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2040 Energy Outlook projects a shifting energy mix as renewables scale, EV adoption accelerates, and IEA forecasts plateauing oil demand alongside rising natural gas, highlighting policy, efficiency, and decarbonization trends that shape global consumption.

Key Points

A data-driven view of future energy mix, covering renewables, fossil fuels, EVs, oil demand, and policy impacts.

✅ Renewables reach 16-30% by 2040, higher with strong policy support.

✅ Fossil fuels remain dominant, with oil flat and natural gas rising.

✅ EV share surges, cutting oil use; efficiency curbs demand growth.

Which is more plausible: flying taxis, wind turbine arrays stretching miles into the ocean, and a solar roof on every house--or a scorched-earth, flooded post-Apocalyptic world? 

We have no way of peeking into the future, but we can certainly imagine it. There is plenty of information about where the world is headed and regardless of how reliable this information is—or isn’t—we never stop wondering. Will the energy world of 20 years from now be better or worse than the world we live in now? 

The answer may very well lie in the observable trends.

A Growing Population

The global population is growing, and it will continue to grow in the next two decades. This will drive a steady growth in energy demand, at about 1 percent per year, according to the International Energy Agency.

This modest rate of growth is good news for all who are concerned about the future of the planet. Parts of the world are trying to reduce their energy consumption, and this should have a positive effect on the carbon footprint of humanity. The energy thirst of most parts of the world will continue growing, however, hence the overall growth.

The world’s population is currently growing at a rate of a little over 1 percent annually. This rate of growth has been slowing since its peak in the 1960s and forecasts suggest that it will continue to slow. Growth in energy demand, on the other hand, may at some point stop moving in tune with population growth trends as affluence in some parts of the world grows. The richer people get, the more energy they need. So, to the big question: where will this energy come from?

The Rise of Renewables

For all the headline space they have been claiming, it may come as a disappointing surprise to many that renewable energy, excluding hydropower, to date accounts for just 14 percent of the global primary energy mix. 

Certainly, adoption of solar and wind energy has been growing in leaps and bounds, with their global share doubling in five years in many markets, but unless governments around the world commit a lot more money and effort to renewable energy, by 2040, solar and wind’s share in the energy mix will still only rise to about 16 to 17 percent. That’s according to the only comprehensive report on the future of energy that collates data from all the leading energy authorities in the world, by non-profit Resources for the Future.

The growth in renewables adoption, however, would be a lot more impressive if governments do make serious commitments. Under that scenario, the share of renewables will double to over 30 percent by 2040, echoing milestones like over 30% of global electricity reached recently: that’s the median rate of all authoritative forecasts. Amongst them, the adoption rates of renewables vary between 15 percent and 61 percent by 2040.

Even the most bullish of the forecasts on renewables is still far below the 100-percent renewable future many would like to fantasize about, although BNEF’s 50% by 2050 outlook points to what could be possible in the power sector. 

But in 2040, most of the world’s energy will still come from fossil fuels.

EV Energy

Here, forecasters are more optimistic. Again, there is a wide variation between forecasts, but in each and every one of them the share of electric vehicles on the world’s roads in 2040 is a lot higher than the meagre 1 percent of the global car fleet EVs constitute today.
Related: Gas Prices Languish As Storage Falls To Near-Record Lows

Government policy will be the key, as U.S. progress toward 30% wind and solar shows how policy steers the power mix that EVs ultimately depend on. Bans of internal combustion engines will go a long way toward boosting EV adoption, which is why some forecasters expect electric cars to come to account for more than 50 percent of cars on the road in 2040. Others, however, are more guarded in their forecasts, seeing their share of the global fleet at between 16 percent and a little over 40 percent.

Many pin their hopes for a less emission-intensive future on electric cars. Indeed, as the number of EVs rises, they displace ICE vehicles and, respectively, the emission-causing oil that fuels for ICE cars are made from.  It should be a no brainer that the more EVs we drive, the less emissions we produce. Unfortunately, this is not necessarily the case: China is the world’s biggest EV market, and its solar PV expansion has been rapid, it has the most EVs—including passenger cars and buses—but it is also one of the biggest emitters.

