JOHANNESBURG, March 27– African governments should take a more proactive role in reducing risks associated with renewable energy projects in rural communities, while creating conditions that enable developers to scale up investment, an industry executive said.
“Without deliberate state intervention, the current model for rural electrification risks falling short,” said Daniel Maduagwu, chief executive officer of 3KM Energy Systems Limited, a leading solar energy company based in Nigeria.
Speaking to Xinhua at the Solar and Storage Live Africa conference, which concluded Friday in Johannesburg, Maduagwu said that although private developers have driven much of the growth in decentralized energy systems, significant barriers persist.
“The financial risks and high capital costs continue to limit expansion into underserved, remote areas,” he said. Mini-grids, widely seen as the most viable solution for off-grid regions, remain expensive to build and maintain.
“These costs are often transferred to end users,” Maduagwu explained. “Putting electricity out of reach for many rural households.”
He said that governments should go beyond policy frameworks and take a more hands-on approach to ensure projects reach remote areas.
This includes targeted subsidies for rural consumers, as well as grants, tax incentives, and duty-free importation of renewable energy equipment to ease the burden on developers.
Such interventions could lower project risks and costs, unlock greater private sector participation, and accelerate deployment in underserved communities, he said. (Namibia Daily News / Xinhua)
