Energy

A global shortage of power is inhibiting the growth of the data centre market. (Image source: Adobe Stock)

With Nigeria’s data centre industry set to explode – doubling capacity from 116MW in 2024 to a forecasted 226MW in 2029 – Sherisse Alexander, chief business officer at WATT Renewable Corporation, discusses how the country can affordably secure the power to make this vision of connectivity a reality, and whether a solar array with battery energy storage can be a feasible solution to this challenge

A global shortage of power is inhibiting the growth of the global data centre market, and Nigeria will be affected more than most. According to the International Energy Agency, IEA, the country’s electricity grid collapsed 46 times between 2017 and 2023. With an unreliable grid, data centre operators in Nigeria are faced with regular unplanned loadshedding events and the need to install back-up generation to maintain uptime for data centre users. However, while fossil fuel generators have been the go-to back-up power choice for many years, record high fuel and equipment costs along with fuel scarcity issues, are forcing businesses to reconsider their options for this new wave of data centre build out.

Globally, the installation of renewable energy – notably solar, wind and batteries – to power data centres has seen a huge boost in the last few years as the world’s largest operators such as Microsoft and Google seek to achieve net zero by 2030. In the US for example, over 4GW of renewable capacity was contracted by data centres including Amazon, Meta and Google’s parent company Alphabet Inc in the last 12 months alone. Closer to home, Microsoft, in partnership with G42, is investing US$1bn to build a geothermal powered data centre in Kenya. In South Africa, Africa Data Centres and Distributed Power Africa broke ground on a 12MW solar farm in April.

Until recently, businesses in Nigeria have been somewhat hesitant to explore the potential of solar plus storage due to its higher capital expenditure in comparison to fossil fuels. However, while fuel prices have levelled somewhat since the 1,000 Naira highs of 2023, it seems unlikely that it will settle back down below 750 Naira without a new subsidy to prop up petrol prices or a period of economic stagnation. This change in dynamics means that solar plus storage has become much more economic in comparison to its fossil fuel counterparts. Particularly if data centre operators sign up to a long-term power purchase agreement (PPA) of 15-20 years.

One of the key challenges often levelled at solar and wind is that of its need for space. While data centres typically need to be close to urban areas to afford fast and reliable connections, renewable generation requires space. However, as the solar and data centre industries have developed there are now several potential workarounds.

Renewable power purchase agreements

Renewable electricity can be purchased under a PPA from an offsite generator. Such an agreement would provide the data centre operator with a guaranteed price per kWh creating energy price security while alleviating local grid constraints. 46GW of wind and solar power purchase agreements were announced publicly by businesses in 2023 according to BNEF with the market growing around 33% on average since 2015.

Co-locating edge data centres with solar

Data centre operators could opt to blend hyperscale facilities with edge data centres. Located on the outskirts of town, edge data centres have much smaller footprints and lower energy needs. Some of these data centres could be co-located with onsite renewable generation. With some clever design work – for example incorporating solar onto carports – a significant amount of the data centre’s electricity baseload could be covered by solar plus storage.

Rooftop solar for inner city locations

Inner city data centre locations could mount rooftop solar as well as batteries that would charge from the grid and supply emergency electricity in the event of an outage. Although this would only cover a small percentage of the power required, it would soften grid related price and outage shocks.

More than just connectivity

The positive economic impact of improved connectivity is well documented, for example a 10% increase in mobile adoption increases GDP by 0.5% to 1.2% on average. Banking is a great example of how connectivity has transformed the lives of Africans with the continent now considered the digital banking leader having brought banking to millions of people who lack access to traditional services.

Reliable access to data, now, is a must, and as data centres come online, there are further benefits created when data centre operators opt for solar plus storage. Less generator use means less noise and air pollution – two factors that are the cause behind a major public health crisis that in unfolding in many of Nigeria’s towns and cities.

In 2018, a study conducted by the World Bank in Lagos found that air pollution led to over 11,200 premature deaths with children under five the most affected. The same study also found that air pollution caused US$2.1bn in losses over the course of the year. Generators were found to be the third most contributing factor to air pollution behind transport and industrial emissions.

Generators also contribute significantly to noise pollution with a study conducted in Kano finding that noise levels reached as high as 82Db, just a few decibels short of causing permanent hearing loss. With little being done to improve the situation, many Nigerians have become apathetic to it despite the physical, mental and financial toll that generators take.

Solar plus storage solutions are a win-win for everyone. Data centre operators benefit from a reduction in their reliance on fossil fuels reducing their exposure to fossil fuel related price shocks. In the case of onsite generation, solar plus storage directly improves energy security and reliability and, on every site, it helps to improve local air quality and reduce noise levels. Local businesses and households also benefit, with solar plus storage helping to alleviate the strain on the grid posed by a new data centre, while also enjoying cleaner air, quieter streets and better connectivity.

The move is expected to accelerate South Africa’s renewable energy transformation. (Image source: AIKO)

VEERS Group, a black-owned and operated company with a firm track record in the energy sector, has formed a joint venture with AIKO, a solar technology leader, in order a bid to revolutionise the utility-scale and distributed solar sectors across South Africa

The joint venture will focus on advancing both the utility-scale and distributed solar sectors across the country, while expanding its distribution footprint throughout the African continent. By leveraging AIKO’s industry-leading N-Type ABC solar modules, the collaboration aims to significantly accelerate South Africa’s shift towards a low-carbon future. The venture will make these solar technologies widely accessible across utility-scale, commercial, industrial, and residential sectors.

