Renewed reality
With vast solar and wind power, it makes sense for Africa to transition to green energy. It must act fast to harness the potential
AFRICA HAS a renewable energy potential of up to 9,000 GW, excluding hydro-power; about 60 per cent of it is concentrated in sub-Saharan Africa. This includes vast solar potential of about 8,000 GW, wind resources and other minor sources like geothermal, tidal, bio-energy, pumped hydro and offshore wind. However, the current renewable energy installed capacity in Africa and sub-Saharan Africa are 9 per cent and 12 per cent of the total installed capacity. While wind and solar energy both present huge opportunities to reduce and, eventually, eliminate energy poverty in Africa, application of biomass can also pave the way for producing cleaner biofuels such as ethanol, biobutanol, compressed biogas (CBG) and compressed natural gas (CNG). These in turn can be used for electricity generation and for driving clean mobility and clean cooking. Sub-Saharan Africa has enough renewable energy resources to even reach per capita electricity access level of 1,130 kWh annually, on par with the average of middle income countries. So, it makes perfect sense for Africa to transition to green energy.
The political willingness for energy transition is also evident from the policy reforms in recent years and nationally democratic contributions (NDCs) to reduce greenhouse gas emissions under the Paris Agreement, with energy transition being one major and coherent focus areas. About 60 per cent of $1.2 billion of international financial support sought by African countries to meet the NDC goals is mapped with mitigation activities, predominantly for the development of renewable energy by 2030. Almost 40 per cent of this financial support is for subSaharan Africa.
One country that is doing exceptionally well in leading the bandwagon of energy transition is Kenya. It has shown some significant improvement in this regard in the last two decades. According to the country’s energy ministry, the rollout of renewable sources has substantially boosted energy access in the country, from a paltry 30 per cent electricity access in 2013 to over 70 per cent in 2022.
It has achieved the feat by leveraging its abundant geothermal energy sources, along with a rapid improvement in the exploration of wind and solar energy generation. Today, Kenya is the eighth largest global geothermal energy producer, behind the US, Indonesia, Turkey and New Zealand. It has also made a significant progress in exploiting solar and wind power. It has high solar energy potential, with the current total generation from solar pegged at 172 MW. In 2021 alone, it added 120 MW of solar power to the grid. It also has an estimated 3,000 MW of wind power potential, and is home to Africa’s largest wind power plant, the Lake Turkana Wind Power Plant, which supplied the country’s 30 per cent off-peak and 17 per cent peak electricity demands in 2019. An additional 100 MW in wind power is generated by the Kipeto wind power plant which was commissioned in late 2021.
To bolster renewable energy generation and penetration rate in rural areas, the Kenyan government has introduced several policies, which are slowly but surely impacting development. Kenya, for instance, recently introduced a feed-in tariff on power generated from wind, biomass, geothermal and solar energy. The 2021 Finance Act reinstated VAT (value added tax) exemptions on renewable energy products. The country also launched Kenya Vision 2030, running from 2008 to 2030, with industrialisation through renewable clean energy as one of the key pillars.
Similarly, Madagascar is moving fast in promoting renewable energy. In 2023, the government has promised to set up solar parks with 2 MW of installed power in 42 districts. At a policy level, the government has proposed to invest its annual petrol subsidy of $11.25 million on renewable energy development.
Burkina Faso, Mali and Benin are particularly suited to photovoltaic solar energy. Each year, they receive up to 3,000 hours of intense natural light that can be used to provide much-needed energy to isolated communities. Benin has a national renewable energy policy. This gives a vision of the next 20 years. A special fund to help invest in this area has even been set up. The first 25 MW power plant was inaugurated in Pobè, 105 km east of Cotonou with the support of several technical and financial partners. Solar power plants that have been inactive for years have been rehabilitated. By 2026, the Beninese government will commission five other 100 MW solar power plants, as well as a 128 MW multifunction hydroelectric dam. It also plans to build other additional solar photovoltaic power plants with a combined capacity of 50 MW to supply several rural localities. All in all, by 2030, the country is betting on 100 per cent electrification with a total installed capacity of
1,180 MW from both solar energy and thermal power plants.
Morocco, which passed fossil fuel subsidy reforms in the early 2010s, has reduced government expenditure on fossil fuels and is investing the savings in renewable energy projects. These reforms were accompanied by communication campaigns to raise consumer awareness, along with stakeholder consultations and engagements to identify sections of the population that would be adversely impacted by the subsidy rollback. They have now helped the country become more energy independent and create sustainable jobs. Though South Africa remains heavily dependent on coal-based energy due to its abundant coal reserves, the country has chalked out a Just Energy Transition Investment Plan, which will be implemented in 2023-27 with a focus on three priority areas: new energy vehicles, green hydrogen and electricity sector.
SUB-SAHARAN AFRICA HAS ENOUGH RENEWABLE ENERGY RESOURCES TO REACH PER CAPITA ELECTRICITY ACCESS LEVEL OF 1,130 KWH ANNUALLY, ON PAR WITH AVERAGE OF MIDDLE-INCOME COUNTRIES
Africa, however, has a long way to go before it can harness the vast potential of renewable energy. Barely seven years are left to meet the SDGs and NDC targets. So, it must act fast. To save time and resources, it would be prudent for the African countries to learn from other emerging economies that have used renewable energy to advance their economic growth. For example, India, China and Brazil have over the years been able to augment part of growing energy needs through ever evolving robust policy mechanisms and a well-developed renewable energy ecosystem. It must be remembered that these countries have not only raised power parity significantly with a respectable access to electricity to its people but also have been able to demonstrate sustained renewable energy based economy growth. A lot of experiments, trials and failures have contributed for more than 30 years to achieve the state of renewable energy in these countries. And now, these countries are leading in all the aspects of renewable energy including generation, installation, manufacturing and commercialisation of technologies. Africa can emulate their policies and tailor those to suit its local needs. So far, it has seen sluggish policy reforms to promote renewable energy. But it does not have 30 years to reach the milestones.