Off-grid power generation networks are gradually being embraced across Africa as a way to help connect some of the estimated 625-million people on the continent who remain without access to modern energy services.

GIBB power and energy services GM Paul Fitzsimons noted during a recent briefing that the industry was moving away from the traditional centrally driven and -controlled power generation model to minigrids that are driven by smaller-scale off-grid embedded renewable generation technologies.

However, he warned of a “utility death spiral”, which occurred when additional distributed generation made the grid more expensive for the remaining consumers of grid electricity when consumption declined, in the process making self-generation more economically attractive.

“Notwithstanding that, within South Africa, [but more so in the rest of] Africa, access to affordable power still remains a major issue for the economic wellbeing of the continent,” Fitzsimons noted.

While about 85% of South Africa’s population has access to energy, GIBB sustainability consultant Louwrens van der Merwe warned that, should Africa not address the energy crisis, the continent could “miss out on the Fourth Industrial Revolution.”

Fitzsimons, meanwhile, noted that solar power was becoming an energy source of choice, with solar power expected to reach 1 GW of installed power in Africa within the next five years.

While this is a huge increase, about 80% of the African population will still remain without access to electricity, as the continent is still largely dependent on biomass energy, which presents an environmental challenge.

“Carbon dioxide (CO2) emissions are increasing in Africa, which leads to environmental degradation,” he noted at the roundtable discussion, explaining CO2 these and methane emissions could be reduced through the implementation of solar and renewable power generation.

This would improve social and economic values, as access to energy would lead to improvements in educational performance, while also increasing supply to vital institutions, such as hospitals.

Meanwhile, affordability still remained an issue, with the reliability of existing grid providers remaining in question.

eCubed director Tony Manavalan, however, enthused that the impact of blockchain and energy trading could improve affordability within the sector.

Blockchain technology and energy trading, he explained, used a decentralised and distributed digital ledger to record transactions across many computers so that the record could not be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.