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Zawya
4 days ago
- Business
- Zawya
Powering the future: Unlocking Africa's renewable energy potential
From space, Earth is an incredible sight at nighttime. Across the planet, millions of lights illuminate coastal outlines, pinpoint populated urban areas, and map out the interconnectivity between metropolitan areas. But when you look towards Africa, the darkness is striking. It tells a sobering story of over half a billion people on the continent who still lack access to electricity, making the continent one of the least electrified regions globally. This energy gap is both a human development crisis and a missed economic opportunity. With an extraordinary endowment of renewable energy resources, Africa's energy landscape should look vastly different. Solar photovoltaic potential alone could generate 1,5 million terawatt hours (TWh) per year. Wind power adds another 980 000 TWh annually, alongside 350 GW in hydro capacity and 15 GW in geothermal. A recent study suggests that by 2040, renewables could meet up to 80% of Africa's energy needs. The natural abundance is, therefore, not the issue. The challenge lies in converting this potential into scalable, sustainable energy systems. Africa at the crossroads of global energy transition Africa is not only key to its own energy transformation, it is central to the global clean energy transition. Yet, despite holding 60% of the world's best solar resources, the continent accounts for just 1% of installed solar generation capacity. The investment gap is stark: over USD 20 billion per year is required to meet Africa's energy and climate goals by 2030, yet clean energy investment in the region comprises only 2% of the global total. Financial capital alone is not enough. To attract meaningful investment, Africa must implement regulatory frameworks that make clean power bankable. Projects need predictability, legal protection, and risk-aligned structures to succeed. Governments must prioritise integrated, transparent policy environments that build investor confidence and unlock capital. With South Africa assuming the G20 Presidency, there is an unprecedented opportunity to position Africa as a frontier for renewable energy deployment. Regional collaboration, underpinned by smart policy and strong governance, can catalyse the transformation from resource-rich to energy-secure. Restore the grid before building the capacity Africa's power pools, including the Southern, Eastern, Central, and West African Power Pools, represent critical steps towards integrated regional energy systems. Lessons from global initiatives like the Nordic Power Market and Central American Interconnection System show that regional cooperation can deliver stable, cross-border electricity markets. But Africa faces a more foundational issue: inadequate infrastructure. Average grid losses of 15% and poor interconnectivity mean even the best renewable projects cannot reach underserved communities. Without reliable transmission and distribution networks, capacity growth is meaningless. The first priority must be to identify and deliver strategic infrastructure projects that expand and modernise the grid. These investments will unlock renewable energy corridors linking resource-rich areas to regions with high energy demand. From there, climate-resilient infrastructure plans can be supported by tailored G20 policy mechanisms and de-risked capital structures. Enabling bankable execution through finance innovation To create a truly investable environment, African energy markets need more than ambition. They require deep structuring expertise and innovative finance solutions that reflect the continent's unique economic and political realities. Development finance institutions, multilaterals, and private banks must work in tandem to design instruments that reduce risk and ensure long-term project viability. Absa has played a leading role in this space. In 2024 alone, the Group facilitated over R49,2 billion in sustainable finance. Notably, we arranged half of all closed projects under South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), a flagship model for blended finance and public-private partnership in renewables. Beyond energy, the bank's work on the Tanga UWASA Green Bond in Tanzania led to the country's first municipal green bond, connecting over 6 000 households to clean water. It also showcased how green capital can drive both climate impact and inclusive growth. These projects illustrate the power of partnership, technical depth, and local insight to turn Africa's potential into progress. From potential to power Africa is projected to be home to more than 25% of the global population within the next 25 years. Electrifying this growth is not just an African imperative — it's a global one. The tools exist. The capital exists. The renewable resources are abundant. What remains is the political will, policy coherence, and financial innovation to translate ambition into action. With decisive investment, smart regulation, and regional cooperation, Africa can lead the next wave of the global energy transition not just as a participant, but as a pioneer. The time to act is now.
