- A report by Climate Policy Initiative shows Africa requires about $2.8 trillion (Sh408.9 trillion) between 2020 and 2030 to implement its NDCs.
- IMF also says to close the energy access gap in Sub-Saharan African countries, it will require an estimated annual investment of Sh4.1 trillion up to 2030.
A continental think tank aimed at fostering partnerships and support towards narrowed green energy policy gap has today been launched on the sidelines of the climate summit.
Dubbed ‘Enzi Ijayo’, the firm will seek to grow investments in green energy solutions that provide a sustainable path towards greening Africa’s economic development.
According to a survey by the firm, the continent's energy sector transition goals is still being faced with vast challenges.
These include low access rate, heavy reliance on expensive thermal plants and the region's vulnerability to fluctuations in global fuel prices, making it susceptible to economic instability.
A report by Climate Policy Initiative shows Africa requires about $2.8 trillion (Sh408.9 trillion) between 2020 and 2030 to implement its Nationally Determined Contributions under the Paris Agreement.
In a year, the continent needs much in investment to respond to green transition, even as countries are simultaneously trying to support rising energy demand, and to do so reliably, affordably, and securely,” said Charles Wanguhu, the firms’ director.
The IMF also in 2021, said to close the energy access gap in Sub-Saharan African countries, it will require an estimated annual investment of $28 billion (Sh4.1 trillion) up to 2030.
"This includes about $13 billion (Sh1.9 trillion) for mini-grids $7.5 billion (Sh1.1 trillion) for grid and $6.5 billion (Sh949 billion) for off-grid investments," IMF says.
"However, the current financing commitments fall far short."
The firm terms Africa a sleeping giant on renewable energy potential, with only seven per cent of its vast geothermal, wind and solar energy potential currently being used.
This is despite a huge percentage of the population, four out of five, yet to be connected to a power grid.
It also lags behind the globe when it comes to adoption of renewable energy, despite hosting immense green energy potential, it says in part.
Data by the International Energy Agency (IEA), shows the demand for energy continues to increase globally, but hundreds of millions of people in Africa still lack basic access to electricity and cook using dirty fuels.
“As of 2019, about 770 million people had no electricity, 75 per cent of whom live in sub-Saharan Africa, while 900 million lacked access to clean cooking in the region,” says the report.
Statistics shows Africa has an almost unlimited potential of solar capacity (10 TW), abundant hydro (350 GW), wind (110 GW), and geothermal energy sources (15 GW).
The International Renewable Energy Agency (IRENA) estimates that renewable energy capacity in Africa could reach 310 GW by 2030; which would put the continent at the forefront of renewable energy generation globally.
Kenya is already ahead of the pack in harnessing renewable energy potential, with 86 per cent of its power mix being green.
At the same time, the African Green Minerals Strategy is out for public consultation, validation and input.
Wanguhu therefore reiterates that the lobby’s initiative will be to foster energy transition policies and solutions that are inclusive, equitable, accountable and contribute to socio-economic development.
“We will not only conduct action-oriented research on context appropriate policies and community-led solutions for energy transition, but will also convene and work with key actors in the energy eco-system to provide evidence-based solutions and advocate for progressive policy," he said.
He added the solutions will be expected to provide actionable outcomes to push Africa connect her people to the green power grid at the time studies forecasts that just above a half a billion Africans will remain unconnected in 2030.