Regulatory Review of the Electricity Market in Africa Towards Crowding-in Private Sector Investment: methodology

Abstract

The Sustainable Development Goals provide a framework to pursue global development in key areas defined across 17 goals. SDG7 is one critical component and pillar aiming to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030. Energy infrastructure and capacity development, especially in the context of Africa, plays an indispensable role in socio-economic development and overall transformation. As a result, national development strategies in most of Africa already reflect the need to expand electricity access rapidly, and devoted considerable public finance for energy infrastructure development, while instituting measures to reform energy sector governance and legislation. The purpose of this report is to elaborate on the methodology developed by UNECA and RES4Africa Foundation to perform the analysis of electricity sector policy and regulatory environment in member States. The report covers the rationale of the methodology, its scope, the methodology development approach, and a deep-dive in to the analytical framework developed for all segments of the value chain – electricity generation, transmission, distribution, and off-grid systems. It also elaborates on the quantitative model adopted to reach final evaluation of the effectiveness of the policy and regulatory framework vis-à-vis private sector’s requirements.