Energy security remains elusive on the African continent and is one of the biggest challenges engulfing the utility sector, according to KPMG experts.

The International Energy Agency (IEA) estimates that two out of three people in sub-Saharan Africa do not have access to electricity. This equates to 620 million people on the continent without electricity, and for those that have, the supply is unreliable and very expensive compared to world standards.

At Africa Utility Week which will take place in Cape Town in May, KPMG said it will take up diamond sponsorship in an effort to ensure ‘future proofing’. This entails preparing for both the foreseeable and unforeseeable forces that are fundamentally changing the power and utilities industry.

KPMG chairman Ahmed Jaffer said that there is an emerging trend in the utilities sector. “Utility-scale developments are decreasing, while we see a lot more of community-sized generation projects,” he said. “Businesses and communities are also showing interest in becoming less dependent on the national grids.”

Jaffer explained that in rural Africa, especially, the economics of expanding the national grids do not make sense, hence there is a significant trend towards mini-grids and other off-grid solutions.

Scott De Buys Scott, head of infrastructure advisory at KPMG said that gravitating towards off-grid and smaller solutions in terms of generation projects is a wise solution for the African continent.

“These solutions are cost-effective as the costs that are invested in the general infrastructure of generation projects are eliminated in smaller scale solutions,” De Buys said.

Investing in innovation and leadership

KPMG said power and utility companies around the world are facing the triple challenge of improving environmental performance, keeping consumer costs down and maintaining system reliability.

As a result, the company has developed a long-term strategy that seeks to continue investing in innovation, thought leadership, and refreshing existing methodologies that have proved to be effective over the years.

The company also said it looks forward to exercising its commitment to helping organisations with robust, sustainable and flexible strategies, in addition to models that can adapt quickly in a dynamically unfolding future.

“I am eager to see a truly integrated resource plan with a more diverse baseload,” Jaffer said. “It is essential for our audience to know that KPMG is a one stop shop for the power and water industry.

“As part of our strategy to perpetually manage unexpected changes, we are able to provide services through all project phases as well as to offer valuable solutions from a strategic, forensics, tax, internal audit and audit perspective,” he added.