Environment+Energy Leader’s Post

Africa's energy ambitions stifled by investment shortfall #bne #bneEditorsPicks #bneGreen #Africa #ClimateCrisis #ESG Africa's pursuit of economic and social development hinges on access to affordable, reliable and sustainable energy. Despite vast energy resources, the continent remains energy poor, with around 600mn Africans lacking electricity and over 1bn relying on traditional stoves for cooking. This energy deficiency exacerbates health issues, hinders educational progress and stifles economic growth, particularly affecting women and children, the International Energy Agency (IEA) said in a recent report. Africa, accounting for 20% of the world's population, attracts less than 3% of global energy spending. Since peaking in 2014, energy investment on the continent has dropped by 34%. Barriers to investment include a lack of bankable projects and the high cost of capital, which is two to three times higher for renewable projects in Africa compared to advanced economies. Additionally, 21 African countries face significant debt distress, further complicating investment prospects.

Driving #energyaccess in #Africa requires significant influx of funding...there is no way round this. At this stage of Africa's #energy ecosystem, huge risks make it difficult for private investors to invest in the continent's energy market. Hence, it becomes important for the public sector to leverage public funds to attract the needed #privateinvestment. There are different financing mechanisms that can be leveraged to unlock inflow of private capital in Africa. These include #concessionalloans, #blendedfinance instruments (which are popular and gaining prominence in Africa especially in Sub-Saharan Africa with blended finance getting to $ 3 billion in 2021) and other innovative instruments such as green, social, sustainable and sustainability-linked (GSSS) bonds, #carboncredits and voluntary carbon markets #vcm, and co-investment, syndication platforms and pooled investment vehicles. However, each of these mechanisms has its unique challenges. For instance, blended finance faces the challenge of balancing the right amount of concessional loans with guarantees and risk insurance and technical assistance grants. It is on this note that it is important for different countries in Africa to specifically analyze their energy markets and identify which financing instrument is most suitable to unlock private capital, needed to drive energy access. For better context, the suitability of these different funding mechanisms to drive energy access is discussed in the recent report released by International Energy Agency (IEA) on the request of the Italian presidency of the Group of Seven (G7) to support the presidency’s new Energy for Growth in Africa initiative titled "Clean Energy Investment for Development in Africa - Status and opportunities" Nigeria's Energy Transition Plan (ETP) International Energy Agency (IEA) Natural Resource Governance Institute Damilola Ogunbiyi Sustainable Energy for All (SEforALL) UNDP Nigeria

🌍 Energizing Africa's Future: The Path to a Sustainable Energy Transition 🌿 Africa is on the brink of a transformative energy transition, a shift that promises to revolutionize the continent's energy landscape and unlock unprecedented economic and social benefits. As we navigate this critical juncture, it’s crucial to understand the unique challenges and opportunities that lie ahead. The Need for Energy Transition in Africa Rapid Population Growth: With a population expected to reach 2.5 billion by 2050, Africa faces an urgent need to expand energy access to meet the growing demand and improve quality of life. Energy Poverty: Over 600 million Africans still lack access to electricity, and many rely on traditional biomass for cooking. This energy poverty limits economic opportunities and affects health and education. Environmental Concerns: The reliance on fossil fuels and biomass has significant environmental impacts, contributing to deforestation, air pollution, and greenhouse gas emissions. Opportunities in the Energy Transition Abundant Renewable Resources: Africa boasts vast renewable energy potential, with abundant solar, wind, hydro, and geothermal resources. These resources can drive the transition towards a cleaner, more sustainable energy future. Decentralized Energy Systems: Innovative solutions like microgrids and off-grid solar systems can provide electricity to remote and underserved areas, offering a more flexible and resilient energy infrastructure. Economic Growth and Job Creation: The renewable energy sector can become a major driver of economic growth, creating millions of jobs and stimulating local economies. Technological Innovation: Africa has the opportunity to leapfrog traditional energy systems by adopting cutting-edge technologies and solutions tailored to its unique needs. #EmpowerAfrica #AfricaEnergy #AfricaDevelopment #AfricanInnovation #AfricaRising #AfricaCleanEnergy

Power driving progress - that's the crux of our new insight article on #EnergyAccess in Africa. Through hard data, case studies and analysis, we unpack how the lack of reliable and affordable energy is a key barrier stifling entrepreneurship, business productivity and economic growth across the continent. The costs of energy poverty are massive - Nigerian MSMEs alone lose $29 billion annually due to disruptions from insufficient power access. But we also showcase success stories from North Africa, where smart policies and enabling environments in Morocco and Egypt have unlocked billions in renewable energy investments, producing surplus electricity and fueling economic advancement. Most crucially, the article establishes the multidimensional impact of energy poverty - from suppressed literacy and education rates to lack of clean water access and intensified gender inequalities when women bear the brunt of hauling water for households. Energy is truly the backbone for realizing Africa's sustainable development goals around poverty, health, education and more by 2030. Read the article below and join the conversation on ensuring Africa has the power to unleash its true economic potential while uplifting lives and communities. #SustainableAfrica #EnergyEquity #EconomicTransformation https://lnkd.in/gjyxmvNA

