Boost in Genset manufacturing activity to resolve power challenges in Southern African region
22-06-2017 12:48:00 | by: Bob Koigi | hits: 2021 | Tags:

Southern Africa's extreme dependence on South Africa to meet its electricity requirements is intensifying the need for diesel genset assembly plants in the country.

As there are no production facilities in the region, all gensets are currently imported completely or assembled. This means that companies that could potentially manufacture and assemble gensets in South Africa will gain distribution opportunities in the entire Southern African region.

"The lack of reliable power in Southern Africa is heightening the demand for self-generating power, with residential, commercial and industrial customers showing great eagerness to deploy gensets," said Frost & Sullivan Energy & Environment Industry Analyst Tilden Hellyer. "The primary application of gensets in South Africa specifically will form part of the backup power for industries and businesses rather than that of prime power use as seen in the rest of the region. This is due to the stability of the electricity grid which is currently in excess supply."

Growth Opportunities in the Southern Africa Diesel Generator Market, Forecast to 2019, part of Frost & Sullivan's Energy Storage Growth Partnership Subscription, finds that Mozambique demonstrates the highest revenue growth potential at 13.1 per cent until 2019. While South Africa will not grow as rapidly, it will still have the greatest market share in terms of revenue. Namibia and Botswana are the least favourable markets in Southern Africa.

Many of the countries in the region rely on South Africa to close the electricity deficit; therefore, when South Africa implements load shedding, several countries are also negatively affected. South Africa needs to power itself as well as assist neighbouring countries, but when it stabilised the grid, the genset market contracted dramatically in South Africa.

 "Going forward, climate change and the green economy will play vital roles in adoption of diesel generators," noted Hellyer. "Manufacturers that offer gensets with reduced noise and air pollution levels are more likely to find acceptance among end users. This is especially true in South Africa, where carbon taxes are to be implemented in 2018."