Sudan has seen its share of conflict in the recent past, the country’s tumultuous past has come back to haunt it when the country was partitioned into Sudan and South Sudan, with South Sudan becoming independent in January 2012.
Sudan suffers from a serious energy crisis that limits its economic growth. Although electric power generation has not yet seen substantial growth over the years, the country has been steadily increasing investments to solve this problem. The total installed capacity in Sudan amounts to 1,234.6 MW and the state-owned National Electricity Corporation (NEC) is responsible for the generation, transmission and distribution of electricity. The fact is that only 30% of the country’s population has access to electricity.
Sudan’s energy consumption mix continues to be dominated by oil with hydroelectricity playing a minor role accounting for less than 10%. The Sudanese government plans to build a national electricity network (grid) and is taking steps to do so. Electricity generation and the establishment of a secure electricity grid appear to be the main concerns for Sudan.
South Sudan now sees more investment in the power sector with a higher number of power generation projects in that region. Electricity is still largely supplied through diesel generators and over 90% of South Sudanese do not have access to electricity. The electricity supply is characterized by poor infrastructure, frequent power cuts, lack of spare parts and lack of technical staff. The total electrical power required by South Sudan is estimated to be 450 MW and is currently not being met. Although large hydroelectric plants are being built along the river from Nimuli to Juba, it will be some time before they start operating.
The construction of medium-sized hydroelectric and solar power plants is needed to complement the current poor electrical power situation in this region. With the current infrastructure and local knowledge, an installed capacity of only 25 MW for a single plant is possible. Sudan and South Sudan should consider building know-how and increasing collaborations with overseas power generation companies. South Sudan has been conducting feasibility studies for several hydropower projects with a combined capacity of 2,000 MW, planned projects include Fula (890 MW), Shukoli (235 MW), Lakki (410 MW), and Bedden (570 MW).
Most of the diesel generators currently used for power generation come from Finland. However, some of these generators are not operational due to lack of maintenance and fuel shortages. Sudan would have to rely more and more on the supply of electrical components for power generation operations. The goal would be to source cheap, quality components and know-how from developing economies. Sudan can also encourage power companies from countries like India to partner with its public sector power companies, such as the South Sudan Electricity Corporation and the Sudan National Electricity Corporation (NEC).
Sudan has great potential to generate electricity from sources such as hydropower, along the Nile, solar, and geothermal. With so many expectations in terms of growth, it is the right phase for electricity generation and distribution companies to find new opportunities and markets. The introduction of new power grids in this region can lead to better efficiency and reduce power losses and outages. The installation of transmission lines in Sudan is also expected to see great growth and there is an investment opportunity. For example: Sudan has seen significant funding from the Government of China, to the extent of 85%, in its power line development initiative.
The Sudanese government is also proposing several projects to expand thermal and hydroelectric power production, but is struggling to obtain sufficient financing. This is an area of investment opportunity. Currently, Sudan is highly dependent on imports, as native technology in the electric power generation segment is practically non-existent. In 2009, after the Merowe Dam became operational, total power output suddenly doubled, requiring a grid upgrade to bring electricity to market. The goal of the Sudanese government is to increase access to electricity from the current 30% to 90%. In addition to hydropower, small-scale wind and solar installations can be found in Sudan. This region has extremely high solar intensity and sufficient water sources. Biomass or biofuel production could also be a viable industry.
The current market for electricity generation in Sudan and South Sudan is not large and is secondary to the oil and gas sector. With numerous hydropower projects being proposed and the need to establish a national grid, Sudan and South Sudan are seeking foreign direct investment, and here is an opportunity for power generation companies to enter the market.
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