipment.

Reducing the dependency on importing technology and resources has led to reduced costs and improved customer service for customers across the region.

The rollout of Arnergy’s RuralBase solution is a testament to the benefits of increased awareness around local players that understand the unique challenges of the region’s energy issues.

How do you see your company contributing to the clean energy sector in Africa in the next couple of years? What are your plans for expanding your services in the region?

Our immediate plan is to continue rolling out our solar energy solution across Nigeria.

We have already built up an impressive client list, some of whom are also our partners including Shell, KPMG, and CitiBank.

We will leverage our network and further funding rounds, to continue driving solar adoption across our three main customer audiences; telecommunication, commercial and enterprise, and residential. We plan to have at least 35,000 businesses and 15,000 homes energized with solar energy over the next few years.

As we grow and expand further, we believe that our solar solutions can have a pivotal impact on emerging markets across Africa and beyond. The growing ecosystem for solar and other clean technologies within Africa provides a platform for businesses like Arnergy to grow rapidly and sustainably, laying down the foundations for a regional and even global presence.

Lastly, how do you see the solar sector progressing in the African market in the next 5 years?

We are seeing an increased investment into decentralized off-grid solutions and we are confident that solar energy will be able to lead that charge to transform the energy future for Africans and wider markets. Rapid innovation within the sector coupled with increased investment into indigenous solar energy providers across emerging markets, such as Arnergy means that solar energy systems will become an even more affordable option for customers. As the economic viability of solar strengthens, Arnergy expects the adoption of solar energy to mirror the telecommunications boom of the early 2000s.

For emerging countries to become industrialized nations they need 100,000 megawatts of electricity for every 1 million people. As an example, currently, Nigeria can only supply about 4000 megawatts that’s why homes and businesses have resorted to fossil generators which are expensive, polluting, and unsustainable. We see solar energy rapidly developing across markets that have a fragmented energy sector to address the critical energy issues that are holding them back from realizing its full potential.

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INTERVIEW

WILLIAM VAN WYK

COUNTRY MANAGER, FIMER SOUTH AFRICA

Direct consumers and Industry are actively exploring Energy Independence options to mitigate the Energy Supply risk we are all exposed to."

How is the present climate of the inverter market in Africa after the covid crisis?

We should not underestimate the Commercial effects Covid had on all Markets and Industries. What’s important is how you position yourself as a Brand to accommodate and adapt to the challenges. What we are experiencing is that the 2020 lock-downs created a sense of awareness amongst consumers. Where they evaluated their interdependence on National infrastructure to sustain their wellbeing and Energy Security in this instance. Direct consumers and Industry are actively exploring Energy Independence options to mitigate the Energy Supply risk we are all exposed to.

This is where Solar is perfectly suited to manage these risks and the influx of New Opportunities has solidified this thought process.

What have been the latest technology trends in the solar inverter market globally & in Africa especially?

The newest Technology Trends follow the Decentralized Utility Scale Inverter Design Methodologies. The PVS-350-TL is FIMER’s answer to the growing demand for multiMPPT string inverters for utility PV systems, offering record-high AC capacity combined with a DC front-end optimized for the latest PV modules to maximize the ROI of ground mounted systems based on a decentralized architecture. Thanks to the record-high capacity and power-to-weight ratio, up to

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SolarQuarter Africa magazine had an insightful interview with William Van Wyk - Country Manager, FIMER South Africa, wherein we came to know about the inverter market scenario in Africa, Covid’s impact, and the latest technology trends. We also understood the specialties of FIMER inverters and how they are best suited for any requirement.

30% savings can be achieved on transportation and installation costs and up to 15% higher AC capacity for the MV station compared to other decentralized conversion solutions available today. This means fewer stations per MW AC of installed power, with a cumulative saving that may exceed 0.2 Euro cents/watt on a 100MW system.

What are some key factors that companies should consider before investing in key solar equipment like solar inverters?

Before committing and/or investing in Solar, Companies need to ensure a Full Energy Audit is Conducted. By Optimizing one’s Energy Consumption and implementing Energy-Saving Concepts, inherently the Expected Capacity of the Solar installation would be reduced. When considering Components like Solar Inverters, it’s important to have the Full Design Verified by Certified Consulting Engineers who evaluate the Customer’s needs & Expectations.

How are FIMER inverter solutions best suited for any requirement with respect to competitors?

The keyword is Solutions Provider, not a Product Supplier. In today’s everchanging Technology environment it’s more important to Support Customers in the Lifecycle Management of their Installations than just supplying the components. This is where FIMER shines. With a Local Team in South Africa to support all Technical & After-sales activities, we have differentiated ourselves as one of only a few Global Manufactures with these Localized Capabilities. This extends to our Local Installation Training Centre and 1st Line Repair Centre all Executed from our Johannesburg Office.

How do you see FIMER inverters maintaining their market leadership even in the future?

The main driver for sustained Leadership is Growth within the Environment you serve. A two-prong approach would be applicable in this case. This alludes to continuous to ensure the Technology you offer is current and Futureproof and secondly, it’s about understanding the Consumers’ everchanging needs and finding solutions to effectively managing these needs through Stakeholder Engagements.

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INTERVIEW

IVAN XIE

SALES MANAGER, AFRICA - GROWATT NEW ENERGY

Let's take MAX 100 to 125 KW series, for example, the MPPT current of which is 32A while many of the competitor's products are of 26A or 30A." SolarQuarter Africa magazine had an exclusive interview with Ivan Xie - Sales Manager, Africa - Growatt New Energy, and learned about the company’s Africa operations and the significant role plays in it.

He gave us interesting insights about Growatt’s large commercial and utility inverters and also the specialties of their rooftop inverters. We also got a sneak peek into their next year’s product plans.

How are Growatt's Africa operations faring so far this year?

Though the detailed data is not yet ready, we have attained a strong presence in South Africa, Nigeria, Zimbabwe, Morocco, Tunisia, Kenya, Algeria, Egypt, etc. Now we have warehouse in South Africa and soon there will be our local subsidiary which will greatly enhance our local service. The next steps will be setting up a warehouse and office in Nigeria depending on the market development.

Tell us about how plays a very important role for Growatt. How does Growatt focus on the same?

Dedicated to technology and product innovations, Growatt invests heavily in research and development. The R&D team at Growatt has more than 400 professional engineers. Growatt has received ‘All Quality Matters’ awards by TÜV Rheinland for its commercial and industrial (C&I) inverter MAX series and residential storage battery – ARK series, both of which achieve first-rate performance in the organization’s PVE Test Program.

Please tell us about the key highlights of your large commercial and utility inverters.

Let's take the MAX 50-80 KW and MAX 185253 KW for example:

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MAX 50-80K 6 /7MPPTs Smart diagnosis High efficiency up to 99% Local WIFI configuration String monitoring AC&DC type II SPD AFCI protection Data storage up to 25 years DC side 2 in 1 connection

MAX 185-253K

with an extensive service network of 22 offices worldwide. We are committed to providing comprehensive and professional training, as well as timely service to all our global partners.

Growatt is one of the top 10 inverter brands according to IHS Markit. Please tell us about the major awards and accolades won by your esteemed company.

There are quite a lot. Here are some new records in 2021:

Up to 15 MPPTs, fuse free design MAX efficiency 99%, high yield Smart I/V scan and diagnosis Intelligent string monitoring DC side 2 in 1 connection enabled Optional Anti-PID/Night SVG/AFCI function Data storage up to 25 years

How do your commercial rooftop inverters stand out with respect to competition?

Thanks to the Growatt RD team, we have a good product for customers. Let's take MAX 100 to 125 KW series, for example, the MPPT current of which is 32A while many of the competitor's products are of 26A or 30A. This allows more flexible string configuration. And the weight of this model is 84KG, while some of the other products are over 90KG. The compact and light design brings convenience for installers.

And certainly, the product does not mean everything, Growatt has built strong and experienced local teams in key solar markets

What products have you launched this year and what are your upcoming products?

This year we have launched on-grid products such as MIN 2500-6000 TL-XH, MOD 3000-10000TL3-XH, off-grid product SPF 3000T HVM-G2, and solar pump product SPI 750~4000TL2-HV. And next year there will be more products for the African market such as new 3/5kw 1phase off-grid, 8/10kw 1-phase hybrid, 63/100kw hybrid. All of these are highfrequency models which focus on energy storage or backup.

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INTERVIEW

HADYR KOUMAKPAI GENERAL MANAGER AFRICA AT JA SOLAR

Our intention at JA Solar is to contribute to the growth of the continent. We like to enter new markets and focus on creating our trend."

The market demand for your DeepBlue 3.0 product is tremendous, could you please give us the product highlights and brief.

Yes. sure, DeepBlue 3.0 products are based on 182 mm cells. The modules are designed with the most reliable gallium doped cells technology combining with meticulous chosen materials to provide the best yield experience. And the product’s energy yield performance has won recognition from thirdparty certification authorities and is awarded the title of “Energy Yield Simulation AQM Award 2020”, which validates the excellent power generation capacity of DeepBlue 3.0.

The product is very compatible with the majority of inverters manufactured in this category, as well as the structure and tracking companies. Hence, this makes it easy for any company to operate them. The product reflects a design mindset of "customer-oriented, to achieve optimal LCOE ". DeepBlue 3.0 modules come with 11 busbars to improve module power for about 10 W by increasing the current collection inside of the cell and utilizing the thinner Round Ribbon to increase light absorption.

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SolarQuarter had an exclusive conversation with Mr. Hadyr KOUMAKPAI - General Manager Africa at JA Solar and learned about the DeepBlue 3.0 products. Mr. Hadyr KOUMAKPAI elaborated on the product features and spoke about how these modules are set to revolutionize the African market. He also provided insights on how JA Solar is expanding in the African region and ruling the capacity.

When it comes to technology, what are some unique core technologies utilized in DeepBlue 3.0 modules.

We talk about half cell technologies, round ribbon, and multi-busbar which is part of DeepBlue 3.0 technology. It is a merge of high-efficiency materials with newgeneration PERC high-efficiency cell technology PERCIUM+, and Ga-doped silicon wafers, which enables the product to have great reliability, conversion efficiency, and power generation performance. This combination offers unparalleled and unmatched performance and has made the module one of the best options to help achieve grid parity in 2021. Also, I would like to highlight that the most important thing is how mature the technology is, and all real site data today could prove it right.

Please tell us how these modules are best suited for the African region.

It is important to say that we have been supplying Solar modules in Africa since 2010 and performance satisfaction is quite on the top. We are very familiar with different types of weather in the continent and different projects sizes and market segments. Our solar panels have gone through various testing conditions, which are worse than the reality of the ground.

