Guinea joins the micro-hydro bandwagon with $112m

From the newsletter

Guinea has secured $112 million in funding from the ECOWAS Bank for Investment and Development (EBID, see image) to construct three micro-hydroelectric power stations in the Mamou region. The project will deliver 30 MW of power to tackle persistent shortages and improve rural electrification, advancing the country’s goal of universal energy access by 2030.

• Decentralised energy solutions, such as micro-hydro, are critical for Guinea, where rural electrification still lags at 19%. Unlike large dams, these plants' proximity to target populations in remote areas minimises transmission losses.

• Guinea joins a growing number of African countries adopting micro-hydro to boost rural electrification. Rwanda’s 5 MW Giciye plant, Ethiopia’s multiple river basin projects, and Uganda’s 7.6 MW Nyamwamba II demonstrate how small-scale hydro complements large dams, enhances energy access, and reduces fossil fuel dependence.

More details

• The plants will be constructed in Poukou (12 MW), Bolokoun (10 MW), and Biwbaw (8 MW), all in the Mamou region, a strategic choice given the area’s low electrification rates.

• Guinea’s pivot to micro-hydro addresses a critical flaw in its energy strategy. 80% of the current capacity comes from just two large dams, vulnerable to droughts and hydrological fluctuations. By locating plants in Mamou’s river-rich terrain, the project avoids costly grid extensions to villages where 81% of the population lacks power access.

• Micro-hydro plants offer consistent baseload power, a significant advantage over intermittent renewables. Their reliable electricity generation, driven by stable water flow, is vital for communities and businesses, reducing reliance on unreliable grids or expensive battery storage.

• They are also good for the country’s energy needs. Their resilience comes from a distributed network of smaller plants, offering redundancy that prevents widespread blackouts if one unit fails. This local focus, empowering local firms, boosts economic development and ensures sustainable infrastructure. Crucially, these cost-effective mini-grids directly address the urgent need for energy in off-grid communities, making universal access a reality where grid extension isn't viable.

• Currently, several African countries are harnessing micro-hydro to expand energy access. Kenya, for instance, has utilised small hydro plants mainly in agricultural areas to power tea factories; at least 19 sites are operational with plans for more. Uganda is constructing nine mini hydropower plants totalling 6.7 MW in rural areas. Earlier this year, Burundi secured funding from the African Trade and Investment Development Insurance (ATIDI) to finance two small hydropower plants totalling 10.65 MW.

• If successful, Guinea’s model could inspire similar efforts across Africa. Countries like Tanzania, with its Rufiji River basin, and Cameroon, with numerous untapped river sites, stand to benefit from integrating micro-hydro into their energy portfolios. This approach could accelerate rural electrification across the continent, reduce dependence on fossil fuels, and enhance energy resilience.

Our take

• While large-scale hydro has been foundational for Africa’s energy supply, the continent’s energy transition will increasingly rely on off-grid solutions. Micro-hydro and similar decentralised technologies are poised to lead as developers and investors recognise their practicality and impact.

• The logical next step is to integrate micro-hydro with solar power, creating hybrid systems that enhance reliability and mitigate drought risks, ensuring continuous energy supply.

• Finally, the success of these initiatives hinges on meticulous execution, from thoughtful design through to effective implementation and ongoing maintenance.