Meimei Yu, head of MEA Sales at AIKO, commented, “We are thrilled to partner with VEERS Group, whose deep local expertise perfectly complements our cutting-edge technology. By merging global innovation with local knowledge, we are confident this joint venture will not only accelerate South Africa’s energy transition but also serve as a model for sustainable growth worldwide. Together, we are committed to delivering the highest-efficiency solar solutions, making a lasting impact on South Africa’s renewable energy landscape.”

The newly established Aiko Energy SA Ltd will be the operational arm of this joint venture, underscoring a strong commitment to local content and empowerment. AIKO has also reiterated its intention to aligning its operations with the principles of black economic empowerment and localisation, ensuring that its business strategies are tailored to meet the unique needs of the local market. This partnership not only leverages VEERS Group‘s expertise in South Africa but also prioritises community engagement and upliftment, reinforcing AIKO’s pledge to drive meaningful, sustainable growth in the region.

Hashveer Singh, CEO of VEERS Group, added, “Innovation and sustainability have always been at the forefront of our organisation. AIKO’s stellar reputation and aligned values make them the perfect partner for this journey. We look forward to bringing AIKO’s most efficient solar products to the South African market, providing utility projects with revolutionary efficiency upgrades. This partnership sets a new standard for performance and sustainability in the region, benefiting all stakeholders involved.”

An important substation E-house facility at Sasol’s Upstream PSA Project in Mozambique has relied on WEG Africa’s depth of experience. (Image source: WEG Africa)

Now in the final stages of installation and commissioning, an important substation E-house facility at Sasol’s Upstream Production Sharing Agreement (PSA) Project in Mozambique has relied on WEG Africa’s depth of experience, locally based technical infrastructure and specialised skill sets

The E-house solution with transformers and generator set, procured by EPCM contractor Wood, was locally designed and manufactured by WEG Africa and supplied in partnership with local engineering firm Proconics.

“The project has been a successful demonstration of our product quality and technological capacity, delivered to the highest global standards,” said Lukas Barnard, WEG Africa’s sector specialist oil and gas – business development. “Our scope of supply was really the ‘electrical heart’ of the project – with the electrical supply and control for the entire PSA plant coming through the E-houses.”

The PSA Project includes the construction of facilities to produce 23 million gigajoules of gas/annum, which will power the Temane Thermal Power Plant (CTT) to generate 450MW of electricity and excess gas for export. It will also include a Liquefied Petroleum Gas (LPG) facility that will produce 30,000 tons per year, meeting 75% of Mozambique’s cooking gas demand, as well as light oil for export. The substation package measures 45 m by 22 m and includes medium voltage (MV) and low voltage (LV) switchgear, a battery room, a local equipment room and an HVAC system.

The E-house option overcomes the various challenges of building conventional electrical facilities on-site in countries with limited infrastructure. WEG Africa manufactured and pre-assembled the E-houses under controlled workshop conditions at its advanced facility in Heidelberg, Gauteng. The design also responded to the harsh environmental conditions and other risks on the site.

“The site for which the E-house solution has been designed is in a region which has experienced multiple hurricanes in the past,” Barnard remarked. “WEG Africa also considered the elevation and environmental weather conditions to ensure the E-house solution will withstand the harshest conditions.”

Maximising efficiency while minimising risk

The conducive workshop conditions for constructing the E-houses – and the ready access to the necessary expertise – facilitated strict adherence to WEG Africa’s manufacturing quality standards, which are aligned to ISO 9001. Barnard noted that this also allowed for greater manufacturing efficiency, while reducing the number of people required on site; improving safety levels and minimising the risk of construction-related incidents.

“The whole package, with all the relevant equipment, could be transported to site,” he explained. “Even though the logistics were challenging, this method greatly reduced the complexity and timeline, due to all the equipment already being installed and tested.”

He reiterates that this project combined the manufacturing capabilities of WEG Africa and the project management and design capabilities of Proconics. This demonstrates that the partnership the two companies have built can provide full turnkey solutions to the oil and gas industry.

This article was authored by WEG Africa. Click here for more information on the company.

JA Solar is involved in numerous PV projects across Africa. (Image source: Adobe Stock)

JA Solar, a global manufacturer of high-performance photovoltaic (PV) products, partnered with Crossboundary Energy and New Southern Energy for a significant PV project in Kenya

The project was developed and financed by Crossboundary Energy, which specialises in providing customised, fully financed renewable energy solutions, while New Southern Energy, an EPC company known for its expertise in delivering sustainable energy projects, handled the implementation of the project. The end user is Maisha Packaging Company Limited, a prominent packaging company based in Kenya.

JA Solar supplied high-efficiency PB modules to the project, ensuring optimal energy and reliability. Distributed by Nabico Enterprises, the modules are designed to perform exceptionally well in various environmental conditions, making them an ideal solution for the Kenyan climate.

Hadyr Adebayo Koumakpai, general manager Africa of JA Solar, explained, "We were excited to support Maisha Packaging Company Limited, Crossboundary Energy, and New Southern Energy in their efforts to promote renewable energy in Kenya. This project aligned with our mission to provide clean and sustainable energy solutions globally. We were proud to contribute to Kenya's growing renewable energy landscape."

This initiative was part of JA Solar's efforts in Africa, where the company has been involved in numerous PV projects and continues to strengthen its presence in the region, providing cutting-edge PV technology to meet the energy needs of diverse industries.