Investment in small hydro power projects in Africa will increase if tariff and non-tariff barriers are removed.
This according to renown hydro power consultant with the Investment Climate Facility for Africa (ICF) Leonard Kassana will boost investor confidence.
Following a feasibility study for small hydropower projects (SHPs) with the Greening the Tea Industry in East Africa Project in Kenya, Uganda, Tanzania, Rwanda and Malawi, Mr Kassana says feed-in tariffs should be attractive for developers and business licenses and environmental impact assessment (EIA) authorizations should be streamlined.
The findings are contained in a report on feasibility studies conducted on eight small hydropower sites in the 5 countries.
"Three small hydropower plants are in an advanced stage for implementation. Financial closures, tendering and construction contracts are being finalized for 2.8 MW Gura SHP (Kenya), 0.85 MW Tagabi (Kenya), 4.5 MW Giciye SHP (Rwanda)," says Kassana.
"Technical capacity building is a key in SHP development and this was an important component", he adds.
"In all these sites, local tea companies are investing in the SHPs development showing that confidence for investors is established and investment in SHP increased in the region. By carrying out these feasibility studies, technical capacity for local consulting firms in the region was enhanced as local firms from Kenya, Uganda, Tanzania, Rwanda and Malawi were involved."
Kassana describes hydropower as "a mature technology".
"This continent has abundant hydropower resources of around 100GW and countries are realising this great opportunity to increase the energy uptake by resorting to hydropower resources which are cheaper, greener and no match to other energy sources," he says.
Kassana is one of many leading experts who will discuss the future of hydropower electricity generation in Africa during Hydropower Africa 2010 in August in Johannesburg, the only hydropower conference and exhibition on the continent where all the major stakeholders gather.
The keynote address will be by South African Energy minister Elizabeth Dipuo Peters.