And DeepBlue 3.0 has a very good temperature coefficient of - 0.35%/ ℃ at Pmax, which now is considered one of the greatest co-efficient temperatures in the industry. The result of our testing shows how robust, and resistant is the product. I trust that experiences have shown that JA Solar does not promote a product unless they are 200% sure about their reliability, that is the culture of the company.

We are very familiar with different types of weather in the continent and different projects sizes and market segments."

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As a company, we have a large number of patents. We have supplied a large volume in Africa.

As per the last year, we supplied about 63 GW worldwide, which is very exciting numbers for this industry as a top leading company."

How is JA Solar planning to scale up and expand more in the Africa region in the coming years?

We have grown a lot in the last three years.

We have a presence in 8 countries in the continent. Our intention at JA Solar is to contribute to the growth of the continent. We like to enter new markets and focus on creating our trend. As the market is also slowly progressing, we start to create a foundation to initiate and welcome the boost of a dynamic solar industry. Besides providing direct training to industry players, we are recruiting more and more local employees that we have trained to also contribute to the solar revolution. And we believe that these employees will be the future Africa leaders in the solar industry. So, the intention of the company is not to rely on what is existing, but also to build a good capacity for that market.

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How does JA Solar plan to rule the capacity in Africa?

We have been building capacity for the market by training the workers we have right now. And as a strategy, we are surely developing more footprints in terms of having sales close to customers, providing quick and better customer services, and ensuring that all the workers grow together with the company as the African market is growing. Because the prediction is showing that the Africa market will be growing exponentially in the coming years.

How does JA Solar plan to rule the capacity in Africa?

Presently, everyone has their eyes on DeepBlue 3.0 modules. Our product DeepBlue 3.0 boasts of excellent innovative technology i.e new-generation PERC highefficiency cell technology PERCIUM+ and Ga-doped silicon wafers. The fact that the product has 2% degradation in the first year, is a great breakthrough in this industry. Also, the temperature coefficient of the product is

very low, which also helps a lot in terms of conversion to the high power and high production value for the technology.

At JA Solar, we have been number one in terms of technology innovation. As a company, we have a large number of patents. We have supplied a large volume in Africa. As per the last year, we supplied about 63 GW worldwide, which is very exciting numbers for this industry as a top leading company. In 2010 we have supplied Africa with one of the first large projects, which was in North Africa and is still operational now. This again shows that JA Solar’s technology is very resistant. As a company, we encourage the young generation, to get more and more involved in renewable energy and solar in particular.

We empower the young people and train them to be ready for taking the lead to a better world and better environment. And of course, gender equality is highly prioritized by the company.

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INTERVIEW

ANDREW AMADI

CHIEF EXECUTIVE OFFICER, KENYA RENEWABLE ENERGY ASSOCIATION

KEREA is adopting the GOGLA consumer protection code (attached ) as part of the requirement for working groups in solar technologies and solutions."

SolarQuarter Africa magazine had an exclusive conversation with Andrew Amadi - Chief Executive Officer, Kenya Renewable Energy Association and learned about how the KEREA association is promoting and supporting the Solar industry in the region. He also gave us a brief overview of the policy & business environment of Kenya's Solar Market along with the future outlook for the region.

Please tell us how your association is promoting and supporting the Solar industry in the region.

The Kenya Renewable Energy Association (KEREA) is the umbrella body for all renewable energy in Kenya. It was founded by a Technical Committee at the Kenya Bureau of Standards that was developing standards for solar equipment. KEREA has been instrumental in advocacy for a better business environment for the sector to grow and has participated in the development of the Solar PV and Solar Water Heating regulations. KEREA was also instrumental in the Kenya National electrification strategy which included off-grid solar as part of the matrix for measuring access to electricity and as a result, the connectivity in Kenya today stands at 75% with solar systems accounting for 25% of the connections. KEREA is also a founding member of the East African Renewable Energy Federations which brings together the renewable energy associations for Kenya, Uganda, Tanzania, Rwanda, and Burundi who are working together to harmonize regulations so as to create a common market with 45 million people still not having access to electricity. In September this year, the Associations jointly launched the report entitled " STRENGTHENING THE OFF-GRID SOLAR ELECTRIFICATION MARKET THROUGH IMPROVED POLICY AND ADVOCACY IN EAST AFRICA" (see attached). This was also accompanied by the Position

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Paper and advocacy plan (Attached). KEREA also held the Renewable Energy Day in January 2020 to showcase solar energy and other renewable energy technologies and solutions. KEREA is adopting the GOGLA consumer protection code (attached ) as part of the requirement for working groups in solar technologies and solutions. KEREA will be celebrating its 20th anniversary in February /March 2022 and will unveil a prize for the most efficient and most cost-effective solar panels and inverters in the market as part of the celebrations. KEREA has created three working groups that focus on solar technologies. These are: The solar home systems working group The solar commercial and Industrial sector working group The solar water heating working These three groups are working together to identify policy, legal and regulatory hurdles and advocate for an enabling environment.

They are also creating new markets by focusing on the productive use of solar energy for economic growth and improved livelihoods by developing scalable and bankable solutions to grow solar even further.

KEREA is also part of the Kenya Solar Waste Collective which is developing a common strategy for managing e-waste in Kenya and Rwanda while also be setting up a producer responsibility Organization together with GOGLA and Sofies. The Strategy report has been unveiled at the end of November 2021.

What do you think about the solar sector in Kenya and East Africa as a whole? In your view what is needed to strengthen the growth of the solar sector in the region?

The sector needs to enable policies to be predictable and insulated from policy shocks. There is a need to weed out poor quality and counterfeit products which are very rampant and contribute to undermining consumer confidence. The region needs serious investment in productive use technologies that run on offgrid solar as the expansion of the electricity grid is expensive and slow and there is an urgency to scale up access to meet the demand of 45 million people without access. There is also a need for further research and development of technological solutions tailored for providing bundled solutions to manufacturing processes.

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What according to you is the biggest challenge currently being faced by the developers and how can it be tackled?

The biggest challenge faced by developers is the lack of funds for early-stage development for start-ups so that they can access funding. Foreign investors do not want to support feasibility studies or even pay for securing intellectual property thereby leaving developers with a huge funding gap.

Development partners also have a narrow focus on areas of their own interest that are not always aligned with the interests of local developers or markets. Multilateral financing institutions also have a high threshold for projects and fund only large projects while developers are usually focused on smallticket items of less than 500,000 USD.

Please give us a brief overview of the policy & business environment of Kenya's Solar Market.

The policy environment has generally been very favorable and conducive for the solar industry, however, it still remains unpredictable at the implementation level and the tax environment changes very often leaving businesses in a perpetual state of uncertainty and having to spend many working days on policy issues. The business environment in Kenya is very vibrant with sales of solar products being higher than almost all countries in the world, making Kenya the 2nd Largest market for solar products after India. (See GOLGA report for Jun -Jul 2021 ) There are about 1,000 registered solar companies in Kenya and a few that have Engineering, Procurement, and Construction (EPC) capabilities. There are 800 registered solar technicians for stand-alone, grid-tied, and utility-tied categories. KEREA has contributed to the development of the Solar EPC guidelines for Africa in partnership with Solar Power EU and has launched an internship database where university students and graduates can have structured access to do course projects and even carry out research that meets the needs of the solar and renewable energy sector.

What is your outlook for the Solar sector in the region for the next 5 years?

I see even more growth in the uptake of solar solutions especially in the last mile connectivity to give access to electricity, I see Kenya reaching 90-100% connectivity by the end of 2027. I see increased uptake of solar water pumping as the drought intensity increases and water becomes less accessible. I see on-grid rooftop power growing exponentially as people become more aware of the cost of daytime solar and investors take advantage of the 30% annual return on investment while giving consumers up to 50% cost saving on daytime electricity.

I see huge uptake for solar electric mobility charging stations, especially in rural areas. I see many new real estate developments with embedded rooftop solar. I see net metering and wheeling of power growing as soon as the regulations are published later this year or early next year.

Rooftop or Utility-Scale solar Projects: Which sector has more potential and opportunity to grow in the region and why?

The rooftop sector has much more potential to grow than utility-scale projects. The grid currently has a surplus generation capacity with peak demand at 2,000 MW while installed capacity is at close to 3,000 MW. There is already identified the potential of 455 MW for rooftop solar power generation for the largest 5,000 consumers of grid electricity. There is a strong appetite for investment and growing demand as grid electricity continues to grow.

The business environment in Kenya is very vibrant with sales of solar products being higher than almost all countries in the world, making Kenya the 2nd Largest market for solar products after India." | AFRICA

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DR. SEGUN ADAJU

CEO, CONSISTENT ENERGY LIMITED AND PRESIDENT, RENEWABLE ENERGY ASSOCIATION OF NIGERIA (REAN)

The solar market in Nigeria is driven by mostly foreign investments, attracting over USD 227 million from a range of investors."

SolarQuarter Africa had an exclusive conversation with Dr. Segun Adaju - CEO, Consistent Energy Limited and President, Renewable Energy Association of Nigeria (REAN) and understood about the organization REAN and how it is promoting and supporting the solar industry of Nigeria. He also told us about the current government policies with regard to the solar sector and how the region has tackled and emerged out of the Covid crisis.

Please give our readers a brief introduction about yourself and your association REAN. My name is Dr Segun Adaju, Chief Energizing Officer at Consistent Energy and President, Renewable Energy Association of Nigeria. I come with over 2 decades of banking experience and have been in the renewable energy sector for over 10 years as a consultant, energy expert, financial advisor and project developer. I over see an solar energy company that is the leading rooftop solar finance company in Nigeria with special attention to productive use leveraging solar energy (PULSE) for SMEs and C and I. I have won several awards across the continent and recently was a Nominee, Lifetime Achievement of the Year Award by Africa Solar Industry Association (AFSIA).

REAN is a non-profit industry association founded by key players and stakeholders in the renewable energy sector with the vision to promote strategies that will improve the contribution of renewable energy up to forty percent (40%) of the Nigerian National Energy Mix by 2030. Launched in November 2016, REAN has grown to be one of the leading renewable energy associations in Sub Saharan Africa (SSA) with over 140 members cutting across five technologies i.e. solar, wind, small hydro, biomass and geothermal. REAN is also leading the formation of the West African Renewable Energy Alliance (WAREA) where Dr Segun Adaju has been nominated as the Interim

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Chair. REAN has influenced greatly the policy formation and industry direction in Nigeria especially around distrtibuted renewable energy development such the mini grid policy in Nigeria, one of the best in SSA.

