Africa Energy Forum 2023 - Post Forum Report

Country Host KenGen

Thank you to our Sponsors and Partners

aef 2023 in Kenya: Energizing Africa’s Future. As sponsors of the Africa Energy Forum, we’re proud to have been part of an event that sparks dialogue, ignites innovation, and propels sustainable energy solutions. The connections made and ideas exchanged during aef 2023 are pushing us all towards a brighter, greener and more empowered energy future for Africa.

Forum Sponsor

Exhibition Sponsor

KenGen

Country Host

Global Partners Africa IPP Partner

Lead Sponsors

Synergy Consulting

Adam Cortese CEO, Sun Africa

Africa Energy Forum 25th Anniversary

In June 2023 Nairobi welcomed over 3,500 investors, stakeholders, and the future energy leaders from Africa and across the world at the 25th Africa Energy Forum (aef) and its co-located event, Youth Energy Summit (YES!). This was the first time the forum has been held on mainland Africa.

aef 2023 was opened by His Excellency Dr William Samoei Ruto, C.G.H., President of the Republic of Kenya and Commander-in-Chief of the Defence Forces – a tribute to the importance of the event for both Africa and the sector. The forum was held under the Patronage of Cabinet Secretary Hon. Davis Chirchir, Ministry of Energy and Petroleum, Republic of Kenya.

The forum covered a number of strategic areas, including energy for mining, connectivity, the just transition, and Africa’s potential as a global hydrogen powerhouse. It brought together 300+ speakers and over 2,300 participants to discuss projects and partnerships and promote business development.

In 1998, Kenya Electricity Generating Company (KenGen) became the first public utility to confirm its attendance at the inaugural aef. A quarter of a century later, the leading electricity generator in East Africa and a significant global player in geothermal development took the lead again, this time as Country Host for aef 2023 in Kenya.

During the four-day conference, stakeholders and delegates connected, collaborated and put plans in action to drive the continent’s energy agenda forward. Power Africa celebrated its 10-year anniversary and Samantha Power, USAID Administrator, announced new funding for the continent. ENGIE heralded its purchase of BTE Renewables, and MOUs were signed between Power Africa, AfDB, ATIDI and more.

For the second year running, the Youth Energy Summit (YES!) ran alongside aef. With over 1,100+ attendees from 26 countries, YES! aims to boost the skills, development and business readiness of future energy leaders. The launch of the Beyond Privilege digital platform takes this further, with access to online learning and networking planned for thousands more across the continent.

Thank you to all of our sponsors, speakers, partners and participants.

As the conversations continue and new partnerships flourish, we look forward to welcoming you to Sharm El Sheik in 2024, for the 26th annual Africa Energy Forum.

aef team

The

Giza Martins Regional Director, Southern Africa, Sun

Africa

Africa Energy Forum represents the convergence of multiple actors in the fight against energy poverty in the African continent.

Attendee Breakdown

2,391 ATTENDEES

932 C-SUITES/ DIRECTORS

330 SPEAKERS

167 MINISTERS AND GOVERNMENT OFFICIALS

Attendance from 75 countries

Algeria

Angola

Australia

Austria

Belgium

Bermuda

Botswana

Brazil

Burundi

Cameroon

Canada

Cape Verde

Central African Republic

China

Comoros

Congo - Kinshasa

Côte d’Ivoire

Denmark

Egypt

Equatorial

Eswatini

Ethiopia

Finland

France

Gabon

Top 10 countries

Gambia

Germany

Ghana

Greece

Guinea

India

Ireland

Italy

Japan

Jordan

Kenya

Lebanon

Lesotho

75 COUNTRIES

Guinea

Libya

Luxembourg

Madagascar

Malawi

Mauritius

Monaco

Morocco

Mozambique

Namibia

Netherlands

Niger

Nigeria

Norway

Portugal

Qatar

Rwanda

Saudi Arabia

Senegal

Singapore

Somalia

South Africa

South Sudan

Spain

Sri Lanka

Sudan

Sweden

Switzerland

Tanzania

Togo

Tunisia

Turkey

Uganda

United Arab Emirates

United Kingdom

United States

Zambia

Zimbabwe

Attendee Breakdown

$3.7 million was the final cost of hosting aef in Nairobi, with 85% invested in local Kenyan services

Benefits to the local economy

$12 – $13 million was injected into the Kenyan economy from hosting aef in the country

Around 2,000 international flights

Attendee Breakdown by Job Role

Major infrastructure and critical services such as marquees and generators

Attendance by Industry Sector

Significant labour manpower (over 200 carpenters, construction workers and painters)

Top 5 Job Functions

Local transportation services

Tourism, hosted functions and hotel accommodation

90% of YES! participants were Kenyan entrepreneurs, early career professionals and students

Networking App Highlights

4,405 CONNECTIONS MADE

12,078 MESSAGES EXCHANGED

Thanks to our aef & YES! Networking App Sponsor

80% ADOPTION AMONG SPONSORS AND EXHIBITORS

In one place.

864

MEETINGS REQUESTED

Once again aef has proven to be an invaluable forum. It provides an excellent opportunity to gain an energy market overview and effectively promote your brand since it brings together all stakeholders in one place.

Estevao Mussuei General Manager, Kuvaninga Energia

2023 Highlights

Opening Remarks from His Excellency Dr. William Samoei Ruto, C.G.H., President of the Republic of Kenya

His Excellency Dr William S. Ruto, President of Kenya, officially opened aef 2023. He emphasized that humanity faces a defining moment in history, with the unprecedented existential crisis of climate change tied closely to our relationship with energy.

President Ruto pointed out that Africa, with only 16.7% of the world’s population, has historically contributed the least to climate change but bears its disproportionate effects. Many people across Africa still need access to sustainable energy – 600 million people are without electricity and 900 million lack clean cooking energy.

At the same time, Africa has the clean, green and renewable energy resources and essential minerals needed for the global energy transition. The President highlighted Africa’s active role and consistent commitment to global climate action efforts, which has positioned it as the clean, green continent of the future.

He pointed out that Kenya’s own early and bold investment in renewable energy has paid off, with renewable sources now accounting for 73% of the country’s electricity generation capacity; and emphasized Kenya’s dedication to the Africa Energy Forum’s agenda, believing that socioeconomic transformation and climate action can go hand in hand.

President Ruto closed by saying, “The purpose of this forum is to share this secret, which is hidden in plain sight, with a broader global audience of investors and innovators: the future is powered by African energy”.

“This is why Kenya is honoured to host the 25th Africa Energy Forum, and why I am delighted to have this opportunity to engage with you this morning.”

2023 Highlights

Lifetime Achievement Awards

Over the past 25 years EnergyNet, has awarded its Lifetime Achievement Award only once, to Eddy Njoroge, the former MD/CEO of KenGen, for transforming the utility into a successful powerhouse. This year, at the 25th aef, Andrew Herscowitz and Kweku Awotwi were both recognized for their remarkable leadership and impact on the sector.

