This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
The Guinean government has announced a long-term energy strategy focusing on renewable sources of electricity including solar and hydroelectric as a way to promote environmentally friendly development, to reduce budget reliance on imported fuel, and to take advantage of Guinea’s abundant water resources. The Kaleta dam, which came online in 2015, is the first step in this strategy that includes restructuring Guinea’s electricity parastatal and new power lines connecting Guinea to its neighbors. The 450MW Souapiti dam has effectively doubled the amount of power available. Distribution and transmission remain a challenge, but if solved, could allow Guinea to export power to neighboring countries, which is the government’s plan. If mining firms begin processing more bauxite within Guinea, the power requirements might alter the economics of exporting electricity to neighboring countries. Guinean authorities do not keep statistics on renewable energy as a discrete sector. The Guinean government had been bullish on building on Guinea’s power generating capacity from thermal sources, signing conventions with two U.S. firms in 2016; however its strategy since then has shifted toward renewables.
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Leading Sub-Sectors
Guinea’s rivers show great potential for hydroelectric power. Three of the most important rivers in West Africa, the Niger, Senegal, and the Gambia, as well as many smaller ones, originate in Guinea. With an average of 150 inches of rain per year, Guinea is often referred to as the “water tower of West Africa.” Guinea’s hydropower potential is estimated at over 6,000MW, making it a potential exporter of power to neighboring countries. The largest energy sector investment in Guinea is the 450MW Souapiti dam project (valued at USD 2.1 billion), begun in late 2015 with Chinese investment. A Chinese firm likewise completed the 240MW Kaleta Dam (valued at USD 526 million) in May 2015. Kaleta more than doubled Guinea’s electricity supply, and for the first-time furnished Conakry with more reliable, albeit seasonal, electricity (May-November). Souapiti began producing electricity in 2021. A third hydroelectric dam on the same river, dubbed Amaria, began construction in January 2019 and is expected to be operational in 2024. The Chinese mining firm TBEA is providing financing for the Amaria power plant (300 MW, USD 1.2 billion investment). If corresponding distribution infrastructure is built, and pricing enables it, these projects could make Guinea an energy exporter in West Africa. Smaller dams include Fomi (90 MW), Digan (93 MW), Diareguela (72 MW), Fello Soungan (53 MW), Gozoguezia (48 MW), and N’Zebela (20 MW). Guinea’s energy mix by 2025 will be dominated by hydropower, which would account for over 80 percent of the total installed capacity, should these planned investments be realized. Solar power is also growing in popularity for both corporate and residential use. The government’s energy strategy calls for increased installation of commercial scale solar and other renewables to diversify Guinea’s power generation infrastructure.
Opportunities
In addition to ongoing demand from the government for the installation of new renewable generation capacity, the government is also aiming to increase the number of grid connections to both major population centers and neighboring countries. As Guinea’s National Electric Company (Electricite de Guinée (EDG)) hires new management and aims to increase profitability and reliability, there will likely be opportunities to provide services and equipment related to customer and grid management.