How is your association promoting and supporting the solar industry of Nigeria?

REAN has influenced greatly the policy formation and industry direction in Nigeria especially around distributed renewable energy development such the mini grid policy in Nigeria, one of the best in SSA. With the steady increase in the membership of the association, we have a wider reach to the industry key players which influenced the setting up of working groups to help address the challenges that affect different areas of the sector. REAN promotes strategies that will improve and influence policies that encourage investments, sustainability, and the contribution of RE to the national energy mix. The Association has also supported the development of a robust local content framework for the industry with many of our members already benefiting or planning to benefit from programs that supports local manufacturing of technologies.

access to finance for the industry players As an affiliate member of the Alliance for Responsible Battery Recycling (ARBR), REAN also developed a ULAB policy document to promote responsible management and disposal of used lead acid batteries.

In partnership with GOGLA, REAN is also working with eight (8) other national renewable energy associations to set up the West African Renewable Energy Association (WAREA) REAN has contributed to several policy and advocacy programs such as incentives and concessions for the renewable energy sector e.g. VAT exemptions, custom duty waivers, efficient port clearing procedures etc.

REAN also developed research documents focused on driving local content in the Renewable Energy sector and a report on

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| AFRICA How has covid impacted the Solar industry in the region and how has the region tackled this crisis?

The COVID situation affected different areas of the sector. The restrictions in travels and movements affected the importation of solar components into the country. SAS companies had a hard time in reaching their customers due to movement restrictions which severely affected the distribution of these components within the country. This also led to the increase in the price of solar components as trade borders were closed and travels banned.

The pandemic also affected the distribution of knowledge, as most solar training and energy institutions who train individuals in the installation of solar components could not carry out these activities.

However, there are also positive impacts to the industry. The lockdown increased the demand for solar products because people spent more time at home, increasing the demand for steady power supply for work and other activities. In line with the increased demand for energy during the pandemic, REAN was able to influence the Lagos State Government to classify the activities of renewable energy project developers as essential duties with concessions granted for them to operate. New business models have also been enhanced and scaled around solar for health facilities, agriculture, productive uses etc.

The Federal Govt included off-grid energy companies in the country's post-covid economic recovery plan through the 5 million new solar connection (Solar Power Naija). The healthcare system also received more attention from the government as the need for steady power supply was highlighted, which led to the deployment of solar systems in the health care centers.

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INTERVIEW

What is the current scenario of the solar market in Nigeria and in West Africa as a whole?

The solar market in Nigeria is driven by mostly foreign investments, attracting over USD 227 million from a range of investors.

Although there is an increase in local fundings by commercial banks offering enduser solar loans for households and commercial users. The challenge of the grid especially in Nigeria has shown the huge market opportunities that exists in the sector where the grid only provides 5,000MW at best for a population of over 208 million. The government of Nigeria has realised the huge potentials of solar by supporting the role out of mini grids, solar homes systems, solar for health, education and markets activities under the Rural Electrification Agency of Nigeria. We have seen many universities, hospitals, primary health centres etc going solar.

However, there are still factors militating against the growth of the solar market which include limited access to funds, lack of accurate data, poorly skilled personnel, high custom charges and VAT, etc.

The public and private sectors are working hard to address these issues. The government is introducing policies and implementing solar initiatives such as the Solar Power Naija, while the non-profit organizations such as REAN are creating awareness, engaging with the public and private sector to guide advocacy, influence policies, and encourage investment in the sector.

The lockdown increased the demand for solar products because people spent more time at home, increasing the demand for steady power supply for work and other activities."

What are the current government policies with regards to the solar sector? In your view what more can be done to boost the sector?

The government is actively promoting solar electrification through policies, schemes, and the introduction of interventions such as loans to small businesses which are accessible to solar companies.

In December 2020, Solar Power Naija Programme was launched with the aim of providing energy access to five million households and the creation of 250,000 new jobs in the sector.

The government is partnering with several development organizations such as All On, USADF, USAID, ACE TAF, and HBS to provide financial and technical assistance with regard to energy policies, regulatory analysis and grants to companies that provide solar services.

In my view, the government should create a more enabling environment for businesses to thrive by reducing the cost of doing business in the country. This can be achieved by the reduction of import duties and increasing access to finance to small and medium scale enterprises.

What potential do you see in the solar sector in the coming years?

Nigeria is blessed with sunlight which means solar will always be a good alternative to fossil fuels. I see solar as the future of energy in Nigeria. Nigeria has the biggest market for solar in SSA with the huge solar resources available. The opportunity has also opened doors for investors, project developers and financiers to enter the market and play across the value chain such as solar panels, battery, inverters manufacturing etc. The finance deficit with potentially high returns is also an incentive to enter the market.

But to reach its potential, the government needs to introduce more solar interventions and reinforce the existing ones. There is a need to create an enabling environment for investors and local businesses, which can be achieved through collaborations between policymakers and the developers.

With proper public education and awareness, there will be significant growth in the solar sector in Nigeria.

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INTERVIEW

JAN FOURIE

GENERAL MANAGER - SUB-SAHARAN AFRICA, SCATEC

Scatec has been present in Africa for over a decade, and connected Kalkbult, South Africa’s first utility scale solar PV project in 2013."

SolarQuarter Africa magazine got an exciting opportunity to interview Jan Fourie, General Manager - Sub-Saharan Africa, Scatec, and learned about the company’s presence in the region and the recent projects being developed by the company. We also learned about how Solar+storage is playing a major role in the company’s progress and what we can look forward to in 2022 from Scatec.

Please tell us about Scatec's presence in Africa.

Scatec has been present in Africa for over a decade, and connected Kalkbult, South Africa’s first utility scale solar PV project in 2013. With current and future presence in countries like Egypt, South Sudan, Rwanda, Uganda, Kenya, Mozambique, Tunisia, Lesotho, and of course South Africa – the company continues to participate across the growing renewable energy sector. Scatec has 1.73 GW of solar PV and hydro assets in operation and backlog on the continent. We are proud to be one of the largest and longest serving renewable energy power producers present in the area.

As a major solar power producer, how does Scatec view the solar market in Africa?

As a continent, Africa boasts arguably the greatest opportunity, not only for solar, but all forms of renewable and storage solutions, across the globe. A gap in electrification and generation capacity of many African states has seen a structured approach being developed to invest in a sustainable energy future of the area. Whilst development and policy are interlinked, Africa has seen significant growth in projects, investment, and participation in solar (renewable) – and the outlook for the future of the industry remains promising.

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Scatec has been awarded solar projects totaling 273 MW in the REIPPP Round 5 government tender in South Africa. How will this further the growth of solar in the region?

The REIPPP Programme is the South African government’s ministerial approach to renewable energy procurement in the country. The awarding of preferred bidder status, and the plans to reach financial close during 2022, shows the country’s commitment to its envisioned renewable future and planning. 2022 will also likely host REIPPPP Round 6, Round 7, and a storage (battery) window. These are activities which will hopefully continue to demonstrate the large-scale commitment by public and private sector to deliver clean, sustainable, and affordable energy. The model adopted in South Africa is used as an example on a global scale, and many Africa states are continuing implementation, procurement, and partnership for power production on a continuous basis.

A gap in electrification and generation capacity of many African states has seen a structured approach being developed to invest in a sustainable energy future of the area."

How is solar+storage playing a key role in Scatec's progress?

The urgency for cleaner power generation has been a catalyst for the rise in the uptake of renewables and the advances in battery storage technology. Renewable Energy is now more cost-effective and quicker to establish than ever before - and with no shortage of state support, have engendered a fertile and attractive investment landscape. Solar and wind already provide twice as much power to the national grid as nuclear. While renewable energy has not been dispatchable until now, exciting new developments in batteries and power storage have now enabled dispatchable power from renewable sources in efficient, cost-effective ways.

Because power from renewable sources like photo-voltaic (solar panels) and wind turbines is intermittent by nature, renewable power plants tend to oversize their operations in order to create an excess supply. This ensures that they can always meet generation supply quotas even during prolonged periods of low wind or solar radiation. Efficient storage technology is essential to absorbing this excess and ensuring a constant output of dispatchable power.

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Scatec’s own RMIPPP bid-winning scheme to supply 150 megawatts via three massive solar arrays in the Northern Cape of South Africa is a good example of this. The ambitious renewables-only project will see around one million individual solar panels set across a 10 km wide site - and will be colocated with advanced storage facilities utilizing lithium-ion (Li-ion) battery technology.

Li-ion batteries are comparatively small (only hydrogen - and helium-based ones are smaller), which allows such facilities to achieve a favorable ratio of charge and voltage storage relative to volume and space requirements.

Factor in the recent widespread surge in the industrialization of these technologies and the constantly decreasing prices due to the effects of ‘economies of scale’, and we have a recipe for fully feasible renewable energy, that is cost-competitive with traditional energy sources for the first time in South Africa.

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INTERVIEW

How is Scatec gearing up for 2022?

Scatec will continue to pursue its targets, for project exploration, submission, award, financial close, acquisition, and construction.

The market for renewables is increasing in competitiveness, however, landscapes are different across the globe. The company’s home market is in South Africa, however, Scatec will continue to engage opportunities across the continent. The fully global operation will pursue projects in solar, wind, hydro, hydrogen, floating PV, and batteries.

The demand for a clean and sustainable source of energy implores the need for a multi-technology approach, and Scatec is well-positioned to do so.

We look forward to continuing in partnering, locally and internationally, to improve our future.

The ambitious renewables-only project will see around one million individual solar panels set across a 10 km wide site - and will be co-located with advanced storage facilities utilizing lithium-ion (Li-ion) battery technology."

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INTERVIEW

OMAR BERRAK

SALES DIRECTOR, NW AFRICA, LONGI SOLAR

Being a new product released in Q4 last year, Hi-Mo 5 is based on 182mm (M10) gallium doped monocrystalline wafers and uses smart soldering technology."

How has the overall business been for LONGi Solar in North and West Africa in 2021?

The COVID-19 pandemic definitely has had a negative business impact on the industry and LONGi is no exception. In North & West Africa, we faced project cancellations or delays due to the pandemic. But we ensured close co-operation with customers and partners to seek every possible way to execute per plan. We have full confidence that NWA will recover from the impact of COVID-19, supported by the measures taken by governments across Morocco, Algeria, Egypt, and other countries. We believe that in 2022, the region will fully recover and come back stronger with another round of solar boom.

