Frost & Sullivan has issued a new analysis that reports Cameroon’s hydropower resources could play an important role in uplifting the country’s electricity industry. The company estimates the Cameroonian electricity market will grow by “a compound annual growth rate (CAGR) of at least 7.2% between 2007 and 2013.”
“The Cameroonian electricity industry is projected to generate revenues of about $494.2 million by 2013,” notes Frost & Sullivan Industry Analyst Jeannot Boussougouth. “This growth will be driven by the convergence of factors such as new additional generation capacities in Yassa and Kribi, and the continued robustness of the demand for electricity in the country.”
In order for the country to meet its goal of adding at least 10,000 MW of electricity by 2030, then it would need to ensure that electricity tariffs are able to provide a profit and privatization allowed to grow.
“In addition, Cameroon should explore the possibility of gradually shifting from the single-buyer model, which should be seen as a transition operational model, to a completely deregulated electricity market based on a direct sale of electricity to end users,” advises Boussougouth. “This would limit government interventions, strengthen a market-driven decision-making process and improve productivity and efficiency.”