South China Morning Post
19-07-2025
- General
- South China Morning Post
Asean's renewable push needs inclusive economic models
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification In South Papua, Indonesia, nine-year-old Ulin spends hours each day collecting water and firewood – time that could be spent in school or learning online. Her village, once reliant on diesel generators, has struggled to afford fuel amid rising costs. With the nearest grid over 50km away, communities like hers are left quite literally in the dark. Such stories highlight a deeper issue. While Southeast Asia's economies are growing rapidly, access to reliable, affordable and clean electricity remains uneven. The International Energy Agency estimates that about 35 million people in the region still lack electricity, and that more than 100 million rely on traditional biomass or kerosene for cooking. As the global energy transition accelerates, we must remember a fundamental principle: no one should be left behind. A just transition means more than swapping fossil fuels for renewables; it's about ensuring communities have the energy they need to thrive, from hospitals to schools to homes. Progress requires more than large-scale infrastructure. It demands inclusive economic models, resilient institutions and tailored support for rural and marginalised populations. Southeast Asian governments have advanced regional cooperation on renewables, yet deployment on the ground remains uneven. Urban and wealthier communities often benefit first, while poorer regions face hurdles in financing and technical support.
Zawya
25-06-2025
- Business
- Zawya
Here's why Africa should develop nuclear energy?
Across the continent, a staggering 600 million people remain without access to electricity, a number that translates into significant energy poverty, particularly in rural Africa, where 70-80 million need to gain access yearly to be on track to meet the 2030 universal access to electricity target. While our continent accounts for 17 percent of the world's population, we generate less than 3 percent of global electricity. This 'power poverty' stifles industrialisation, limits healthcare outcomes, and constrains economic transformation even as Africa exports uranium and other critical minerals to power many parts of the world. Although there is remarkable progress across countries on the continent, the overall pace of progress is slow, requiring an ambitious shift towards nuclear energy, tailored to Africa's unique needs and opportunities. Critics are right to debate questions of safety, malice, accidents, cost and potential harmful effects on the environment. Many argue that investing in renewables is sufficient. Furthermore, the public is unlikely to forget Chernobyl and Fukushima and the constant threat of nuclear war. Yet, South Africa's Koeberg plant has operated safely for 40 years, proving nuclear energy works on the continent. In addition, experts note that nuclear energy has the lowest death rate per kWh of any major energy source, safer than wind and solar when accounting for manufacturing risks. Modern reactors such as Westinghouse's AP1000 have passive safety systems that shut down automatically. With its 25 reactors, South Korea has gone from energy importer to nuclear energy exporter and has a target of providing 30 percent of its electricity while cutting emissions by 2030. Similarly, France generates 70 percent of its electricity from nuclear, achieving Europe's lowest electricity prices and a clean grid. Bangladesh, with GDP per capita -- similar to Kenya's -- is building its first reactor with Russian support, proving nuclear energy can be accessible to developing countries. And there are more encouraging developments closer home. Egypt is constructing four 1,200MW reactors at El Dabaa—a $30 billion bet on nuclear as an industrial catalyst. Ghana has partnered with NuScale Power to explore Small Modular Reactors - SMRs that could power mines and cities simultaneously. Furthermore, countries that fall under the Tier 1 category - Egypt, Rwanda, Ghana, Uganda, South Africa, Nigeria and Zambia - are starting or expanding their nuclear energy programs. Governments in Niger, Kenya, Tunisia, Morocco, Ethiopia, Tanzania, Namibia, DR Congo, Senegal, Algeria and Zimbabwe are working towards the role of nuclear energy in their future electricity supply systems. Read: Uganda sets 2031 target for nuclear energyThe International Energy Agency estimates that growth in Africa's industry, commerce and agriculture will require electricity demand to grow by 40 percent by 2030. The United Nations Economic Commission for Africa assesses that the African Continental Free Trade Area electricity needs will account for 8 percent of the total continental electricity capacity by 2035, and 14percent by 2040, requiring additional investment of $22.4 billion between 2025 and 2040. Furthermore, by 2040, due to rapid population and economic growth in Africa, the electricity supply must expand by more than four times. Furthermore, Africa is facing sectoral transformations due to frontier technologies. Data centres to store big data