But in general, it has been a frustrating year for LONGi in NWA, we have been able to reach an important share market and build a solid network of distributors in strategic countries of Morocco, Tunisia, Egypt, Senegal, Algeria, and the Cote d'ivoire region. And we have also signed very interesting Utility projects in Burkina Faso, Senegal, Tunisia, and Egypt that we supply in 2022.

Please tell us about how LONGi modules are fit for any region and specifically for North and West Africa regions?

Our PV modules have high efficiency which will lead to having better LCOE. That will make it fit for the market that we are targeting. The top modules in the NWA region are our Hi-Mo 4 and Hi-Mo 5 products.

Being a new product released in Q4 last year, Hi-Mo 5 is based on 182mm (M10) gallium

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SolarQuarter had exclusive interactions with representatives from LONGi Solar and gained a great understanding of the different aspects of the company with respect to the business, product, technology, and future growth plans. Read on for exclusive interviews with Omar BERRAK, Sales Director - NW Africa, Felix Wu, Sales Director - Israel, and Kevin Robinson, Sales Director - SS Africa, as they give us insights on LONGi Solar for their respective regions. doped monocrystalline wafers and uses smart soldering technology. It is now is well accepted by our distributors and also the CNI projects, developers, EPC. Based on the different project scenarios, our products are well accepted by our customers across the region. Also, we have a release of our 66 cells Hi-Mo 4 mono facial module, especially for residential and commercial projects, where there was a lot of demand in 3 markets: Morocco, Tunisia, and Cote d'ivoire

What trends are we likely to see in the module technology in the region in the coming years?

Our competitors are providing G12 cells and N-type cells, which will have higher power outputs and efficiency. Therefore, higher efficiency power output modules are more likely to become the trend in the markets. In the next 2-3 years, we expect Hi-MO5 and the 182mm standard wafers to become the mainstream product for the global utility market. We are also assessing various emerging advanced technologies in terms of cost vs value for commercialization.

We will release the new product N-Type TOPcon. We just got the testing confirmation from the Institute for Solar Energy Research (ISFH), our entire TOPcon cell has reached a conversion efficiency of over 25% which is the first time for any TOPcon cell with the commercial size silicon wafer to reach such a high level. Also, we are the only ones who have been tested at the ISFH in Germany which is one of the highest credible agencies in the world for testing cell efficiency.

Therefore, the next generation after the cell will be TOPcon.

What are your plans for growth and development for the year 2022?

Over the past few years, we’ve seen an increased appetite for solar PV in the African Region. At the moment we only have South Africa & Egypt being part of the “Gigawatt Club” which, with the current trend we ought to have more African countries joining this club in the next few years. With the growing demand, our target at the moment is to service the continent sufficiently by using our existing and new distributors in strategic countries, which will be vital in catering to the diverse and scattered NWA market. For Utility Our desire is to have at least 35-40% market share in the next 3 years. Besides providing direct training to industry players, we are recruiting more and more local employees that we have trained to also contribute to the solar revolution already I have 3 sales Managers in my team to cover all the North and West Africa Market.

In the next 2-3 years, we expect Hi-MO5 and the 182mm standard wafers to become the mainstream product for the global utility market. We are also assessing various emerging advanced technologies in terms of cost vs value for commercialization."

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INTERVIEW

FELIX WU

SALES DIRECTOR - ISRAEL, LONGI SOLAR

In 2020, LONGi has shipped 24.5GW high-efficiency solar modules globally, making LONGi the largest solar module manufacturer in the world" How has the overall business been for LONGi Solar in Israel in 2021?

2021 has been a very fruitful year for LONGi in the Israeli market. We have doubled our shipment compared with the previous year, thanks to quick PV growth driven by Israel's 2030 renewable target and our local partner's close cooperation.

What makes LONGi modules the best fit for any region and specifically for a country like Israel?

In 2020, LONGi has shipped 24.5GW highefficiency solar modules globally, making LONGi the largest solar module manufacturer in the world; we will continue to reach 40GW+in 2021, which proves our modules are most welcome by global customers. LONGi's quick development is attributable to our leading solar technology, coupled with the most strict quality control and highest brand bankability in the industry. LONGi is the only solar company that wins Top Performer in all 8 categories of the DNV-GL 3rd party test, and LONGi brand is the only AAA bankable brand as per PVModuleTech ratings.

How do you see the module technology evolving in the region in the coming years?

LONGi is largest technology-driven solar company in the world. We are investing around 5% of our sales revenue into new technology R&D every year, and in 2021 alone we have created three world records with P-type, N-type cell efficiency. We're on top of all new solar technology that can bring the best LCOE for our customers.

LONGi's quick development is attributable to our leading solar technology, coupled with the most strict quality control and highest brand bankability in the industry."

What are your plans for growth and development for the year 2022?

LONGi believes solar will transform the energy mix and boost economic growth for the longer future and will devote more resources to expand our capacity and product portfolio to meet global customer demand. We're hopeful that Israel will reach the GW-level market in 2022 and in upcoming years, and will provide our most competitive product solutions to help Israel in the goal of reaching 30% renewable production by 2030.

We're hopeful that Israel will reach the GW-level market in 2022 and in upcoming years, and will provide our most competitive product solutions to help Israel in the goal of reaching 30% renewable production by 2030." | AFRICA

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INTERVIEW

KEVIN ROBINSON

SALES DIRECTOR - SS AFRICA, LONGI SOLAR

The pipeline we have built for 2022 is already looking quite positive with some larger developments moving into execution phases this year."

How has the past year been for LONGi Solar's Sub Saharan Africa region?

Parts of the SSA market have developed well but as always we have markets where we need to focus our attention on developing brand awareness around the unique value proposition that we offer our clients. We are enjoying the benefits of time well spent with our customers last year where we showed them how we can maximize their returns.

The pipeline we have built for 2022 is already looking quite positive with some larger developments moving into execution phases this year.

Kindly tell us about the suitability of LONGi modules for the region.

LONGi is a technology company so we pay a lot of attention to The research and development of the materials and technology that goes into the manufacturing of our modules. We have proven our quality, durability and improved energy yields verified through many different independent test facilities, winning recognition for best in class energy yields and best in class durability and reliability both in the field and in laboratories. Using gallium doping for our solar cells we have reduced the effects of LID, LeTID and annual degradation. In addition, LONGi has passed hail testing with 50mm hailstones which is twice the IEC specification so this is an important factor for clients to consider in regions where hail can impact solar installations. . For clients who are interested in sustainability we have shown a strong commitment to the environment firstly with our Solar for Solar program and our commitment to RE100. All of these factors contribute to us being one of the best module partners for solar installations in Africa.

We have proven our quality, durability and improved energy yields verified through many different independent test facilities, winning recognition for best in class energy yields and best in class durability and reliability both in the field and in laboratories." | AFRICA

How is the module technology evolving in the Sub-Saharan Africa region? Where do you see the trend going forward?

Over the past 2 to 3 years we have seen module power class increasing significantly with larger solar cells and as a result the physical sizes of the modules. The main benefit has been reducing modules costs through optimizing production and transportation costs. The next innovations will be in the commercialization of new cell technologies which we will see reaching mass production in a phased approach over the next 3 years.

What are your plans for growth and development for the year 2022?

We are capitalizing on the foundations laid by our team over the past 2 years in the region. After spending some time in Q4 2021 ensuring that our team is better equipped to service customers in our focus markets, we are looking forward to the opportunity to grow our market share by executing our plans in a way that is meaningful to our customers in the region.

An important part of our growth strategy is in green Hydrogen. We have already identified some exciting opportunities for green hydrogen projects so it is an interesting period post COP26 for us to start to work with partners on their development and implementation goal in this developing industry.

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INTERVIEW

RICHARD DOYLE

MANAGING DIRECTOR, JUWI RENEWABLE ENERGIES (PTY) LTD (SOUTH AFRICA)

We develop solar, wind, and hybrid renewable energy projects and offer operations and maintenance (O&M) services for solar PV and hybrid systems."

SolarQuarter Africa magazine got an excellent opportunity to interview Phyllis Yang - Director of Southern Africa, Sungrow and received some great insights on Africa’s inverter market and Sungrow’s adaption to it.

We also learned about their specialized inverter solutions suitable for different needs and their plan for the year 2022.

Can you give a brief overview of juwi and the company’s history in the South African region? juwi South Africa is part of the international juwi Group, which was founded 25 years ago and has installed renewable energy projects globally with a capacity of 5.5GW. juwi started in South Africa ten years ago and in this time we have developed over 400MW of renewable energy projects in our effort to contribute to the low-carbon energy transition. We develop solar, wind, and hybrid renewable energy projects and offer operations and maintenance (O&M) services for solar PV and hybrid systems. Our vision is 100% renewable energy and every day we work hard to build that future.

What is your view on the solar sector in South Africa? How has it evolved over the last few years?

A constrained and unreliable energy grid, an abundance of sunshine, and carbon emission reduction targets make the solar sector a very interesting, exciting, and important industry to be in. Legislation and government initiatives in South Africa have developed over the past few years in favor of investments into solar energy projects.

Notably, the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) has attracted international attention for its success in catalyzing a low-carbon, socially inclusive, and just energy transition.

Other mechanisms such as

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renewable energy projects below 100MW not needing to register for Generation Licenses are further stimulating the rapid adoption of these technologies. Rising costs of conventional grid-supplied energy coupled with falling prices of renewable energy and energy storage technologies are also making the business case for going solar increasingly attractive.

Management System (QMS) of juwi South Africa is validated through external audits and sets a streamlined and efficient way of managing internationally acknowledged standards. Our quality objectives match the core vision of the company and brand, in which we work together to deliver the highest value renewable energy projects possible.

What are some major utilityscale projects executed by juwi in the South African region?

How do you see juwi contributing to further developing the renewable energy industry in Africa?

Our Prieska, Waterloo and Matla A Bokone solar projects together comprise 258.5MW. We are also excited about our Evander gold mine solar project which marks the first of many mining companies that we will assist in switching to renewable energy. The mining sector in South Africa is very large and with sizeable energy demands and located in areas with abundant sunshine, switching to renewable energy is an obvious choice. We have a division within juwi dedicated purely to servicing this market and are partnered with Siemens to offer best in class hybrid energy solutions.

How does juwi ensure quality management? What are some set policies and procedures for the same?

We pursue a process-oriented management approach, which is based on the internationally recognized standard DIN EN ISO 9001:2015 / OHSAS 18001. The Quality

The South African energy grid is projected to remain constrained and carbon intensive for years to come. There is therefore much work to be done to develop as many renewable energy projects as possible to contribute to alleviating grid pressure, lowering emissions and providing solutions to clients that ensure that they receive reliable, cost effective, low-carbon energy.