2023 was a meaningful year for Deloitte as we worked to improve #EnergyAccess and generate more #CleanEnergy across West Africa with USAID and Power Africa.    The 2023 Power Africa Annual Report highlights the strong partnership Deloitte has had with Power Africa and our successes throughout the region. A few of our accomplishments:    We helped unify the electricity networks of Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Liberia, Mali, Mauritania, Senegal, Sierra Leone, The Gambia, and Togo via the West African Power Pool (WAPP). This synchronization enables a regional energy market where cleaner, more cost-effective energy can be exchanged across borders.    In #Senegal, we collaborated to develop an energy transition strategy, empowering the country to reduce carbon dioxide emissions and to cut greenhouse gas emissions.    In #Liberia, we championed public-private partnerships (PPP) to promote efficient utility operations, reduce financial risk for governments, and improve user experience for families and businesses. We used an innovative PPP arrangement between the Liberia Energy Company and a local energy firm to operate and manage the Bong County grid.    In #EnergyAccess, there is no progress without equality. Our program supported the incredibly motivating Energy Sector Women's Leadership Initiative #ESWLI to train 250 women from Ghana and across Africa. Through Power Africa’s support, women are growing their businesses through productive use of energy programs and access to solar-powered water pumping initiatives.    Explore more of this partnership, Power Africa's success over the past ten years, and read the full report: https://lnkd.in/esjRdx4A

#Tanzania, #Rwanda and #Somalia are among four countries selected as pilots of a new World Bank #CleanEnergy programme that is set to benefit at least 100 million people in Sub-Saharan #Africa by 2030. Sao Tome and Principe will also take part in the rollout of the Accelerating Sustainable and Clean Energy Access Transformation (Ascent) programme, which will be expanded to 20 countries in the region over the next seven years. The World Bank Group President Ajay Banga announced the $15 billion project during the International Development Association's (IDA) mid-term review meeting of its 20th financing round in #Zanzibar. According to Mr Banga, at least $5 billion of the funding requirement will be covered by IDA and the remaining will be from partners. "We know it won't solve the problem of access to power for the entire continent since there are more than 600 million Africans facing the problem." he said. "But we see it as a start, and also a platform to draw more interest among IDA partners to also join the cause through similar investments." The Bank describes the Ascent programme as a "game-changer in a region where only 48 percent of the overall population and just 26 percent in rural areas has access to electricity." "The lack of #EnergyAccess is the most significant challenge to development progress in the region today (as it) hinders economic recovery and faster progress toward poverty reduction," it says. Enjoy the read https://lnkd.in/dZ6Pm9Nt

Last month, I had the pleasure of presenting a talk on the decentralisation of the energy sector as a strategy to combat climate change. Special thanks to Charlie Davey for arranging the session. During the talk, I highlighted the integral role of energy in every aspect of materiality and expressed concerns that the current energy transition may lead to overconsumption under the guise of renewable energy. A decentralised approach encourages conscious energy use, empowering users and fostering sustainability. As I embark on writing my master's thesis on the decentralisation of the energy sector for socio-economic development in Africa, I recognize that the traditional centralized model demands substantial investment and infrastructure, posing significant logistical challenges. Given that half the population in Africa still lacks access to electricity, it's evident that the continent's energy transition should start with a decentralised model, promoting a localized economy with fewer logistical hurdles. I am eager to explore the opportunities and possibilities within this field and would love to connect with stakeholders and experts in the energy sector. Your insights and experiences would be invaluable to my research. Let's collaborate to drive sustainable and inclusive energy solutions in Africa. International Energy Agency (IEA) Ruth Dzokoto Green Africa Youth Organization (GAYO) African Development Bank Group ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) #EnergyTransition #Decentralisation #SustainableDevelopment #RenewableEnergy #Africa #SocioEconomicDevelopment #ClimateChange #EnergyAccess

Energy poverty continues to plague Africa, holding back our potential for growth and prosperity. Shockingly, more than 600 million Africans live without access to electricity, stifling economic opportunities and perpetuating inequality. It's infuriating to witness our abundant resources being exploited for the benefit of others, while we struggle to meet our basic energy needs. Consider this- Nigeria and Angola derive up to 90% of government revenue from oil and gas, yet our communities lack reliable power supply. This imbalance is unjust and unsustainable. The Global North must recognize that our resources should fuel OUR development, not theirs. We demand a just energy transition that respects our rights and supports our economic aspirations. For full article: https://lnkd.in/d-HSse9z #EnergyJustice #AfricaDevelopment #Sustainability

More about energizing Africa: An interesting podcast crystallizing the challenges and calling for action by Sarvesh Suri, IFC Africa Infrastructure Director.

According to World Bank, access to energy in Nigeria, remained at 55% in 2020, with the urban-rural gap standing at 83.9% vs. 24.6% (https://lnkd.in/eK962hPb). When communities suffering conflict, displacement and fragility-affected contexts also experience the lowest levels of access to energy, it is self-evident that sustainable energy solutions and approaches sustaining peace and security need to go hand-in-hand. Read more about UNDP's work with Mission of Norway to the EU empowering youth and #climatesecurity in North-West Nigeria: https://lnkd.in/e6E9wAn3 Elsie Attafuah Hans Olav Ibrekk Ashraf Usman Nurudeen Bashar Saleh Eri Yamasumi Anab Ovidie Grand Valentin Hervouet Parth Joshi Ootsanee (Sunny) Klinpoon Carl Bruch Simone Marino Serge Ndjekouneyom Ugochukwu Kingsley Ahuchaogu UNDP Africa UNDP West and Central Africa UNDP Nigeria #climateaction #SDG7