Offshore renewable energy can help Africa lower fuel costs, says AfDB
Can support coastal, island countries Explores continent’s potential Morocco, with 4 solar, 11 wind power plants, leads continent Global ocean economy worth $1.5trn each year Only 3% of continent’s energy is renewable versus 7% in other regions Nigeria, with 853km coastline facing Atlantic Ocean, put on notice on blue economy
AFRICA’S OFFSHORE RENEWABLE ENERGY CAN CONSIDERABLY support the expansion of renewable energy capacity for the continent’s coastal and island countries, while helping to lower the energy costs associated with importing fossil fuels, the African Development Bank’s (AfDB) African Natural Resources Centre (AfNRC) has said.
With only three percent of the continent’s generated electricity in 2018 coming from solar and wind, versus seven percent in other regions of the world, Africa lags behind in renewable energy sourcing.
The AfNRC and the Sustainable Energy Fund for Africa (SE4A) considering the continent’s huge but yet untapped offshore renewable energy potential, recent;y held its first in a series of discussions, on the potential of Africa’s blue economy. Reports said over 12 million Africans are engaged in fishing alone, earning livelihoods.
A study on the potential of offshore renewable energy in Africa commissioned by the AfNRC, as part of a series to inform policy making, planning, and investment in blue economy strategies in Africa, came up with findings that Africa can considerably support renewable expansion capacity for the continent’s coastal island and inland countries.
Linus Hammar from Octopus Ink Research & Analysis, Sweden, who presented the study’s findings, gave an analysis of the potential of the offshore renewable energy that Africa possesses, beginning with an overview of coastal and island countries and prospects for commercial development.
For Leontine Kanziemo, advisor on natural resources management at the African Natural Resources Centre, African governments, especially of the coastal and island countries, can harness offshore renewable energy in order to considerably support the expansion of their renewable energy capacity, while helping to lower the energy costs associated with importing fossil fuels.
The above analogy clearly puts Nigeria, with an 853 km coastline facing the Atlantic Ocean, on notice, to open up its blue economy potential. The African top oil producer, sadly imports 100 percent of petroleum products at huge costs. The country has been cushioning higher global refined products prices with controversial subsidies running into several billions of dollars. Experts believe the country could do better in lowering its fossil fuel importing costs by diversifying into the blue economy.
Olivier Ceberio, chief operation officer at Resolute Marine Energy, and Philippe Ong Seng, chief executive officer at Urban Cooling Ltd, presenting case studies of offshore energy projects supported by the Sustainable Energy Fund for Africa, said coastal countries in Africa and small island developing states have valuable renewable, reliable and sustainable cold energy stored in deep seawater which can be exploited commercially, and used for air conditioning.
“Financial institutions like the African Development Bank and other green energy funds should work with authorities in Africa and the small island development states to mobilize concessional finance to implement seawater air conditioning projects in their mitigation and adaptation efforts to combat the adverse effects of climate change and reduce dependence on fossil fuels,” said Ong Seng, who presented the Mauritius Deep Ocean Water Applications project.
Dan Grech, director at Global OTEC Resources Ltd, who presented the Ocean Thermal Energy Conversion project in São Tomé and Príncipe, said: “At Global OTEC our vision is that small islands serve as a vital entry market for de-risking smaller-scale OTEC plants, amassing operational data and showing funders and insurers a track record, which will enable the mass scale-up across coastal countries all around the world.”
João Duarte Cunha, manager of the African Development Bank’s renewable energy division and head of the Sustainable Energy Fund for Africa, emphasized the need for seeing pilot projects through to bankability and commercial operations. He underscored the role of development and climate finance institutions in providing the capital needed to support initial deployments and achieve scale.
The Sustainable Energy Fund for Africa is a multi-donor special fund that aims to promote private sector investment in sustainable energy, in line with AfDB’s new deal on energy for Africa and Sustainable Development Goal 7, relating to universal energy access.
The African Natural Resources Centre generates high-quality knowledge and engages in policy dialogue. It also provides technical support to regional member countries on natural resources planning, investment, and governance, with a focus on land, forestry, fisheries, water, oil, gas, and minerals.