The mining sector is also a point of focus due to the size and energy demands of the industry. We intend to continue to lead the energy transition in South Africa and retain our reputation as the service provider that prioritizes quality and precision - German qualities ingrained into our South African DNA. We will continue working with our partner Reatille to grow the renewable energy industry, contribute to the South African economy, and to empowering the people that live here.

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INTERVIEW

ANDREW TYLER

SALES & BUSINESS DEVELOPMENT MANAGER FOR SUB-SAHARAN AFRICA (SSA), GOODWE POWER SUPPLY TECHNOLOGY CO.,LTD.

we have seen continued growth through the Pandemic and are very grateful for the continued support from our loyal customer base."

SolarQuarter Africa magazine got a fantastic opportunity to interview Andrew Tyler - Sales & Business Development Manager for Sub-Saharan Africa (SSA), GoodWe Power Supply Technology Co.,Ltd. and learn about their inverter products and operations and business. He also spoke about the new technology in the solar inverter market globally and especially in Africa.

Please tell us about the types of inverter products that GoodWe provides in Africa.

Goodwe offers a Wide range of Inverter & Energy Storage solutions which can be used in various applications from Residential to C&I Rooftop & Utility scale.

In Africa, our offer consists of Hybrid/Storage Inverters from 3.6KW – 10KW in Single-Phase & 5 – 50KW in 3-Phase, Grid-Tied Inverters from 3 – 6KW in Single-phase & 4KW – 250KW in Three-Phase and lastly, we offer Energy Storage solutions in both Low Voltage & High Voltage.

The first C&I Storage Inverter in our range is our BTC Series which is an AC Retrofit solution to add on storage to an existing grid-tied solution." | AFRICA

How has GoodWe operations and business been through the pandemic?

What is the new technology in the solar inverter market globally and especially in Africa?

The Pandemic has been a big challenge on overall business operations. We have seen raw material costs due to Global component shortage put pressure on our products costs.

Shipping into Africa has also been a challenge with volatile shipping costs, container shortages and regular ship cancellations putting major pressure on delivery times to customers.

Technological innovation is GoodWe’s main core competence and as such our ability to develop & improve on our products for our customers is extremely important. We have seen some fantastic products be released by our team with a few more exciting products to come in 2022.

It has been quite interesting to see how successful we can still be conducting remote Video Meeting with customers vs traditional face-to-face meetings. There is still value in visiting our customers in their home country however and I look forward to border’s opening more so we can return to normal and visit our customers in their country.

For Residential, we have seen a move to larger KWp rated Hybrid Inverters in our region so Goodwe designed our EHB Series specifically for use on the African continent.

It offers a 5 – 10KW Single-Phase Inverter, 50% DC oversizing, up to 4 x MPPT’s and offers an “Installer Friendly” design making it easy to install.

Overall, we have seen continued growth through the Pandemic and are very grateful for the continued support from our loyal customer base.

For Commercial & Utility, we have also seen a move to larger Inverter sizing with various other technical improvements. Our HT Series offers up to 120KWp for Commercial Roof Top & up to 250KWp in Utility Scale Ground Mount with some exciting new products expected to launch soon. Our HT Series offers 50% DC oversizing, up to 12 x MPPT’s, 10% extra AC Power (120KWp can output up to 132KWp) & Industry leading Temperature derating.

An Energy Storage system adds stability to the overall performance and provides power for a backup load in the event of a grid failure."

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How different is the African market dynamics compared to the other international markets?

The African Market has a lot more challenges to contend with vs other more mature international markets. These challenges are mainly to do with financing, knowledge & Regulatory frameworks. This offers an opportunity to provide the solution to each of these challenges and open a market with unlimited potential.

Goodwe has been selling our Inverters in Africa since around 2015 so we have a good understanding of the market & where our products need to excel.

As a market forerunner and leader in storage inverters, what is GoodWe’s view of this Solar + Storage market?

The Energy Storage market offers quite an exciting opportunity for us in Africa. We face regular power cuts & general grid quality issues which mean traditional grid-tied systems won’t operate as expected. An Energy Storage system adds stability to the overall performance and provides power for a backup load in the event of a grid failure.

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INTERVIEW

We are working on smart features in our Energy Storage products which will help with Smart Home integration and eventually Load management for C&I applications. Our Inverters will interactively work with smart devices to control loads and maximize the use of the PV plants’ production.

One of GoodWe’s main growth focuses is on the African Market and we are developing our Energy Storage range to achieve this. The first C&I Storage Inverter in our range is our BTC Series which is an AC Retrofit solution to add on storage to an existing grid-tied solution. We also will see a Full Hybrid Storage Inverter called the ETC Series to follow shortly after that which offers an exciting all-in-one solution for our customers. We should see these products available in the coming months with additional product development expected in the future.

The Pandemic has been a big challenge on overall business operations. We have seen raw material costs due to Global component shortage put pressure on our products costs."

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INTERVIEW

PHYLLIS YANG

DIRECTOR OF SOUTHERN AFRICA, SUNGROW

Our innovative solutions and products performed well in BOS cost reduction, and the overall product quality has outweighed the current market standard."

SolarQuarter Africa magazine got an excellent opportunity to interview Phyllis Yang - Director of Southern Africa, Sungrow and received some great insights on Africa’s inverter market and Sungrow’s adaption to it. We also learned about their specialized inverter solutions suitable for different needs and their plan for the year 2022.

How has the inverter market changed in Africa after the covid crisis? How has Sungrow adapted to the new changes?

Now the whole world including Africa is still plagued by the pandemic, Sungrow in Africa is not the exception. The pandemic has affected the Africa market in 3 main ways, Manufacturing difficulties to meet the high demand, Supply chain issues and Financial pressures Sungrow has been endeavoring to maintain the normal operation in Africa and keeps finding innovative solutions.

The first strategy is constantly improving the product quality. Previously, African PV plants mainly used traditional inverters made by European suppliers. But now, Sungrow is steadily shifting the trend. Our innovative solutions and products performed well in BOS cost reduction, and the overall product quality has outweighed the current market standard. Therefore, our products own the competitive edges in the African market.

Secondly, Sungrow adopted a more organic growth strategy in the African market which has proved to be very successful. Our objective has always been to support customers with oriented and comprehensive solutions and services.

We have a localized service and sales team that prioritize customers’ needs and prepare to serve them readily against the backdrop of

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the pandemic. That is why Sungrow still saw a market share growth in 2021 in Africa.

Moreover, in 2021, we rank No.1 in inverter shipments to Africa. In addition, in 2021, we also seek new cooperation opportunities. For example, we appointed our first distributor in the Southern Africa market to better cater to the smaller EPCs in Africa.

How are your PV inverter solutions best suited for any market and especially the Africa market?

First, Sungrow boasts a wide range of inverter models to meet the comprehensive application scenarios, including utility, C&I, and residential. These solutions feature turnkey technologies that managed to minimize BOS costs.

Second, Sungrow’s inverters own high efficiency of electricity generation and excellent high-temperature resilience with IP65 and C5 protection to maximize yield.

Third, we have built a localized service team for better O&M so that we have a muchdecreased failure rate.

Fourth, Sungrow inverter devices have robust grid support functions and fast response time. In this way, we can better adapt to the weak grid in Africa.

Last but not least, Sungrow owns abundant project experience in this market. We have commissioned hundreds of cases and all function very well till today, which certify Sungrow's competence.

Tell us about Sungrow's Power Conversion System/Hybrid Inverter solutions and their key highlights.

Sungrow has comprehensive, turnkey solutions including PCS, battery, EMS, and isolated transformers. The integrated system design enables faster installation.

Our PCSs and batteries have different configurations and sizes, so as to satisfy various needs from all-tier customers.

Our devices support both on-grid and offgrid modes. They are highly compatible with third-party DGs and accessories.

For Sungrow, our floating products have been authorized by TUV with over 15 tests, which verify that they can sustain the 25 design lifetime."

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INTERVIEW

How are your floating solar solutions ensuring and improving the performance of floating solar plants?

Firstly, it relies on the robust durability of floating products. For Sungrow, our floating products have been authorized by TUV with over 15 tests, which verify that they can sustain the 25 design lifetime.

Meanwhile, we have our own labs in the factory, and we invariably go through a very strict process of material selection. We test each batch of the material to make sure it is qualified then we can apply it into the production, which helps to guarantee the quality of the product.

Secondly, it depends on the reliability of the anchoring system. We meet global load calculation requirements such as EU code, Japanese code, US code, so we can install our products in different regions. We also proceed with the anchoring analysis and simulations, especially on the coupling load to check whether the floating solar will be operated safely under different weather conditions. Worth mentioning, recently, Sungrow anchoring calculation methodology has also been verified by DNV, further validating our quality and reliability.

What is the total Inverter capacity supplied by Sungrow in Africa? What are the plans for the year 2022?

For the first question, it is about 680MW. For the 2022 plan, Sungrow will focus on providing more customeroriented products and services. After all, Sungrow’s core value is to support and empower customers. We will improve the current service and sales team in Africa so that they can better serve our customers.

Besides, Sungrow aims to increase its market share in both C&I and Utility markets. As Africa’s renewable energy market is emerging and developing, Sungrow also wants to get more opportunities in Southern African’s residential segment. Possibly, we want to cooperate with more distributors for this end.

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INTERVIEW

SAMMY BOROTHI

BUSINESS DEVELOPMENT MANAGER, SSA, JINKO SOLAR

More funding will be channeled to the African continent to support large-scale adoption of renewable energy and advocate for better policies to attract more investments."

In an exclusive chat with SolarQuarter Africa magazine, Sammy Borothi Business Development Manager, SSA, Jinko Solar spoke about the specialties and unique features of their Tiger Pro module series and the major big projects executed by the company in Africa. He also gave us insights on what module technology trends are we going to see in the near future and the anticipated growth of the solar market.

Your Tiger Pro module series is one of the best in the market.

Tell us about its specialties and unique features.

Tiger pro module series has been the best in the market although we have now launched our Tiger Neo N-type series using TOPCON technology with higher efficiencies. It is our premium product.

For the Tiger pro series which is still a highend product, some of its unique features include: Its Maximum power is based on HighEfficiency Technology with the white EVA. Lower power degradation from year 1 to 25-30Yrs. Uses the circular ribbon technology that ensures better light inclination & better performance when inclined at incidence.

The have LCOE, Eg 182 has lower current thus reducing the cable loss, increasing energy yield by 0.21.

What have been some of your major big projects in the African region?

Some of the big projects in Africa include: 55Mw - Garrissa solar plant project in Kenya through Rural Electrification and Renewable Energy Corporation (REREC).