Still, by 2040, if the more optimistic forecasts come true, the world will be consuming less oil than it is consuming now: anywhere from 1.2 million bpd to 20 million bpd less, the latter case envisaging an all-electric global fleet in 2040. 

This Ain’t Your Daddy’s Oil

No, it ain’t. It’s your grandchildren’s oil, for good or for bad. The vision of an oil-free world where renewable power is both abundant and cheap enough to replace all the ways in which crude oil and natural gas are used will in 2040 still be just that--a vision, with practical U.S. grid constraints underscoring the challenges. Even the most optimistic energy scenarios for two decades from now see them as the dominant source of energy, with forecasts ranging between 60 percent and 79 percent. While these extremes are both below the over-80 percent share fossil fuels have in the world’s energy mix, they are well above 50 percent, and in the U.S. renewables are projected to reach about one-fourth of electricity soon, even as fossil fuels remain foundational.

Still, there is good news. Fuel efficiency alone will reduce oil demand significantly by 2040. In fact, according to the IEA, demand will plateau at a little over 100 million bpd by the mid-2030s. Combined with the influx of EVs many expect, the world of 20 years from now may indeed be consuming a lot less oil than the world of today. It will, however, likely consume a lot more natural gas. There is simply no way around fossil fuels, not yet. Unless a miracle of politics happens (complete with a ripple effect that will cost millions of people their jobs) in 2040 we will be as dependent on oil and gas as we are but we will hopefully breathe cleaner air.

By Irina Slav for Oilprice.com

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Nuclear Power for Net-Zero Grids anchors reliable baseload, integrating renewables with grid stability as solar, wind, and battery storage scale. Advanced reactors complement hydropower, curb natural gas reliance, and accelerate deep decarbonization of electricity systems.

Key Points

Uses nuclear baseload and advanced reactors to stabilize power grids and integrate higher shares of variable renewables.

✅ Provides firm, zero-carbon baseload for renewable-heavy grids

✅ Reduces natural gas dependence and peaker emissions

✅ Advanced reactors enhance safety, flexibility, and cost

Declining solar, wind, and battery technology costs are helping to grow the share of renewables in the world’s power mix to the point that governments are pledging net-zero emission electricity generation in two to three decades to fight global warming.

Yet, electricity grids will continue to require stable baseload to incorporate growing shares of renewable energy sources and ensure lights are on even when the sun doesn’t shine, or the wind doesn’t blow. Until battery technology evolves enough—and costs fall far enough—to allow massive storage and deployment of net-zero electricity to the grid, the systems will continue to need power from sources other than solar and wind.

And these will be natural gas and nuclear power, regardless of concerns about emissions from the fossil fuel natural gas and potential disasters at nuclear power facilities such as the ones in Chernobyl or Fukushima.

As natural gas is increasingly considered as just another fossil fuel, nuclear power generation provides carbon-free electricity to the countries that have it, even as debates over nuclear power’s outlook continue worldwide, and could be the key to ensuring a stable power grid capable of taking in growing shares of solar and wind power generation.

The United States, where nuclear energy currently provides more than half of the carbon-free electricity, is supporting the development of advanced nuclear reactors as part of the clean energy strategy.

But Europe, which has set a goal to reach carbon neutrality by 2050, could find itself with growing emissions from the power sector in a decade, as many nuclear reactors are slated for decommissioning and questions remain over whether its aging reactors can bridge the gap. The gap left by lost nuclear power is most easily filled by natural gas-powered electricity generation—and this, if it happens, could undermine the net-zero goals of the European Union (EU) and the bloc’s ambition to be a world leader in the fight against climate change.

U.S. Power Grid Will Need Nuclear For Net-Zero Emissions

A 2020 report from the University of California, Berkeley, said that rapidly declining solar, wind, and storage prices make it entirely feasible for the U.S. to meet 90 percent of its power needs from zero-emission energy sources by 2035 with zero increases in customer costs from today’s levels.

Still, natural gas-fired generation will be needed for 10 percent of America’s power needs. According to the report, in 2035 it would be possible that “during normal periods of generation and demand, wind, solar, and batteries provide 70% of annual generation, while hydropower and nuclear provide 20%.” Even with an exponential rise in renewable power generation, the U.S. grid will need nuclear power and hydropower to be stable with such a large share of solar and wind.

