Energy transition – an African perspective

ENERGY

– an African perspective

The world is collectively experiencing a transition from fossil-based energy systems – such as coal, natural gas and oil – to renewable energy sources, such as hydropower, solar and wind. The case is no different for the African continent. By Jovita Nsoh*

During the last decade, African countries have started increasing renewable energy penetration into their supply mix. The most adopted renewable energy systems are solar, wind and geothermal, with countries such as Kenya, Morocco and Rwanda taking the lead in transition. The current energy transition is based on multiple factors, including reducing carbon dioxide (CO2) emissions and improving Africa’s power supply.

According to NJ Ayuk, executive chairman at the African Energy Chamber, the greatest opportunity in Africa lies in providing its people with electricity. Ayuk further posits that energy transitions present the biggest investment opportunity in Africa, since these projects will include infrastructure construction and minerals like rare earth elements, cobalt, nickel, lithium and more. He also highlights that Africa is dealing with climate change, and these materials are going to become increasingly important in the future.

This article describes some the immediate and nonimmediate implications of energy transitions for the African continent.

A worldwide revolutionary transition

The world is undergoing a revolutionary transition from high-carbon, fossil-fuel-based energy systems to low-carbon energy systems. At the heart of this massive transition is the goal to reduce CO2 emissions as a measure of limiting climate change1. The underlying notion is that the earth’s climate has been changing for the worse, primarily due to human activity. Significant changes include rising temperatures, unpredictable weather patterns, melting ice, rising sea waters and more drought. Transitioning away from the current energy model to a more sustainable approach is widely perceived as the ultimate solution to the problem.

By switching to lowcarbon models, countries can minimise their carbon footprint while reducing the possibility of adverse weather events. As the world slowly embraces transitions and nations join the collective action of switching to low-carbon energy sources, African countries slowly join the transitions through energy initiatives. African nations have shown commitment to the 2015 Paris Agreement on Climate change and active efforts in deploying energy efficiency and renewable energy technologies2. Transition efforts that are extensively visible in other parts of the globe, including North America and Europe, are also

Among the many hats he wears, Jovita is a member of the Institute of Electrical and Electronics Engineers (IEEE)

ENERGY

moderately patent within African nations. Even so, some African policymakers have expressed their concerns regarding the declining investment in fossil-fuel-based energy sources3. Notably, fossil fuels are significantly crucial in some of the continent’s economies. They have a unique role in ensuring energy access under Goal 7 of the United Nations Sustainable Development Goals (SDGs) – promoting energy access for all. Nigeria is a case in point of a country that economically relies heavily on fossil fuels.

The country exports fossil fuels in large volumes and relies on them to drive its highly populous economy. All the same, Goal 7 of the SDGs also advocates for clean energy. The need for clean energy is compatible with other SDGs, such as energy efficiency, reduced inequality, and response to climate change.

Access to electricity a challenge for Africa

While electricity access has been vital in the solution of global challenges such as famine, poverty and gender inequality, research shows that approximately three billion people are still reliant on unhealthy and polluting fuels for cooking and lighting. That accounts for 40% of the world’s population. Statistical data is particularly worrying for Africa, where over 600 million people lack access to electricity and about 900 million lack clean cooking facilities.

Although the African continent is rich in renewable energy sources like hydropower, solar and wind, the predicted population growth will demand the use of already-existing energy sources. According to the International Energy Agency, one in every two additional people in the world population is African. Hence, Africa may become the most populous continent by 2023. Africa’s population growth trend may continue until 2040. Africa’s anticipated population growth, its industrialisation, as well as a young, urbanising and fast-growing population all fuel global energy patterns. Energy transitions are, thus, being advocated as a means of addressing climate change. Some experts have argued that, since fossil fuels have helped power economic development and industrialisation in developed countries, it seems only fair that developing countries in Africa benefit from fossil fuels as well. The ultimate issue, however, is a question of preparedness rather than fairness. As such, African nations should create optimum energy transition policies while protecting their socio-economic interests. For Africans, the transition to low-carbon energy sources creates the opportunity to participate in climate change mitigation efforts and the chance to create new jobs and leapfrog to modern economies.

Contrariwise, the global energy transition has both positive and negative effects, and may escalate existing energy access challenges due to reducing funding for fossil-fuel-based projects without a corresponding increase in green energy initiatives.

Although the shift from fossil fuels is challenging and complicated, the need to tackle climate issues and the lowering costs of renewable technologies have made various companies and organisations across the world question their investment in carbon-based energy systems. For instance, Norwegian firms have questioned their investments in fossil fuels. In 2020, Norwegian authorities announced the prospect of selling more than US$10 billion (R148 billion) worth of stocks in firms that deal with fossil fuels4. Norway’s approach revealed a national effort towards energy transition. In Africa, countries like Egypt, Ethiopia, Kenya, Morocco and South Africa have expressed firm national commitment towards installing renewable energy technologies and have turned out to be leaders on the continent when espousing the transition to clean energy5. Smaller African countries like Rwanda and Djibouti have also made significant strides in setting renewable energy targets. Generally, solar and wind energy markets on the African continent are growing meaningfully, suggesting gradual energy transition participation.

Africa’s commitment to energy transition

While there are discernible advantages to energy transitions, the global focus on transitioning from fossil fuels has increased concerns such as heightened energy access challenges and economic development disruption in developing nations. Despite that, African countries have shown their dedication to the installation of renewable energies. Such countries are committed to the fight against climate change yet also concerned about the transition’s financial and socio-economic consequences. With Africa’s immense renewable energy potential and low contribution to global emissions, an energy transition seems paradoxical. The main factors slowing energy transitions in Africa include finances, human and technical capacity, and domestic politics and policies.

Most African countries lack the financial and technical capabilities required to successfully transition from fossil fuels to renewable energy systems. There is, therefore, an urgent need for collaborative efforts between African and non-African nations and companies on energy transitions.

References:

1. Solomon, B. D., & Krishna, K. (2011). The coming sustainable energy transition: History, strategies, and outlook. Energy Policy, 39(11), 7422-7431. https://oi.org/10.1016/j.enpol.2011.09.009 2. Chin-Yee, S. (2016). Briefing: Africa and the Paris climate change agreement. African Affairs, 115(459), 359-368. https://doi.org/10.1093/afraf/adw005 3. Dimitrov, R. S. (2016). The Paris agreement on climate change: Behind closed doors. Global Environmental.

Politics, 16(3), 1-11. https://doi.org/10.1162/GLEP_a_00361 4. Taraldsen, L. (2021). Norway Wealth Fund Dumps Oil

Stocks Amid $10 Billion loss. BloombergQuint. Retrieved 1 April 2021, from https://www.bloombergquint.com/ markets/norway-wealth-fund-dumps-oil-stocks-amid-10- billion-2020-loss 5. Obonyo, R. (2021). Push for renewables: How Africa is building a different energy pathway. Africa Renewal.

Retrieved 1 April 2021, from https://www.un.org/africarenewal/magazine/ january-2021/push-renewables-how-africa-buildingdifferent-energy-pathway.

*Jovita Nsoh is an advisory board member at the African Energy Chamber.