50MW Sheikh Mohammad bin Zayed Solar Park in Blitta -Togo.

Kesses 40-megawatt (MW) solar plant in Eldoret - Kenya.

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What are some challenges you face in the solar PV market of Africa? At the same time, what are some advantages of the African solar PV market?

Some of the challenges facing the Solar PV market include.

Attractive financing models especially for large-scale utility projects.

Attractive feed-in tariffs from the Governments & lack of goodwill support.

Lack of proper infrastructure on the distribution side other than on the generating side.

Technology limitations & knowledge transfer.

According to you, what module technology trends are we likely to see in Africa in the near future?

In the near future, N-type Technology will be leading in the next decade for Africa.

N-Type modules have much higher improved efficiencies using TOPCON Technology they have Low Boron content in N-type c Si doped with P-type, significantly lower LETID from 0.9~1.2% (P-type) to 0.4% (N-type), and improved LID < 0.5.

Previous technology for P-type shows an average bifacial gain of 9.7%, while Ntype showed an average bifacial gain of 12.7%.

Therefore due to improved technology from R&D N-Type modules will lead over the coming years.

What is the anticipated growth of the Africa solar market over the next year and how is Jinko Solar preparing for it?

We anticipate some stable growth exponentially over the coming years in Africa especially after African Govt leaders committed prioritize upscale adoption of renewable energy technologies following the COP26 forum at Glasgow.

More funding will be channeled to the African continent to support large-scale adoption of renewable energy and advocate for better policies to attract more investments.

Tiger pro module series has been the best in the market although we have now launched our Tiger Neo N-type series using TOPCON technology with higher efficiencies."

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INSIGHTS

WHAT ARE THE OPPORTUNITIES AND CHALLENGES FOR SOLAR UPTAKE IN AFRICA?

R

enewable energy sources abound throughout Africa. Due to its high irradiation, Africa boasts the world's most abundant solar resources. It also benefits from significant wind potential, particularly in North and East Africa, as well as

hydropower, which now accounts for two of the country's key renewable sources due to its vast river basins. Furthermore, geothermal resources can be discovered all throughout Africa, while the East African Rift System has the majority of the potential. Increased coverage of electricity over the African continent has been a long-term ambition. In Africa, only approximately 43% of the population had access to electricity in 2016.

According to estimates, around 600 million people do not have access to electricity. Africa's 1.3 billion people are expected to increase in number in the future, as will the demand for energy.

Stakeholders like legislators, inventors, engineers, and energy firms will face major challenges as a result of this. Using carbonfree, renewable energy sources could be a long-term solution for both consumers and the environment. Solar power is frequently considered a viable energy source for a continent that receives a lot of sunshine all year. However, a number of hurdles must be overcome in order to add solar power to Africa's energy mix in the long run.

Three major issues confront Africa's energy economy. First and foremost, there is a serious lack of electrical capacity or access to it. Low electrical permeation is more prevalent in rural areas.

Self-sufficient access to power would be extremely beneficial to hospitals and clinics that do not run-on electricity. Vaccines could be kept in refrigerators and more lives could be spared.

Second, power disruptions continue to be a significant setback for the energy sector. Even developed countries like South Africa and Nigeria face power shortages, which impede longterm economic and social progress.

Third, high energy tariffs in Sub-Saharan Africa make a costbenefit analysis impossible. Diesel or kerosene, which are more expensive and dangerous than photovoltaic solar panels, are still used by businesses and individual households in some nations. The solar energy sector may offer significant investment opportunities due to Africa's favorable climate for this type of energy generation. Photovoltaic panels do not rely on a network of electrical grids; therefore, they might reach consumers more easily. As a result, solar panels could be built faster. Solar energy

is also said to be less expensive than centralized, gridconnected electricity.

Increased use of solar-generated energy shows that this ecologically friendly option is gaining traction on the African continent. Only 1% of Sub-Saharan Africa used solargenerated electricity in 2009. Six years later, in 2015, the percentage increased to 5%, delivering electricity to 11 million people. According to projections from the International Energy Agency, a Paris-based think group, the number of people who rely on solar power might reach 500 million by 2030. More pessimistic forecasts predict a significantly smaller share of solar energy in the overall energy mix, with proven energy supplies such as natural gas continuing to play a larger role in Africa's entire energy mix. The African Union's New Partnership for Africa's Development (NEPAD) is an example of a cross-border economic development initiative worth mentioning.

One of the NEPAD's main goals is to provide consistent power to even the most remote, dispersed houses in rural locations where grid connections would be unprofitable. Solar or wind energy are examples of green electricity sources that could meet the demand. Sunnier Countries in North Africa, such as Tunisia, Egypt, and Morocco, are already striving for renewable energy. Morocco is evolving as a solar power leader, as it grows the Ouarzazate Solar Power Station to become the world's largest sun-based electricity facility. Other countries with a lot of sun, such South Africa, Libya, Algeria, and Niger, could be able to profit from their natural weather conditions. Nations like Sierra Leone, Rwanda, Uganda, Liberia, and the Republic of Congo, on the other hand, are more prone to damp and humid weather, which means solar energy initiatives in these countries may be less effective.

While this renewable energy source has several advantages, it also has significant drawbacks that must be addressed. In order to provide households with the opportunity to install solar panels, tailored payment plans must be developed. Feefor-service agreements could be used as a source of funding for such projects. Physical infrastructure and communications technology improvements are another important development that is supporting increased energy access. Furthermore, by lowering import tariffs, regional collaboration among governments could facilitate trade. Finally, energy goals are influenced by security, as well as effective political and corporate governance.

Conclusion The list of issues is vast, but increased energy access and stability would help African countries prosper economically. Solar power may not become the industry leader due to its low energy output, but it has the potential to develop in a market that desperately needs new electricity supply alternatives.

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INSIGHTS

VISION 2030: WHAT IS THE RENEWABLE ENERGY ROADMAP FOR THE AFRICAN CONTINENT?

A

frica is confronted with a massive energy crisis.

Energy demand has risen due to the country's expanding population and economic prosperity. This necessitates a rapid growth in supply on the continent, which will require

contributions from all kinds of energy in the next decades.

Thus, Africa continent has a unique chance to achieve sustainable energy development for long-term prosperity.

Africa has a diverse range of fossil and renewable energy resources. However, continuing to rely on oil and gas for energy, as well as traditional biomass burning, will impose significant social, economic, and environmental limits.

Evolution of the existing system to speed up the energy transition To address the continent's current energy crisis, a solid commitment to the increased use of modern renewable energy sources is required. Ethiopia, Egypt, Kenya, South Africa, and Morocco are leading the charge, while Rwanda, Cabo Verde, Swaziland, and Djibouti, among Africa's smallest nations, have set aggressive renewable energy targets.

Others are following suit, and renewable energy is becoming more popular across Africa. Africa 2030, IRENA's comprehensive strategy for the continent's energy transition, shows how renewable energy production may lead to wealth.

Africa 2030 is based on a country-by-country assessment of demand, supply, technology, and renewable energy potential prospects as part of the continuing worldwide REmap 2030 investigation. It examines the potential roles of various renewable energy sources in Africa's five regions through 2030.

143 members have mandated the IRENA – (International Renewable Energy Agency) as the global center for renewable energy cooperation and information exchange.

Approximately 30 more nations are in the process of joining the EU and are actively participating. In the pursuit of energy access, sustainable development, low-carbon economic growth, prosperity, and energy security, IRENA encourages the widespread adoption and sustainable use of all sources of renewable energy, including geothermal, bioenergy, solar, ocean, hydropower, and wind energy.

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Scaling up new innovations and technologies Africa can use modern renewables to solve power shortages, deliver electricity and development possibilities to rural towns that have never had them, promote industrial expansion, create entrepreneurs, and support improved wealth throughout the continent. Modern renewables can also help to make the transition to a cleaner and more secure electricity industry more cost-effective. In terms of the role of innovation and technology, the proposed roadmap asks for increasing and investment to fit with the 2030 and 2050 goals, acknowledging that private energy funding has increased by 40% since 2010. In 2019, global investment in renewable energy capacity reached over $300 billion, with only 5% of that going to Africa, which is home to 82 percent of the world's population without access to electricity.

According to the estimates, an equitable and inclusive energy transition could result in the creation of 30 million new employment in sustainable energy by 2030 and 42 million by 2050. They advocate for gender equality in all facets of the energy transition, including more women in engineering, policymaking, and entrepreneurship. The findings claim that the Sustainable Development Goals should be used as a guiding framework for energy transition policies in every country and area. In order to achieve an inclusive and just energy revolution and fulfill all of the SDGs, policymakers must expressly prioritize the demands of vulnerable people.

INDIANOIL HAS AMBITIOUS PLANS TO BROADEN ITS ENERGY BASKET WITH ALTERNATIVE ENERGY O60 MW OF RENEWABLE ENERGY (WINOLAR) OVER THE NEXT FIVE YEARS.

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Tripling of clean energy investments by the year 2030 Many technologies exist to achieve the 2030 and 2050 goals, according to the assessments, but they will require breakthroughs to speed up and scale up their deployment. Furthermore, the findings advocate for more funding and investment to address the dearth of funding for local energy innovations in underdeveloped nations. To better inform energy policies and drive investment decisions, data systems must be improved. Clean energy investment should be tripled to $5 trillion per year by 2030, according to recommendations on funding and investment needed to meet the 2030 and 2050 energy targets. Scaling up the use of multilateral portfolio and blended finance mechanisms guarantees in combination with de-risking instruments, results-based financing, and commercial financing, as well as lowering regulatory barriers to attract private investment, can support the trillions of dollars in investments required.

Conclusion Some technological solutions are simple to execute, but they require an enabling framework that includes the right policies, regulations, governance, and financial market access. Several African governments have already taken initiatives to scale up renewables, such as adopting support policies, promoting investment, and collaborating regionally, as a promising harbinger of things to come. Africa 2030 is based on a significant body of research conducted in close collaboration with African specialists.

With support for renewable energy growth, IRENA is committed to working with multilateral organizations, governments, and existing global, regional, and national efforts to expand collaboration. African countries can usher in a sustainable energy landscape for future generations by making the right decisions today.

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INSIGHTS

HOW SOLAR CAN HELP MEET AFRICA'S ELECTRICITY NEEDS?

A

pproximately half of the population of Sub-Saharan Africa does not have access to electricity today. Those who do have access to power spend roughly twice as much as consumers in other parts of the world. Power outages cost the continent between 2 and 4% of its GDP each year. And the enormous electrical demands are only expected to increase in the near future. Considering that African regions demographic is anticipated to expand from 1 billion in the year 2018 to more than 2 billion by the year 2050, energy demand is estimated to grow at a rate of 3% per year.