The U.S. Backs Advanced Nuclear Reactor Technology

The U.S. Department of Energy is funding programs of private companies under DOE’s new Advanced Reactor Demonstration Program (ARDP) to showcase next-gen nuclear designs for U.S. deployment.

“Taking leadership in advanced technology is so important to the country’s future because nuclear energy plays such a key role in our clean energy strategy,” U.S. Secretary of Energy Dan Brouillette said at the end of December when DOE announced it was financially backing five teams to develop and demonstrate advanced nuclear reactors in the United States.

“All of these projects will put the U.S. on an accelerated timeline to domestically and globally deploy advanced nuclear reactors that will enhance safety and be affordable to construct and operate,” Secretary Brouillette said.

According to Washington DC-based Nuclear Energy Institute (NEI), a policy organization of the nuclear technologies industry, nuclear energy provides nearly 55 percent of America’s carbon-free electricity. That is more than 2.5 times the amount generated by hydropower, nearly 3 times the amount generated by wind, and more than 12 times the amount generated by solar. Nuclear energy can help the United States to get to the deep carbonization needed to hit climate goals.

Europe Could See Rising Emissions Without Nuclear Power

While the United States is doubling down on efforts to develop advanced and cheaper nuclear reactors, including microreactors and such with new types of technology, Europe could be headed to growing emissions from the electricity sector as nuclear power facilities are scheduled to be decommissioned over the next decade and Europe is losing nuclear power just when it really needs energy, according to a Reuters analysis from last month.

In many cases, it will be natural gas that will come to the rescue to power grids to ensure grid stability and enough capacity during peak demand because solar and wind generation is variable and dependent on the weather.

For example, Germany, the biggest economy in Europe, is boosting its renewables targets, but it is also phasing out nuclear by next year, amid a nuclear option debate over climate strategy, while its deadline to phase out coal-fired generation is 2038—more than a decade later compared to phase-out plans in the UK and Italy, for example, where the deadline is the mid-2020s.

The UK, which left the EU last year, included support for nuclear power generation as one of the ten pillars in ‘The Ten Point Plan for a Green Industrial Revolution’ unveiled in November.

The UK’s National Grid has issued several warnings about tight supply since the fall of 2020, due to low renewable output amid high demand.

“National Grid’s announcement underscores the urgency of investing in new nuclear capacity, to secure reliable, always-on, emissions-free power, alongside other zero-carbon sources. Otherwise, we will continue to burn gas and coal as a fallback and fall short of our net zero ambitions,” Tom Greatrex, Chief Executive of the Nuclear Industry Association, said in response to one of those warnings.

But it’s in the UK that one major nuclear power plant project has notoriously seen a delay of nearly a decade—Hinkley Point C, originally planned in 2007 to help UK households to “cook their 2017 Christmas turkeys”, is now set for start-up in the middle of the 2020s.

Nuclear power development and plant construction is expensive, but it could save the plans for low-carbon emission power generation in many developed economies, including in the United States.

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Canada Net-Zero Grid Lessons highlight Europe's energy transition risks: Germany's power prices, wind and solar variability, nuclear phaseout, grid reliability, storage, market design, policy reforms, and distributed energy resources for resilient decarbonization.

Key Points

Lessons stress an all-of-the-above mix, robust market design, storage, and nuclear to ensure reliability, affordability.

✅ Diversify: nuclear, hydro, wind, solar, storage for reliability.

✅ Reform markets and grid planning for integration and flexibility.

✅ Build fast: streamline permitting, invest in transmission and DERs.

Europe is currently suffering the consequences of an uncoordinated rush to carbon-free electricity that experts warn could hit Canada as well unless urgent action is taken.

Power prices in Germany, for example, hit a record 91 euros ($135 CAD) per megawatt-hour earlier this month. That is more than triple what electricity costs in Ontario, where greening the grid could require massive investment, even during periods of peak demand.