Andrew Herscowitz has served in key U.S. government roles for over 30 years. He was the first Coordinator of Power Africa, spearheading a $100 billion network of partners to support electrification across the continent, creating over 10 million new energy connections.

Kweku Awotwi is one of the true titans in Africa’s energy, industry, and finance sectors. Across a 30-year career, he has held influential positions in companies such as UBA Bank Ghana, Tullow Oil, Volta River Authority and more, making significant contributions to Africa’s industrial and energy landscape.

Simon Gosling, MD of EnergyNet, praised their impact, stating, “Leaders such as Mr Awotwi are rare, and his commitment to responsible business leadership and youth engagement is truly special. We’re honoured to recognize the remarkable careers and achievements of both.”

Thank you for the unexpected but greatly appreciated Lifetime Award. My connection with all of you and aef has been truly enjoyable. Your valuable service and opportunities for the African energy sector are commendable. Based on yesterday’s events, your influence will undoubtedly expand, even with increased effort. I’m grateful for your recognition and hopeful for aef’s continued impactful journey.

Kweku Awotwi Board Chairman, United Bank for Africa (Ghana) & Co-Founder & Director Cenpower Generation Company, Ghana

Throughout my U.S. Government career, I focused on improving things, fixing what needed change, and building talented teams for efficient results. Sometimes, we may have ruffled a few feathers, but our ultimate goal was to improve lives in developing countries. We sought working solutions, acknowledged mistakes, and shared our learnings.

Andrew Herscowitz Chief Development Officer at U.S. International Development Finance Corporation

Andrew Herscowitz and Kweku Awotwi receiving a “Lifetime Achievement Awards” at aef in Nairobi.

2023 Highlights

USAID Administrator Samantha Power announces $89 million investment for East and Central Africa at aef

USAID Administrator Samantha Power reinforced the United State’s longstanding commitment to both countries during her visit to Kenya and Tanzania.

She attended the Africa Energy Forum to mark the 10-year anniversary of Power Africa, a U.S. government-led partnership aimed at ending energy poverty in sub-Saharan Africa, and announced a new, $89 million investment in clean energy for East and Central Africa.

Lucy Mutuku, Founder and CEO of the National Youth Caucus Kenya, joined Samantha Power at the commemorative event. Talking about youth in her speech, Samantha Power said, “Inspiration comes to us from you, so thank you, Lucy, and thanks to all those of your generation who are taking on these challenges,” before celebrating a decade of progress and impact in the realm of Power Africa’s initiatives.

Lucy Mutuku is an accomplished youth advocate, recognized for her regional and national contributions to promoting youth economic empowerment. She spearheads a leading youth-led organization that has earned renown within Kenya and is steadily extending its influence to other countries across the continent.

2023 Highlights

USAID Power Africa and Partners Sign MOUs for Clean-Energy Access at aef

David Thompson, Acting Coordinator, USAID Power Africa and Manuel Moses, Chief Executive Officer, African Trade & Investment Development Insurance (ATIDI), signed a Memorandum of Understanding (MOU) during aef in Nairobi. As well as this, there were new signings between between Power Africa and Africa50, Rocky Mountain Institute (RMI) and the renewal of the Regional Development Objective Grant with AfDB.

These MOUs align with President Kamala Harris’s call, in March 2023, for private sector support to assist the continent in achieving climate adaptation, clean-energy access and a just energy transition.

Power Africa and ATIDI’s MOU: Advancing Green Energy Transition in Sub Saharan Africa

The MOU between Power Africa and ATIDI re-establishes a basis for ongoing cooperation in support of facilitating power sector transactions, providing capacity building and technical assistance to stakeholders, and identifying opportunities to collaborate in support of the regional liquidity support facility (RLSF) and Africa Energy Guarantee Facility (AEGF).

RLSF is a project supported by the KfW Development Bank and the Norwegian Agency for Development Cooperation (Norad), that was created to help tackle climate change by supporting renewable energy projects in ATIDI’s member countries.

AEGF is another ATIDI project, in conjunction with the EIB and Munich Rey, set to leverage an additional USD 1.4 billion of risk mitigation capacity for clean energy investments in Africa. ATIDI and Power Africa share a long-standing commitment to boosting a just and green energy transition, reducing energy poverty, and increasing access to affordable, reliable, and modern energy for all in sub-Saharan Africa.

The renewal of our existing MoU with Power Africa has come at a good time as we transition to a new brand and name, the African Trade & Investment Development Insurance (ATIDI), with a renewed commitment to Re-thinking Risk and Enabling Finance. With Power Africa celebrating their 10th anniversary this year, the signing of this MoU, comes as we mark 5 years since the Regional Liquidity Support Facility (RLSF), which remains our flagship product in the power and renewables sector, was launched. Going forward as ATIDI (ah-tee-dee), we expect to not only expand this instrument further, but to develop similarly impactful products and initiatives, working alongside various partners such as Power Africa and other DFIs, as we look to continue playing a leading role in enabling the financing of key infrastructure across the African continent.

Obbie Banda

Underwriter & Acting RLSF Coordinator, African Trade & Investment Development Insurance (ATIDI)

2023 Highlights

RMI and Power Africa Forge New Partnership for Renewable Energy in Africa

The Rocky Mountain Institute (RMI) and Power Africa have joined forces through a new partnership to enhance locally-led distributed renewable energy projects in Africa. RMI’s crucial role involves de-risking projects, supporting cost reductions, and facilitating access to finance for renewable energy entrepreneurs and financial institutions within Power Africa’s network.

The institute’s expertise in capacity building, problem-solving, and program support, has a proven track record of promoting renewable energy deployment and empowering women in the sub-Saharan African energy sector. It makes them a valuable Power Africa’s 21st development partner.

This partnership signifies a significant advancement in fostering sustainable energy solutions across Africa. By combining Power Africa’s extensive network and USAID’s resources with RMI’s expertise and initiatives, the collaboration aims to encourage local leadership and pave the way for a cleaner, more accessible, and affordable energy solutions continent-wide. The alliance promises to propel Africa towards a brighter and greener energy future.

When President Obama launched Power Africa in 2013, he had a simple yet audacious idea – build a partnership between the U.S. government and public and private partners to end energy poverty in sub-Saharan Africa. Ten years later, through the power of partnership, Power Africa is making a difference. Working with over 200 partners, Power Africa has helped connect over 180 million people living and working in Sub-Saharan Africa with new or improved cleaner reliable energy, boosting incomes, powering business, and strengthening communities. aef provides an important platform to meet our partners and strengthen our coordination and commitment to Africa’s clean energy future.

