Douala’s energy transition opens doors for investment
Published: 25 Feb 2025
Climate Finance
With rising energy demand and only 75% of Cameroon's urban population having access to electricity (World Bank, 2025), Douala is accelerating efforts to expand clean energy solutions. Over the past seven months, CoM SSA through its Urban Smart Energy (USE) product, in collaboration with municipal leaders, energy experts, legal advisors, and financial specialists, has assessed the feasibility of renewable energy and energy efficiency projects across nine municipal sites. Their findings lay the groundwork for a cost-effective urban energy system and a strong case for future investment.
During a two-day workshop, participants explored various aspects of USE, which focuses on deploying decentralised energy systems and efficiency measures in municipal sites, ultimately reducing energy costs and boosting local economic opportunities.
In 2023, nine municipal sites were preselected for assessment and smart meters were deployed to track energy consumption. The insights delivered by the smart energy meters provide data-driven decision-making tools that help cities implement effective energy-saving strategies. They also inform the development of tailored photovoltaic system designs and energy efficiency measures. Experts evaluated nine sites, considering investment requirements, PV system sizing, emission reduction potential, and financial projections. To ensure financial viability and attract investors, experts focused on key factors such as:
- a projected internal rate of return (IRR),
- a power purchase agreement to guarantee long-term stability, and
- inflation forecasts for electricity pricing to anticipate future costs.
Beyond discussing technical feasibility, participants also addressed the legal and financial frameworks required to scale these projects. The participants explored ownership models, service agreements, and procurement processes to align with national regulations. While some aspects of the financial model sparked debate, alternative funding options, including public-private partnerships and concession agreements, were considered to accelerate implementation.
The next steps include selecting priority sites for tendering and securing financing. The availability of smart meter data provides Douala’s municipality with a stronger investment case, ensuring that energy efficiency measures and renewable energy projects are based on real consumption patterns and projected cost savings.
Turning these insights into tangible projects will require strong collaboration. Private sector actors and financiers have a strategic opportunity to engage, bringing expertise, funding, and innovative solutions to drive Douala’s transition to a more efficient urban energy system. With the right investments and partnerships, Douala can set a precedent for the region, demonstrating how smart energy planning leads to economic and environmental gains.
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