and power frontier technologies require a significant energy supply. The gradual transition of Africa's transport system to electric vehicles will also increase the demand for electricity generation on the continent. Read: Kenya electric vehicles uptake goes up five-foldAfrica can no longer risk crawling its way out of energy insecurity. As we say in Africa, we can sing and dance at the same time. As we invest in renewable energy resources, we can also advance nuclear energy development. Egypt's El Dabaa will deliver 4,800MW for $6.25 billion. With an over 40-year lifespan, nuclear makes it cost-competitive. But what about the nagging question of nuclear waste? Current innovations are proving that new reactor designs consume nuclear waste as fuel. Waste management systems have also developed to offer safer options for disposal. Countries such as Niger with large deposits of uranium could power reactors for centuries while solving waste challenges. Namibia could achieve energy independence and power the rest of Africa for decades to come – after all, Africa controls 20 percent of global uranium reserves. The path ahead is clear. We must harness nuclear energy's potential and adopt a bold political commitment backed by a clear national roadmap, including target dates for operational plants and long-term capacity-building initiatives. The potential is enormous and could result in creating thousands of skilled jobs and transforming Africa's energy system towards greater energy security. Governments need to tap into the reliability of nuclear power. With a 90 percent capacity factor, plants enjoy up to 45 years of economic life. While large-scale reactors provide stable baseload power, low-hanging fruit should focus on deploying SMRs first (20-300MW) to power mines and industries, before scaling up to gigawatt plants. To address the financing hurdle, which requires high upfront costs (70–85 percent fixed), countries can draw lessons from Africa's 6.4GW renewable energy projects, such as South Africa's procurement programme and global nuclear public-private partnership financing models. Africa's regional power pools, such as the Southern African Power Pool and the upcoming regional electricity market in the East African Power Pool, could amplify investment by pooling demand. The African Single Electricity Market (Vision 2040) aims to integrate continental grids, boosting nuclear power's viability. Creating an African nuclear alliance can pool resources, negotiate better technology transfer deals and training programs and reform energy financing in partnership with Africa's financial institutions to de-risk projects. The African Union and regional blocs must lead this charge to secure Africa's energy future. The time is now to move from potential to action. If done right, Africa could be a leader in this sector. Nuclear energy offers a bright future. But we must act deliberately and have the courage to embrace it. Claver Gatete is Executive Secretary of UN Economic Commission for Africa. © Copyright 2022 Nation Media Group. All Rights Reserved. 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Zawya
15-05-2025
- Business
- Zawya
Invest in African Energy (IAE) 2025: Africa Urged to End Billion-Dollar Gas Flaring with Scalable Infrastructure Solutions
In a continent striving for energy access and industrial development, Africa continues to lose billions of dollars in potential revenue by flaring its natural gas – a practice that remains entrenched largely due to infrastructure shortfalls and outdated economic incentives. Speaking at a presentation on 'Flare Gas Utilization: The Importance of Mid-Scale Integrated Gas Commercialization Solutions,' Nmesoma Okereke, Sales Manager and Flare Gas Recovery Specialist at Neuman&Esser, underscored the urgency of addressing this paradox through modern, scalable gas monetization strategies. 'The most important reason for gas flaring is a lack of infrastructure, but also cost inefficiencies,' said Okereke. 'In the past, it was more economically feasible to flare gas than develop or commercialize the gas. That is no longer the case with the rise of innovative gas solutions.' Three of the world's top nine gas-flaring countries are in Africa, said Okereke, collectively responsible for an estimated 60% of the continent's gas flaring. Nigeria alone flared roughly 193 billion cubic feet of gas in 2024, while producing 2.5 trillion cubic feet of gas. That volume of wasted gas represents a market value of $1 billion – at a time when around 40% of the country's population lacks access to electricity. Nigeria's case study illustrates the dual challenge of wasted resources and unmet energy demand. According to Okereke, Nigeria needs five times its current domestic gas supply to reach its goal of 30 GW of power by 2030. With flaring becoming less economically justifiable due to emerging technologies and modular gas utilization options, Okereke emphasized the need to shift toward mid-scale integrated solutions that can bridge the infrastructure gap and bring gas to market more quickly and efficiently. Distributed by APO Group on behalf of Energy Capital&Power.
