Small hydropower projects get a financial lift

July 08, 2025

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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 countries with low rural electrification rates (Guinea’s is 19%). Unlike large dams, proximity to target populations in remote areas minimises transmission losses.

  • A growing number of African countries are adopting micro-hydro. Examples include Rwanda’s 5 MW Giciye plant, Ethiopia’s multiple river basin projects, and Uganda’s 7.6 MW Nyamwamba II.

  • Our take: Shifting strategy from mega-dams to micro-grids could finally power Africa’s rural heartland… Read more (2 min)

Africa's renewables sector secured $5.8 billion in June, with the lion's share ($4.19 billion, from 16 deals) coming in the form of debt. This highlights the sector's maturity, as funders are comfortable backing projects with substantial loans. In the past month, the 1,100 MW Obelisk solar plant in Egypt, Africa's largest, reached financial closure.

  • Most debt in recent months has been concessional, primarily from multilateral and development finance institutions, helping to lower project risks and costs. 

  • Grant funding totalled $123 million. Despite the total being just a third of what was raised in May, the overall number of deals went to 11.

  • Our take: Long-term success hinges on consistent capital flows across all types… Read more (2 min)

The African mini-grid sector has not grown as quickly as hoped. Despite over $9 billion in concessional funding committed in the past five years, only 14% has been disbursed, so writes Daniel Kitwa writes in today's article. However, the sector has also seen positive trends, such as a shift towards larger projects and a 20% decrease in capital costs since 2020.

  • Mr Kitwa is a senior renewable energy investment professional. In the course of his career, he has worked with international climate funds with over $1 billion in assets under management.

  • Despite the hurdles, Mr Kitwa remains optimistic about mini-grids. He points to tech cost reduction, enhanced operator competencies, and improved regulatory frameworks.

  • Click here to read the full opinion  (5 min)

Kenya’s utility, Kenya Power, staff represent the company at the 7th Africa Procurement and Supply Chain Summit & Awards in Nigeria

 

Events

📆 Participate in a Powering Inclusive Cold Chains webinar  (Jul 10)

📆 Attend the Power & Elec Uganda 2025  event (Jul 12)

📆 Sign up for the Nigeria Renewable Energy Innovation Forum (Aug 5)

Jobs

💼 Become d.light’s Service Tracking Executive (Kenya)

👨🏻‍💻 Apply for Scatec Solar’s Senior Cyber Security Manager (South Africa)

👨🏻‍🔧 Join Scatec Solar as an Electrical Assistant (Botswana)

Various 

🟢 REREC seeks consultants for Kenya's off-grid solar project

⚡ Jinko ESS launches hybrid energy project in Oyo State, Nigeria

💡 NREL has developed translucent solar panels designed to improve crop yields

Seen on LinkedIn 

Davida Ademuyiwa, Director at DaviGlobal Trade & Investment, says, “You can’t scale quality manufacturing or exports on weak infrastructure. If we want to see “Made in Nigeria”, “Made in Tunisia”, “Made in Ethiopia” become global labels of excellence, then we need to build the ecosystem around them.”