It is not uncommon to find
publications or articles articulating Africa’s potential (especially
Sub-Saharan Africa) to leapfrog its energy and power challenges and embrace a low
carbon future. Evidently, the hype is no where close to actions on the ground. Undoubtedly, the continent is blessed with abundant renewable
energy resources yet the momentum towards harnessing these technologies for a power-starved
population appears frail considering the gains by many other countries outside
the continent.
The catalyst for this transition is the threat of human induced climate change argued to be caused by many Western countries in their quest to industrialize. Unfortunately, the threat is non-selective and will hit most parts of Africa
hardest. Already, many hydro—dams are operating under sub-optimal conditions
due to drought. Rainfall patterns have so changed that for a continent where
more than 50% of the population depend on agriculture for their livelihoods,
the economic implications are dire -- not forgetting food security issues. Flood risks are more threatening in many cities in Africa where rapid
urbanization is pressuring amenities. The risks are numerous with dire implications for overall well-being and economic development. In this post, I will dwell on the energy and power dimension
and its importance for our present development. A low carbon energy system will enhance energy security due to the harnessing of resources within one's own borders eliminating the problems that come with oil price shocks and bad air quality(for coal users).
Climate change is shaping
research, policy and action in most parts of the world. Renewable energy
technologies like solar and wind have become more competitive and have
increasingly becomes a major part of the energy mix of most developed countries . Over the past weeks,
there have been reports on countries like Germany and Portugal supplying close
to 100 percent of its electricity demand from renewable sources at a certain
point in time. For Germany, reports of negative power prices i.e. consumers
being paid to consume electricity occurred for a time. Businesses are
looking at more innovative ways to deliver value in era where
current business models are being challenged may be unprofitable. Countries like Japan have more
electric recharge points than petrol stations due to the growth of the electric vehicle market. Again, the Netherlands is
looking to ban all petrol and diesel cars by 2025 if legislation is made
binding. A greater involvement of businesses and the private sector is anticipated after the Paris Agreement is fully operational in 2020. What this proves is that, a low carbon future is no longer decades away. It is already here.
But why is this revolution not so evident in Africa? Why is the leapfrogging not happening?
Firstly, it is noteworthy to mention that several countries on the continent
have developed renewable energy policies but these often seem disjointed from
the country energy policy and strategy(if one exists). As such, the framework needed to
catalyze private investments are absent. The
lack of effective policies as well as low confidence (eg. due to political risk) is doing very little in
the removal of non-economic barriers (i.e. institutional, regulatory,
knowledge, information, infrastructure, technology and market) eroding investor
interest.
For the least part, national conversations
about preparedness for a low carbon future must be high on the agenda. For e.g.
a future transport industry fueled by electricity is worth discussing as well
as energy scenarios and their implications for economic growth. Additionally,
research and planning must go into how peaks and troughs caused by the intermittency of certain renewables will be smoothed out and what energy sources the country can dispatch to stabilise the grid.
Attractive incentives for the
development of manufacturing plants for renewable energy within most African
countries should be on the agenda of most governments. This will stimulate
local demand, build the skills base of many of the youth and provide employment.
The lack of financial products tailored at renewable energy technologies and solutions remains a challenge. Most of financial institutions do not understand the financial risks associated with these technologies and projects. Stakeholder consultations to educate and understand the needs of all stakeholders will be crucial going on into the future.
Without some of these conscious
and sustained efforts, the future for electricity and the sustained economic
prosperity of Africa is questionable. There is still time to make an impact. A
little more delay and that leapfrogging opportunity will be far gone.
Africa is urbanizing fast and with it comes a lot of challenges and opportunities.It is estimated that two-thirds of the population in Africa will be living in cities by 2050. Already, most African cities have issues with adequate supply of electricity and other basic infrastructural services. Challenges with waste management, traffic congestion and slum developments are growing by the day.