David Thompson Acting Coordinator, USAID Power Africa

2023 Highlights

African Development Bank Regional Development Objective Grant Renewal: Power Africa’s Extended Commitment to Clean Energy Access

The RDOAG addendum between Power Africa and AfDB extends their partnership by five years, re-establishing mutual goals for accelerating universal access to cleaner energy in Africa. It also aims to strengthen regional integration and sustainable economic development under the Power Africa Strategic Framework, the AfDB’s New Deal on Energy for Africa, and Sustainable Development Goal 7.

The addendum raises USAID’s potential contribution to USD 1 billion by the end of the RDOAG lifecycle, with USD 388 million already provided for joint programming. This demonstrates their commitment to investing in clean energy solutions and sustainable development across Africa.

The overarching objective of this partnership extension is to ensure affordable, reliable, sustainable, and modern energy for all Africans. By combining efforts, Power Africa and AfDB strive to drive meaningful progress in Africa’s energy sector, positively impacting communities and fostering economic growth. Their collective commitment also contributes significantly to broader global goals of sustainable energy access and climate action.

Africa50 and Power Africa MOU: Advancing Green Infrastructure Development in Africa

Africa50 was established by African governments and the African Development Bank (AfDB) to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent. The MOU between Power Africa and Africa50 includes an ambitious goal of attracting power sector financing for 1,000KM transmission line development through innovative investment platforms, and emphasizes collaboration on Africa50’s recently launched Alliance for Green Infrastructure in Africa (AGIA) to catalyse green and climate resilient infrastructure through a combination of technical assistance and grants dissemination.

In one place.

2023 Highlights

ENGIE and Meridiam acquire BTE Renewables

ENGIE and Meridiam are acquiring BTE Renewables, a leading renewable energy company in South Africa and Kenya. The deal includes the transfer of assets to Meridiam in Kenya.

ENGIE will gain 340 MW of renewable operating assets and a portfolio of over 3 GW development projects, strengthening its presence in South Africa.

Meridiam will acquire the Kipeto Wind Farm and a greenfield wind project in Kenya. The transaction is expected to be completed by Q4 2023, expanding ENGIE’s global reach and doubling Meridiam’s renewable capacity in Africa.

Gridworks Development Report Launch

Gridworks aims to support economic and social development by improving access to reliable electricity and has made notable achievements, including pioneering privately financed transmission projects and developing greenfield utilities like Moyi Power in the Democratic Republic of Congo.

The new Gridworks Development Report marks four year of investing in transmission, distribution and distributed renewables in Africa.

The report demonstrates how Gridworks is shaping the energy market in Africa, the lessons learned in that time and the part it is playing to meet the Sustainable Development Goals.

We were delighted to launch our new Gridworks Development Report at aef this year. This is our first major publication since Gridworks was established in 2019 and explains how we’re building electricity networks in Africa that provide reliable, affordable and clean power. The lack of funding for electricity networks is a major bottleneck to economic and social development across Africa. Gridworks is working to change that. Our new report sets out the impact we are already making and the ambition we have to do more.

Simon Hodson CEO, Gridworks

Agenda at a Glance

STREAM 1

Opening Day

Country Spotlights – Building Better Partnerships

Increasing Pace & Scale of Africa’s Renewable Energy Projects

Africa’s Gas Mining, Critical Minerals & Energy

Knowledge Sharing from Africa’s Leading Solution Providers

Day 1 – Tuesday 20 June

EnergyNet Welcome Remarks

President’s Opening Address

aef & YES! Welcome Networking Brunch

Ministers’ Welcome Networking Brunch

Capital Flows & Risk Mitigation

Hydrogen – Africa’s Opportunity In partnership with

Continental Trading

Distributed Power & Commercial & Industrial Power Closed Door Roundtables

aef Opening Ceremony YES! Opening Ceremony

aef Forum Sponsor Welcome Remarks

Country Host Welcome Remarks KenGen

Country Spotlight: Republic of Kenya

aef 2023: Ministerial Roundtable: The Just Energy Transition - How Far Can Africa Really Go?

Africa in One Place – Celebrating 25 Years of aef - Welcome Networking Reception Hosted by

Day 2 – Wednesday 21 June

Closed-Door: DFI Roundtable Series - Meeting 6: Should DFIs Be Bolder With Their Investments?

Country Spotlight: Arab Republic of Egypt

Country Spotlight:

Federal Republic of Nigeria

Country Spotlight:

United Republic of Tanzania

Financing an African ‘Transition’ The Growing Role of Africa’s Gas Within Today’s Geopolitical Context

Breaking Down Barriers for Energy Transition in Mining

Hosted by:

Powering Potential: How will the Public and Private Sectors Together Chart a Course Toward Universal Energy Access?

Africa’s Solar Future LNG – Africa’s Opportunity

Energy Capacity Needs for Africa’s Booming Mineral Mining Sector

Hosted by: Charting a Course for Equitable Energy Transitions

Agenda at a Glance

Day 2 – Wednesday 21 June (continued)

Country Spotlight:

Republic of South Africa

Country Spotlight:

Federal Democratic Republic of Ethiopia

Country Spotlight:

Republic of Mozambique

Country Spotlight:

Republic of Zambia

Project Preparation to Accelerate Wind Energy

Balancing Gas in Africa’s Energy Transition

Financing Structures to Support Mining Decarbonisation

Hosted by:

Off-Taker Credit Enhancement: How Political Risk Insurance and Liquidity Instruments are Enabling the Financing of Power Projects in Africa

Tackling Intermittency Issues in Africa Through Renewables

Day 3 – Thursday 22 June

Country Spotlight:

Gas – Filling the Funding Gap

Energy Projects –Benefitting Local Communities from Conception to Post-Mine Life

Hosted by:

Impact Investment Strategies & Insights for an African Just Energy Transition

Developing Hydropower in Changing Climate Conditions

Macroeconomics, Debt & Inflation –Managing the Risks

Hydrogen for Africa

Hosted by:

Hydropower Modernisation to Accelerate Africa’s Energy Transition Country Spotlight:

Republic of Uganda

Republic of Senegal

Country Spotlight:

Democratic Republic of the Congo

Country Spotlight:

Democratic Republic of São Tomé and Príncipe

Maximising Grid Capacity: Integrating Solar, Wind & Storage

Can DFIs, Insurers & IPPs Work Together to fill the Government Guarantee Gap?

Hydrogen for Export

Hosted by:

South Africa’s IPP Procurement Programme – A Key Enabler Behind a Growing Private Sector Generation Footprint

EIH is happy to have taken part in the Africa Energy Forum. It gave us the opportunity to network with potential partners and learn about the experience of other countries.

Meleket Sahlu Deputy CEO, Ethiopian Investment Holdings (EIH), Ethiopia

In one place.

Agenda at a Glance

Day 3 – Thursday 22 June (continued)

STREAM 1 STREAM 2 STREAM 3 STREAM 4 STREAM 5

Country Spotlight:

Kingdom of Morocco

Country Spotlight:

Republic of Ghana

Country Spotlight:

Republic of Zimbabwe

Procurement Strategies & Renewable Energy Auctions

Private Sector Financing of Domestic & Regional Transmission

Project Preparation & Bankability

Hosted by:

Africa’s Green Transition. Where will the Power come from?

