Policy Perspectives of the Renewable Energy Landscape in Cameroon: Status, Drivers, Challenges and Enabling Frameworks

Abstract

Cameroon, like most countries in sub-Saharan Africa, is grappling with inadequate electricity generation capacity and energy security issues amid an increasing energy demand and the goal to ensure 100% access to electricity and clean cooking for its citizens. The government has identified the uptake of renewable energy technologies (RETs) as instrumental to increasing electricity generation, as well as meeting its Nationally Determined Contributions (NDCs) commitments and overall long-term developmental goals. The nation’s strategies so far have yielded little results due to a combination of factors, ranging from financial to regulatory aspects. This study analyzes the existing renewable energy infrastructure, identifying the motivations and factors that influence the implementation of renewable energy policies and the challenges and barriers faced. It also explores the existing policy frameworks and regulatory mechanisms, provide insights into the policy gaps and suggests enabling mechanisms that will enable a more favorable environment for renewable energy investments and development in Cameroon. Although the policies posited are focused primarily for the energy system of Cameroon, they can be extended to sub-Saharan African countries and in the global context, provided that local conditions are accounted for. Adopting the recommended policy frameworks will stimulate, support and ensure the sustained development and deployment of renewable energy technologies in the nation and in the subregion.

1. Introduction

Despite varying national objectives, there is the global assertion that adopted development approaches must be sustainable. The concept of sustainable development by the Brundtland Commission is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” [1]. Sustainable development in the present context is encapsulated by the United Nations’ seventeen sustainable development goals (SDGs) [2]. These goals are arguably connected to, and not possible without, universal access to affordable, reliable, sustainable and modern energy (SDG7). Compared to the more developed and developing countries, sub-Saharan Africa (SSA) is the poorest and least developed region in the world. It ranks the lowest in terms of development infrastructure (such as water supply, electricity décor and transportation) and SDGs attainment levels [3]. The 2020 World Energy outlook estimates that over 52% (547 million people) of SSA is without access to electricity [4]. The majority of this population is in the central Africa region (Figure 1) [4]. Furthermore, over 83% (848 million people) of SSA did not have access to clean cooking fuels in 2019 [5]. Nevertheless, Africa is disproportionately bearing the brunt of climate change compared to other regions of the world despite contributing the least (less than 3%) to global energy-related carbon dioxide (CO₂) emissions [6].

Overall, the energy demand structure of sub-Saharan African countries is generally similar in that they are all characterized by a heavy reliance on traditional biomass fuels (such as wood, charcoal and agricultural residues) for cooking and heating [6,7,8]. For example, the type of energy demand and end-use technologies in Cameroon vary depending on the sector. However, traditional biomass accounted for over 74% of the country’s energy consumption in 2019 [9,10]. However, Cameroon’s development objectives which aim to transform the country into an emerging economy, diversify, industrialize and modernize the economy, promote social inclusion and protect the environment is seeing a national drive to shift from traditional biomass to modern energy services. Leading this is the demand for electricity, which is projected to grow by about 6.5% annually, reaching 33.3 TW by 2045 (from 6.5 TW in 2019) [10,11]. To meet this demand, Cameroon will need to invest in a range of infrastructure and technologies, especially in renewable energy sources (RES). This investment will need to be tailored in terms of specific needs. Different sectors would require different requirements for energy infrastructure and devices. For instance, rural and off-grid areas may require decentralized renewable energy solutions, such as solar home systems or mini-grids, to power homes, schools and health clinics. In contrast, urban centers and large industrial operations may require larger-scale renewable energy projects, such as wind farms or hydropower plants, to meet their energy needs. Additionally, there is a need for targeted interventions to address specific energy needs in Cameroon, such as promoting the use of clean cookstoves to reduce the health impacts of indoor air pollution or providing access to energy services for small businesses and phone charging stations in rural areas.

Amid the global energy transition and a drastic decline in costs, renewable energy sources and technologies have seen an upsurge in their adoption. Electricity generation from RESs grew by 16% between 2009 and 2019 [12,13]. About 271 MW of renewable energy capacity was developed in 2020, with global capacity in 2020 reaching 2799 GW according to the IEA [14]. RESs experienced a 3% growth in 2021 compared to 2020. Solar PV accounted for more than 50% of this addition, with wind and hydropower following. Global RESs installed capacity is forecasted to surpass 4800 GW by 2026, a growth of about 60% despite rising prices of materials used in manufacturing renewable energy technologies. The United States, China, Europe and India would account for 80% of this new capacity addition [15]. Although electricity, particularly from RES, is vital to the economic future and overall sustainable development, the SSA is once again sidelined in the world’s electricity expansion trend, in spite of its abundant renewable energy resources. Meeting the intricacies of Cameroon and SSA renewable energy adoption will require a comprehensive approach that takes into account the specific needs of different sectors and regions, as well as the financial, policy and regulatory frameworks to support the deployment of these RESs and renewable technologies. Several studies assessing RES development have been conducted in SSA. Although these studies differ in scope (from global, region, sub-region, country, etc.) and objective, most of the existing literature aims to examine the existing resources, status quo, challenges, barriers or enabling mechanism to RES development.

A review by Ouedraogo [16] assessed resources and the state of renewable energy deployment in Africa. Despite commendable advances, results showed that poor institutional framework and infrastructure, high investment costs, feeble information dissemination approaches and lack of human capacity are key factors which hinder its development. Furthermore, factors which are often interrelated need to be addressed for acceptable development of RESs in the continent [16]. Another study by Amir and Khan [17] reviewed the recent developments of RESs in Africa while examining the impacts of COVID-19 in the African energy sector. They highlighted the need for restructuring of the power grids, adoption of energy storage technologies, and forecasting and use of machine learning framework to mitigate variations in renewable energy outputs. In addition, strong institutions with proper regulations are key to unlocking the vast renewable energy potential in Africa [17]. A meta-analysis of published works in Ghana, Kenya and South Africa, supplemented with World Bank data and expert interviews, was conducted by Adenle [18] to ascertain trends in solar PV deployment in African countries. The study also examined the benefits of solar PV deployment to attaining the SDGs. They concluded that solar PV would play a significant role in attaining SDGs 1, 2, 3, 4, 5, 6, 7, 8 and 13. Aliyu et al. [19] reviewed hydro, solar, wind and biomass resources and development status for three African countries: Egypt, South Africa and Nigeria. In another study by Gordon [20], the impact of state policies on RES deployment and investment in East Africa was analyzed. Taking case studies of Ethiopia and Kenya—the two largest economies in the region, the regulatory, security and political environments which influence viability of RES projects were examined. Results indicate that East Africa has a vibrant investment environment despite the prevalence of political, regulatory and security risks to project financing. Furthermore, there are huge opportunities for utility-scale, grid-connected geothermal and wind projects, with suitable potential for commercial distributed solar PV, despite off-grid projects leading in funding [20]. Qadir et al. [21] discussed the barriers, enabling mechanisms and strategies for increased RES adoption globally. Abdmouleh et al. [22] analyzed both successful and failed experiences, as well as case studies across countries to present the various mechanisms for establishing and regulatory frameworks for encouraging the deployment of RETs. These mechanisms were classified and examined from the financial, fiscal, legislative, political, technological and environmental perspectives [22]. A discussion on the opportunities, barriers and challenges of RE development by region was performed by Sen and Ganguly in [23].

