Tanzania President urges the world to look to Africa for Energy
Tanzania President urges the world to look to Africa for Energy
Tanzania President Samia Suluhu has urged the world to look to Africa for energy?amid the climate, energy and geopolitical crises that have been raging for some years now.?
Speaking during the 53rd World Economic Forum Annual Meeting as a session on?“Repowering the World” Suluhu said Africa has everything when it comes to energy.?
“It is time the world looked to Africa for energy. We have everything when we talk about green energy – cobalt, copper, nickel… You can extract and manufacture in Africa, provide energy to Africa and take it to other countries,” she explained.?
Making an appeal for greater private sector investment in Tanzania, Suluhu said Africa needs more energy as the continent ramps up manufacturing.?
?“We want to build regional power pools in East African and Southern African… if any region has a shortage, the other could supply it,” she said. Suluhu added that instead of Europe, Japan or India pursuing unilateral policies, more concerted efforts are needed to tackle the energy crisis that is truly global in nature.
Data from Africa Development Bank, (AfDB) reveals that Africa’s energy potential, especially renewable energy, is enormous, yet only a fraction of it is being currently employed.?
Hydropower provides around a fifth of current capacity but not even a tenth of its total potential is being utilized.?
Similarly, the technical potential of solar, biomass, wind and geothermal energy is significant.?
According to AfDB, over 640 million Africans have no access to energy, corresponding to an electricity access rate for African countries at just over 40 percent, the lowest in the world. Per capita consumption of energy in sub-Saharan Africa (excluding South Africa) is 180 kWh, compared to 13,000 kWh per capita in the United States and 6,500 kWh in Europe.
Access to energy is crucial not only for the attainment of health and education outcomes, but also for reducing the cost of doing business and for unlocking economic potential and creating jobs.
Insufficient energy access manifests itself in hundreds of thousands of deaths annually due to the use of wood-burning stoves for cooking; handicaps the operations of hospitals and emergency services.?
Global Energy Crisis?
Speaking at the same session, Ilham Kadri, CEO and Chairman of Solvay, a Belgian chemicals company, said, chemistry is the mother of all industries, and it is imperative to create diversified supply chains of metals and rare earths such as lithium, cobalt, nickel and copper that are essential components of EV batteries and so many other applications in the energy transition.
China has built rare earths value chains for decades and to avoid a “Russian gas supply syndrome”, she said Europe and countries around the world must find diversified sources of these metals and minerals as well as localize battery assembly.
From reskilling workers to issuing permits, Europe needs policies that “get it done quicker”, Kadri said, quoting United States’ new Inflation Reduction Act (IRA) that offers funding and incentives to accelerate the clean energy transition and has raised fears in Europe of an investment drain. “Europe must boost its competitiveness to prevent de-industrialization,” she said. “The question is not IRA or not, but what does it take for Europe to have a competitive industrial policy? I need clean energy, at cost and at scale, and 365 days a year.”
In the same vein, Mark Rutte, Prime Minister of the Netherlands, said the IRA is an opportunity for Europe to cut bureaucratic red tape, which would unleash opportunities for innovation, new jobs and working together at a European scale, or else “real action will move to Asia and other parts of the world”.
Asked if Europe overlooked its dependency on cheap Russian gas for too long, Rutte agreed that Europe could have cut this dependence sooner, but added that it was a collective failure, and not just Germany’s, as it is sometimes made out to be. Natural gas will continue to be used as a transition fuel in the short- to medium term, he said, but longer term, the direction is decidedly towards renewables, green hydrogen and even nuclear.
?“I would not be amazed if many more countries start to reinvest in nuclear,” he said, adding that Belgium will build two new nuclear reactions.
The Technology Perspective Report of the IRA got a thumbs-up from Francesco Starace, CEO and General Manager of Enel, for not only interpreting the need to transform energy systems but also to transform supply chains and industrial systems. “China and some Asian countries took the chance [to do so] earlier,” he said. The energy transition is taking place much faster than originally estimated, and will accelerate, he said, adding that this puts additional pressure on an industry used to longer time horizons.
?The US has significantly increased its gas production to supply the EU, said Joe Manchin III, Senator from West Virginia (D). “Our friends and allies were hurting,” he said, referring to Russia’s curtailment of supplies to the EU, “And we couldn’t come to your rescue fast enough.” He added that the US would continue to ramp up gas production but would do it cleaner than ever while simultaneously investment in carbon capture, methane capture, renewables, storage, and so on. “We will not get rid of something until we have [an alternative] that works at least as well,” he said.
