Energy Transition in Africa
*Maureen Ochiora and Ifeoma Malo
The African continent today has a population of about 1.3 billion, with about 600 million of this population having no access to electricity, and an additional 900 million, having no access to clean cooking. This high proportion of the disadvantaged populace reduces the chances of attaining economic growth. This situation poses a problem to almost every economic sector. The lack of access to clean energy also results in the death of thousands annually and also threatens the health condition of many, while the lack of sustainable power drives up the cost of doing business.
There are several facets to the problems associated with low energy access in Africa. These primarily include the lack of reliable supply of electricity, inadequate funding, low technological advances, inadequate infrastructures, insufficient power generation capacity, difficulties in managing energy infrastructure and the challenge of serving low-income users.
“Rapid growth in population”, and the resulting increase in energy demand in the developing countries has led to an emerging energy crisis which in effect increases people’s dependence on non-renewable energy sources. The negative impact of using conventional sources of energy such as fossil fuels (coal, gas, oil, and radioactive ore) has resulted in efforts to minimize dependence on these sources by increasing renewable energy supply.
The combined effects of booming populations, urbanization, and the ambitions of economic development will collectively require increased energy. Available data shows that rural populations have a preponderance of people and yet this region has an outstanding solar potential that could open up access to cheap power generation from solar power systems. Hence, the question remains on how to avail the rural communities in Africa access to electricity in such a way that encourages sustainable development and productivity.
Africa has great potential for renewable energy, yet just a fraction of it is currently being deployed. The energy transition anticipated is linked to the deployment of renewables which would have a remarkable expansion space on the continent in years to come. The use of renewable energy could serve as a bridge to meet the energy needs of rural areas. This large opportunity is becoming clearer, as new technologies like concentrated solar power are emerging as viable competition to conventional power generation.
Renewable energy will play significant roles in supporting power generation and alleviating poverty. However, there need to be concentrated incentives to fast-track investments, engage with government and communities, advance policies as well as operationalize infrastructure that will help deploy the renewable energy technologies necessary for the energy transition to take place in rural communities. This will definitely resolve the problem of poor access to renewable energy in these communities and ensure poverty alleviation.
The role of advocacy and public enlightenment cannot be overlooked in accelerating renewable energy access across the continent. Advocacy with critical stakeholders including government, private sector and civil society to improve knowledge, understanding and the use of renewable energy technologies amongst the target population is much needed to advance penetration into communities where necessary.
In order to ensure clean, sustainable and affordable electricity by 2030 (SDG7) in line with global expectations, there ought to be investments in clean energy sources. In countries where this is already being done, the cost of Kw/hr from solar technology is significantly cheaper than electricity generated from the grid. Adopting cost-effective standards, as well as expanding infrastructure and upgrading technologies that make room for the use of more renewable energy is crucial to encouraging development and preserving the environment.
Due to the cost and practicality associated with grid extension, we know that Decentralized Renewable Energy systems are best suited for rural areas in providing the necessary amount of electricity that fosters a higher level of human development. It addresses the low power purchase of the local community, gives renewable-based power access as a pillar for human development, and increases the income of the local community through productive usage including agricultural productivity which is an economic backbone for many rural communities.
Despite the economic turmoil caused by COVID-19 pandemic, which has caused a dampening effect on the economy, it is time to step up renewable energy access and adoption, and drive down costs in order to encourage more productivity. Conclusively, energy access for all is a key driver of inclusive growth. It creates opportunities for all especially for women, youths, and children in rural and urban areas. Energy access reduces the cost of doing business, unlocks economic potential, and creates more jobs.
*Maureen Ochiora is the senior analyst, Finance at Clean Technology Hub
*Ifeoma Malo is the Co-founder/CEO of Clean Technology Hub