Country-specific studies include Fashina et al. [24], which assessed the status, various applications, barriers and drivers for the development of renewable energy in Uganda. Nel and Komendantova [25] investigated the major risk and barriers to RES development in South Africa. The results indicate that political risk, corruption and human capacity are the highest occurring risks. Policies should prioritize managing the interface between public and private stakeholders [25]. In another study for South Africa, Naicker and Thopil [26] employed a fifteen criteria framework to select utility-scale RE projects while highlighting the barriers to their deployment. Based on the technical, economic, environmental, social and political framework, results that indicate solar PV and wind were the most preferred [26]. A review of existing policies, opportunities, barriers and outlook of solar PV development in Kenya was conducted by George et al. [27]. Ahmed et al. [28] examined the profile and status of renewables in Algeria, noting considerable advances in solar PV and wind adoption, However, these advances fall well below the government targets. Thus, solutions for promoting renewables in Algeria need to be sought after if the nation’s planned shift from the dependence on hydrocarbons to a green economy is to be attained [28]. The challenges and barriers to deployment of RESs in Nigeria were assessed by Olanipekun and Adelakun [29] and Abdullahi et al. [30]. A more expansive study for Nigeria was conducted by Gungah et al. [31] who evaluated the policy and regulatory framework for RESs in terms of its effectiveness, efficiency, equity and institutional feasibility. The results showed that harmonized and consistent policy targets, timeframes and interventions in addition to political commitment and relevant functional institutions are necessary for uptake of RESs in Nigeria [31]. The study of renewable energy potentials, current status and regulatory structures and barriers to their deployment in Ghana was conducted by Gyamfi et al. [32]. Another study by Oduro et al. [33] matched Ghana’s policy objectives against existing policy instruments and outcomes in their institution to assess their effectiveness and gains. The results indicate that intended renewable energy targets have not been achieved, most notably highlighted by ~0.5% of grid-connected RESs despite several attempts and policies such as feed-in-tariffs. The study further identified the institutions mandated for implementing the policies as the main cause. Still focused on Ghana, Ahenkan et al. [34] were precise, focusing only on solar energy markets (SMEs) in Accra-Ghana. In a study in the Democratic Republic of Congo, Gnassou [35] examined the renewable energy deployment conundrum, with particular emphasis on the political, geostrategic and financial challenges plaguing the 44,000 MW Grand Inga hydropower project.

In a study for Cameroon, Enow-Arrey [36] highlighted the importance of RESs in attaining her SDGs and NDCS. The study also examined the policy-instruments, concluding feed-in tariffs (FiT) as the most viable option for RESs in the nation. However, the study did not address the barriers and enabling framework for renewable energy integration. Mboumboue et al. [37] and Kidmo et al. [38] highlighted the current status of renewable energy development in Cameroon, with the former also identifying the barriers and outlook of RES development in the nation. This study did not provide any development outlook for renewable energy in the nation. Ibrahim et al. [39] examined ways in which Cameroon, Ghana and Nigeria can upscale uptake of RES. In a series of studies, Kenfack et al. [7] examined the hydropower resource and development plan within the scope of the Central African Power Pool (CAPP). Kenfack et al. [40] analyzed how renewable energy and energy efficiency could be promoted in Central Africa, with Cameroon as a case study. Reviewing the most optimally utilized RES, results show that the country has almost all RESs and in considerable quantities, although the region is barely harnessing this potential.

From the reviewed literature, it is observed that most countries have attained varying levels of renewable energy development. Furthermore, the existing literature mostly examines the renewable energy landscape from a generalized perspective without considering the intricacies or idiosyncrasies of each country. For the Cameroon context, we observed three gaps in the literature. Firstly, the existing literature on the renewable energy landscape mostly examines the sector from a single perspective (i.e., developer perspective, consumer perspective, etc.). Secondly, the existing literature does not provide tailored assessments of the Cameroon situation, but rather, generalized overviews often drawn from a synopsis on the SSA region. Thirdly, no literature has assessed the key factors driving the increase adoption of renewables in the nation. This is essential to better understand the origins of the barriers faced in the sector and establish appropriate mitigating measures. Thus, this paper aims to provide an integrated assessment of the renewable energy sector of Cameroon. The contribution of this research is that it is conducted by providing a comprehensive assessment and identification of key drivers and barriers facing the development of renewable energy and associated technologies in Cameroon. In mind of these barriers, enabling mechanisms are proposed for the development and use of renewables. A first of a kind study in Cameroon, the novelty of this study is that it provides a holistic and in-depth dissection of the energy sector and renewable energy landscape. Furthermore, the proposed enabling mechanisms are based on global best practices with particular emphasis on electricity generation technologies. The integrated consideration of the renewable energy development levels, policy objectives, energy system structure, etc., is essential for the analysis and development of tailored policies for effective uptake of RETs.

The rest of this paper is organized as follows. Section 2 summarizes the research methodology, while Section 3 provides an overview of the energy sector and its challenges. The status of renewable energy development, resources, drivers for the uptake of RETs and barriers are presented in Section 4. In Section 5, the enabling factors and policies to overcome or mitigate the effects of the barriers for the effective uptake of RETs are presented. The conclusions are presented in Section 6.

2. Research Methodology

This study reviews two sets of literature to assess the renewable energy sector of Cameroon. In the initial review, the study employs a systematic examination of all of the potentially relevant literature on the Cameroon energy and renewable energy sectors. This enables an understanding of the resources, current status and trends in order to identify drivers and challenges renewable energy landscape in Cameroon. The second review assesses the relevant literature and case studies on renewable energy development in SSA, the continent and globally. This was necessary to obtain an adequate conceptualization on the best-applicable financial, policy and regulatory frameworks that would ensure a demand-driven approach to renewable energy planning in Cameroon. This also considers the specific needs of different sectors and regions to ensure that the renewable energy infrastructure and technologies deployed are appropriate for the scale and quality of the demand. The enabling mechanisms and conclusions of this paper are thus drawn from both reviews. The study methodology is summarized in Figure 2.

3. The Energy Sector of Cameroon

The government’s economic and developmental masterplans [41,42] highlight the need for providing universal access to electricity and modern energy for all Cameroonians as a priority. An underlying element in these plans is the need for energy diversification and mandatory development of more RES. Despite solar PV and wind recording the highest growth rates amongst RESs in the last decade, electricity generation in Cameroon, such as in global trends, is still dependent on hydropower [43,44].

3.1. Cameroon Energy Supply-Consumption Overview

Cameroon’s primary energy supply in 2019 was about 9757 ktoe [43]. This comes mainly from traditional biofuels and waste (71%), followed by crude oil and products (18%), natural gas (6%), hydropower (5%) and other renewable sources (~0.02%). The total energy consumption of Cameroon in 2019 was estimated at 7869 ktoe. The most used forms of energy in the country are traditional biofuels (74%), petroleum products (19%) and electricity (7%).

The residential sector makes up the bulk of energy consumed with 63% due to the use of traditional biofuels (for heating and cooking (Figure 3)). Interestingly, oil products are the only energy type used in the transport sector.

3.2. Electricity Situation in Cameroon

3.2.1. Electricity Supply Structure

The current electricity generation system is mainly a hydro-thermal system. The installed capacity as of July 2019 is 1542 MW [45,46]. Hydropower contributes 61%, with 18% from oil, 20% from natural gas and 1% from renewables. The latter is made up of solar PV and small hydro (classified in Cameroon as <10 MW). Electricity generation was 7043 GWh in 2019. Similarly, 75% was from hydropower, with 6.0% from oil, 19% from natural gas and <1% from RES. The share of installed capacity and electricity generation by source is depicted in Figure 4 [45,46].

The total electricity demand was 6577 GWh in 2019 [45,46]. This nation, with a population of 25.66 million, had an electricity access rate of 70% in 2019, with rural and urban access rates of 30% and 98%, respectively [4].

Strides to attain 100% electricity access, in addition to providing the required electricity for Cameroon’s economic development, would undoubtedly cause an unprecedented increase in electricity demand. On average, this demand is forecasted to grow by 6.7% annually, through to 2035, according to the sector regulator—Electricity Sector Regulatory Agency (ARSEL). The nation is thus in a race against time (and losing) to expand its generation profile.

3.2.2. Electricity Sector Challenges

Cameroon hoped to attain at least 3936 MW in installed capacity by 2035 according to developmental targets. This corresponds to about 2395 MW more than the 2020 installed capacity [42,45,46]. The target capacity includes allocations for 47 MW in installed capacity to be used for electrification of rural households by 2035 [41]. The NDCs document also mandates a 25% share of renewable energy in the total generation mix of Cameroon by 2035, from 0% when it was conceived in 2015 [41,47]. However, inadequate generation, dilapidated grid infrastructure and high transmission and distribution losses (38.9% in 2019 [45]) still plague the power system. Furthermore, the limited flexibility (power grid’s supply ability to respond to changes in demand [48]) of the present grid due to dependency on conventional hydrothermal system has led to repeated and sustained power outages, with dire consequences. Studies in the industry and country level in Africa show that a 1% increase in power outages would cause an estimated 3.3% reduction in a company’s productivity in the short run, while also reducing a nation’s GDP (Gross Domestic Product) per capita by 2.9% in the long run [49,50].

