Business

Africa's renewable energy set to soar by 2022

Read time 2min 20sec
Wind turbines near a village in Tigray, Ethiopia.
Wind turbines near a village in Tigray, Ethiopia.

Strong demand is set to give a huge boost to renewable energy growth in Sub-Sahara Africa over the next five years, driving cumulative capacity up more than 70%, a senior international energy official said yesterday.

From Ethiopia to SA, millions of people are getting access to electricity for the first time as the continent turns to solar, wind and hydropower projects to boost generation capacity.

"A big chunk of this [growth] is hydro because of Ethiopia, but then you have solar ... in SA, Nigeria and Namibia, and wind in SA and Ethiopia as well," said Paolo Frankl, head of the renewable division at the Paris-based International Energy Agency (IEA).

He forecast installed capacity of renewable energy in the Sub-Sahara region almost doubling from around 35GW now to above 60GW given the right conditions.

Ethiopia has an array of hydropower projects under construction, including the $4.1 billion Grand Renaissance Dam along the Nile River that will churn out 6 000MW upon completion.

That is enough for a good-sized city for a year.

"Africa has one of the best potential resources of renewables anywhere in the world, but it depends very much on the enabling framework, on the governance and the right rules," Frankl told Reuters on the side lines of a wind energy conference.

The transition to a low-carbon trajectory to reduce harmful greenhouse gases is creating opposition from the coal industry and fuelling uncertainty in countries where job creation was linked to coal mining.

In Africa, this tension and its impact on new investment have been best illustrated by SA's state-owned Eskom and its reluctance to sign new deals with independent power producers, according to analysts.

In May, the South African Wind Energy Association (SAWEA) said the energy regulator agreed to investigate Eskom's refusal to sign agreements that delayed 2 942MW in new solar and wind projects.

"Our government does not appear to appreciate the forces of nature," said Mark Pickering, chairman of SAWEA, on Wednesday.

The inability of Eskom to sign the new power purchase agreements for two years has delayed investment of R58 billion and hit investor confidence, with at least one wind turbine manufacturing plant closing down, said SAWEA.

"The continent has a lot of potential, but the problem is financial and political issues, so all of our projects are being delayed for quite a long time, like with Eskom," said Mason Qin, business development manager for southern and eastern Africa at China's Goldwind.

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