Navigating the Carbon Markets

Diversifying Off-Taker Risk Hydrogen for Industry

Hosted by:

Viability of PPPs in Regional Transmission Projects

aef 2024 Handover Ceremony – Kenya to Egypt

Day 4 – Friday 23 June

Closed-Door: Africa Regulators Roundtable Series – Meeting 6: Predictability, Tariff Setting and Licensing Framework

Closed-Door: Africa Utilities Roundtable Series – Meeting 6: The C-Suite- Perspectives of our Challenges

Country Spotlight:

Republic of Malawi

Building Regional Power Markets: Electricity Trade Between Countries

The Growing Role of Distributed Power

Hosted by:

Knowledge Sharing – Africa Leading as a Solution Provider

Country Spotlight:

Republic of The Gambia

Mobilising Africa’s Institutional Investors

Growing Needs for Commercial & Industrial Power

Hosted by:

Regulating the African Power Sector in a Rapidly Changing Environment with Emerging Technologies

2023 Session Highlights

Tuesday 20 June – Country Spotlight: Republic of Kenya

Day One saw the first of aef 2023’s Country Spotlight sessions take place – focusing on our host nation, the Republic of Kenya.

The session was delivered by Alex Wachira, Principal Secretary, State Department for Energy, Ministry of Energy & Petroleum, who outlined the significant opportunities and challenges shaping Kenya’s energy landscape.

Alex Wachira highlighted Kenya’s progress in connecting households to the grid and developing clean energy, emphasizing the importance of reducing dependence on fossil fuels for sustainable development. Kenya possesses abundant renewable energy resources and steadily increases its installed capacity by around 5% annually.

The session also addressed sustainable energy targets, including achieving 100% renewable energy generation, universal access to clean cooking fuel, and improving electricity access.

The discussion panel, chaired by Khilna Dodhia, included representatives from various government and private energy sector stakeholders. Key topics included expanding clean cooking initiatives, the role of the private sector, the development of public-private partnership projects, and efforts to reduce electricity costs for Kenyan citizens and businesses.

Host: Khilna Dodhia, CEO & Co-Founder, Kenergy Renewables

Ministerial Keynote Speech: Honourable Davis Chirchir, Cabinet Secretary for Energy & Petroleum, Republic of Kenya

Speakers:

• Alex Wachira, Principal Secretary, State Department for Energy, Ministry of Energy & Petroleum, Republic of Kenya

• Isaac Kiva, Secretary, Renewable Energy Directorate, State Department for Energy, Ministry of Energy & Petroleum, Republic of Kenya

• John Mativo, MD/CEO, KETRACO, Republic of Kenya

• Joseph Siror, MD & CEO, Kenya Power & Lighting Company (KPLC), Republic of Kenya

• Paul Ngugi, MD & CEO, Geothermal Development Company (GDC), Republic of Kenya

• Abraham Serem, Acting MD & CEO, KenGen, Republic of Kenya

• John Mutua, Director Economic Regulation, Energy & Petroleum Regulatory Authority (EPRA), Republic of Kenya

• Collins Juma, CEO, Nuclear Power & Energy Agency (NuPEA), Republic of Kenya

• Joe Sang, MD, Kenya Pipeline Company, Republic of Kenya

• Rose Mkalama, General Manager, Information, Education & Communication, Rural Electrification & Renewable Energy Corporation (REREC), Republic of Kenya

We, as the KenGen family, take immense pride in having hosted the 2023 Africa Energy Forum in Nairobi, a resounding triumph. I extend my heartfelt gratitude to EnergyNet and all our esteemed sector partners for their invaluable contributions to the success of the inaugural aef in Africa. The forum provided us with invaluable insights, reaffirming Africa’s readiness to lead the vital transition towards green energy.

Abraham Serem, Ag. Managing Director and CEO, KenGen

In one place.

2023 Session Highlights

Wednesday 21 June – Country Spotlight: United Republic of Tanzania

Speaker:

Felchesmi Mramba, Permanent Secretary of the Ministry of Energy, highlighted Tanzania’s potential and investment opportunities in the country’s spotlight session. With a population of 61 million, Tanzania aims to improve energy availability, affordability and reliability by utilizing various sources, including hydro, natural gas, coal and renewables.

The country strongly focuses on renewable energy transition, targeting a 70% renewable energy mix by December 2024. Tanzania has vast potential in hydrogen, geothermal, solar, and wind energy. Notable projects include:

• The Julius Nyerere Hydro Power plant.

• Ruhudji Hydro Power plant.

• Somanga-Fungu Gas Fired Power project.

• Planned LNG projects in partnership with international oil companies including Shell, Ophir, Pavilion, Equinor, and ExxonMobil.

Tanzania also aims to establish cross-border gas pipelines with neighbouring countries. With its abundant resources, strategic location, and supportive framework, Tanzania is emerging as a significant player in the energy transition.

“The mission of the Tanzania Ministry of Energy is to improve the availability, affordability and reliability of energy services to the citizens of Tanzania,” Felchesmi Mramba explained. “To achieve this, we aim to utilise a variety of different available sources including hydro, natural gas, coal, and renewables such as geothermal, solar, wind, and green hydrogen. We invite both domestic and foreign investors to participate.”

aef in Nairobi was a standout energy conference. aef brought impressive programs, seamless appointments, and impactful youth initiatives. The conference incorporated many youth programs and activities, making the whole event unique. The discussions were very fruitful with AfDB, ZESCO, TotalEnergies, and more. I look forward to a similar successful conference in Tanzania in February 2024.

Felchesmi Mramba Permanent Secretary, Ministry of Energy United Republic of Tanzania

Moderator: Eyob Easwaran, Senior Advisor, Lending Operations, TDB

• Felchesmi Mramba, Permanent Secretary, Ministry of Energy, United Republic of Tanzania

2023 Session Highlights

Wednesday 21 June – Country Spotlight: South Africa

Investment Opportunities within South Africa’s Changing Energy Landscape.

Ministerial Keynote Presentation:

During the Country Spotlight: Republic of South Africa at the aef, the panel addressed its recent issues with blackouts.

Speakers:

H.E. Honourable Dr. Nobuhle Nkabane, Deputy Minister of Mineral Resources & Energy, emphasized the importance of clean energy access in Africa to combat poverty. South Africa aims to improve power station performance and develop new ones promptly.

Tshifhiwa Bernard Magoro, the Head of the IPP Office, highlighted their role in procuring a diverse energy mix. South Africa has already procured nearly 30 G.W., with 12 G.W. in renewables, and some IPPs are being carried out in other African countries. However, significant work remains to develop the necessary capacity for South Africa’s growing economy. Jacob Mbele, Director General of South Africa’s Department of Mineral Resources & Energy, mentioned the need for 28 G.W. by 2030 and the challenge of relying on the same transmission grid for two procurement processes.

