By: African mining market

Louis Botha, Country Manager Southern Africa at Aggreko, argues that behind-the-meter microgrids can play a critical role in stabilizing Africa’s manufacturing sectors, which are severely hampered by unreliable electricity. Across the continent, manufacturers face staggering losses due to power outages—up to $27 billion annually in Nigeria, for example, and significant production declines in South Africa, where some factories operate below 50% capacity due to load-shedding.

These microgrids, combining solar, battery storage, and thermal backup generation installed on-site, allow manufacturers to reduce dependence on unstable national grids. They provide consistent, high-quality power, reduce fuel consumption and emissions through integrated renewables, and offer greater predictability in operating costs. For industrial operations, this means minimizing downtime, protecting equipment from voltage fluctuations, and lowering dependence on expensive emergency diesel generators.

While upfront investment is required, the long-term economic risks of grid unreliability—including lost sales, disrupted supply chains, and high backup fuel costs—make microgrids a compelling alternative. These systems also support sustainability goals by cutting greenhouse gas emissions and enhancing energy resilience, giving African manufacturers a practical pathway to scale operations, control costs, and remain competitive.