The ongoing issues in the electricity sector has an adverse impact on the industrial activity. The interruption of key services such as electricity and water have huge impacts on small firms with low resources for mitigation. This restricts entrepreneurship; the number and types of industries and competition; and reduces the country’s attractiveness to foreign investment [51,52,53]. For illustration, a survey by [54] indicated power outages in the industry sector caused output losses between 16% and 50% for 80% of industrial firms. The loss of output which translates to revenue has led to loss of jobs, high costs of products/services and a general negative impact on the wellbeing and socioeconomic development of its citizens. The government has thus moved to diversify the electricity generation mix from the hydro-thermal to a renewable-based system. This move also includes reducing the country’s dependence on large-hydropower, given that the periodic occurrence of droughts often leads to low reservoir water levels and electricity crises [55].

4. The Renewable Energy Landscape of Cameroon

Cameron’s triangular shape, which extends from the Atlantic Ocean in the south to the Sahel in the north, has led to a variety of natural features. Similarly, the nation is blessed with a vast array and huge potential of RES, including hydropower, biomass, solar PV and wind. However, the majority of the country’s renewable energy potentials—hydropower inclusive—are yet untapped.

The uptake of renewables is a paradigm shift that provides individuals, firms, communities and nations with varied opportunities for achieving sustainable development. Development of renewables comes with several benefits in diverse areas as highlighted in [23,36]. Likewise, the barriers to their development are identified in [16,17,20,21,22,23,24,25,26,29,32,37]. The motivation for, or barriers to their development, could be generalized or examined from diverse perspectives. However, the precise motivation and barriers are largely case-specific, region-specific, country-specific, etc.; thus, it is necessary to examine each case individually. This section examines the trend, available resources, drivers and barriers to their uptake in the country.

4.1. Renewable Development Trend

Cameroon’s national renewable energy targets in the Rural Electrification Masterplan (PDER) aim to significantly increase the consumption of RESs [41,42]. The Nationally Determined Contributions (NDCs) set a target of 32% reduction in GHG emissions [47]. A key strategy per the document is to ensure a 25% penetration of RESs (large hydropower exclusive) in the electricity generation mix by 2035. This plan also projects a target of 3% by 2020 [47]. However, the actual contribution of RESs in the electricity generation mix in 2020 is less than 0.5% [45], as depicted in Figure 5.

4.2. Renewable Energy Resources

4.2.1. Solar Energy

Solar energy is the fundamental energy resource from which most energy sources including hydropower, biomass and wind are derived. Cameroon’s geographical location around the equator, between latitude 13° S and 22° N and longitude 8° E and 22° E, enables moderate to high levels of solar insolation [56]. Cameroon has made infirm advances in the uptake of solar technologies despite abundant solar resources present and the government’s strides to encourage its uptake.

Studies assessing the solar energy potential of Cameroon include [37,38,40]. The average daily sunshine hours over a year in the country is estimated at 8 h/day [4]. According to [56], solar irradiation in the country varies between 4.3 kWh/m²/day and 5.8 kWh/m²/day in the southern and northern areas of the country, respectively. From the same study, the average ground insolation is estimated at 4.9 kWh/m²/day [56]. The technical generation potential according to the PDER is estimated at 780 TWh/day for a third of Cameroon’s surface area [41]. This aligns with the estimated 2327 TWh/day for the entire national territory by [56]. The average Global Horizontal Irradiation (GHI) of Cameroon is presented in Figure 6.

4.2.2. Hydropower

Generally, the gross theoretical potential of hydropower is estimated at 23 GW, with a technical exploitable potential per year of 115 TWh [58]. This makes Cameroon the third highest in SSA, after the Democratic Republic of Congo and Ethiopia, with 419 TWh/yr and Ethiopia 260 TWh/yr, respectively [38]. The current 943 MW of installed large hydropower capacity is distributed as depicted in Figure 7. A study by Korkovelos et al. [59] in 2018 identified 562 small hydro sites using GIS, amounting to 603.2 MW. Planned hydropower projects include the Bini Warak (75 MW) and Nachtigal (420 MW) by 2015, and Kikot (430 MW). Planned small hydro sites include: Rumbi (2.9 MW), Bare-Bakem (111 kW), Koutaba (158 kW) and Olamze (400 kW) [7,38].

4.2.3. Wind Energy

Cameroon is situated in the low wind speed region of the globe. Cameroon’s wind speeds according to [42] average 4 m/s on average at heights of 10 m above ground [42]. Reference [37] estimates wind speeds to be between 2 and 4 m/s at heights of 100 m. Nonetheless, the country is known to have substantial wind speeds in some parts, which are mostly located in the western highland regions and the far North region of the country. The Northern areas and the Bamboutous Mountains in the Western region, however, have wind speeds of 6 m/s and 6.65 m/s, respectively [60]. The Bamboutous region has the potential for generating up to 1100.28 GWh per year [60]. Yet, there is little to no experience in wind power development in the country, in addition to the existence of very few detailed studies. Figure 8 depicts the distribution of wind speed in Cameroon.

4.2.4. Biomass

Biomass is a term commonly used to refer to any renewable organic material, either plant- or animal-based, that can be burned directly as fuel to produce heat (or electricity), or converted to liquid and gaseous fuels [24,38]. The biomass sources for energy in Cameroon include: forest biomass, agricultural crops, human and municipal wastes and animal manure [58,62].

Biomass is currently the largest source of energy in Cameroon, contributing over 74% to total energy consumption in the nation in 2019 [43]. The reliance on biomass is backed by an abundant biomass potential which is reported to be the third highest in SSA [37,62]. This potential is estimated at 6.3 billion tons [62]. Furthermore, the nation’s total wastes from livestock and human waste are estimated at 1708 million tonnes/year and 149 million tonnes/year, respectively [63]. The nation is also a major producer of several cash crops such as cocoa, coffee, millet and cassava. Given the wide range of potential biomass sources, the nation also has a huge potential for gasification and anerobic digestion [64]. Figure 9 depicts the biomass potential in Cameroon.

4.2.5. Geothermal

The presence of the 100 km Cameroon Volcanic Line (CVL) indicates the potential for a geothermal resource. This is highlighted by the existence of several hot springs distributed around this volcanic line, with some of the hot springs reaching high surface temperatures of up to 74 °C [66]. However, geothermal energy is still very alien to Cameroon, and to the best of the authors’ knowledge, there is no study assessing the electricity generation potential of geothermal energy.

4.3. Drivers for Renewable Energy Development in Cameroon

The drivers for renewable energy development in Cameroon are more peculiar and not necessarily due to the abundance of renewable energy resources in the country. These drivers include:

4.3.1. Rising Energy Demand and Rural Electrification

Energy in the form of electricity is arguably the most important of all energy types. Electricity has historically been an enabler for industrial development, welfare of citizens and the general functioning of the modern economy. However, Cameroon has historically suffered from electricity supply insufficiency. The nation currently finds it challenging to provide sufficient and constant supply of electricity earnestly needed [5,6]. Even for urban customers with high electricity access rates (about 98% [4]) and relatively priority areas (such as industries zones), the quality of power supply continues to be a challenge.

The increasing power outages which hinder citizens from maximizing their socioeconomic potentials stem from the inability of current generation patterns to meet the ever-increasing energy demand. This ever-increasing energy demand is in turn due to a number of factors, capped by a high population growth rate (2.6% [67]), increase in social welfare and effort to attain universal electricity access in the nation. Renewables offer a unique opportunity to provide modern energy for this ever-growing population and rural areas, which presently have a low rural electrification access rate [4]. Compared to conventional energy resources, the energy produced from renewables can be much closer to consumers in addition to making generation more modular and enabling self-generation. This reduces the dependence on the grid while increasing power quality for the grid connected customers. The stated benefits for meeting the energy needs of the rising energy demand in Cameroon are key drivers to the recent push in development by the government.