Segomoco Scheppers, Managing Director of Transmission at Eskom, discussed the improvement of grid reliability and plans for reorganizing Eskom into three divisions.

The private sector has a critical role to play. Our IPP programme has already attracted significant investment and created jobs and growth in the energy sector. The challenges we face require innovation and collaboration between public and private partners –as a department, we believe South Africa can lead the way in creating a clean economy… and become an exporter of renewable energy.

Moderator: Dele Kuti, Global Head: Energy and Infrastructure Group, Standard Bank

H.E. Honourable Dr. Nobuhle Nkabane, Deputy Minister of Mineral Resources & Energy, Republic of South Africa

• Jacob Mbele, Director General, Department of Mineral Resources & Energy, Republic of South Africa

• Tshifhiwa Bernard Magoro, Head of IPP Office, Republic of South Africa

• Segomoco Scheppers, MD, Transmission, Eskom, Republic of South Africa

H.E. Honourable Dr. Nobuhle Nkabane Deputy Minister of Mineral Resources & Energy, Republic of South Africa.

2023 Session Highlights

Wednesday 21 June – Financing an Africa “Transition”

During this session on increasing the pace and scale of Africa’s renewable energy projects, the panel highlighted the enormous potential for expanding the continent’s energy sector. With around 640 million people still lacking access to modern electricity, there is a pressing need to address this challenge. Africa boasts abundant natural resources, including an estimated 1,000 GW of solar potential, 350 GW of hydropower potential, 130 GW of wind potential, and 15 GW of geothermal potential.

Despite these promising prospects, the panel recognised that achieving universal access to energy remains a significant hurdle, mainly due to the rapid population growth expected in Africa. A just transition was emphasized as a critical approach to renewable energy expansion. This transition involves increasing renewable energy generation, ensuring job creation, and providing social protection to foster inclusivity and economic prosperity. Transitioning from fossil fuel industries to renewables requires careful planning, collaboration with governments, legislative reforms, and private investment.

The panel identified de-risking projects as a crucial factor. Project risk factors in Africa were found to be 7-10% higher than in other regions, presenting a barrier to investment. To overcome this challenge, moving away from isolated projects and adopting a program-focused approach was recommended. This approach allows individual African nations to leverage their unique advantages and develop their path towards energy transition.

Concerns were raised regarding multilateral investments in the just transition, highlighting the importance of understanding each country’s specific needs and committing to on-the-ground engagement. Deep comprehension of local contexts is necessary to develop tailored solutions and effectively address the energy access gap.

Data was recognized as a valuable tool for understanding the needs of developing nations. By leveraging data, analytically and practically sound project plans can be formulated. However, financing renewable energy projects remains a complex issue. Despite the challenges, the panel expressed optimism for translating ambition into concrete actions, signalling a collective commitment to advancing renewable energy projects in Africa.

All sessions conducted under the Chatham House Rule must maintain confidentiality and not disclose the identities or affiliations of speakers and other participants during all sessions.

Incredible forum to have all participants in the energy sector in one place sharing reflections on the past, present and what is shaping the future of the energy industry in Africa. I look forward to all the partnerships and deals struck during the show, translating to real projects soon.

Wale Yusuff Managing Director, Wärtsilä Nigeria

2023 Session Highlights

Wednesday 21 June – Tackling Intermittency

Renewables

Issues in Africa through

Over 600 million Africans lack reliable access to electricity, creating a major developmental challenge.

This panel discussed the potential of wind, solar, and hydrogen to solve intermittency issues. Concerns were raised about the intermittent nature of solar and wind power, emphasizing the need for affordable storage solutions. Government policies, like those in South Africa, were identified as ways to make batteries more accessible.

Expanding local battery production and utilizing electric vehicle batteries as storage was also suggested. Battery performance is improving, increasing cycle lifetimes, and reducing costs.

Enhancing grid connections for energy imports/exports and transparent policies were vital. Kenya’s diversification strategy, monitoring various power projects, was praised as a model for addressing system instability and intermittency. The panel agreed that countries should avoid over-reliance on a single energy source and develop strategies to draw on various solutions.

All sessions conducted under the Chatham House Rule must maintain confidentiality and not disclose the identities or affiliations of speakers and other participants during all sessions.

The well-organized forum was a great success, and I’m grateful for the opportunity to speak as a distinguished guest. It was an excellent chance to discuss energy investment in Africa with experts and engage in fruitful discussions. The sessions were coordinated, and the speakers were knowledgeable. I look forward to future engagements with industry experts and attending your team’s events.

Aymen Alfakhal Director of Oil, Gas & Energy Portfolio, Libyan Investment Authority (LIA), Libya

2023 Session Highlights

Thursday 22 June – Hydrogen for Africa

A lot of noise is being made around hydrogen and its potential to provide a sustainable alternative fuel.

Globally, this is translating into tangible business opportunities and wealth generation. In 2023, the worldwide market is estimated to be worth around $170 billion (USD) – by 2030. It is forecast to almost double to $314 billion, with annual growth averaging more than 9%.

Given its abundance of renewable energy-generating resources, Africa has been identified as housing the potential to become a world-leading hydrogenproducing region, primarily green hydrogen.

Day 3 at aef 2023 saw an entirely new stream dedicated to hydrogen, the first session focusing on the opportunity for hydrogen to be leveraged locally across numerous applications, including transportation and aviation, heating systems and energy storage, among others. Kenya was highlighted as a potential leader in the hydrogen sector. The panel identified various opportunities for green hydrogen, including decarbonizing polluting sectors, boosting agriculture, stabilizing power grids, and fostering a green industrial revolution.

The panel acknowledged the challenges: production costs, infrastructure requirements, electrolysis efficiency, and water scarcity. They also highlighted the need for a mature policy and regulatory environment, access to affordable capital, and bankable projects.

Despite these challenges, the session highlighted notable successes, including announcing a $1 billion fund for green hydrogen projects in South Africa and progress on a $10 billion green hydrogen project

2023 Session Highlights

Thursday 22 June – Maximizing Grid Capacity – Integrating Solar, Wind and Storage

Africa has witnessed remarkable progress in harnessing renewable energy. Solar and wind power installations have proliferated, and their costs continue to plummet, making them more accessible than ever before. Yet, as we strive to transition towards a clean energy future, we face the challenge of seamlessly integrating these intermittent sources into existing power grids.

The integration of solar and wind into the grid to support Africa’s transition to sustainable energy sources is not without its challenges, key of which include the inherent intermittency of renewable energy sources. However, these challenges present numerous opportunities which could contribute to enhancing grid capacity and ensure a stable and reliable power supply.

