Chapter 7. Milestone and Policy Recommendation
7.4 Proposal for Construction of Manufacturing Factories
Importation of RE equipment for RE production has very complex influence in country’s economic balance. The elements that have direct positive influence include creation of RE installation industry and O&M industry, as well as related job creation. It also promotes creation of various service industries related to RE projects. However, it may cause negative influence in the national economy through negative trade balance.
To reduce the negative trade balance influence and promote its own RE industries, several LDCs have constructed its own RE equipment manufactories in their counties. For example, Azerbaijan built a solar panel manufacturing facility, Azguntex, in April, 2012. Its annual production capacity is 25 MW built with Rimas’s technology, which is the Dutch company. Ethiopia also built a solar PV module assembly line with annual capacity of 20 MW in April 2012. It was built with a partnership between renewable energy project developer, SKY Energy International and Metals and Engineering Corporation and an Ethiopian state enterprise, Metals and Engineering Corporation (METEC)26. There are other cases in several LDCs and the recent example is the solar PV module manufacturing facility in Ouagadougou, Burkina Faso, which is being built by local company Faso Energy with the support of the country’s government and Spanish
equipment provider Mondragon in 2017. The factory, which will have an initial capacity of 40 MW, whose products will have a power range of 100 W to 325 W. The initial investment in the factory was around €5 million and was made by private investors.27
It is recommended that Cameroon considers building its own solar PV panel manufacturing facility, too.
Annual capacity of the facility could be 20 MW or 40 MW. One option is to build 20 MW facility initially and expand it to total 40 MW by 2030, because yearly installation targets of solar PV would be 24 MW in 2025 and 53 MW in 2030. Cameroon could construct the facility by benchmarking the Burkina Faso case, because it is the latest case, which will provide latest estimation of construction costs and procedures for inviting investors, which involves selecting foreign company with advanced technology. Once Cameroon selects the foreign company, then feasibility study for construction of the facility is required. If it turns out that construction of the facility is economically feasible, then, the rest of process would be the same as the foreign direct investment process in Cameroon.28
27 Please, refer the PV Magazine (July 12, 2017) for more detail (https://www.pv-magazine.com/2017/07/12/burkina- faso-to-host-its-first-solar-module-factory/, recent access on September 14, 2017).
28 Please, see “Smart Investing in Cameroon: Opportunities, Incentives and Legal Framework…” for investment process in Cameroon (http://ambacamcaire.com/wp-content/uploads/2016/06/SMART-INVESTING-IN-CAMEROON-
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