This is based on a continual growth in electricity access as well as efficient use of energy.

Meeting that demand with present energy sources will have disastrous health and environmental effects. Africa's present energy mix consists primarily of oil, coal, and traditional biomass (charcoal, wood, dry dung fuel). This represents the continent's sources of energy, as well as the utilization of outdated technologies. While this energy combination is very inexpensive, it is inadequate to satisfy present needs, and harmful environmental repercussions are ignored. The energy sources of the continent will have to shift, especially if African countries want to provide a healthy environment for their population while still adhering to the 2015 Paris Agreement's greenhouse gas emission limits.

Luckily, Africa does not need to rely on vast amounts of fossil fuel, as industrialized nations did when they were at Africa's present stage of growth, thanks to significant technical developments. It is possible to construct an energy mix that supports both robust growth and low emissions by relying heavily on renewable energy sources. Investing in renewable energy will not only provide an environmentally friendly approach to development, but it will also create new job opportunities. The correct energy mix will allow Africa to expand quickly while staying within the carbon limits set out in the 2015 Paris Agreement, in which states agreed to keep global warming below 2 degrees Celsius above pre-industrial conditions. Researchers at IMF forecast examine how falling costs, scientific advancements in renewable technology, and Africa's geography can all contribute to renewable energy becoming an influential, reasonably priced, and competitive source of electricity in a recent article from the International Monetary Fund's quarterly publication. Furthermore, while access to energy is increasing in Sub-Saharan Africa, with the region's populace projected to double from 1 billion in the year 2018 to over 2 billion in the year 2050, IMF experts predict that demand for electricity would rise by 3% yearly.

Integrating and developing an energy mix that is mostly based on renewable energy would support robust growth, low emissions, and environmentally friendly development all at the same time.Despite the fact that the researchers discuss the prospective applicability of carbon capture and storage (CCS) technologies in conjunction with biomass energy production and high-emission fossil fuel, they are unsure about large-scale dependence on these technologies due to inadequate industrial-scale testing.

Significantly, the researchers' forecasts of the continent's energy mix show that, by the year 2050, biomass and fossil fuels will play a significant role, but that, in the end, both conventional energy sources will be recommend that African countries "organize public, multilateral, bilateral, and private donor financing to raise funds" for renewable energy infrastructure projects. They also encourage developed economies to stick to the 2015 Paris Agreement, which decided to commit them to spending "0.12% of global GDP per year through 2025 to address the needs of developing economies" as a way to ease Africa's transition to a lowcarbon energy economy as well as fund renewable energy infrastructure development.

Conclusion: The Paris Agreement of the year 2015 is based on rich economies' promise to mobilize the equivalent of 0.12% of global GDP every year to meet the needs of developing economies through 2025. Honoring this financial pledge would pave the path for Africa— the continent that contributes the least to global warming—to shift to a low-carbon energy sector. Despite the fact that Africa produced only about 4% of global energy-related carbon dioxide emissions in the year 2018, it is the region which is most affected by climatic changes. This ironic turn of events surely justifies more international support for Africa.

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GUEST COLUMN

INCENTIVIZING THE SOLAR INDUSTRY IN NIGERIA - A PATHWAY TO A MORE SUSTAINABLE ENERGY MIX

commit to the same level of action required from more developed countries and at what cost? Nigeria is a country which has significant electric power challenge as at today.

The World Bank reports that about 43% of the country’s population do not currently have access to grid power. The 57% with access, must constantly deal with epileptic supply with significant reliance on generators powered by fossil fuels. Power is an essential element of life, so while it is important to consider the impact of these generators on our environment, the focus for most individuals and businesses is primarily to ensure that they can at the least have access to power when required, at “least cost”. Consequently, the climate change conversation would be lost on these set of individuals and businesses if the question of reliability and cost are not adequately addressed.

Martins Arogie Partner, Tax Regulatory & People Services, Energy and Natural Resources Group, KPMG in Nigeria

A report by Dalberg and Access to Energy Institute in June 2019 stated that the available capacity from such gasoline generators is 8 times more than the available capacity from Nigeria’s grid with about 11 million small businesses relying on it for their primary source of power daily. This does not take into cognisance the larger diesel generators in use by much larger organisations, so, the actual number may be

INTRODUCTION

T

much higher. A significant amount of this gap can be breached simply by improving the country’s transmission and

he Conference of Parties 26 (COP26) recently ended in Glasgow Scotland with a commitment of global leaders to limit global heating to 1.5˚C through several specific actions aimed at cutting green-house

distribution facilities as close to two thirds of the country’s

emissions across the globe. It is instructive to note that this

to meet the power needs of the 57% connected to the grid.

can only be achieved through various countries going

We still have the issue of the 43% without any grid access.

current generation capacity is stranded as a result of the poor state of the transmission and distribution facilities. However, it is clear from the amount of power generated through alternative fossil fuel sources, that this may not be sufficient

through with the specific actions committed to, at the There is obviously a demand for power in Nigeria that must

summit.

be met! The question then is how, given our commitment to Nigeria is not left out. However, the question has always

climate change and cutting our contribution to global

been whether it is feasible to expect developing countries to

emissions?

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THE CASE FOR SOLAR ENERGY Nigeria is a gas enclave. There is an abundance of natural

CONSTRAINTS TO THE INTRODUCTION OF SOLAR IN NIGERIA

gas in the country with proven reserves only bettered by about 8 countries globally. It is therefore not surprising that

Pricing has primarily been the deal-breaker for these projects.

most of the additional grid power that has come on over the

However, pricing is driven by several components. The

last few years have been through gas fired plants. There is

question then is what can be done to reduce the overall cost

also the fact that there are several incentives that support the

of these projects from a Government perspective in order to

establishment of these plants in the country. Companies that

ensure that the promoters are able to supply the power at a

import gas turbines meant for power projects in the country

competitive price? Again, it is important to state here that the

today are exempted from paying Value Added Tax (VAT) at

drive towards a more sustainable energy mix can’t be driven

the port of entry into the country. They are also likely to get a

solely by cost to Government. Government should have an

5-year income tax holiday. The government has also in the

overarching objective to ensure that Nigeria as a country

past given sovereign guarantees which positively impacted

contributes its own quota to driving down emissions and this

the costs of funding for these projects, even though in recent

would involve some costs. It is also very important that

times, there is doubt as to whether they intend to continue to

developed

offer sovereign guarantees for any power project in Nigeria.

countries such as Nigeria to achieve their climate change

economies

continue

to

support

developing

targets. There is a saying in this part of the world that it is only Gas is also a lot cleaner than gasoline and diesel as a source

a man that is full that has the liberty of choices. Given the

of fuel, though it does not qualify as a renewable source of

epileptic state of the power sector in Nigeria, there is a

fuel. There is however no such concern about a source of fuel

likelihood that people will naturally be drawn to any source

that is also in abundance in Nigeria. Solar! Nigeria receives

provided

solar radiation of between 3.5 – 7.0 Kwh/m2/day depending

consideration for its long-term effect on the environment. It is

on which part of the country you are in, which can generate

therefore the responsibility of the Government to take steps to

about 420,000 Gwh annually in the country. This is

ensure that the sources that are available and affordable

equivalent to the energy derived from about a 280million

contribute to solving the power deficiency in the country and

barrels of oil annually. To put this in perspective, that’s about

at the same time our commitment to our environment and the

5-6 months of supply from Nigeria. It is therefore surprising

climate change conversation.

it

is

affordable

and

available

without

any

that the country does not currently have any solar plant in its grid energy mix. This cannot be sustainable if we are to meet our obligations under the COP26 agreement. There must be a deliberate attempt to encourage the introduction of solar energy into the grid energy mix. A few years ago, the Nigerian Bulk Electricity Trading Company (NBET) agreed on a framework Power Purchase Agreement (PPA) with a few promoters of solar energy to build solar plants which would add to the power in the grid energy mix. None of those plants have reached financial close years later and it is important to ask why and what can be done to drive that process further.

INCENTIVE OPTIONS TO DRIVE THE DEVELOPMENT OF SOLAR PROJECTS IN THE COUNTRY I have taken the liberty to provide the background above because it is very important to understand that the kind of support that would be required to encourage solar plant development in the country may have to be above and beyond what is available for gas-fired projects otherwise it may be impossible to engineer a significant shift in approach from promoters of new grid power projects in the country.

The Federal Ministry of Finance recently issued a VAT modification order which exempts renewable energy equipment from the application of VAT. This, therefore, means that this equipment can be brought into the country without payment of any VAT at the port of entry. This is like what obtains for gas-fired equipment today. This is a step in the right direction though there are still concerns as to how this would be implemented. Promoters have had issues with the authorities at the Ports in the past with respect to being able to claim incentives. The issues range from proper identification of the equipment as qualifying for the exemption or the form in which the equipment is imported into the country. It is therefore useful that practical steps are put in place to ensure that the promoters can take advantage of this incentive.