4.3.2. Declining in Costs of RETs

The historical dominance of conventional sources such as natural gas, oil, coal and nuclear in the global power supply mix was partly due to them being the cheapest. This trend has experienced a dramatic change in recent times with the decline in costs, especially in the last decade, of RES. Capital costs for utility scale solar PV, CSP, onshore wind and off-shore wind fell by 85%, 68%, 56% and 48%, respectively, in the last decade (2010–2020) according to IRENA’s 2020 Renewable Energy Power Generation Costs [68]. This is without accounting for renewable energy financial incentives. The sharp fall in costs is attributed to technological advancement, economies of scale, competitiveness of supply chains and experience of renewable energy developers. These attributes allow RETs to follow learning curves (i.e., each doubling in cumulative installed capacity leads to a price decline by the same fraction) that are unlike those of conventional sources [13,68].

Although the levelized cost of electricity for some RESs has long broken even in the global north, Cameroon and other emerging economies are only now beginning to experience the breakeven point. New solar projects, a priority in the country, are increasing undercutting, or competing at least to new and existing fossil-fuel-fired power plants. The capital costs of RETs is only likely to further fall, increasing the uptake to RESs in Cameroon.

4.3.3. Emissions Concerns and Climate Protection

Fossil fuels accounted for over 84% of global energy consumption in 2021, contributing about 78% (33.1 gigatons of CO₂) to global-energy-related carbon dioxide emissions [69]. Remarkably, the power sector alone contributed over 38% to global-energy-related emissions. The unsustainability of production, transportation and consumption of fossil fuels has seen increased calls for urgent energy sector decarbonization, especially for the power sector. This is in order to meet the goals of Kyoto Protocol and the Paris Climate Agreement.

Although SSA is not a significant emitter, contributing 7% to global emissions in 2019 and 0.55% cumulatively historically, failure to meet the climate goals spells grave consequences for their region in the coming years [70]. In Cameroon, the effects of climate change have already been experienced in the northern and eastern parts of the country. Climate hazards such as heat waves, droughts and floods are occurring more often and are more prolonged, in addition to impacts on agriculture in the Sudano-Sahelian agro-ecological zone [71]. Climate change is also impacting electricity generation in the dry season due to decreased reservoir water levels caused by yearly droughts in the Sanaga basin, which hosts most of Cameroon’s hydropower plants [42,45]. Renewable energy offers the unique opportunity to produce energy from low-carbon, and arguably, carbon-free sources. This is part of the government’s motivation in committing to ensure a 32% (equivalent to Mt CO₂) reduction in national carbon reduce emissions by increasing the share of renewables in the electricity generation mix [47]. This is despite the nation contributing only about 0.03% (6.5 Mt CO₂) to global emissions in 2019 and its low potential for benefits within the Clean Development Mechanism (CDM) of the Kyoto Protocol which it signed [70].

The government’s interest in minimizing the carbon footprint of our energy production and protecting the climate are drivers for RE development.

4.3.4. Market Driven Regulation and Electricity Sector Reforms

The electricity sector of Cameroon at inception was divided into three regions. Each region was operated as a monopoly and managed by POWERCAM, ENELCAM and Electricité Du Cameroun (EDC), respectively, up to 1972. The merger of the three regional operators in 1973 led to the formation of a vertically integrated national monopoly, the backbone of the current structure [72]. The limitations in the form of operational inefficiencies, rapidly increasing subsidies and financing constraints of the vertically integrated monopoly led to an international paradigm shift in the 1990s. The shift, which spurred from the broader “Washington Consensus” on development, pushed for power sector reforms in developing countries [73].

The reform process for Cameroon introduced the 1998 Electricity Law (Law N° 98/022 of 24 December 1998). This law was later updated to the current Electricity Sector Law (law n° 2011/022 of 14 December 2011) [72,74]. These laws were based on regulating; restructuring; ensuring private sector participation; and increased competition in the electricity sector [73]. The two laws and subsequent regulatory reforms in Cameroon led to the government seeking alternative strategies to address the sector efficiencies. The reforms enabled the entrance of independent power producers (IPPs), paving the way for the establishment in 1999 of the Rural Electrification Agency (AER) [41]. The AER is charged with implementing the PDER which aims to increase electricity access to rural areas and underprivileged localities. The PDER is to be accomplished through RETs, grid extension, off-grid systems, mini-grids and other distributed generation technologies, with both state and private sector participation. In addition to defining RESs and financial incentives, the Electricity Sector Law [74] also mandates the automatic dispatch into the national grid of any and all RE-based generated electricity upon producer request. The exemption of RE equipment and products per the tax law has also encouraged the uptake of renewables.

These reforms also increased interest in RETs. Renewables have experienced significant development and private sector investments. Successful projects to date include the construction and operation of about 135 mini-grids. Over 166 solar mini-grids have also been developed with the technical support of Huawei according to PAOP market assessment [75].

4.3.5. Economic Development

Despite the age-old consensus about the positive correlation between energy and economic growth, the uptake of renewables, the “fuel of the future”, is believed to evoke additional impacts. Providing energy from RESs has been established to offer direct and indirect economic benefits by providing the needed sustainable energy services at both micro and macro levels. At the macro level, renewable energy development would stimulate foreign investments and foster economic growth; however, renewable energy development at the micro level stimulates small-scale businesses and other income generating activities (local electricity production, agriculture, transportation, etc.). This supports the growth of local economies and contributes to poverty alleviation, which, in turn, increases the nation’s productivity and economic growth. This is backed by evidence from [76,77] which establish a positive and significant relationship between energy production from RESs and economic growth. Furthermore, reference [76] quantifies a 0.07% impact of energy production from RETs on productivity for developing countries compared to the 0.05% in developed countries.

Furthermore, the power networks in Cameroon, just as those in most countries, were designed and operated with clear demarcations between generation, transmission and distribution, aka the traditional grid. The traditional grid is, however, fraught with unsustainability, inefficiency, inflexibility and several other challenges. The existing network components need to be upgraded or replaced over time. The increasing interconnectivity of the present power system is, however, invalidating these traditional boundaries. The evolution from the existing to the future power system is based on five main trends: decarbonization, decentralization, digitization, integration and inclusion [78,79]. A key aspect to these trends is distributed generation, which is based mostly on RESs. Developing RESs will provide an opportunity for Cameroon to leap-frog from its present obsolete power system to the future power system. This will ensure a quality of supply, increasing productivity and economic stability of Cameroon [80].

4.3.6. Employment and Social Development

The government of Cameroon has identified the importance of RESs in attaining its Vision 2035 agenda which aims to deliver effective infrastructure, empower women in society and revamp industrialization [81,82]. These activities are bound to generate significant direct employment opportunities. Development of renewables has also been shown to have a high job creation effect per energy unit produced compared to conventional sources. RESs can create direct and indirect jobs along the entire supply chain, i.e., from manufacturing and distribution of inputs (chemicals, minerals, etc.) and equipment (solar panels, turbines, etc.) to services such as project management, installation, operation and maintenance of RE structures [24,83]. For example, solar energy provided 4.3 million jobs in 2021. The jobs generated from renewables is also likely be distributed and not essentially highly skilled jobs [64]. For example, construction of a solar PV farm will require the services of a driver and general laborer, jobs which require minimal training. This would provide general employment, further ensuring an increase of social development of citizens across the national territory.

Additionally, the dependence of over 75% of the Cameroon population on kerosene, firewood and charcoal for heating and lighting has adverse health effects resulting from indoor pollution [5]. Household air pollution (HAP) is severe, attributed to be the cause of about 6720 deaths in country in 2017 [84]. RESs have been promoted in Cameroon to minimize the use of traditional biomass and improve the health and wellbeing of citizens.

