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Published Date: 2017-01-30Number of Pages: 78

Small Hydropower Market - Africa Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024

Africa Small Hydropower Market: Snapshot

One of the key factors currently driving the Africa small hydropower market is the low requirement of capital investments to get projects set up. Players as well as governments are aware of this and intend to make full use of the fact that small hydropower can be cheaper than several other alternative renewables in the long run. The market is also being driven by the minimal impact that small hydropower installations can have on the environment, in comparison to non-renewable sources as well as several large scale renewable power projects. However, the Africa small hydropower market is currently being hampered by the lack of access that several regions have to the key technologies required to successfully run a large-scale implementation process. The market is also being restricted by the lack of grid-based infrastructure that can support and make use of multiple small hydropower installations within an area.

In terms of production capacity, the African Small Hydropower market had reached 9,752.9 MW in 2015. It is very likely to reach 49,706.1 MW by the end of 2024, after expanding at a CAGR of 19.2% within the forecast period from 2016 to 2024.

africa small hydropower market

North and South African Countries Dominate Small Hydropower Usage

In terms of nations, the Africa small hydropower market can be segmented into Zambia, Morocco, South Africa, Tanzania, Nigeria, Ghana, and a collective minority of other nations. For 2015, it was observed that the southern and northern African nations held the leading shares in the Africa small hydropower market in terms of potential capacity for power generation. Emerging economies from Eastern Africa, Central Africa, and Western Africa are likely to be the core upcoming markets for small hydropower over the coming years.

The significant expansion of hydropower and the increasing emphasis put on hydroelectricity in developing regions are anticipated to be key drivers to the Africa small hydropower market. The future for small hydropower in Africa is expected to witness two tracks running in parallel to each other. One of them is the number of grid-connected projects that are popping up and that are intended to generate power to be fed into the national grid. The other is the growing number of small scale systems intended for private use. The future of grid-tied systems is linked to the policies adopted by several nations regarding the development of renewable energy sources.

Zambia and Ghana Show High Potential for Small Hydropower Adoption

In terms of potential growth in the Africa small hydropower market in production capacities, Zambia is likely to show an above-average CAGR of 20% within the forecast period from 2016 to 2024. This is currently considered the leading growth rate amongst all the African countries included in the Africa small hydropower market and under consideration within this report.

Ghana is expected to have a very strong impact on the increase in the overall capacity for the forecast period of 2015-2024. Ghana’s share of potential capacity for the year 2024 is expected to be close to 10% of the entire potential capacity for Africa. Small hydro plants have a longer life span of up to 50 years which makes it reliable and economical source of energy conversion. Small hydro has high capacity utilization factor up to 50% which results in higher output as compared to wind and solar power which accounts for 25% and 20% respectively. Small hydro plant can be operated continuously at any temperature and wind condition which makes it economical and flexible.

Key players in the global small hydropower market so far, have included Mecamidi, Africa Infrastructure Investment Managers (AIIM), Eco Power Holdings, Artelia, Lesotho Electricity Company, Agder Energi AS, Ontario Power Generation, Inc., Voith GmbH, Alstom SA, Andritz, Siemens AG, Eskom Holdings, BC Hydro and Power Authority, StatKraft AS, RusHydro PJSC, ZESCO Ltd., Fortum OYJ, and Mozambique Electricity Company.

Africa Small Hydropower Market: Overview

Small hydropower (<10 MW) as compared to hydropower in Africa is an increasingly attractive solution in the countries of Africa. Renewable energy is developing at a rapid pace and hydropower remains the most explored and primary source of clean energy. Small hydropower converts the energy of the flowing water into electricity by using a turbine coupled to a generator. It has high capacity utilization and plant availability factor which results in maximum availability of plant for generation. Majorly, the run of river and already existing water infrastructure are considered which contributes to the generation of small hydro plants. Hydroelectric energy is the cleanest form of renewable generation as it does not releases any harmful gases, carbon dioxide and other pollutant which directly or indirectly affects the environment. The plants are generally off grid and is widely used in rural areas where there is no electricity supply. It has no fuel cost and low operational and maintenance cost makes it one of the cheapest source of energy. Small hydro plants has the efficiency over 90% which makes it most efficient and favorable energy among the other renewable sources.

The lifespan of small hydropower plants are more as compared to larger hydropower plants. Generally the life span is up-to 50 years and this make it a reliable and economical source of energy conversion. Small hydro has high capacity utilization factor up to 50% which results in higher output as compared to wind and solar power which accounts for 25% and 20% respectively. Small hydro plant can be operated continuously at any temperature and wind condition which makes it economical and flexible.

Africa Small Hydropower Market: Scope of the Study

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Combination of top down and bottom up approach has been used to estimate market size. Some of the underlying estimation factors such as the number of small hydro plants, potential sites, and capacities (installed and potential) have also been measured. Impact of increasing installation of renewable energy capacity was also considered while drawing trends and forecasts for each regional market. Primary research represented the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, SEC filings, Smallhydroworld.org, hydroworld.com, small-hydro.com, World Bank Reports and International Energy Agency (IEA), World Small Hydropower Development, United Nations Industrial Development Organization (UNIDO), International Renewable Energy Agency (IRENA), Industrial Center on Small Hydropower Plants (ICSHP), Ministry of Water Resources (MWR), China and regulatory databases such as ICIS, Hoover’s, oneSOURCE, Factiva and Bloomberg, national government documents, statistical databases, market reports, news articles, press releases and webcasts specific to companies operating in the small hydropower market.

Africa Small Hydropower Market: Competitive Analysis

We conduct primary interviews on an ongoing basis with industry participants and commentators to validate data and analysis. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.

The report comprises profiles of major companies operating in the African Small Hydropower Market. Key players in the Small Hydropower Market are and not limited to Mecamidi, Africa Infrastructure Investment Managers (AIIM), Eco Power Holdings, Artelia, Lesotho Electricity Company, Agder Energi AS, Ontario Power Generation, Inc., Voith GmbH, Alstom SA, Andritz, Siemens AG, Eskom Holdings, BC Hydro and Power Authority, StatKraft AS, RusHydro PJSC, Fortum OYJ, ZESCO Ltd., Mozambique Electricity Company. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The Small Hydropower Market for Africa has been segmented as follows:

Africa Small Hydropower Market: Country Analysis

  • Ghana
  • Nigeria
  • Tanzania
  • South Africa
  • Morocco
  • Zambia
  • Rest of Africa


 
 
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