To set the scene, the audience received an overview of the efforts and key priorities being considered by Eskom to support South Africa’s Just Energy Transition Investment Plan. Based on South Africa’s Integrated Resource Plan (IRP), South Africa produces 17% of its total energy requirements from renewable energy sources. According to the current IRP, South Africa plans to increase this number to 30% by 2030, 62% in 2040 and 80% in 2050. However, the increased integration of solar and wind into the grid brings numerous opportunities and technical challenges which have to be addressed.

Several countries have also turned their focus to investments in battery energy storage systems (BESS) which have become the most broadly accepted solution to overcome the intermittency challenges associated with renewable energy sources.

It was acknowledged that the increased penetration of solar and wind on the grid requires enhancement of the transmission network and adoption of new technologies such as energy storage to accommodate the growth of renewable energy sources. To achieve this goal, Eskom has developed a Transmission Development Plan, which outlines the transmission grid requirements over a ten-year period. At a high level, Eskom needs to build 14,000km of transmission network and install around 176 large transformers at a cost of approximately USD 12 billion. To do this, Eskom is pursuing engineering, procurement and construction models with the private sector to assist with project development and management. Eskom has also received a debt relief package from the government which has enabled them to execute some of the projects in their Transmission Development Plan.

Author: Jessica Mutemi, Associate, Projects, Energy and Infrastructure, Bowmans Kenya

Several countries have also turned their focus to investments in battery energy storage systems (BESS) which have become the most broadly accepted solution to overcome the intermittency challenges associated with renewable energy sources. Key examples include Eskom’s 200 MW, 4-hour BESS project in South Africa which is expected to come online in March 2024, EDM’s 15MW solar PV project with battery energy storage in Mozambique which is at its

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2023 Session Highlights

commissioning stages, and Lekela Power 40MW BESS to be incorporated at one of its utility-scale wind farms in Senegal. The roll-out of these projects is expected to increase grid stability and support increased integration of renewables into the grid.

However, the speakers pointed out that the increased penetration of renewable energy on the grid may result in an oversupply of energy and complicate the balancing of supply and demand on the grid. Whilst BESS have played a significant role in balancing the grid, the speakers agreed that batteries are only one part of the solution. Upcoming industries such as hydrogen and ammonia production, desalination projects and electric vehicles also represent a huge potential source of storage and demand-side flexibility, which can benefit from the oversupply of power. Countries like Mozambique and Kenya with inter-state transmission lines with their neighboring countries can leverage on these networks to supply excess energy to countries experiencing inconsistent quality, load shedding or complete loss of power.

Additionally, the panel discussed the value of land in ensuring success of these large-scale energy projects. Investors and developers were called upon to, amongst other things, (i) develop a land acquisition plan which would be guided by the legal and regulatory framework of the host country; (ii) conduct environmental and social impact assessments to determine the environmental impacts of their projects on land, compulsory acquisition, resettlement and compensation of communities; and (iii) establish dispute resolution mechanisms with the local communities impacted by the project for any land disputes that may arise.

Finally, the role of the private sector in assisting African countries with their energy transition and integration of renewable energy sources into their energy mix was addressed by the panel. Some of the initiatives highlighted include organizing peer-to-peer exchange forums to facilitate technology transfer between system operators and regulators across different jurisdictions and supporting utilities to enhance their efficiency and minimize system losses. These efforts demonstrate the goodwill and collaborative approach required by many African countries in their transition towards a clean energy future.

In summary, the process of integrating solar, wind, and storage into the grid requires the collective effort of government, utilities, developers, and investors. who are called upon to embrace storage and other emerging technologies to contribute to the sustainable integration of renewable energy sources into the grid. These stakeholders are urged to adopt storage and other emerging technologies as part of their commitment to promoting the sustainable integration of renewable energy sources into the grid.

All sessions conducted under the Chatham House Rule must maintain confidentiality and not disclose the identities or affiliations of speakers and other participants during all sessions.

role of institutions such as USAID and Actis in assisting African countries with their energy transition and the integration of renewable energy sources into their energy mix was demonstrated.

The vital

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AEF has sparked a debate on achieving economic growth alongside clean energy goals. Kenyan President William Ruto highlighted Kenya’s thriving renewable energy investments, with 90% of electricity now from clean sources. This success challenges the idea that development and green energy conflict. USAID Administrator Samantha Power

GE Gas Power’s managing director for Sub-Saharan Africa Kenneth Oyakhire also subscribes to this perspective. According to him, Africa needs to develop a way to transition in phases to avoid major disruptions in economies while steering economic growth at the same time.

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“We cannot take with levity the impact of carbonisation. Whether we like it or not, it has an enormous impact on our environment, and we see it on a daily basis today,” Oyakhire told The EastAfrican.

“The sensible thing to do is to transition phase by phase, and what I mean by that is making sure gas takes a big play in the energy transition process. I believe that a good mix of gas and renewable energy is the way to go.”

On the other hand, a number of top leaders in the energy sector in the region hold the contrary opinion.

Some say that “just transition” is an idea of the West, but it’s not good for Africa and leaders shouldn’t buy into it.

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“Continents are at different stages of their growth curves. What’s ‘just’ in America might not be ‘just’ in Asia or in Africa,” said a senior official of a petroleum company in the region. “Today, about one half of Africans have no access to electricity, to them what matters is electricity, not the source, and that is what’s ‘just’ to them.”

The organiser of aef EnergyNet’s managing director, Simon Gosling, told The EastAfrican that Africa’s most pressing problem is the huge energy gap that has left more than half the continent’s population without electricity and policies should seek to address that urgently.

“I prefer to talk about how we can create an environment to deliver reliable electricity in Africa,” he told The EastAfrican.

According to Mr Gosling, “just transition” means finding ways to keep people who were previously working in the non-renewable fuels sector employed and financially afloat even as the world transitions to safer alternatives, and that mostly applies to the West.

“In Kenya, for example, 90 percent of electricity is from renewable sources. So, what are you transitioning from?” he commented.

Source: https://www.theeastafrican.co.ke/tea/science-health/is-it-time-for-energy-transition-in-africa-that-s-the-question-4282172

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The Standard

Ruto to open Africa Energy Forum in Nairobi

Author Jacob Ng’etich, The Standard Media, 24 June 2023

President Ruto and COP28 President Sultan bin Ahmed Al Jaber will today launch a joint working group between the Africa Climate Action Summit and COP28.

The launch by Ruto and Al Jaber is part of their commitment to realising Africa’s potential in the energy transition.

The Africa Energy Forum is being held in Nairobi today.

Ruto in a joint communique with Al Jaber noted that climate change is one of the greatest challenges confronting the world today. The Africa Climate Action Summit and COP28 will be critical milestones in the year.

“A critical element will be a plan to fundamentally transition the world’s energy systems and vastly scale investments in clean energy,” said Ruto.

The president said Africa has the potential to lead this transition and deliver enormous benefits for the region and globally. In addition to being home to one of the planet’s most important carbon sinks, it is endowed with significant untapped hydro potential along the Congo and Nile rivers, geothermal potential along the Rift Valley, and solar and wind potential across the continent.