4.3.7. Dependency on Fossil Fuels

Fossil fuels constitute a significant portion of the energy pool and GDP of many nations. World prices of fossil fuels depend on a number of external factors such as taxes, crude oil prices and marketing costs, which are often external and largely influenced/swayed by market sentiments. This makes it difficult to accurately forecast fossil fuels prices. The difficulty and sensitivity of fossil fuels introduce uncertainty to national economies, especially that of developing countries. The extent of this uncertainty depends on the energy mix and contribution of fossil fuels to the GDP [85]. For Cameroon, with about 12.4% and 25% in total energy consumption and electricity generation in 2019, respectively, the government is seeking energy independence and security through increasing RE contribution [43,45,82]. RES are regarded as a means for countries to reduce their reliance on/or importation of fuels, hedging the economy against fuel price volatility [86].

Cameroon is also suffering from a depreciating crude oil production [87]. This downward trend is attributed to depletion of known reserves, poor maintenance of existing oil wells and non-discovery of new reserves. Thus, the government is scaling up renewable energy development to reduce the dependence on crude oil, despite its considerable reserves of natural gas.

4.3.8. International Economic Development

Several developed countries are seeing intensive investments into renewable energy research and infrastructure development in their attempt to reduce dependence on fossil fuels or transition into a low-carbon economy. Cameroon, like most developing countries, is trying to take advantage of the trend in global financing to foster the growth of its energy sector.

4.4. Challenges to Renewable Energy Adoption in Cameroon

The barriers to renewable energy development in the context of the energy system and national developmental goals of Cameroon can be examined from economic and financial, policy and regulatory, technical and sociocultural perspectives.

4.4.1. Economic and Financial Barriers

Inadequate Financial Incentives

The government, in its bid to promote RETs, made allocations for customs and tax incentives in the Electricity Sector Law [74]. Article 65 of this law and the 2012 Cameroon Finance Act (Article 128, paragraph 17) provide an exemption of the value added tax (VAT) on solar and wind energy equipment [75]. The exemption of VAT is still the only financial incentive in Cameroon. The insufficiency of the current provision and failure of the government to revise and include innovative financial incentives have been huge barriers to the development of renewable energies. This is evident by the meagre progress in the deployment of renewables in Cameroon compared to Ghana, which introduced fit-in-tariffs (FiTs) (though the program failed) in 2016 [33].

High Investment Costs

The dramatic drop in capital costs of RESs over the last decade, a key driver for global uptake, has mainly seen the impact in the more developed countries. Current investment costs are still relatively high for developing countries, which are mostly low- and middle-income economies. For Cameroon, a middle-income country, the high investment costs of renewables is a reason for the subdued adoption of these technologies [88].

In addition, most components of RETs are imported, rather than manufactured locally as in developing countries. The associated high transportation costs in addition to high feasibility, construction and installation costs (resulting from less competition in the job market) contribute greatly to the high initial investment costs of RETs.

Moreover, the VAT exemption provision for RETs in the tax law is associated with different codes for each type of component. The different codes correspond to different tax rates, i.e., 9405200000 for desk and bedside lamps. This often causes confusion as customs officials are usually unclear on which code is applicable to a particular component. Confusion which results in higher-than-official tax rates increase capital costs, making investments in RETs difficult [75].

Difficulty to Access Funding

Another economic barrier to the uptake of RESs in Cameroon is the lack of low-cost and long-term financing mechanisms. The Rural Electrification Fund, officially managed by the AER, only caters to renewable energy projects identified by the government [41]. Thus, there is no dedicated financing mechanism aimed at providing funds to individuals or private companies. For emphasis, despite over fifteen commercial banks in Cameroon, only about a third of these banks cater to energy-related projects. Still, only about half of the banks catering to energy-related projects deal with renewable energy-related products and services. Moreover, only 19% of citizens have access to financial services via commercial banks in Cameroon [75].

The lack of access to funding could mainly be attributed to the lack of stakeholders’ awareness of the role of financing mechanisms in developing renewables. For financial institutions, it is due to absence of finance-skilled renewable energy personnel. Problems with funding has resulted in only few licensed and actively operating renewable energy companies in Cameroon, the majority of which are relatively in the early stage of development and owned by multinationals such as Huawei and Schneider Electric [37,75].

4.4.2. Technical and Technological Barriers

Lack of Connection Codes

Global trends see the dominance of variable RE sources (VREs) (solar and wind) in renewable energy adoption. Solar and wind are generally characterized by the intermittency of resource, difficulty in perfectly forecast resource output and their non-synchronous nature [89]. Integration of variable REs into the grid is associated with various system stability and power quality issues as reviewed in [90,91]. Given that the type and extent of integration issues depends on generator type, penetration level and grid characteristics, connection of VRE requires a set of technical connection and operation requirements generally called grid codes [92,93].

The Electricity Sector Law of 2011 [74] provides the modalities for permitting, connecting and use of energy generated from RETs in Cameroon. Although Article 66 of the law depicts the mandatory connection and evacuation of any and all utility-scale generated electricity from renewables on request by the producer, it is void of any technical requirements. The conspicuous absence of grid codes or any connection codes a decade after the law and years into its NDCs and Vision 2035 objectives has been a huge barrier to the uptake of renewables. This is the mainly the cause for the lack of existing grid-connected renewable energy systems to the best of author’s knowledge at time of writing. In addition, this barrier has strongly swayed the focus to off-grid renewable energy systems, given that they require little grid connection codes.

Insufficient Grid Infrastructure

Another technical barrier to the deployment of RETs in Cameroon stems from the nature of its power grid. The Cameroon power grid is infamously known for aged components, poor power quality and its overloaded transmission system. The grid also has low flexibility. This is evidenced by the inability to reliably and cost-effectively respond to the increased flexibility needs of demand and failing to effectively dispatch the hydrothermal energy generated [45,48]. The existing deficiencies essentially limit the grid’s hosting capacity, i.e., the amount of renewable energy that can be safely and reliably integrated without significant network reinforcements [89,93,94].

Furthermore, electricity demand in the Cameroon power system was originally designed to be met from power generated by conventional power plants and transported over long transmission lines to distribution networks. The centralized design of the grid, which shaped varying levels of automation and evolution in each sub-sector, was all aimed at optimizing one-directional power flow. However, bi-directional power flow is necessary to cost-effectively manage the (surplus or shortage in) energy output RES, especially wind and solar. Upgrading the power grid and components to enable bi-directional power flow and allocate for appropriate flexibility ranges has been an uphill task.

Lack of Skilled and Trained Human Resources

Cameroon long considered grid extensions as imperative to its strategy to attain universal electricity access and its CAPP ambitions. Similar to the case of Ghana [95], the past and present activities in that regard have been characterized by poor general management. This is in part due to the lack of skilled power system and planning experts.

The availability of skilled and well-trained human resources is imperative for development and deployment of RETs. With the arguable exception of solar PV, the sector is still plagued with a shortage of skilled personnel. The difficulty in training qualified human resources could be attributed to the deficiencies in the education infrastructure.

4.4.3. Regulatory and Policy Barriers

Cameroon, like most developing countries, is characterized by structural deficiencies in political structure, society, economy and public policy [96]. Similarly, the institutions and policies governing the energy sector and, in turn, renewable energy development are seriously wanting. The Electricity Sector Law and other official texts governing the electricity sector are meant to regulate, restructure and govern RET development in Cameroon [72,74]. However, the barriers stemming from the inadequacy of the current legislature on RE development in Cameroon are:

Multiplicity of Institutions and Duplicity of Functions

The Electricity Sector Law and official texts spawn several intuitions and ministries. However, the functions of these multiple institutions were not properly delineated. The duplicity of functions among the institutions often led to conflicts of jurisdiction and redundancy in functions. This is one of the most defining barriers to RET development in Cameroon.

Lack of Institutional Coordination

The Ministry of Water and Energy (MINEE) is officially in charge of developing strategies for adoption of RETs, their implementation, supervision and monitoring; in essence, they are responsible for coordination in the renewable energy sector in Cameroon. In reality, MINEE is noticeably ambiguous in performing their duties. This situation has led to the non-respect of official legislature governing institutions and, coupled with the plethora of institutions, has enhanced sluggishness and incoherency in actors’ actions. It has also ushered in the tendency for these institutions to isolate and operate in a non-transparent manner, often amiss of the global vision [37].