Experts blame the price spikes in large part on a chaotic transition to a specific set of renewable electricity sources - wind and solar - at the expense of other carbon-free supplies such as nuclear power. Germany, Europe’s largest economy, plans to close its last remaining nuclear power plant next year despite warnings that renewables are not being added to the German grid quickly enough to replace that lost supply.

As Canada prepares to transition its own electricity grid to 100 per cent net-zero supplies by 2035, with provinces like Ontario planning new wind and solar procurement, experts say the European power crisis offers lessons this country must heed in order to avoid a similar fate.

'A CAUTIONARY TALE'
“Some countries have rushed their transition without thinking about what people need and when they need it,” said Chris Bentley, managing director of Ryerson University’s Legal Innovation Zone who also served as Ontario’s Minister of Energy from 2011 to 2013, in an interview. “Germany has experienced a little bit of this issue recently when the wind wasn’t blowing.”

Wind power usually provides between 20 and 30 per cent of Germany’s electricity needs, but the below-average breeze across much of continental Europe in recent months has pushed that figure down.

“There is a cautionary tale from the experience in Europe,” said Francis Bradley, chief executive officer of the Canadian Electricity Association, in an interview. “There was also a cautionary tale from what took place this past winter in Texas,” he added, referring to widespread power failures in Texas spawned by a lack of backup power supplies during an unusually cold winter that led to many deaths.

The first lesson Canada must learn from those cautionary tales, Bradley said, “is the need to pursue an all-of-the-above approach.”

“It is absolutely essential that every opportunity and every potential technology for low-carbon or no-carbon electricity needs to be pursued and needs to be pursued to the fullest,” he said.

The more important lesson for Canada, according to Binnu Jeyakumar, is about the need for a more holistic, nuanced approach to our own net-zero transition.

“It is very easy to have runaway narratives that just pinpoint the blame on one or two issues, but the lesson here isn’t really about the reliability of renewables as there are failures that occur across all sources of electricity supply,” said Jeyakumar, director of clean energy for the Pembina Institute, in an interview. 

“The takeaway for us is that we need to get better at learning how to integrate an increasingly diverse electricity grid,” she said. “It is not necessarily the technologies themselves, it is about how we do grid planning, how are our markets structured and are we adapting them to the trends that are evolving in the electricity and energy sectors.”
 

'ABSOLUTELY ENORMOUS' CHALLENGE IS 'ALMOST MIND-BENDING'
Canada already gets the vast majority of its electricity from emission-free sources. Hydro provides roughly 60 per cent of our power, nuclear contributes another 15 per cent and renewables such as wind and solar contribute roughly seven per cent more, according to federal government data.

Tempting as it might be to view the remaining 18 per cent of Canadian electricity that is supplied by oil, natural gas and coal as a small enough proportion that it should be relatively easy to replace, with some analyses warning that scrapping coal abruptly can be costly for consumers, the reality is much more difficult.

“It is the law of diminishing returns or the 80-20 rule where the first 80 per cent is easy but the last 20 per cent is hard,” Bradley explained. “We already have an electricity sector that is 80 per cent GHG-free, so getting rid of that last 20 per cent is the really difficult part because the low-hanging fruit has already been picked.”

Key to successfully decarbonizing Canada’s power grid will be the recognition that electricity demand is constantly growing, a point reinforced by a recent power challenges report that underscores the scale. That means Canada needs to build out enough emission-free power sources to replace existing fossil fuel-based supplies while also ensuring adequate supplies for future demand.

“It is one thing to say that by 2035 we are going to have a decarbonized electricity system, but the challenge really is the amount of additional electricity that we are going to need between now and 2035,” said John Gorman, chief executive officer of the Canadian Nuclear Association, which has argued that nuclear is key to climate goals in Canada, and former CEO of the Canadian Solar Industries Association, in an interview. “It is absolutely enormous, I mean, it is almost mind-bending.”

Canada will need to triple the amount of electricity produced nationwide by 2050, according to a report from SNC-Lavalin published earlier this year, and provinces such as Ontario face a shortfall over the next few years, Gorman said. Gorman said that will require adding between five and seven gigawatts of new installed capacity to Canada’s electricity grid every year from 2021 through 2050 or more than twice the amount of new power supply Canada brings online annually right now.

