Power Africa Supports the First Energy Sector Public-Private Partnership in the Central African Republic
The Central African Republic (CAR) is a landlocked country with abundant renewable energy resources, including hydro and solar power.
However, less than 16 percent of its 6.1 million people have access to electricity. Access to electricity in the Central African Republic varies from 35 percent in urban areas to 1.6 percent in rural areas.
While electricity demand is estimated at 65 megawatts (MW), the country’s installed electricity capacity is roughly 57 MW, of which only 42.9 MW is available, resulting in frequent load shedding and blackouts.
The state-owned utility, Société Nationale d’Energie Centrafricaine (ENERCA), faces technical inefficiencies. Commercial inefficiencies, such as low tariffs, also pose challenges.
These and other obstacles prevent advancement and private investment in the electricity sector.
Catalyzing Public-Private Partnerships
Power Africa promotes a public-private partnership model to advance critical infrastructure projects. These partnerships between independent power producers and utilities leverage private sector resources and expertise, bringing much-needed generation to the utility for onward sale to customers.
In March 2024, Power Africa assisted the Government of CAR and the Norwegian company Kube Energy to formalize a public-private partnership that will develop two solar power plants in CAR.
Based on an agreement signed in 2022, Kube Energy will build solar projects in the regional capitals of Bria and Bouar. The 2.75 MW Bria project will connect public institutions, households, and small and medium-sized enterprises, while the 3 MW Bouar project will provide additional capacity to the national utility as it seeks to meet unserved demand in the region and to connect more homes to the national grid.
The combined 5.75 MW in power supply will significantly improve livelihoods in the two regions. Additionally, if this transaction can become the first viable energy sector public-private partnership in the country, its success should open the door to other independent power producers looking to enter the CAR market.
Power Africa support included providing concession agreements and power purchase agreements for the Bria and Bouar transactions. Power Africa also conducted two trainings for the Government of CAR and the utility on project bankability, risk, and the legal intricacies of the documents involved. Several national energy entities participated in the training, including representatives from ENERCA, Cellule de Coordination du Programme de l’Electrification Rurale , and Agence Autonome de Régulation du Secteur de l’Electricité.
Public-private partnerships are essential to drive growth and innovation. The first such public-private partnership in the Central African Republic is setting the stage for others to follow, creating a domino effect of positive change.