Inadequate Research and Development

The state, through the Ministry of Scientific Research and Innovation (and higher educational institutions) in collaboration with MINEE, is responsible for conducting renewable energy research and development (R&D) programs [38]. The Electricity Sector Law also mandates some higher institutions to train qualified personnel for the installation, operation and maintenance of renewable energy structures. However, the government has been lackluster in this regard, which is a family scene across the national education system.

Building of educational institutional capacity is necessary to identifying issues and conducting innovative and relevant research [97]. The government has failed in equipping and creating a favorable environment for building the required educational capacities. They have also not launched any objective renewable-energy-centered R&D programs. This is evidenced by the visible absence of any auxiliary industry and minimal local production of RETs, with almost everything having to be imported.

There is also no working evaluation or quality control mechanisms for educational institutions, engagement and feedback between the academia and industry or international cooperation. This has led to a low turnout of skilled human resource personnel and low numbers and quality of scientific publications from academia. The government’s negligence in R&D has been a huge barrier for the RE sector in Cameroon.

Tedious Licensing Procedures

The multiplicity of institutional players, duplicity of functions, conflicts of jurisdiction and intervention has led to long and tedious bureaucratic procedures. This, in addition to having to meet several requirements to be eligible for a developer permit, has instituted a non-transparent licensing environment. This environment has encouraged bribery and corruption. The latter has not helped Cameroon’s ranking of 144 out of 180 in the 2021 Corruption Perception index [98].

Lack of Equipment Standards and Standardization Procedures

The lack of proper governance is reflected in the absence of national technical (minimum performance, durability, reliability) standards for equipment in the energy sector. The Standards and Quality Agency (ANOR), charged with the development, assessment, certification and compliance of standards in Cameroon, is yet to develop or adopt any known standard for RETs [99]. The lack of applicable standards or quality control units for RETs systems/components have encouraged the proliferation of used equipment of substandard quality. This is mostly seen in solar energy products (such as solar streetlights, phone chargers, lanterns and fans) often imported from Asia. Although this substandard equipment initially appears cheaper, they turn out to be more expensive when evaluated on performance and maintenance costs over their lifecycle. The incurred additional costs and low reliability, which often results in the equipment needing to be replaced, discourages the population from buying RETs. The proliferation of substandard equipment in the market thus acts as a barrier to the uptake of RETs [24].

4.4.4. Sociocultural Barriers

Another critical barrier to the utilization of RETs in most developing countries is the ignorance of the population. Unlike in developed countries which have elaborate educational and advertising systems, which enable the easier acceptance and adoption of new technology, the educational and advertising systems of developing countries—Cameroon included—are mediocre. Public awareness campaigns are essential in elucidating the population, communities and firms on the importance, socioeconomic benefits, environmental savings and opportunities possible with RETs. Filling the knowledge gap will allow Cameroonians to make informed choices.

Furthermore, the absence of proper public awareness has however heightened the perception of RETs as being high risks investments, complex to comfortably deploy and being relatively expensive. This has done little to dissuade the strong cultural beliefs of some areas in the country.

5. Enabling Mechanisms for Increased Renewable Energy Development in Cameroon

Despite the aforementioned barriers, the importance of RE technologies to the economic viability, social equity, environmental protection and general sustainable development to the nation necessitates sourcing of solutions or mitigation measures. Proposed solutions, mitigation measures and enabling mechanism for overcoming these barriers and accelerate the deployment of RE in Cameroon are presented.

5.1. Economic and Financial Mechanisms

The strategies to overcome the economic barriers and lack of sustainable financial in the renewable energy sector in Cameroon include:

5.1.1. Provision of Innovative Financing

The creation of innovative financing and payment programs such as FiTs, “mobile money” services, tradable green certificates, tendering schemes, rebates, soft loans and tax relieve programs will reduce the cost of capital for RETs. These financial programs should be accordingly designed to provide services to RETs users and investors at all banking levels and at affordable and accessible terms [37,100].

Given that access to banking services is an issue for the majority of the population in Cameroon, the formation of cooperatives or unions consisting of similar customers should be encouraged. This would enable the pulling of resources needed to meet the often-stringent collateral requirements placed by banking institutions. Banks should also be encouraged to seek alternatives to their loan requirements in order to increase access to loans. Special financing programs should also be developed for small-credit financial institutions which are instrumental in ensuring continuity to rural areas and remote communities.

5.1.2. Subsidy Schemes

Cameroon employs a subsidy scheme on certain fossil fuel products in order to reduce costs and cushion the impact of global variability of international prices on local prices. This ensures that local prices for kerosene, gasoil, diesel and liquefied petroleum gas (LPG) are affordable and fixed [8]. Some of these products are used for several purposes including lighting and powering of electricity generators (gensets). An estimated 100,000 diesel and gasoline-fired gensets are used as backups by households, commercial, industry actors in Cameroon for self-generation of electricity [101].

Although RETs are not subsidized in Cameroon, certain RETs are already cost-competitive in comparison to fossil fuel generation technologies. Removing subsidy on fossil fuels would inevitably increase the prices of its products, making RETs even more cost-competitive. This will also improve the levelized cost of electricity (LCOE) of RETs, increasing their attractiveness and thereby encouraging the increased uptake of RETs as an alternative to gensets. The variability of fossil fuel prices will also encourage a migration from diesel and gasoline backup generators to RETs.

Furthermore, the subsidy on fossil fuels could be transferred to RETs; for example, the subsidies for kerosene lamps could be transferred to solar lamps, and the subsidies for diesel could be used in gensets transferred to energy storage systems (such as batteries). This would hasten the development of Cameroon’s renewable energy sector and deployment of RETs, especially solar PV.

5.1.3. Carbon Taxing and Emission Trading

Another source of financing that could be channeled for developing countries and which is yet untapped is the CDM of the Kyoto Protocol set up by the United Nations. The CDM is based on the rationale that it is cheaper to reduce emissions in developing countries. This mechanism permits the financing of GHG-emission-reducing projects (a wide range of RETs) in developing countries as a means to meeting part of the emission reduction commitments of the more developed countries [102].

As signatory to the Kyoto Protocol (in July 2002), the CDM provides a useful source of finances for Cameroon. This was recognized with the creation in 2006 of the Designated National Authority (DNA) by the Ministry of Environment and Nature Protection. The DNA is responsible for the assessment and approval of CDM projects [103]. However, the agency has faded into oblivion, partly due to a lack of vision and funding, with only HYSACAM having benefited to date. Although a fundamental requirement of the CDM is that the projects to be financed should be in accordance with the host nation’s developmental objectives. Cameroon meets this criterion, given that it aims to attain a 25% share of renewables by 2035 [47]. The CDM presents several ways to overcome the financing barrier in the renewable energy sector. It also provides an opportunity for the country to explore other types of RETs not presently included in its priorities such as geothermal and CSP.

The Carbon Finance for Sustainable Energy in Africa (CF-SEA), jointly funded by the World Bank and the United Nations, is also a source for financing in the renewable energy sector of Cameroon. Supervised by the United Nations Environment Program (UNEP), the CF-SEA program has already supported several renewable energy projects amounting to over 60 MW in Cameroon. This is equivalent to about 2 million tons of avoided CO₂ emissions [104].

5.2. Technological Mechanisms

5.2.1. Research and Local Content Development

A prerequisite for the development of renewables is in the understanding and mastery of the various technologies. Although it is expected that the technology mastery in the renewable energy value chain will grow as knowledge and expertise improves, the rate and extent of this growth strongly depend on the government. The government’s technology advancement and innovation drive should be more strategic, directed mainly at local manufacturing, and supported by universities, research institutions and the industry. RETs that can be locally manufactured include components such as wind pumps, small hydro turbines and LED lamps, with some already being manufactured or prototyped by some universities within the country. An example is the micro hydropower plant at Baleng, a community in the west region of Cameroon which was constructed with mostly local manufactured components [105].