For perspective, consider Ontario’s Bruce Power nuclear facility. It took 27 years to bring that plant to its current 6.4 gigawatt (GW) capacity, but meeting Canada’s decarbonization goals will require adding roughly the equivalent capacity of Bruce Power every year for the next three decades.

“The task of creating enough electricity in the coming years is truly enormous and governments have not really wrapped their heads around that yet,” Gorman said. “For those of us in the energy sector, it is the type of thing that can keep you up at night.”

GOVERNMENT POLICY 'HELD HOSTAGE' BY 'DINOSAURS'
The Pembina Institute’s Jeyakumar agreed “the last mile is often the most difficult” and will require “a concerted effort both at the federal level and the provincial level.”

Governments will “need to be able to support innovation and solutions such as non-wires alternatives,” she said. “Instead of building a massive new transmission line or beefing up an old one, you could put a storage facility at the end of an existing line. Distributed energy resources provide those kinds of non-wires alternatives and they are already cost-effective and competitive with oil and gas.”

For Glen Murray, who served as Ontario’s minister of infrastructure and transportation from early 2013 to mid-2014 before assuming the environment and climate change portfolio until his resignation in mid-2017, that is a key lesson governments have yet to learn.

“We are moving away from a centralized distribution model to distributed systems where individual buildings and homes and communities will supply their own electricity needs,” said Murray, who currently works for an urban planning software company in Winnipeg, in an interview. “Yet both the federal and provincial governments are assuming that we are going to continue to have large, centralized generation of power, but that is simply not going to be the case.”

“Government policy is not focused on driving that because they are held hostage by their own hydro utilities and the big gas companies,” Murray said. “They are controlling the agenda even though they are the dinosaurs.”

Referencing the SNC-Lavalin report, Gorman noted as many as 45 small, modular nuclear reactors as well as 20 conventional nuclear power plants will be required in the coming decades, with jurisdictions like Ontario exploring new large-scale nuclear as part of that mix: “And that is in the context of also maximizing all the other emission-free electricity sources we have available as well from wind to solar to hydro and marine renewables,” Gorman said, echoing the “all-of-the-above” mindset of the Canadian Electricity Association.

There are, however, “fundamental rules of the market and the regulatory system that make it an uneven playing field for these new technologies to compete,” said Jeyakumar, agreeing with Murray’s concerns. “These are all solvable problems but we need to work on them now.”
 

'2035 IS TOMORROW'
According to Bentley, the former Ontario energy minister-turned academic, “the government's role is to match the aspiration with the means to achieve that aspiration.”

“We have spent far more time as governments talking about the goals and the high-level promises [of a net-zero electricity grid by 2035] without spending as much time as we need to in order to recognize what a massive transformation this will mean,” Bentley said. “It is easy to talk about the end-goal, but how do you get there?”

The Canadian Electricity Assocation’s Bradley agreed “there are still a lot of outstanding questions about how we are going to turn those aspirations into actual policies. The 2035 goal is going to be very difficult to achieve in the absence of seeing exactly what the policies are that are going to move us in that direction.”

“It can take a decade to go through the processes of consultations and planning and then building and getting online,” Bradley said. “Particularly when you’re talking about big electricity projects, 2035 is tomorrow.”

Jeyakumar said “we cannot afford to wait any longer” for policies to be put in place as the decisions governments make today “will then lock us in for the next 30 or 40 years into specific technologies.”

“We need to consider it like saving for retirement,” said Gorman of the Canadian Nuclear Association. “Every year that you don’t contribute to your retirement savings just pushes your retirement one more year into the future.”

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Hydro-Quebec Rate Freeze maintains current electricity rates, aligned with Bill 34, inflation indexing, and energy board oversight, delivering rebates to residential, commercial, and industrial customers and projecting nearly $1 billion in savings across Quebec.

Key Points

A Bill 34 policy holding power rates, adding 2020 rebates, and indexing 2021-2024 rates to inflation for Quebec customers.

✅ 2020-21 rates frozen; savings near $1B over five years.

✅ $500M rebate: residential, commercial, industrial shares.

