ClearSky Advisors (Toronto, Canada) has released a new report which identifies South Africa and Morocco as the most promising emerging markets for solar photovoltaic (PV) technolgy in Africa.
ClearSky’s “Africa PV Market Attractiveness” report identifies and examines the top 10 most attractive markets in the continent. The report also finds that while Morocco’s PV industry is driven a need to transition off of expensive fossil fuel imports, South Africa has shown a greater political commitment.
“Morocco’s expensive fossil fuel imports and high electricity tariffs mean that the fundamental economics of solar PV make the market very attractive,” states ClearSky Analyst Michael Deaves. “In South Africa access to cheap domestic coal and comparably low electricity tariffs mean that the economics of solar PV are less appealing.”
“Politically, however, South Africa’s market has a considerable edge based on its more favorable credit rating and a demonstrated government commitment towards solar PV development that is arguably still missing in Morocco.”
Different factors in each nation
ClearSky notes that each region in Africa has a different mix of factors for PV industry growth, including electricity prices, demand for new generation and the relative degree of political stability.
The report lists Egypt, Algeria and Ghana as the third, fourth and fifth most attractive markets in the continent. ClearSky plans to release a comprehensive market forecast for Africa in May 2013.
