The Pak Banker

Africa's energy needs

- Joseph Dana

Africa's energy supply is in crisis, a result of crumbling infrastruc­ture, a rapidly growing population and the pressure of climate change.

The crisis will not be solved by convention­al means. And certainly not by increasing regional tension, as Donald Trump did with an illconside­red remark at the end of October, when he opined that Egypt might blow up a dam in Ethiopia at the heart of a geopolitic­al dispute.

Instead, it is time for innovative solutions: building transnatio­nal energy projects involving a combinatio­n of fossil-energy plants, green-energy infrastruc­ture and nuclear power. This might all sound like a pipe dream, but it isn't if the will is there. And there is no choice but to find the will.

First, that dam. The Grand Ethiopian Renaissanc­e Dam has been an ongoing source of tension among Ethiopia, Sudan and Egypt for all the wrong reasons. The dam could transform Ethiopia into an energy exporter. But as it is being filled, it would also limit the flow of the Nile to Egypt and Sudan. Putting aside Trump's remarks, the dispute ironically highlights the need for regional power generation (and cooperatio­n).

The economic cost of Africa's growing power challenges is immense. The path forward needs to be nothing short of revolution­ary. The solution lies in power plants designed to supply entire regions. But how and in what form?

Start with the "what." Clearly, it must be sustainabl­e. But wind and solar have obvious drawbacks of sustained output. Nuclear would address those issues and provide clean, cheap power. But with many African states politicall­y unstable, the continent does not inspire confidence of security and non-proliferat­ion. Until a mix of wind, solar and nuclear can be built up to meet current and future needs, the continent requires quick answers.

The best way to address this would be to build a fleet of modern, cleaner (but clearly not clean) fossil-fuel plants that would eventually be phased out as solar, wind and nuclear come on line with sufficient capacity.

The immediate objection is that surely the point is to reduce carbon emissions, not add to them.

Africa contribute­s 3.8% to global greenhouse emissions compared with China, the US, and the European Union at 23%, 19% and 13% respective­ly. If current options are successful­ly pursued by individual African countries, the continent's emissions would rise to around 5% of global share.

But a clear-eyed plan for new, cleaner fossil-fuel plants supplying transnatio­nal regions can arguably have lower carbon-emission rates. In the meantime, plans can be put in place to build out sustainabl­e power plants.

How to achieve this is can be even more interestin­g.

The United Arab Emirates, a major oil and gas producer, is also at the forefront of carbon-neutral solutions for the future. Perhaps a consortium involving the UAE, Saudi Arabia and other transition­ing oil producers can be convinced to finance and build out the energy future of Africa.

They have the capital and relationsh­ips with global engineerin­g firms to build fossil-fuel powered plants, and can then provide feedstock at lower-than-market rates, balanced against the income the plants would generate.

The UAE might then lead the next phase, with help from South Korea. It is at the forefront of sustainabl­e-energy research, for one thing. It also operates a nuclear power plant built by Seoul's Korea Electric Power Corporatio­n (KEPCO).

Indeed, the UAE, as an internatio­nally trusted nuclear-power producer, can bring its non-proliferat­ion best practices to Africa. And as a friend to African countries without the colonial baggage of the West or, more recently, the fraught relationsh­ip the continent has had with China, the UAE can partner African nations to ensure security.

After building the UAE's nuclear power plant, South Korea is eager to expand its nuclear portfolio into non-traditiona­l markets. A fleet of nuclear plants could be priced according to the benefits from an economy of scale.

For Gulf Arab countries, investing in Africa would ensure continuing sale of their hydrocarbo­ns as the West and Asia reduce their use of oil and gas; this would then transition to an income stream from renewal energy.

For Africa, it means the investment and supply of power at low cost and eventually at low carbonemis­sion rates.

 ??  ?? "The UAE might then lead
"The UAE might then lead

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