Africa Doubles New Hydropower Capacity as Funding Risks Remain

(Bloomberg) -- Africa doubled new hydropower capacity last year, adding 4.5 gigawatts of generation from the technology even as funding challenges limit faster growth.

Tanzania’s Julius Nyerere Hydropower Project was the biggest addition on the continent with capacity of 2,115 megawatts — outranked only by facilities in China globally, according to a report published by the International Hydropower Association on Wednesday. Ethiopia followed Tanzania with 1,200 megawatts starting at its Grand Ethiopian Renaissance Dam, the lobby group said.

The technology provides 20% of the continent’s electricity, it said. 

Africa has realized 11% of its technical potential for hydropower, according to the association. About 63 gigawatts of approved projects have stalled because of a lack of funding. 

“Although over the long term, most of these projects start paying back very well, they are difficult in terms of investing in over the short-term,” IHA Chief Executive Officer Eddie Rich said in an interview. That’s the challenge that “development agencies and governments try to bridge,” he said.

The continent is also looking to increase the reliability of existing hydropower projects that need to be upgraded, with about half its assets more than 30 years old, according to the African Development Bank.  

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