Gaia Energy Platform Africa

The african power market

Africa’s electricity sector presents large investment opportunities for Independent Power Producers

The current level of access to electricity is remarkably low

Energy consumption in SSA is 3.5x lower than in MENA (exc. High-income countries) and 6.5x lower than the world average.
640 million people lack access to electricity on the continent.
Electricity blackouts occur on a daily basis in many African countries.
Africa faces a unique opportunity as nearly two-thirds of the additional capacity needed in 2030 is yet to be built.

Urbanization and economic growth are driving demand for power

Many African countries such as Ivory Coast, Kenya, Ethiopia and Tanzania have sustained growth rates mostly above 5% p.a. before the covid-19.
The IMF forecasts an average growth rate of 4.3% p.a. in Africa over the 2021-2026 period.
Increased economic activity, fast urbanization, emerging industrial and mining sectors and a growing middle class are driving demand for power.

Significant generation capacity is expected to be added in the next decade

The AfDB is promoting an ambitious goal of achieving universal access to electricity by 2025 by adding 160 GW of on-grid generation.
IRENA estimates that Africa’s installed capacity in 2030 will range between 390 and 620 GW
With IPPs already representing a significant share of capacity (~25% in SSA, mostly in fossil-fuel plants), the development of Africa’s power sector will bring sizable investment opportunities for private developers.

The african power market

Renewables, wind in particular, will capture an important share of additional generation capacity in Africa

Renewables are expected to represent 30% to 60% of installed capacity by 2030

Based on least-cost capacity expansion models, IRENA issued a prospective report in 2015 that estimates the share of RE in Africa’s capacity mix depending on various assumptions.
According to these estimates, RE (excluding large hydro) will reach at least 41 GW in the most conservative scenario, and up to 283 GW under the most favorable conditions for RE development.

The continuing decline in renewable costs is making them even more competitive

The total installed costs for wind projects in Africa declined by 14.8% between 2010 and 2019.
The Levelized Cost of Energy “LCOE” declined by 33% over the same period, reaching an average of USD 6.7cents, with some projects falling to USD 5 cents.
This trend is bound to continue based on recent auction prices and is making onshore wind more competitive than fossil-fuel alternatives in many African countries.

Installed wind capacity in Africa has started taking off

Installed wind capacity in Africa has increased ten-fold in the last decade, mainly driven by South Africa and North Africa, which added over 2,000 MW each.
Installed wind capacity for Africa, with the exception of South Africa, grew at an average of 16% p.a.. In 2020, the installed wind capacity for North Africa and Rest of Africa reached 3,844MW.
This growth is bound to accelerate as prices reach the tipping point where wind becomes cheaper than fossil-fuel alternatives in many countries.

CORPORATE STRATEGY

Focus on Gaia Energy Platform Africa « GEPA » Strategy
GEPA has a value-driven project development strategy

Early mover advantage and long-term value creation

Flexible pipeline allocation

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Gaia Energy offers a compelling opportunity to invest in Africa’s promising renewable energy market

The market potential for wind in Africa is substantial

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Gaia Energy, a pioneering RE-developer in Africa present in 12 countries

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Gaia Energy provides RE development, reliable investments and specific services covering the whole life cycle of a project in wind and solar PV power plant up to financial close