This is a best prospect industry sector for this country. Includes a market overview and trade data.
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, which includes restructuring Guinea’s electricity parastatal and new power lines connecting Guinea to its neighbors. Construction of the 450MW Souapiti dam (scheduled for completion in 2020) will effectively double 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.
Were mining firms to 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.
Power Africa, which supports Guinea, is a market-driven, U.S. Government-led public-private partnership aiming to double access to electricity in Africa. It offers private sector entities tools and resources to facilitate doing business in Africa’s power sector.
Guinea’s rivers show great potential for hydroelectric power. Three of the most important rivers in West Africa, the Niger, the 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”. As the Kaleta dam is completed, the government plans to invest in several smaller dams in the near future and has secured Chinese funding for the USD 1.3 billion 450MW Souapiti dam, which will be twice Kaleta’s size, cost, and generation capacity. Located several kilometers upstream from Kaleta, Souapiti will regulate the Konkoure River to ensure that Kaleta can operate at full capacity even during the dry season. In addition, an agreement to build the 285 MW Amaria dam was signed with the Chinese and it is expected to be completed in 2025. The smaller dams include Fomi (90 MW), Digan (93 MW), Diaréguéla (72 MW), Féllo Soungan (53 MW), Gozoguézia (48 MW), and, N’Zébéla (20 MW). Guinea’s energy mix by 2025 will be dominated by hydropower, which would account for over 80 per cent 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.
In addition to ongoing demand from the government for 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 the state electricity company, Electricité 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.