Africa's clean energy plans open opportunities for Chinese companies

Though Africa's clean energy market faces roadblocks, such as insufficient infrastructure and financing channels, the continent is a gold mine for many Chinese companies due to its abundant solar and nuclear resources.

"It's clear that African countries will need to promote clean technologies, given the continent's huge resources in solar, wind and nuclear industries, to feed its energy demand," said Li Zhibiao, a researcher at the Chinese Academy of Social Sciences' Institute of West Asian and African Studies. "Right now, Africa's per capita energy consumption cannot keep up with the countries' economic growth."

A report from the European Commission's Institute for Energy said a mere 0.3 percent of the sunlight in the Sahara and Middle Eastern deserts could produce enough electricity to meet all of Europe's energy demand.

Yet, solar energy provided only about 1.5 gigawatts in Africa this year - with South Africa being the continent's largest solar market - which leaves huge market potential for growth.

Massive clean energy plans are on the way, as more than $500 billion is likely to be put into the energy market and electric utility infrastructure amid rapid urbanization, experts said.

In July, South Africa offered the largest tender in the country's history, an estimated $80 billion contract to build six to eight nuclear reactors by around 2030, attracting the interest of State Power Investment Corp and China National Nuclear Corp.

China and Africa are looking at agreements covering the supply of nuclear energy products, infrastructure funding, supplier development and localization, as well as skills development, according to the Ministry of Commerce.

Last year, State Power Investment Corp signed a skills development and training agreement with the Nuclear Energy Corp of South Africa to create opportunities for young South Africans to further their studies in nuclear energy and other specialized areas of energy at Chinese universities, with up to 95 percent funded by Chinese institutions.

But Chinese nuclear companies are expecting more from the cooperation, hoping to leverage their domestic nuclear experience to export nuclear technologies.

Wang Binghua, chairman of State Power Investment Corp, has said that South Africa is interested in the third-generation nuclear power technology known as CAP1400, which is under Chinese patent.

The technology is based on that used in the AP 1000 reactor of Westinghouse, the US nuclear group now owned by Toshiba in Japan.

At the same time, more opportunities also exist in Africa's solar industry.

Li Xiande, the chairman of JinkoSolar, a major Chinese solar panel maker, said Africa will need to add about 1 to 1.5 GW of solar installation annually to fulfill energy plans that countries on the continent have made in recent years.

The company has built solar plants in countries including South Africa and is bidding on projects in Morocco and Egypt.

"We are targeting markets in Africa with relatively mature infrastructure and good social and political stability because of lower risk and cost," he said.

lvchang@chinadaily.com.cn

(China Daily 12/03/2015 page3)