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Generation of power from renewable sources has also been

the source or type of guarantee or guarantor. It may be

added to the list of pioneer activities in the country meaning

necessary to provide an exemption to solar power projects

that players would be able to obtain a 5-income year tax

and promoters which would help in driving down the overall

holiday which again has always been available for promoters

cost of the projects.

of gas-fired plants in the country. However, there are concerns as to the practicality of this incentive. Power plant

There is also the issue of VAT on end-user tariff. VAT is

construction takes a bit of time which may range from

exempted along the value chain for grid power except at the

between a few months to years depending on the size of the

end-user phase. This is an additional cost to the end-user. It

plant. A significant amount of cost is incurred during this

may be useful to consider exempting end-users who receive

time which can only be recovered upon commencement of

power from promoters who source a portion of their supply

actual generation and sale of the power. Consequently, the

from solar plants. Distribution franchising is taking root in the

typical financial model of players in the industry would show

country now with several Distribution companies (Disco)

that they may not achieve any form of profitability for a fair

entering into agreements with promoters who take over a

few years. What use is an income tax holiday to a company

portion of their customer base. These franchises source their

when it does not have profits on which it is expected to pay

power from a mix of that supplied by the parent Disco

tax? You may therefore end up in a scenario where the initial

(obtained from the grid) and alternative sources built by

part of the 5-year holiday period is wasted as there are no or

them. The end-user, therefore, pays a blended tariff which is

insufficient profits to maximize the benefits. This situation is

usually higher than what is obtainable from the grid even

compounded by the fact that the current laws contain time

though they are guaranteed more reliable power and can do

limits within which you can apply for and obtain the holiday

away with the fossil fuel generators which is a good thing

so you are not at liberty to extend the period within which

when you consider our climate change commitments.

you can apply until you are certain of your profitability

However, in order to ensure that the alternative used by these

situation.

franchises are renewable and sustainable sources of power, we may consider granting VAT exemptions to the end-user

Also, gas fired plants have an alternative to the 5-year

which would help drive down the overall cost and encourage

holiday provided under what is popularly called the Pioneer

more people to take on the power.

status law in Nigeria as the Company’s Income Tax Act (CITA) provides a second option. This second option even

This exemption would also apply to the various companies

extends the incentives available to accelerated capital

providing “power as a service” through the exemption would

allowances which allow you to recover the cost of the plant

apply to only the portion generated from renewable energy

within a year after the end of the tax-free period rather than

sources.

the 4 years available to any other company operating in the country. This is in addition to additional investment allowances which do not reduce the value of the asset for capital allowance purposes. This is currently not available to solar plants which again would impact their competitiveness

CONCLUSION There must be a deliberate attempt to drive the introduction

as compared to gas-fired plants.

of renewable energy into our grid energy mix in Nigeria. The

It is therefore very important for Government to consider

the project may be the game-changer. Government must

introducing a similar incentive scheme for solar plants taking into consideration the peculiarity of the business model and the objective of driving investment in that sector as a basis for meeting our commitments under the COP26 agreements.

use of the right incentives which can drive down the cost of therefore seriously consider this. It is noteworthy that given our current state, we cannot afford to disincentivize any source

of

power.

However,

our

commitment

to

our

environment dictates that we cannot take a watching brief in this matter. We must act now!

The cost of funding is also an issue as Government appears to be unwilling to issue sovereign guarantees to any new power project. However, a case may be made for these sorts of projects given their strategic importance to not only the power but also the environmental situation. The issuance of these guarantees though comes with its own issues.

Power is an essential element of life, so while it is important to

Nigeria’s thin capitalization rules recognize any facility which

consider the impact of these

comes with a guarantee as a connected party loan which

generators on our environment, the

would be treated as though it were issued from the connected party. This would mean restrictions as to how much of the interest payable would be allowed for tax deduction purposes on an annual basis. It has been argued

focus for most individuals and businesses is primarily to ensure that

that loans guaranteed by Government should not be covered

they can at the least have access to

under this restriction, but the current wording of the law

power when required, at LEAST COST."

does not distinguish between

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GUEST COLUMN

WHAT ARE THE CURRENT SOLAR INSTALLATIONS IN EASTERN AFRICA IN 2021? WHAT IS THE

C

Commitment, Expansion, and Acceleration: these three words shed light on a dynamic period over the course of 2021 as the solar industry in East Africa continues to heat up.

My company, Ariya Finergy, which is an

industry leader in supplying and financing clean energy, storage, and power quality systems, has experienced firsthand the enthusiasm and support for going green and turning to clean energy like solar PV systems.

Troy Barrie Co-Founder and Chief Technology Officer, Ariya Finergy

Effectively integrating solar power into the power stabilization solution translates to reduced energy costs and an increase in the backup power duration. | AFRICA

Here in Kenya, where Ariya Finergy is based, power costs remain much higher per watt than surrounding neighbors in Uganda and Tanzania. Encouraging signs from the Kenyan government affirming its commitment for easier access to clean energy became reality when the government reinstated VAT exemptions on renewable energy products. Recent tenders released by the Kenya Pipeline Commission and Kenyatta University for the installation of solar plants at their respective sites highlight the continued shift toward solar. The Commercial and Industrial (C&I) sector which serves as the core client base for Ariya Finergy, can also take advantage of a manufacturer’s allowance of 50% in Year 1 and 25% in Year 2 and Year 3 of the total capital value of the system. These initiatives have a direct effect on making the investment in solar more possible which in turn is a win-win situation for everyone.

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Ariya Finergy proudly expanded its footprint to Uganda in 2021 signing a project totaling 2.2 MWp for a plastics manufacturer in Kampala, which has helped bring Ariya Finergy’s project total to over 10 MW across 36 systems (and counting!). Our services protect the environment and preserve our collective future by avoiding greenhouse gas emissions to limit global warming to 1.5°C. To date, Ariya Finergy has funded 5.9 GWhr of energy deployment which has mitigated 3.8 kt CO2. The entry into Uganda signals an exciting market opportunity as traditionally the C&I sector in Uganda appeared to be skeptical of the value and reliability of solar PV systems due to previous poor experiences with residential solar projects. Uganda offers additional investment incentives through carbon credits which the Ariya Finergy team is actively evaluating.

While there rightfully is a lot of optimism around solar and going green, there undoubtedly remain challenges. Covid-19 continues to adversely affect economies in the region and shipping/logistics challenges show little signs of slowing which will only fuel uncertainty going forward. So, what lies ahead in 2022? I’m a “glass-half-full” kind of guy, and I firmly believe that the solar industry will accelerate into different markets and new innovations will carry the enthusiasm forward.

At Ariya Finergy, we are busy finalizing our own power stabilization control unit that will go live in February 2022

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and will provide our client with a 650kVA backup power solution that can operate up to 6 hours during the daytime.

We are excited about this technology and ready to offer it to many large industrial clients as a way for them to boost productivity, decrease product losses and material waste which occur during power outages. Effectively integrating solar power into the power stabilization solution translates to reduced energy costs and an increase in the backup power duration. Additional exciting projects in our pipeline include a renewed interest in our floating solar solution for our agriculture clients which saves valuable land space, and our first solar thermal project using concentrated parabolic mirrors to create 160°C and 4bar steam will come online also in February at a power plant in Nairobi.

The clean energy revolution is here to stay, and I am truly eager for what the next year will bring!

The Commercial and Industrial (C&I) sector which serves as the core client base for Ariya Finergy, can also take advantage of a manufacturer’s allowance of 50% in Year 1 and 25% in Year 2 and Year 3 of the total capital value of the system."

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GUEST COLUMN

WHAT ARE THE CURRENT

SOLAR INSTALLATIONS IN WEST AFRICA IN 2021?

WHAT IS THE MARKET OUTLOOK FOR 2022?

Kolawole Akinboye Country Manager, Westa Solar Africa is experiencing an acute shortage in electricity, with growing demand and a shortfall in electricity supply expected throughout the next decade. This scarcity of sufficient and reliable electricity is severely constraining economic growth and development. In sub-Saharan Africa, four in every five companies face power cuts hindering development

and

competitivity.

Added

to

that,

rapid

urbanization and strong population growth will increase the necessity for reliable and sufficient power output. Demand for access to energy services is expected to grow by 40% in the next 20 years and population growth is already outpacing increase of energy supply.

Solar energy is a key energy source to meet the rapidly growing energy demand in Africa, which cannot be met by traditional sources alone. Its potential is extremely strong in Africa. This strong solar potential provides us with the opportunity to develop renewable energy projects that will boost the African energy/electricity supply, mitigate the damaging effects of fossil fuel, and generate compelling returns for investors.

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SOLAR IN THE COMMERCIAL AND INDUSTRIAL SPACE According to AFSIA report released in February 2021, more than 6,200 largescale, C&I and mini-grid project has been identified across the continent. Out of these 6,200, 2,400 are already in operation and are composed by C&I projects.

As the cost of investing in RE projects becomes more economically viable than fossil fuel projects and the need to transition becomes dire, development finance institutions, international banks, government agencies and private sector entities are putting in more money in the RE pool. World Bank recently announced its new $465 million fund to improve RE integration in West Africa. It has also approved $168 million financing towards Burkina Faso’s efforts to increase access to electricity in rural areas and support the country’s transition to clean energy.

While large scale solar projects have dominated the sector over the past few years, the commercial and industrial sector is booming and are now receiving a growing interest. Based on data collected by AFSIA, C&I could indeed represent 3040% of all solar capacities installed in the coming years. C&I catching the lion’s share of the number of solar projects in Africa is not a surprise though. There are a few reasons driving this.

POLICIES AND GOVERNMENT SUPPORT Under the leadership of the Economic Community of West African States (ECOWAS), all 15 countries in West Africa have developed National Renewable Energy Action Plans, with clear targets in terms of access and deploying renewable energy capacities by 2030.

In the UCL report on Off-Grid Energy and Economic Prosperity, the author stated that “To reach universal energy access, governments and partners must promote both supply and demand-side subsidies. The former is essential to support off-grid companies scale up operations and serve more difficult market segments, including in more remote areas.

The latter can help to close the affordability gap for the poorest customers.”

SOLAR MARKET OUTLOOK FOR 2022 Solar Energy is a key enabler to contribute to the energy transition of emerging markets and regions. PV additions in emerging markets could reach 207 GW of total installed capacity within 5 years - with the highest potential in South Asia (112 GW) and in the Middle East and Africa (51 GW). This offers a huge business opportunity for solar companies to export their know-how and scale up investments in these new markets. The C&I business will lead this growth into 2022 and

First, more and more C&I end-users are now fully understanding the benefits of going solar. C&I end-users are by nature more acquainted with financial models, costbenefit analysis, and long-term projections than residential end-users or public servants. While it may have taken them some time to trust the quality of solar solutions, most of the C&I community is now educated about the benefits of solar energy and wants to jump on the band wagon so they can enjoy cheaper and more reliable electricity to run their business. Secondly, until now, the wide majority of C&I projects had been delivered on a CAPEX basis, meaning that the end-user has had to pay the full amount upfront for the solar installation. This has definitely limited the number of projects that have been built so far as only a small percentage of companies possess the required cash to make such an upfront investment, literally to purchase 25-year worth of solar electricity in one go. Luckily, the international investment community has understood the opportunity as well and has developed a growing appetite for investments in C&I projects in Africa. Companies like Westa Solar, a collaboration between RP Global and Oolu Solar, are leading this charge and are driving investment into solar C&I projects in West Africa. Examples of projects that have proved viable in Nigeria include the Petrichor 500kWP diesel-hybrid C&I installation which is a full PPA project that is operational and delivering immense value to the client.

(https://www.africanreview.com/energy-apower/renewables/rp-global-and-oolu-solar-to-launchwesta-solar-in-west-africa)

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beyond and companies like Westa Solar would be fully involved in making this happen.

World Bank recently announced its new $465 million fund to improve RE integration in West Africa. It has also approved $168 million financing towards Burkina Faso’s efforts to increase access to electricity in rural areas and support the country’s transition to clean energy. "

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AFRICA

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