According to [37], over 60% of the components needed for the established RETs, apart from solar PV, can be locally manufactured. Local manufacturing of RETs could be an instrument for social transformation given the opportunities for employment, in addition to energy security and autonomy for remote communities. For technologies unable to be locally manufactured, the state should enter partnerships with foreign companies and developed countries to provide a platform for technology transfer and industry building.

5.2.2. Development of National Technical and Quality Standards for Equipment

Grid deployment of RETs, especially variable renewable energies (VREs), occur in six successive phases or penetration levels, each with a distinct set of grid integration issues [106]. Thus, appropriate technical regulations and minimum design requirements on how small, private and VRE generators can be connected to the grid, generally called grid codes, should be developed. Development of grid codes is essential to maintaining system stability, safety and reliability requirements. These clear rules will increase transparency in the licensing process and provide equal treatment among market operators [92].

The development of grid codes depends on the size of the power system, voltage levels and operation practices, interconnection level, energy policy and planned VRE penetration levels, amongst others. Cameroon ought to conduct comprehensive power system studies, while taking into consideration future advancements in order to identify its exact requirements. This will enable the development of a grid code compliance (GCC) mechanism to support the effectiveness of its renewable energy deployment. Furthermore, the clear rules will increase transparency in the licensing process and provide equal treatment among market operators [93].

5.2.3. Public Awareness and Capacity Development

The government, in collaboration with educational institutions, should design RE training programs that aim to significantly scale-up the availability and competency of local manpower. These training programs, which can be conducted in newly created and specially dedicated training schools, should integrate the requisite technical, economic and socio-cultural skills needed for the national development of all RETs. Furthermore, existing curriculums for skilled programs such as engineering and finance could be modified to cover the intricacies of RE development. This will in turn ensure the turnout of highly skilled manpower needed for the more complex RETs such as CSPs, geothermal, conduction of grid integration studies and energy sector policy analysts.

The government should also carry out extensive information dissemination on the opportunities (funding, subsidies, etc.), possibilities and benefits of RETs. The choice of RETs for dissemination and target audience at any point in time should keep in mind the existing technical knowledge, purchasing power and available local workforce. Pilot projects (such as renewable mini-grids and ownership models) pioneered by the state and involving stakeholders could also be carried out to inspire private sector replications. Proper information dissemination would engender the birth of new enterprises and socioeconomic development.

From experience, enterprises that locally manufacture RETs become financially sustainable in the short to medium term depending on the level of technology dissemination. Government interventions or subsidies to these enterprises could only be required at the initial stages and could be progressively withdrawn at a certain level of dissemination and maturity of the renewable energy sector [37]. Thus, proper dissemination of RETs could be a springboard for the creation of sustainable local enterprises and self-sustaining RE industries that are independent of government subsidies.

5.3. Technical Mechanisms

5.3.1. Grid Modernization

Cameroon is currently engaged in several generation, transmission and distribution grid expansion projects in order to meet its ambitious Vision 2035, CAPP and NDCs objectives [7,82,107]. However, the nation operates a weak power grid. This is evidenced by the incapability of the grid to safely and reliably accommodate newly generated electricity, despite the ongoing grid expansion directives. This is a key reason for the delayed development of utility-scale solar and wind projects in the country, such as the 15 MW planned in Maroua. Thus, the government should redirect efforts towards transitioning from the traditional to a modern grid. This is essential if the nation is to address the aging infrastructure and structural deficiencies of the existing electricity grid. It is also vital towards attaining Cameroon’s long-term objectives.

Grid modernization is essential to making the electrical grid more flexible (adequately respond to variability and uncertainty in operation conditions), reliable (for everyday operations), resilient (adaptable to various hazards), secure (full-proof from known and evolving threats) and sustainable (through energy efficient and RETs) [80,108]. Grid modernization would usher in digital models and novel business start-ups, especially in energy efficiency and demand-side management, resulting in immense socioeconomic benefits for the nation [109]. Furthermore, grid modernization would reduce peak loads, improve grid response to unanticipated usage patterns, and hasten grid interconnections, in addition to ensuring the optimal grid deployment of RETs [106].

5.3.2. Development of Technical Standards

A relevant and important instrument for the accelerated development and deployment of RETs is standardization. Component standards are necessary throughout the entire lifecycle of RETs, i.e., from the research and development phases through to the commercialization and technology decimation phases [110]. Cameroon, however, has no known standards for RETs, including that of electrical appliances, despite ARSEL being mandated to develop such standards [111].

Thus, ARSEL and ANOR, in collaboration with stakeholders, should set minimum performance and energy conservation standards. These should be for both locally manufactured and imported RETs and components such as solar lamps, solar panels, micro-hydro turbines and energy storage systems. The development of RET standards must be in accordance with accepted global best practices and international standards such as those from the International Organization for Standardization (ISO), European Committee for Standardization (CEN) and African Organization for Standardization (ARSO), the latter to which Cameroon is a member. However, these standards should consider specific issues relevant to and the peculiarities of a certain nation, in addition to specifying minimum shares of local manufactured content.

A well-designed standardization process would provide the common rules and framework for mutual understanding of technical product design, production, quality and service requirements, as well as the interoperability of components in the renewable energy sector of Cameroon. This would have multiple benefits for the entire energy sector, including reduced transaction costs from the use of standardized components, simplified contractual agreements, and decreased product and maintenance costs. Furthermore, standardization could be an effective tool for information dissipation on state-of the-art technologies and be support for innovation through common rules. This will result in increased levels of product quality and safety, thereby encouraging confidence in and providing acceptance of RETs in Cameroon. In addition, standardization would minimize the gap between marketable products and research and development efforts [110,112].

5.4. Governance and Regulatory

5.4.1. Market Design and Regulations

Cameroon operates a vertically integrated electricity market in which the state and IPPs manage electricity generation. Electricity transmission is managed solely by the state through SONATREL (National Electricity Transmission Company) and is monopolistically distributed (through ENEO, a semi-public company) to consumers. The current market structure which determines the resource generation mix used for electricity generation was designed primarily for conventional and centralized electricity generation. However, the current market structure is unsuitable for deployment of RETs given that it limits the choice of generation technology, with dispatch dependent on relatively inflexible schedules. The upscaling of RETs in Cameroon requires fundamental changes and reforming of the existing market structure.

This could be done in various ways. An option could entail deregulating the current system to a wholesale electricity market that is “independent” of government influence, as depicted in Figure 10. Generating entities will be mandated to sell their electricity outputs through competitive power markets based on price and be overseen and managed by a transmission system operator (TSO), independent system operator (ISO) or regional transmission organizations (RTOs). Customers would be served by utilities which retail electricity received from the wholesale market. Another option would be to unbundle electricity generation, transmission and distribution to eliminate monopolies and allow self-generation (prosumer system) by end users. Other options include instituting competitive retail markets and decentralizing the current power system; an example would be decentralizing distribution networks to enable ownership structures and management by regions, communities or zones. This would permit the creation of mini-grids and the entrance of small-scale renewable energy investors.

However, the novel and restructured electricity market structure should account for the cost, price and value aspects of supplied electricity. Cost aspects include internalized and externalized costs components. Price aspects include market prices, any available subsidies (direct and indirect), and additional regulated payments components. The value aspect includes power system (location and time of generation) and an additional social value component. These aspects accommodate the growth of decentralized electricity generation systems and increased flexibility. The electricity market restructuring process should also include provisions for innovation such as smart metering [113,114].

5.4.2. Lessen Political Risks

Political risk refers to the probability that changes in the political landscape or government actions (from executive, legislative or judicial) will negatively affect investments [115,116]. Political risks include changes in regulations, taxes, labor laws, environmental regulations and ruling political parties. Each country arguably has its own political environment and associated risks. A high political risk is a great deterrent to both national and foreign investment decisions. High political uncertainty is even a major deterrent for emerging markets and developing countries given the volatility of governments [24,117].

