Monday, April 20, 2026
29.4 C
Lagos

PwC: Universal Access to Electricity Impossible with Current Off-grid

PC report says new renewable off-grid technologies, in combination with innovative business models and mobile payment systems hold the key to rural electrification.

· New approaches to beyond the grid electrification need to be adapted to achieve the UN 2030 target of electricity for all.

· Policymakers need to get out of a top-down mindset and support the role that a range of renewable energy off-grid technologies and new business models can play.

· Advanced renewable technologies and storage solutions could also threaten the existing business models of power utilities across the African continent in the future.

Energy transformation means the time is right for policymakers to reappraise their approach to energy access, according to a new report from PwC.

On current trends(1), two-thirds of the world’s population will remain without electricity by 2030, which is the target year to achieve the newly agreed post-2015 UN Sustainable Development Goal of universal access to energy. The PwC report -Electricity beyond the grid: accelerating access to sustainable power for all – says a new approach is needed that better recognises the part that off-grid technology can play.

John Gibbs, Africa Deals Power & Utility Lead, PwC, said: “For the millions of people who don’t currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities. 634 million people without electricity are in Africa. Faster progress is needed, and we believe it can be achieved if national energy policies adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by standalone renewable technology and mini-grids.”

Current electrification strategies tend to focus on national grid extension plans. Instead, Georg Baecker, Senior Manager and Energy Policy and Regulation expert, PwC said:

“Policymakers need to embrace the new renewable off-grid technologies and innovative business models. The combination of centralised top-down grid extension with decentralised demand-driven bottom-up strategies, in the form of mini grids and especially standalone solutions, will speed up the increase in electrification levels.”

The report foresees a major transformation of the electricity sector in the period ahead. Angeli Hoekstra, Power & Utility Specialist for PwC Africa, pointed out: “

‘All or nothing’ approaches that focus primarily on the national grid are increasingly out of step to what is now possible in power technology. Advances in technology are rapidly changing the options available beyond the grid. Falling solar technology costs have spurred the growth of standalone home systems and are changing the economics of mini-grid systems. Battery storage technology is fast evolving to the point where it is going to play a significant role in utility-scale solar power storage and is beginning to feature in smaller-scale off-grid solutions. Together with access to mobile technology and mobile payment systems for microloans, a new era has arrived for beyond the grid electrification.”

The PwC report sets out five recommendations for accelerating the increase of electrification:

1. Develop an integrated energy access plan and map – so that everyone can plan with more certainty for either off-grid or grid extension solutions.

2. Create an enabling environment for off-grid development – including clearer criteria for mini-grid development, support for skills and training and more supportive regulation to allow private players to unlock the off-grid market potential.

3. Recognise the value of and promote the growth of mobile infrastructure, microloans and payment solutions in supporting energy access – mobile infrastructure is proving crucial in the take-up of standalone home systems, giving providers a low-cost channel for customer relations and an ability to automatically manage non-payment.

4. Establish an off-grid innovation and development fund – a highly visible development and innovation fund can play an important part in spurring off-grid growth in each country.

5. Have a high-level energy access champion that can drive results – to cut through bottlenecks and monitor results.
Based on the technological advances in off-grid systems and battery storage, a decrease in their prices and an increase in energy efficient appliances, Hoekstra also says that there will be a real future threat for the current established integrated Power Utilities, especially the ones without a reliable supply of electricity. They will need to adapt their business models or due to an increase in embedded generation and subsequent customers going off-grid, they will face a major challenge ahead in their future sustainability.

spot_img
spot_img
spot_img

Hot this week

Bank of Industry Signs Strategic Partnership with RMRDC to Foster Agric Value-Chain Growth

Managing Director and Chief Executive Officer of the Bank...

CBN, FMDA Unveil Nigerian Overnight Financing Rate as New Money Market Benchmark

The Central Bank of Nigeria (CBN), in collaboration with...

Mutual Benefits Customer to Nigerians: Embrace Insurance Because it Works

A customer of Mutual Benefits Assurance Plc, Mr. Abdelhamid...

Guinness Nigeria: N1tn Market Capitalisation Signals Strong Investor Confidence, Sustained Value Creation

Guinness Nigeria Plc has achieved a landmark milestone, surpassing...

Stanbic IBTC Asset Management Bags Top Asset Management Award 2026 by Global Banking & Finance Review

In a noteworthy achievement in Nigeria's asset management landscape,...

Topics

WorldStage Economic Summit 2016 to Address Unemployment Challenge

With a total of 22.4 million Nigerians unemployed or...

Headline Inflation Rate Declines to 11.23% in June

The National Bureau of Statistics (NBS) has released its...

DPI, Verod Capital Backs Pan African Towers, a Leading Nigerian Digital Infrastructure Provider

Azeez Amida CEO of Pan African Towers Pan African Towers (PAT),...

‘SMEs Must Reinvent to Remain Competitive’ – Heritage Bank CEO, Sekibo

  Mr. Ifie Sekibo Managing Director/CEO Heritage Bank Limited Mr. Ifie Sekibo, Managing...

Tinubu to Governors: Remember the Poor, Empower the Under-privileged

President Bola Tinubu, on Monday in Abuja, urged Muslim...

Nigeria, 9 Others Account for 92% of Insurance Premium in Africa

A panel report from the 43rd African Insurance Organisation...

2019 Africa Visa Openness Index: AU, AfDB Reports Improved Visa Regime in Africa

For the first time, African travellers have liberal access...
spot_img

Related Articles

Popular Categories

spot_imgspot_img