Africa Smart Grid Network Market- Growth, Trends, and Forecast (2020-2025)

The market for smart grid network in Africa is expected to grow at CAGR of more than 3% in the forecast period of 2020-2025. Factors such as increasing investment and deployment of smart grid technologies such as smart meters, intelligent transmission lines, and other associated smart grid infrastructure technologies are expected to drive the market in the coming years. Also, to improve the collection of revenue for electricity and to address electricity theft in low-income areas, the demand for smart grid network is expected to grow. However, the problem of low accessibility to power in underdeveloped nations across Africa and especially in Sub Saharan Africa and weak government regulations and initiatives to expand and modernize the grid infrastructure are expected to limit the growth of the market studied.

Advanced Metering Structure is expected to drive the smart grid network significantly, providing monitoring of bi-directional flow of electricity, owing to increasing grid development.

In 2018, with more than 645 million people without electricity, there is a robust demand for electrifying houses in the region. A smart grid network being more advantageous is expected to develop at large-scale creating market opportunities for concerned market players.

South Africa is aiming to develop and renovate its aging grid infrastructure. To meet the growing electricity demand, The South African National Energy Development Institute (SANEDI) updated the South African Smart Grid Initiative in 2017, aiming for smart electrification of the region.

Key Market Trends

Advanced Metering Infrastructure to Witness a Significant Growth

• Advanced metering infrastructure (AMI) or smart metering is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers.
• It is estimated up to USD 141 billion will be invested in Sub-Saharan Africa’s power sector between 2019–2028, which will be driving the installation of smart meters at a large scale.
• According to a report in 2018, Middle East & North Africa Region Forecast to Invest USD 17.6 billion in Smart Grid Infrastructure, which, in turn, will drive the smart meter market.
• Africa has witnessed significant growth in electricity production until 2018, which is expected to grow in the forecast period. With 767 TWh in 2014 to 853 TWh in 2018, electricity production has increased the demand for smart grid and smart meters as well.
• With the increasing efforts to modernize the electricity grid and reduce transmission and distribution losses, governments across Africa are investing in advance metering infrastructure. This, in turn, is expected to drive the AMI market during the forecast period.

South African Smart Grid Vision and Deployment of Renewable Energy to Drive the Market

• South Africa introduced a Smart grid vision in 2012, later revised it in 2017, to define a standard national blueprint for the Smart Grid before industry stakeholders and participants commit to an investment program of this magnitude and complexity.
• South African National Energy Development Institution is a separate body working with industry to provide policy inputs, address the gaps in standards, and the deployment and application of technology in smart grid deployment.
• During 20117-2018, South Africa and the European Union established a dialogue facility project in the review of the existing Smart Grid Vision document, consultative workshops, and a study tour to experience first-hand integrated deployments of smart grids within distribution networks.
• With the development of variable renewable energy sources like wind and solar with a capacity of more than 1700 MW in 2014 and 5000 MW by the end of 2018, the demand for the smart grid has increased. With further renewable growth in the forecast period, the market is expected to grow significantly.
• The aim of the South African government to electrify by 2030 entirely, and with the above mentioned initiatives, the market is expected to grow considerably.

Competitive Landscape

The Africa smart grid network is moderately consolidated. The major companies include General Electric Company, ABB Ltd, Eskom Holdings SOC Ltd, South African National Energy Development Institution, Honeywell International Inc, and others.

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