Cameroon’s landscape is characterized by a high political risk. The risks mainly stem from insecurity in the far north, instability in the Anglophones regions of the country, and uncertainties over succession [118]. The lack of decentralization in governance, which has bred corruption and non-independence of democratic institutions, also contributes to the high political uncertainty in the country. The high level of political uncertainty has adverse effects on business and capital investments.

Although no nation is immune to political risk, mechanisms should be implemented by the government to minimize political uncertainty and mitigate political risk. This includes stabilizing and ensuring rule of law, independence, integrity of democratic institutions, political participation and national inclusiveness. The government should also legislate comprehensive laws which aim to cushion political uncertainty and instability. The government, via insurance companies, can provide opportunities to businesses to purchase insurance against certain political risks. These measures would at least mitigate against certain political risks inherent in the nation, encouraging flexibility and allowing RET businesses to focus on the basics and development of REs.

5.4.3. Establish Cost Reflective Electricity Tariffs

Electricity tariffs are generally meant to recover (at least) the cost of generating, transmission and distribution of electricity, in addition to operation and maintenance costs of grid equipment. The electricity tariffing structure in Cameroon is officially supposed to be calculated by the sector regulator—ARSEL. The inability of ARSEL to fully perform its functions has resulted in the utility (ENEO) evaluating these tariffs. The tariffs presently in use are those approved in 2012 by ARSEL. However, the tariffs are not cost reflective, despite been structured into three levels: Low, Medium and High voltages levels [111]. This has led to utilities being unable to recover their costs of production, forcing compensation (officially subsidization) from government and large consumers [45,119]. The compensation scheme has proved unsustainable so far, with over 207 billion XAF of unpaid bills owed ENEO as of 31 May 2021, about 79% of which is by the State of Cameroon [120]. Furthermore, Cameroon’s electricity tariffs have not accounted for changes in determining factors (inflation, fuel costs, O&M costs, etc.) since its last adjustment over 10 years ago, despite several calls. The non-cost reflective nature of the present tariff structure of Cameroon is a barrier to the growth of the renewable energy sector.

The electricity tariff structure for electricity has noticeable impact on the growth of RETs [121,122]. The increased importance of RETs in light of the low-carbon energy transition in recent years has seen several electricity tariffs designs, especially for residential customers that encourage RETs uptake and better represent the modern grid. Thus, the government should reevaluate and redesign its electricity tariff structure so that it appropriately represents its realities and the trends of the future power system. Possible designs include net metering; net purchase and sale; and FiTs, in addition to flat-rate tariffs schemes (Increasing-Block Pricing (IBP), Ramsey pricing, Real-time Pricing (RTP), Time-of-Use (TOU), Critical Peak Pricing (CPP) and Demand Charges), as reviewed by [123,124]. The electricity tariffs should also account for emission taxes, environmental externality costs and life cycle analysis. This is particularly important when evaluating LCOE of electricity generating technologies.

5.4.4. Develop a Renewable Energy Policy

Although Cameroon in 2017 carried out a study for the establishment of a masterplan on renewable energy, there is still no known masterplan nor renewable energy policy to date [42]. Existing policy documents such as the PDER and Energy Sector Development Project (PDSEN) only identify a few planned renewable energy projects pinpointed for development [41,81]. This is in spite of the professed importance of RESs to the nation’s long-term development objectives [47,82]. The belated development of a masterplan is due to a more general problem in the energy sector: the absence of an energy policy for Cameroon.

The nation should urgently develop a comprehensive renewable energy policy. This policy document should address key aspects such as renewable energy promotion, biofuels and transportation, emission reduction, power sector restructuring, distributed generation and off-grid, and rural electrification. A well-designed renewable energy policy will clarify the role and contribution of various actors, provide timelines and ensure the effective and efficient uptake of renewable energy in Cameroon [125].

6. Conclusions

The uptake of RETs has progressed at an unprecedented rate in recent years, constantly surpassing expectations yearly throughout the last decade. Much of the advancement in renewables has been thanks to extensive planning, effective policies and an increasing number of nations pledging to their respective zero-carbon energy transitions with ambitious targets. However, a great extent of the new renewable energy capacity added has predominantly been by developed countries. To attain the goals stated in the Paris Climate Agreement, developing countries need to actively participate in the uptake of renewables, in addition to increasing the global pace of the energy transition. This in particular is important for developing countries, especially SSA, given their pathetic access to affordable, reliable, sustainable and modern energy services, which has negatively affected sustainable development.

Cameroon, like most countries in SSA, has an abundance of RESs such as solar, hydropower, wind, biomass, etc. These resources literally have the potential to meet the country’s energy needs, given its issues such as inadequate electricity generation capacity, lack of national access to clean cooking and electricity and energy security concerns. The government, via masterplans, has since identified the uptake of renewables as instrumental to increasing electricity generation, meeting her NDCs commitments and overall long-term developmental goals. Nevertheless, the uptake of renewables has been hindered by a variety of factors or barriers. This is in spite of efforts by the government, stakeholders and provisions in the 2011 Electricity Sector Law.

From this study, the drivers for renewable energy development mainly stem from the need to increase energy generation, economic and social development benefits, the need for an energy transition and ensuring energy security in the nation. The barriers to development of RETs, which are extensive and grouped into regulatory and policy, technical, economic and social barriers, need to be comprehensively addressed. The main barriers in our opinion are the long and tedious bureaucracy procedures for licensing and the absence of grid connection codes. This makes it difficult for the entrance of new players in the sector, in spite of their financial power. However, there are suitable solutions, approaches and enabling mechanisms to overcome, or at least mitigate, these barriers. These include the provision of innovative financing (FiTs, soft loans, subsidies, etc.) and rebate schemes, grid updates, standardization and information dissipation. Building up human capacity and local content development could also be instrumental to renewable energy development in Cameroon. Yet, the key enabling mechanism is in tackling the “ambiguous” political, governance and regulatory atmosphere guiding the sector and indeed economic investments in the nation. Resolving this will unlock public and private sector financing which, according to [126], amounts to over 10 billion USD for climate-resilient investment in RETs.

Addressing the barriers to RETs uptake in Cameroon and in SSA would necessitate an all-inclusive and integrated approach of all the enabling policies as highlighted in [16,24]. Although the enabling policies are focused primarily on electricity generation due to the present development priorities, the effective diffusion of RETs would entail consideration of transport, energy efficiency, cooking heating and cooling sectors. The policies posited could be easily adapted for these sectors. Nevertheless, future and sophisticated policy frameworks to stimulate and support renewable energy development ought to take a systematic approach. This approach should consider fully integrated policies across various sectors, incorporate supporting infrastructure and measures for matching supply and demand. The approach would also have to take advantage of the synergy between renewable energy and energy efficiency and harness the potential for distributed generation to increase the access to clean cooking and electricity. Given the (economic, social and environmental) benefits of RETs both in the short- and long-term, the nation should prioritize its development in its bid to increase generation capacity and meet her NDC commitments.

The key contributions of this study are that it provides valuable insights into the current status of renewable energy adoption in Cameroon. This includes analyzing the existing renewable energy infrastructure, identifying the major renewable energy sources being utilized, and assessing the contribution of renewable energy to the overall energy mix in the country. Secondly, the study identifies the motivations and factors that influence the implementation of renewable energy policies. It also examines the challenges and barriers faced in the implementation of such policies. Thirdly, the study explores the existing policy frameworks and regulatory mechanisms, provides insights into the policy gaps and suggests improvements that can promote a more favorable environment for renewable energy investments and development.

Although SSA countries exhibit both similarities (such as access challenges, limited infrastructure, state involvement and financial constraints) and differences (such as energy mix regulatory mechanism, grid infrastructure, renewable energy deployment, regional cooperation and institutional capacity) in their energy infrastructure due to various factors such as geography, resource availability, economic development, and policy frameworks, knowledge from this study can provide a better understanding of the specific challenges and opportunities. Furthermore, some findings for Cameroon could be directly transferable to other countries in the region. The paper will also contribute to the knowledge on policy perspectives in the renewable energy sector, benefiting policymakers and researchers globally.