Deregulation in the African Power Sector: Opportunities, Progress, and Collaboration

Paul van Zijl, in his capacity as Group CEO at Starsight Energy, has underscored the significant opportunities emerging from the deregulation of the power sector in pivotal markets across Africa.

He has emphasized that properly executed deregulation holds the potential to cultivate an efficient, sustainable, and competitive ecosystem for renewable energy within individual countries.

This transition towards deregulation is already underway in various African nations, particularly within sub-Saharan Africa. Here, Independent Power Producers (IPPs) are collaborating closely with local regulators and stakeholders to optimize natural resources for energy production.

The advantages of deregulation remain consistent across diverse countries, encompassing the revitalization of the power sector, expanded opportunities for IPPs, heightened investment in local energy infrastructure, and enhanced accessibility to electricity and renewable energy at competitive pricing for consumers.

Noteworthy instances of this trend include Nigeria’s legislative strides towards deregulation through the Electricity Act of 2023, Kenya’s implementation of Open Access regulations, and South Africa’s innovative approaches such as self-generation and electricity wheeling.

These advancements not only bolster generation capacity but also foster collaboration between private and public entities. For instance, in South Africa, the emergence of utility-scale solar farms and investments in low-carbon transition projects exemplify the positive effects of deregulation.

Furthermore, IPPs are playing a pivotal role in bolstering the national grid by establishing main transmission substations and deploying utility-scale battery storage systems to enhance energy reliability.

Companies like Starsight Energy, SolarAfrica, and Starsight Premier Energy Group are actively involved in shaping the evolving energy landscapes of Nigeria, Kenya, and South Africa through collaboration with regulators, stakeholders, and industry participants.

The overarching objective is to establish deregulated markets that serve the best interests of end consumers, propel economic growth, and foster synergies between private and public sectors.

The transformative impact of deregulation is poised to persist, with a concerted focus on expediting progress in key markets across the African continent

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