- Africa is still in the early stages of the energy transition, and this includes the economic, financial, and societal aspects.
- Across economies, many of the technologies to produce low-emissions steel are relatively nascent, with issues to solve.
- Increasingly, policymakers are realizing that making energy transition from fossils to clean energy is costly.
Net-zero, an energy transition from traditional sources of fuel that pollute the environment to green energy and renewable sources, is the new global call for companies and organizations.
So far, there has been tremendous momentum, especially in the adoption of wind and solar power, electric cars, heat pumps. Climate finance has started to flow, albeit slowly to the Global South, and many companies have made considerable commitments.
“But right now, the world at large is only at about 10 per cent of the deployment of physical assets, that is, the technologies and infrastructure that we will need to meet global commitments by 2050,” reports Tiago Devesa, McKinsey Global Institute senior fellow in a research note.
However, the researcher is wary that, despite all the momentum, we’re still in very early stages of the energy transition, and this includes the economic, financial and societal aspects.
“For example, many of the technologies to produce low-emissions steel are relatively nascent, with issues to solve,” he writes.
So, where does Africa stand in its energy transition efforts? The researcher notes that for third world countries, there is the challenge of adopting and scaling up new technology, and this is true for the developed world as well.
“The challenge is that, we would need to retrofit massive facilities processing millions of tonnes of steel around the world,” he explains.
Making the energy transition is costly, in terms of changing old machinery to new ones that are designed to use and produce clean energy and then there is the question of accessing enough low-emissions hydrogen and power, and their respective value chains, the necessary inputs that are needed for the manufacturing of decarbonized steel, for example.
“We see this in cement, in plastics, in ammonia…the consistent theme of technology performance gaps, massive scaling needs, and entwined linkages,” he laments.
While producing new steel using low-emissions methods is difficult, recycling steel is fairly low-cost and can go quite a long way in abating emissions, the researcher advices.
Devesa sees a silver lining in this dark energy transition cloud, stating that, “There are many new potential solutions like the Hybrit project in low-emissions steel, the LEILAC in cement, and Hubei Yingchang in compressed air storage for long-duration energy storage…the task now is continuing to innovate to improve performance, reduce costs, and scale,” he writes.
Africa energy transition initiatives
While the contribution of African countries to global environmental degradation by climate change is the lowest comparing to all the other regions in the world, the continent suffers the most from the adverse effects.
“In fact, African countries contribution to the emission of carbon dioxide (CO2) is ranged between 3-5 per cent of the global emission,” the African Union Energy Transition report 2023 states.
Despite the fact and even because of it, Africa must take action to accelerate its own energy transition and transformation. Energy transition to clean energy solutions offers Africa opportunities for inclusive economic growth, wealth creation, poverty eradication, and inequality reduction in a sustainable climate compatible manner.
For Africa to achieve the needed energy transition, stakeholders must identify frameworks to support the development of sectoral and technological transitions. “There is need for policy changes and country-driven strategies consistent with the national development agenda and the Paris Agreement goal,”
According to the report; “Access to affordable clean energy for productive uses and households in Africa can be achieved mainly by introducing and implementing comprehensive policy tools that can transform the African Energy Sector to mostly be based on renewable resources through an integrated approach that develop synergies whilst maximising co-benefits and trade-offs.”
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The African energy transition programme
To this end, the African energy transition programme was launched as the main umbrella under which all AFREC programmes, policies are developed and implemented. AFREC, the African Energy Commission is a specialized agency of the African Union charged with developing, coordinating and harmonizing energy policies on the African continent.
The programme development begun in Egypt in 2019 where African leaders placed mandate on AFREC to develop the Africa Energy Transition Programme and support AU member states in their energy transition processes.
“It aims to fully mobilize Africa’s own energy resources and potentials; bringing energy to the top of national and regional agendas; and taking approaches that put Africa directly on to innovative, low carbon energy development pathways, avoiding the fossil fuel lock-in now facing most industrialized and emerging economies,” comments AFREC’s Executive Director, Mr. Rashid Ali Abdallah.
Notably, agriculture employs the largest share of the African population, but remains at a near subsistence level of production in most parts of the continent. As such, this sector must be prioritized in building its clean energy infrastructure.
All African nations must commit to the development of their renewable energy sectors in alignment with the Paris Agreement. Africa has great potential for solar, wind, hydropower and other renewable sources, but needs to build capacity for developing these technologies.
There is also need for energy efficiency programs for buildings, industry and transport sectors that require stringent regulatory interventions.
“Careful consideration of the possible role of national, regional and inter-continental gas pipelines, where this can be justified from a long-term climate and economic perspective, with recognition of risks of stranded assets and the global need to rapidly move away from fossil fuels,” Mr. Abdillah advices.
There must also be development of an integrated African electricity network, suggests the Executive Director, “which would greatly decrease average electricity costs across the continent and increase energy sustainability and security.”
The expert also advices on the need for decarbonisation of the energy and other sectors that will set Africa on a low- to zero-carbon energy trajectory as stipulated in the Paris Agreement.
While we talk of the energy transition in Africa, there is need for holistic support to governments to address the financial and technical challenges that come with the energy transition.
Then there is also the matter of skills and capacity development especially in improving human capacity as well as encouraging and facilitating collaboration between the private sector and governments.
“African countries have the legitimate priority to satisfy the essential needs of socio-economic development and, in particular, the eradication of poverty,” he concludes.
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