✅ 2021-2024 rates index to inflation; five-year reviews after 2025.

Hydro-Quebec Distribution will not file a rate adjustment application with the province’s energy board this year, amid a class-action lawsuit alleging customers were overcharged.

In a statement released on Friday the Crown Corporation said it wants current electricity rates to be maintained for another year, as pandemic-driven demand pressures persist, starting April 1. That is consistent with the recently tabled Bill 34, and echoes Ontario legislation to lower electricity rates in its aims, which guarantees lower electricity rates for Quebecers.

The bill also provides a $500 million rebate in 2020, similar to a $535 million refund previously issued, half of which will go to residential customers while $190 million will go to commercial customers and another $60 million to industrial ones.

Hydro-Quebec said the 2020-21 rate freeze will generate savings of nearly $1 billion for its clients over the next five years, even as Manitoba Hydro scales back increases in a different market.

Bill 34, which was tabled in June, also proposes to set rates based on inflation for the years 2021 to 2024, contrasting with Ontario rate increases over the same period. After 2025 Hydro-Quebec would have to ask the energy board to set new rates every five years, as opposed to the current annual system, while BC Hydro is raising rates by comparison.

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Maritime Link HVDC Transmission connects Newfoundland and Nova Scotia to the North American grid, enabling renewable energy imports, subsea cable interconnection, Muskrat Falls hydro power delivery, and lower carbon emissions across Atlantic Canada.

Key Points

A 500 MW HVDC intertie linking Newfoundland and Nova Scotia to deliver Muskrat Falls hydro power.

✅ 500 MW capacity using twin 170 km subsea HVDC cables

✅ Interconnects Newfoundland and Nova Scotia to the North American grid

✅ Enables Muskrat Falls hydro imports, cutting CO2 and costs

For the first time, electricity has been sent between Newfoundland and Nova Scotia through the new Maritime Link.

The 500-megawatt transmission line — which connects Newfoundland to the North American energy grid for the first time and echoes projects like the New England Clean Power Link underway — was tested Friday.

"This changes not only the energy options for Newfoundland and Labrador but also for Nova Scotia and Atlantic Canada," said Rick Janega, the CEO of Emera Newfoundland and Labrador, which owns the link.

"It's an historic event in our eyes, one that transforms the electricity system in our region forever."

'On time and on budget'

It will eventually carry power from the Muskrat Falls hydro project in Labrador, where construction is running two years behind schedule and $4 billion over budget, a context in which the Manitoba Hydro line to Minnesota has also faced delay, to Nova Scotia consumers. It was supposed to start producing power later this year, but the new deadline is 2020 at the earliest.

The project includes two 170-kilometre subsea cables across the Cabot Strait between Cape Ray in southwestern Newfoundland and Point Aconi in Cape Breton.

The two cables, each the width of a two-litre pop bottle, can carry 250 megawatts of high voltage direct current, and rest on the ocean floor at depths up to 470 metres.

This reel of cable arrived in St. John's back in April aboard the Norwegian vessel Nexans Skagerrak, after the first power cable reached Nova Scotia earlier in the project. (Submitted by Emera NL)

The Maritime Link also includes almost 50 kilometres of overland transmission in Nova Scotia and more than 300 kilometres of overland transmission in Newfoundland, paralleling milestones on Site C transmission work in British Columbia.

The link won't go into commercial operation until January 1.

Janega said the $1.6-billion project is on time and on budget.

"We're very pleased to be in a position to be able to say that after seven years of working on this. It's quite an accomplishment," he said.

This Norwegian vessel was used to transport the 5,500 tonne subsea cable. (Submitted by Emera NL)

Once in service, the link will improve electrical interconnections between the Atlantic provinces, aligning with climate adaptation guidance for Canadian utilities.

"For Nova Scotia it will allow it to achieve its 40 per cent renewable energy target in 2020. For Newfoundland it will allow them to shut off the Holyrood generating station, in fact using the Maritime Link in advance of the balance of the project coming into service," Janega said.

Karen Hutt, president and CEO of Nova Scotia Power, which is owned by Emera Inc., calls it a great day for Nova Scotia.