Taking a more measured stance towards fossil fuels, Keir Starmer, Leader of the Opposition of the UK, said his Labour Party supports the use of oil and gas during the energy transition but is against any new investments in fields in the North Sea or elsewhere. “We have a strict target for 2030 for green power,” he said, referring to Labour’s target of 60% renewables in the energy mix by 2030.
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Starmer said the British Prime Minister’s absence in Davos was in line with a general failure to grow the economy. “Britain has not had a strategic plan for 10 years, foreign direct investment in the UK is down to 4%,” he said, adding that it is essential to restore trust in institutions and match public investment with private to unlock the UK’s potential.
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Three Green Energy Projects Show Potential of Investing in Africa
As the world continues to shift towards a more sustainable future, Africa is emerging as a key player in the renewable energy sector. With vast stretches of land and abundant sunshine, Africa has the potential to harness the power of the sun and wind to generate electricity, creating economic opportunities and reducing dependence on fossil fuels.
Currently, Africa’s energy sector faces significant challenges. Many countries in the region lack access to electricity, with nearly 600 million people in sub-Saharan Africa living without power. Additionally, Africa is heavily dependent on fossil fuels, which not only contribute to climate change, but also make the continent vulnerable to price fluctuations in the global oil market.
However, renewable energy projects in Africa, such as solar and wind power, are starting to gain momentum and are showing great promise as a solution to these challenges. In fact, according to the International Energy Agency, Africa has the potential to generate more than 300 GW of power from solar alone, which is more than the entire continent currently consumes.
Investing in renewable energy in Africa not only helps to address these challenges, but also brings a host of benefits. Renewable energy is often more cost-effective than traditional fossil fuels, making it an attractive option for countries in the region. Additionally, the installation and maintenance of renewable energy projects can create jobs for local residents, helping to boost economic development. Furthermore, renewable energy is a clean and sustainable source of power, which can help to reduce greenhouse gas emissions and mitigate the effects of climate change.
African governments and international organizations have recognized the potential of renewable energy and have started to implement policies and development plans to promote its use. For example, the African Development Bank (AfDB) has set a goal of achieving universal access to electricity in Africa by 2025. The AfDB also plans to invest US$12 billion in renewable energy projects in the region over the next five years, with a focus on solar, wind and hydro power.
According to the World Economic Forum, in 2020, nine per cent of all energy generated in Africa came from renewable sources, with a strong reliance (6.8 per cent) on hydropower. A report by?PricewaterhouseCoopers ?does however indicate that progress is being made in this area. From 2019 to 2020 alone, solar and wind capacity increased by 13 per cent and 11 per cent, respectively, while hydropower soared 25 per cent. “Total installed renewable energy capacity in Africa has grown by over 24 GW since 2013”.Africa has seen a number of successful renewable energy projects in recent years, showcasing the potential for investment in this sector. These projects not only provide clean, reliable power to communities, but also generate returns for investors. Here are a few examples of successful renewable energy projects in Africa.
These case studies demonstrate the potential for investing in renewable energy projects in Africa. Not only do they provide clean, reliable power to communities, but they also generate significant returns for investors. As the world continues to shift towards a more sustainable future, Africa’s renewable energy sector is poised to become an increasingly attractive option for investors.
Of course, investing in renewable energy in Africa is not without its risks. One of the main risks is political instability. Many countries in Africa are prone to political turmoil and civil unrest, which can make it difficult to develop and maintain renewable energy projects. This can lead to delays in project completion, increased costs, and a lack of predictability for investors.
Another major risk is the lack of infrastructure. Many countries in Africa have inadequate infrastructure, including roads, ports, and transmission lines, which can make it difficult to transport equipment and materials to project sites. Additionally, many areas in Africa lack the necessary grid infrastructure to connect renewable energy projects to the electricity grid. This can increase the cost and complexity of developing renewable energy projects in these areas.
Despite these risks, there are also significant opportunities for investing in renewable energy in Africa. The continent has vast stretches of land and abundant sunshine, which make it an ideal location for solar and wind power projects. Additionally, many countries in Africa are facing a growing demand for electricity and are looking for cost-effective and sustainable solutions.
In conclusion, Africa’s renewable energy sector offers a wealth of opportunities for investors. By harnessing the power of the sun and wind, Africa can reduce its dependence on fossil fuels and also create jobs which will be a boost to economic development. With governments and international organizations committing to investing in renewable energy in Africa, the time is ripe for investors to take advantage of the potential in this sector.
Albert is a Chemical Technologist and Author. He is passionate about mining, stock market investing, Fintech and Edutech.
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