As geopolitical tensions escalate, particularly in the Middle East, the topic of energy security has emerged as a critical focus at global summits.
Currently, delegates from across the continent and beyond have gathered in Cape Town for Africa Oil Week, a forum aimed at shaping the future of Africa’s energy landscape. Participants are not only sharing insights into recent discoveries and policy development, but also strategising on investments to ensure sustainable energy production in the region.
The need for energy security is underscored by the stark reality that Africa currently receives a mere 3% of global investment for renewable energy initiatives.
This statistic highlights the urgent requirement to mobilise funds effectively — a challenge that will be addressed next week at the Accelerated Partnership for Renewables in Africa (Apra) Investment Forum in Nairobi. Under the leadership of African nations, Apra intends to expand all forms of renewable energy to support resilient and inclusive green growth. I will be attending this forum courtesy of International Renewable Energy Agency.
Looking ahead, Africa Energy Week in November also promises to catalyse discussions on securing the continent’s energy future amid a backdrop of rising energy demand.
Energy demand is forecast to increase amid global economic growth. This is anticipated to increase energy usage across various sectors. Manufacturing, in particular, is heavily reliant on accessible and affordable energy. As nations strive for energy independence, it is imperative that solutions provided remain economically feasible for citizens.
A report from the International Energy Agency (IEA), titled Electricity 2024, illustrates that electricity demands witnessed a moderate rise in 2023 and are set for a sharper increase through to 2026.
Notably, electricity consumption from data centres, artificial intelligence (AI), and cryptocurrency sectors could see a significant uptick, potentially doubling by 2026. After consuming around 460 terawatt-hours (TWh) in 2022, data centres may require over 1000 TWh, a staggering demand equivalent to the electricity usage of Japan.
Experts emphasise that updated regulatory measures and better technological efficiency are critical to managing this surging energy consumption.
New research by Barclays underscores the blend of renewable and non-renewable energy necessary to meet AI’s voracious appetite for electricity, at least in the short-to-medium term. The firm anticipates that natural gas will play a pivotal role in bridging gaps as renewable sources are deployed, especially with the phase-out of coal. Access to natural gas pipelines has emerged as a key consideration for data centre developments, further complicating the energy landscape.
Despite the global push towards achieving a net-zero carbon footprint, many strides are still needed to bridge the gap between current realities and this ambitious goal.
The increase in climate-driven disasters, such as hurricanes and tornadoes, serves as a stark reminder of the urgency in rethinking energy production methods. One only has to look at the level of destruction Hurricane Helene dished out in America to realise that something has to be done.
Heightened geopolitical tensions further compound these challenges, rendering energy security as vital as ever. The ongoing unrest in the Red Sea, coupled with looming disruptions in Middle Eastern oil supply chains, is driving oil prices to alarming heights, prompting a worldwide reckoning with energy sources.
As I prepare to attend discussions in Nairobi, which will delve into renewable energy advancements, I feel excited for the innovations poised to unfold in the coming years.
The convergence of energy and technology presents not only challenges, but also tremendous opportunities for sustainable long-term solutions—key elements as experts map out the pathway to a resilient energy future.
Philippa Larkin is the executive editor of Business Report.
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