Ruto said that the continent was home to the current and next generation of climate leaders, entrepreneurs, business, and civil society that will help unlock the solutions to transformative action.

“On a continent where almost half of the population still lacks electricity, clean energy provides an opportunity to supercharge economic growth and improve lives and livelihoods,” said the President.

He observed that realising this potential will require a step change noting that clean energy investment in Africa represents only 2 per cent of the global total and less than 10 per cent of the $120 billion a year that is required.

“We must transform the way we deploy public, concessional, and philanthropic capital to drive the private investment that is needed for climate action in Africa. We need to fundamentally rethink the way financiers, governments, global institutions, and technology providers engage with each other,” read the communique.

“We are determined to work hand in hand to ensure COP28 and the Africa Climate Action Summit will deliver real and tangible results for the climate and for the people of Africa and the world.”

Source: https://www.standardmedia.co.ke/article/2001475556/ruto-to-open-africa-energy-forum-in-nairobi

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Engineering News

Opinion: Embracing renewable energy –a catalyst for sustainable mining

Author: JUWI Renewables South Africa MD Richard Doyle 6 July 2023

In this article, JUWI Renewables South Africa MD Richard Doyle shares insights from a recent Africa Energy Forum (aef) panel discussion during which experts from the renewable energy and mining sectors explored ways to overcome challenges to and accelerate the adoption of renewable energy in mining.

Mining plays a vital role in Africa’s economy, contributing significantly to gross domestic product (GDP) and providing employment opportunities for millions. The sector is at a crossroads, however, caught between its economic significance and the pressing need for environmental responsibility. As the clamour for sustainability grows louder, mining companies face significant pressure to adopt renewable energy sources and reduce their carbon footprint. At the same time, rising electricity costs, a lack of grid availability and unreliable electricity supply (such as in South Africa, currently) are driving mines to explore alternative and least-cost energy sources, such as renewables.

Several key challenges need to be addressed to expedite the mining industry’s transition to renewable energy, however.

Perceptions

The first is the prevailing perception that renewable energy systems lack reliability. It is understandable why this perception exists – after all, who hasn’t been caught off guard by a sudden downpour, despite the weather forecast promising a sunny day? However, the reality is quite different. Technological advancements have made renewable energy systems highly reliable, and this has been proven in practice.

Panellists at the aef unanimously agreed that reliability was no longer a concern. Photovoltaic (PV) projects have proven their success, both on-grid and off-grid, leveraging stable grid infrastructure and cost-effective battery energy storage systems respectively. Yet, the challenge for manufacturers lies in dispelling the lingering perception of unreliability among stakeholders downstream. There is a need for greater product awareness and knowledge dissemination to bridge this gap. At the same time, mines need to do their homework and ensure they engage a competent and experienced engineering, procurement and construction provider to construct their plants.

Resistance

Traditionally, mines have been hesitant to adopt new technologies, preferring to follow the lead of others. Mines like to be “first to be third” and generally don’t take technology risk. In some instances, this “third mover” advantage saves mines the time and cost of conducting their own feasibility studies as they can replicate other successful projects. However, the tides are turning, and the industry is gradually becoming more receptive, and mines are now open to the idea of incorporating captive solar PV solutions into their power supply.

Unfortunately, a lack of updated information still poses challenges. Many industry professionals, including consultants, have limited updated knowledge of renewable energy products and the performance of early adopters. Further complicating the issue is the availability of accurate and updated information which sees mines and consultants making decisions based on incorrect or old information.

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Ultimately, things are moving in the right direction. Africa has now seen a sizable group of “first movers” mines such as Centamin, Tronox, Gold Fields, Harmony Gold, Pan African Resources, Sibanye-Stillwater and Anglo American. As more successful renewable energy projects emerge, the economic value proposition has become stronger, and is encouraging others to replicate these initiatives. Additionally, mounting pressure for decarbonisation, including impending carbon emissions-based import taxation in Europe, is compelling mining companies to embrace renewable energy solutions.

Costs

Financial considerations have long posed a hurdle for renewable energy projects in mining. The high initial costs, with a 10 MW solar plant costing between $8-million and $12 million, potentially compete with capital allocation to accessing the orebody. Furthermore, the limited lifespan of mining operations does not align well with long term project financing or the expected useful life of renewable assets.

However, these challenges are mitigated by a number of developments. The commodity boom and increased costs of other electricity sources have seen a number of mining companies opt to self-fund renewable energy projects due to free cash and increased savings. Further, a number of leading independent power producers (IPPs) have stepped into the space offering funded solutions and removing the capital barrier and power purchase agreements (PPAs) with tenors of 15 to 20 years or shorter were becoming more prevalent.

To tackle the challenge of mismatched PPAs and mine life, IPPs are looking increasingly to aggregate demand from multiple energy consumers and/or wheeling excess electricity. Additionally, the introduction of redeploy able systems will revolutionise the landscape for many mines, as these systems can be relocated and repurposed once the mine reaches the end of its lifespan.

Timelines

Project timelines and negotiation challenges often impede the progress of renewable energy projects in the mining sector. In South Africa, mining industry project timelines are subject to delays caused by the national power utility Eskom’s Cost Estimate Letter and Budget Quotation processes. Delays in these processes significantly affect the financial close and the project’s commercial operation date. The new Grid Queuing Rules just announced by Eskom will mitigate this significantly.

Outside of South Africa, slow negotiations, concerns about bankability, and tenor-related issues often impede the progress of renewable energy projects in the mining sector and in some instances these negotiations simply fizzle out.

Despite the challenges, there is immense potential for renewable energy in mining, mostly by integration with current solutions (grid or thermal). By addressing perceptions of reliability, improving access to up-to-date information, overcoming financial considerations, and streamlining project timelines, mining companies can seize the economic and environmental benefits offered by renewable energy. Each mine’s unique requirements should be considered to ensure optimal value and sustainability in the mining industry’s energy transition. With concerted efforts from industry stakeholders, the momentum behind renewable energy in mining will continue to grow.

The time has come for mining companies to recognise the undeniable benefits offered by renewable energy. By embracing these technologies, the mining industry can cut costs, access reliable energy, protect the environment, improve its public image, and secure its long-term viability. The opportunity is ripe, and it is up to the mining sector to seize it.

Source: https://www.engineeringnews.co.za/article/opinion-embracing-renewable-energy-a-catalyst-for-sustainable-mining-2023-07-06 *As the aef was held under Chatham House Rule, experts aren’t quoted.

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Bloomberg

High Costs Stall South African Renewable Energy Projects

Author David Herbling, 21 June 2023

(Bloomberg) -- South African renewable energy projects selected over a year ago to add generation from private producers and help end electricity shortages are struggling to reach financial close due to an escalation in costs, according to one of the developers.

