Energy security is a complex and evolving concept that is receiving monumental backlog in infrastructure development and investment paralysis. There is a failure of these deep issues to be addressed directly through clear policy, and/or definitive legislation and regulation to implement the policy.
Energy security, particularly that of electricity supply, is central to empowering economic development in the region. Despite being endowed with significant reserves of coal, oil and natural gas, only 39 million of the region’s 170 million people 1 have access to electricity, which is generated mainly from thermal and hydroelectric resources. This reflects the imbalance of supply and demand and therefore curtails the potential for economic development. IPPs, though, align very well with the national energy security agenda and are a definite solution to meeting Africa’s growing electricity needs. By empowering and allowing for fair legislation to prevail for IPPs, we will be able to reap the multiple benefits, i.e diversifying both the supply and nature of energy production, introducing of new skills and in new investment into the industry, and benchmarking of performance and pricing.