"When it goes into operation in January, the Maritime Link will benefit Nova Scotia Power customers by creating a more stable and secure system, helping reduce carbon emissions, and enabling NSP to purchase power from new sources," Hutt said in a statement.

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Juba Power Distribution Expansion accelerates grid rehabilitation in South Sudan, adding concrete poles, medium and low voltage networks, and LED street lighting, funded by AfDB and executed by Power China for reliable, affordable electricity.

Key Points

A project to upgrade Juba's grid with concrete poles, MV-LV networks, and LED lighting for reliable, affordable power.

✅ 13,350 concrete poles produced locally for network rollout

✅ Medium and low voltage network rehabilitation and expansion

✅ LED street lighting and customer care improvements funded by AfDB

The South Sudan government has launched a factory producing concrete poles that will facilitate an ambitious project done by a Chinese company to rehabilitate and expand the Power Distribution System in Juba, its capital.

The Minister of Dams and Electricity, Dhieu Mathok, said that the factory, rented by Power China, will produce some 13,350 poles for the electricity distribution in the capital and other states.

"The main objective of this project is to increase the supply capacity and reliability of the power distribution system in Juba. Access to the grid will replace the use of generators by the population, allow supply of energy at more affordable price and, hence contribute toward economic growth and poverty eradication in South Sudan," Mathok said during the inauguration of the plant along the Yei road in Juba.

#google#

He disclosed that it will help solve the problem associated with non-availability of concrete poles for the project and to mitigate the risk of importing poles from other countries.

"This factory will create positive impact on the construction of the national grid in South Sudan. It is owned by South Sudanese business people but currently it has been taken over by Power China for a brief period of one year," he said.

South Sudan is largely generator driven economy with continued electricity blackout, and across the continent initiatives like Cape Town's municipal power build-out illustrate alternative approaches, in the wake of the collapse of the generator power plant operated by the South Sudan Electricity Corporation (SSEC) in 2013.

Wang Cun, an official with Power China said they got the contract to build the electricity project in June 2016 and that they will continue to support South Sudanese staff with skills and knowledge, drawing on advances such as PEM green hydrogen R&D that point to future low-carbon options, and also work with the government on several major power projects.

"We have achieved much from these projects and we also suffered much from the instability and continuous conflicts all these years, but we confirm and believe the year of 2018 will be a year of peace and development in South Sudan," Wang said, adding that the company has been operating in South Sudan since 2009.

He disclosed that Power China has conducted several projects before South Sudan won independence from Sudan in 2011 such as the peace road project from Renk to Malakal, Maridi water plant and Malakal municipal road projects.

Wang said they will immediately reorganize all necessary resources to increase post-production capacity and immediately shall commence the erection of these poles to all corners of Juba city and start the distribution.

"We shall do as we did before to recruit more local technicians, engineers and laborers during the construction period, so that they are there in place for similar projects in the near future. We shall make more efforts to improve these local staffs' working environment and to realize sustainable development of Power China and Sino-hydro in South Sudan," said Wang.

Power China has been committing itself in the economic development of South Sudan and has signed eight commercial contracts with the government of South Sudan since independence like the Juba-hydro power project and the Tharjiath thermal power plant project, while in China projects such as the Lawa hydropower station demonstrate ongoing hydropower expertise that can inform regional work.

Liu Xiaodong, the Charge d'Affaires at the Chinese embassy in South Sudan, said Power China has been working very hard in the engineering and procurement in the earlier stage of the project, and as China expands energy ties such as nuclear cooperation with Cambodia that demonstrate broader engagement, also thanked the South Sudan government and the African Development Bank for their strong support.

Liu added upon completion Juba will have an upgraded power distribution system with 2,250 lighting points along the main roads in the capital and lamps will be LED ones.

The project falls under the Juba Power Distribution System Rehabilitation and Expansion Project, which was funded by the African Development Bank (AfDB) and has undertaken an AfDB review of a Senegal power plant to inform regional energy decisions.

It comprises of five different lots like Rehabilitation of Diesel plant substation, Rehabilitation and Expansion of medium voltage network, low voltage network, and Rehabilitation and Expansion of street lighting and improvement of customer care.

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