A dozen projects, with a combined capacity of more than 1,000 megawatts, remain hamstrung because of increases in financing and other charges, said Globeleq Chief Executive Officer Mike Scholey. The government announced the preferred bidders in October 2021 in the nation’s fifth bid round.

“In South Africa we’re struggling to deliver due to costs,” he said in an interview on the sidelines of the Africa Energy Forum in Nairobi.

The delays come as the most industrialized nation on the continent suffers from record power cuts due to breakdowns of state-owned Eskom Holdings SOC Ltd.’s mainly coal-fired units.

Performance has deteriorated even as the government outlines measures to improve the situation. Projects have also been sidelined due to a lack of connections to the national grid. Wind stations were spurned in the sixth round, limiting projects advancing to the next stage as a lobby for the technology warned that the problem could limit investment.

For Globeleq, selling the electricity to private consumers rather than Eskom is one potential solution, Scholey said. “In the short term, this is the way forward: allow direct sale to end-use customers.” The company won the preferred bids in the fifth round as the majority partner in the Ikamva Consortium, which includes Mainstream Renewable Power, Africa Rainbow Energy & Power and H1 Holdings.

--With assistance from Mike Cohen.

Source: https://www.bloomberg.com/news/articles/2023-06-21/high-costs-stall-south-african-renewable-energy-projects

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Ministers: Balancing the energy transition against stability of fossil fuels

Author Nasi Hako, ESI Magazine, 27 June 2023

African leaders have reiterated their commitment to a just energy transition in line with Paris Agreement goals, but not without consideration of each country’s realities and individual constraints, reports ESI Africa.

During a ministerial roundtable at the Africa Energy Forum in Nairobi, Kenya, ministers from eight African countries got candid about their progress regarding their future plans to accelerate just energy transition implementation.

While several ministers emphasised their commitment to a just energy transition, the African leaders also made sure to highlight the challenges that stand in the way of their commitments.

One minister suggested that energy-starved African countries build their economies on the backs of responsibly deployed fossil fuels to ensure a feasible future transition.

Uganda to exploit fossil fuels for energy security.

Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu admitted that the process to an energy transition will be challenging despite the country’s main source of electricity being hydropower, contributing around 90%. The country also generates 4% of its electricity using hydrofluoricolefins (HFOs) for purposes of energy security.

However, with an around 57% electricity access rate, Ssentamu said Uganda is concentrating on securing its generation system. The minister was adamant that the country will continue to use oil and gas “responsibly”, because “the world will continue to use oil and gas.”

She said that, although LPG has carbons, the country hopes to transition into using this fuel source rather than biomass, which is the main source of energy used in the country and misaligned with the country’s goals of turning to clean cooking.

In aid of this, Uganda has recently issued two licensing rounds for the procurement of oil and gas. The country is now in the process of releasing its third licensing round, given the potential for 6.5 billion barrels with an expected to produce 230 barrels of crude oil per day.

“We are targeting gas. We have 500 billion cubic feet of gas – we want to use this gas to stop cutting down trees, and now you are telling me you are not financing oil and gas? Really? And you are still driving cars using petroleum?” Minister Ssentamu questioned.

Instead, the minister advised that leaders devise means of exploiting natural resources carefully but put in place laws that will reduce environmental damage while contributing less to deforestation and increasing energy access affordably.

“We have to make sure that we are supported with the technologies that will see us exploit our natural resources responsibly, but to tell us not to touch oil and gas… I don’t think we shall listen,” the Minister added. “We are lucky that we are doing it after our big brothers have done it. Where they erred, we are ready to correct.”

The rest of East Africa ramps up its transition.

Echoing similar sentiments as Ssentamu, Davis Chirchi, Cabinet Secretary for Energy and Petroleum in Kenya, said that the East African country is working to achieve universal access to clean cooking by 2028 to avoid deforestation.

The Cabinet Secretary also spoke of the country’s intentions to further deploy renewable energy sources such as solar, wind, hydropower and geothermal – which successfully comprises 950MW of its energy profile – to achieve universal energy access by 2030.

Representing the landlocked East African country of the Democratic Republic of Ethiopia, Habtamu Itefa Geleta, the country’s Minister of Water and Energy, said there is always someone trying to twist their hand not using its natural sources and keep the Ethiopian people in the dark and in poverty.

Despite existing challenges, the country plans to reach a generation capacity of 17,000MW by 2030, with 20-30% of the country’s energy derived from renewable sources.

Aly Iboura Moussa, the Minister of Energy, Water & Hydrocarbons for the Union of Comoros, admitted that although the country is vulnerable to climate change, it relies on fossil fuels which are costly and volatile.

Therefore, Comoros plans to capitalise on its vast renewable energy sources, insisting on geothermal as it hopes to learn from Kenya’s successes. Currently, the country also has plans in the pipeline for three solar plants with a total capacity of 9MW, thanks to World Bank funding. To further make its energy transition a reality, Moussa said the energy ministry wants to upgrade its grid and allow for private sector participation.

Ibrahim Matola, Minister of Energy in Malawi, said that Malawi historically depends on hydropower and very little on fossil fuels. Despite losing 130MW of power to Cyclone Ana, Matola said that the country still showed its commitment to decarbonisation by decommissioning 70MW of genset. Matola said that the country is focused on moving forward and therefore needs the red tape and bureaucracy surrounding renewable energy procurement to end so that African countries can start trading power into Europe.

Southern Africa battles with energy security.

Nobuhle Nkabane, Deputy Minister of Mineral Resources and Energy in South Africa, said the country is committed to the Paris Agreement. Given the country’s current energy crisis and dependence on fossil fuels, the country is leveraging renewable energy independent power producers (IPPs) for additional generation. Currently, the country has 5GW of operational renewable energy IPP projects with 5,000MW in preparation for financial close, Nkabane noted.

Zimbabwe’s Deputy Minister of Energy and Power Development, Magna Mudyiwa, said that it is imperative for Zimbabwe to be a part of the energy transition, but that it is hindered by its lack of energy security.

Despite changing climate conditions depleting the country’s hydropower resources and admitting struggle in increasing renewable energy production, Mudyiwa said the country still targets a 40% reduction in greenhouse gas emissions through private sector partnerships.

Though Mudyiwa admitted that the country has not done much in terms of renewable energy deployment, the country is encouraged to meet its goal to generate an additional 1,100MW of power by 2025. Some of these goals, it hopes to meet by developing mini- and micro-grids through private-public partnerships.

Encapsulating a common theme of the discussion, Mudyiwa ended by saying: “As Zimbabwe, we are committed to the energy transition, and we are doing everything within our means to achieve this in spite of all the challenges we go through as a country.”

Source: https://www.esi-africa.com/finance-and-policy/ministers-balancing-the-energy-transition-against-stability-of-fossil-fuels/

In one place.

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This was a rewarding, wonderful and a not to miss conference.

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Lukas Mkucha Projects Director, Rural Electrification Agency (REA), Zimbabwe