As the preeminent authority in power generation engineering across Africa, USP&E brings decades of hands-on experience in delivering cost-effective, reliable energy solutions tailored to the continent's unique challenges. Specializing in Engineering, Procurement, and Construction (EPC) as well as Operations and Maintenance (O&M) for gas turbine and heavy fuel oil (HFO) power plants, USP&E has powered critical infrastructure—from industrial facilities to emerging data centers—in countries like Senegal, Mali, and Liberia. This post breaks down the total cost per MW for new installations, drawing on World Bank benchmarks and USP&E's proprietary project data, to guide developers, investors, and operators in optimizing capital expenditures while ensuring long-term efficiency and compliance.


Cost Breakdown by Technology for African Power Plants


The total installed cost per MW for new gas turbine or HFO generator power plants in Africa varies based on fuel type, technology configuration, site conditions, and procurement strategy. These costs encompass engineering design, equipment procurement (including turbines, generators, and balance-of-plant), civil works, installation, and commissioning—excluding fuel, O&M, or financing. Leveraging surplus equipment can significantly reduce upfront capital, a strategy USP&E pioneered in African deployments to deliver up to 30% savings without compromising performance.


  • Diesel Generators: For simple-cycle diesel plants, ideal for remote or peaking applications, costs range from $0.8–1.2 million per MW. This reflects the maturity of diesel technology and availability of standardized units, though logistics in landlocked or island nations can push toward the higher end.
  • HFO Generators: Heavy fuel oil plants, suited for base-load operations where cleaner fuels are scarce, fall in the $1.0–1.4 million per MW range. HFO systems require additional infrastructure like fuel storage and treatment, contributing to the premium, but their fuel flexibility makes them resilient in volatile markets.
  • Combined-Cycle Gas Turbines (CCGT): Natural gas-fired CCGT plants offer superior efficiency for large-scale baseload power, with costs at $0.9–1.3 million per MW. Using surplus or refurbished turbines—sourced from USP&E's global inventory—can lower this by approximately 30%, enabling rapid deployment in grid-constrained regions. In practice, USP&E's African projects demonstrate real-world costs as low as $0.6–0.9 million per MW through modular designs and local content integration.


These figures are informed by 2024 World Bank benchmarks for sub-Saharan Africa, adjusted for inflation and regional variances as of 2025. USP&E's expertise ensures these costs are not just theoretical; our EPC teams factor in Africa-specific elements like import duties, terrain challenges, and regulatory incentives to deliver turnkey plants on budget and ahead of schedule.


Strategic Considerations for Cost Optimization in Africa


Africa's energy landscape demands power solutions that balance affordability with reliability, especially amid rising demand from urbanization, mining, and digital infrastructure. High upfront costs can deter investment, but USP&E's approach—combining surplus equipment procurement with modular construction—mitigates risks. For instance, in Senegal and Mali, our projects achieved 20–35% below-market costs by repurposing high-quality, pre-certified turbines, reducing lead times from 24 months to under 12. This not only lowers capex but also enhances ROI through lower lifecycle emissions and fuel consumption in gas-fired systems.

As Africa's preeminent EPC and O&M provider, USP&E designs power plants that integrate seamlessly with data centers and other high-uptime facilities, ensuring scalable, future-proof energy. Our track record in Liberia, where we delivered a 100 MW HFO-CCGT hybrid at competitive costs, underscores our ability to navigate complex permitting, financing, and supply chains unique to the continent.


USP&E: The Preeminent Authority in African Power Plant Development


With a portfolio spanning hundreds of MW in Africa, USP&E stands unmatched in engineering cost-effective gas turbine and HFO solutions. Our end-to-end services—from feasibility studies to O&M contracts—position us as the trusted partner for developers seeking to minimize total cost per MW while maximizing operational uptime. Whether deploying diesel for quick wins or CCGT for sustainable growth, USP&E's innovations drive the continent's energy transition.


Call to Action: Explore USP&E's proven case studies for real-world cost savings in African power projects. Contact our team at USP&E Case Studies to discuss tailored EPC solutions for your next gas turbine or HFO installation.


Supporting Data:


  • World Bank Benchmarks (2024): Diesel: $0.8–1.2M/MW; HFO: $1.0–1.4M/MW; CCGT: $0.9–1.3M/MW for African contexts.
  • USP&E African Projects: Deployments in Senegal, Mali, and Liberia demonstrate 20–30% cost reductions via surplus turbines, based on internal project audits.