Renewable energy auctions in sub‐Saharan Africa: Comparing the South African, Ugandan, and Zambian Programs

Abstract

Sub‐Saharan Africa desperately needs more electricity. Recent years have seen private investment in renewable energy projects breaking through in the region, primarily driven by well‐designed and implemented auction programs. We review three renewable energy auction programs in the region to improve our understanding of the auction design and implementation elements that have enabled this important transition: the South African Renewable Energy Independent Power Producers Procurement Program (REIPPPP); the GET FiT solar facility in Uganda; and the first round of the Scaling Solar program in Zambia. Our analysis shows that a well‐designed and implemented program that adequately deals with risks for both the procuring authorities and investors is able to deliver good investment and price outcomes in sub‐Saharan Africa. This article is categorized under: Photovoltaics > Climate and Environment Energy Policy and Planning > Climate and Environment Photovoltaics > Economics and Policy Energy Policy and Planning > Economics and Policy