Should U.S. Policies Promote Increased Electricity Generation in Africa? (S. 2152)

What is S. 2152?

(Updated March 15, 2018)

This bill was enacted on February 8, 2016

This bill would make it U.S. policy to partner with the governments of sub-Saharan African countries, international financial institutions, and African private sectors to:

• Promote first-time access to power services for at least 50 million people and encourage the installation of at least 20,000 additional megawatts of electrical power in sub-Saharan Africa by 2020;

• Promote reliable and affordable power in urban, rural, and underserved areas;

• Encourage necessary reforms to support electricity access projects and market-based power generation and distribution;

• Develop and promote an energy development strategy for sub-Saharan Africa that includes the use of oil, natural gas, coal, hydroelectric, wind, solar, and geothermal power;

• Promote policies to displace kerosene lighting with other technologies;

• Expand the use of private financing, and seek ways to remove barriers to private financing and assistance for projects, including through charitable organizations.

The President would be directed to:

• Establish a multiyear strategy to assist countries in sub-Saharan Africa with implementing national power strategies that use an appropriate mix of power solutions and provide access to affordable, reliable electricity;

• Ensure that the strategy remains responsive to local community concerns and technological innovation.

The U.S. Agency for International Development (USAID), the Trade and Development Agency, the Overseas Private Investment Corporation, and the Millennium Challenge Corporation would be urged to:

• Prioritize efforts and assistance for power projects and markets in sub-Saharan Africa;

• Partner with other investors and local institutions, including the private sector, to increase access to reliable, affordable, and sustainable power.

Additionally, the President would be encouraged to use U.S. influence at international bodies to advocate for:

• Increasing investment in power sector and electrification projects in sub-Saharan Africa;

• Addressing energy needs of individuals and communities where electricity grid access is impractical or cost-prohibitive;

• Enhancing private sector coordination;

• Assisting sub-Saharan African governments to remove unnecessary regulatory barriers to investment.

Within three years the President would provide Congress with a strategy progress report that includes information about U.S. programs supporting increased power generation in sub-Saharan Africa, particularly projects receiving U.S. government support.

Argument in favor

No country is better positioned to assist in developing Africa’s electrical infrastructure than the U.S. Widely accessible and reliable electricity will accelerate sub-Saharan Africa’s economic develop and enhance regional stability.

Argument opposed

The federal government is running a deficit and is already struggling to update domestic infrastructure. African governments that would be U.S. partners in this effort need financial resources more than bureaucratic coordination.

Impact

People and groups in sub-Saharan Africa that are developing or in need of affordable and reliable electricity, and both private and federal entities involved in providing assistance to improve electrical infrastructure in Africa.

Cost of S. 2152

The CBO estimates that implementing this bill would cost less than $1 million over the 2016-2020 period.

Additional Info

In-Depth: Sponsoring Sen. Bob Corker (R-TN) introduced this legislation to ensure that public and private resources can be leveraged to expand the availability and reliability of electricity to 50 million people in sub-Saharan Africa who are currently without electricity:

“I’m proud to reintroduce this bipartisan approach for leveraging private capital to bring financially viable electric power to millions of people in Africa for the first time. When making choices about limited foreign aid dollars, our country should focus on efforts like energy where we can transform lives and create a foundation for economic growth through private sector investment.”

This bill was passed by the Senate with unanimous consent in December 2015, where it has been supported by 23 cosponsors including nine Democrats and 14 Republicans.

Media:

• Senate Foreign Relations Committee Press Release
• CBO Cost Estimate
• Center for Global Development
• Chattanoogan
• Daily Caller
• One (In Favor)
• Sierra Club (In Favor)