Approximately 600 million people across Africa do not have access to reliable power, and while the continent contributes to the global need for energy, there has been a considerable shift in recent years to address these energy needs.
These are the conclusions of the Africa Energy Review 2024 released by the PwC yesterday, which takes a closer look at some of the key developments influencing change across Africa’s energy landscape.
The report also assesses the progress made towards a just energy transition, look at gas as the bridge to a greener future, and highlight the importance and power of multi-sector collaboration.
According to PwC, clean generation capacity increased by 7.1%, fossil fuel generation by 0.1% and total generation by 1.8% in 2023.
Andries Rossouw, PwC Africa energy utilities and resources leader, said they anticipated that clean power generated in Africa will increase to 25% by next year as growth in solar, wind capacity and hydro generated power continues.
“While Africa has seen an overall increase in clean energy generating capacity, actual power generated in 2023 increased by less than 1% from the previous year,” Rossouw said.
“Power generated over the last decade has increased by 12.5%, which is four times less than the increased capacity. This is due to ageing fossil fuel plants-particularly coal-fired power stations-with declining availability factors and weather-dependent non-dispatchable solar PV and wind replacing that supply with lower efficiency factors.”
Energy access is undeniably one of the most crucial components of modern day living. Reliable energy supply ensures that economies are growing by supporting critical industries like mining, manufacturing, agriculture, healthcare and education, while improving the lives of billions of people.
North Africa’s energy landscape is evolving with a strong oil and gas sector alongside a growing emphasis on renewable energy sources that include wind, solar and green hydrogen. Key players like Egypt, Algeria and Morocco are using their resource wealth to transition towards renewables while maintaining their positions as natural gas exporters.
In East Africa, countries like Kenya, Ethiopia and Tanzania are making strides in expanding renewable energy and improving rural electrification. With major projects like the Lake Turkana Wind Farm, Kenya has achieved over 75% electricity access and aims for 100% renewable generation by 2030.
Meanwhile, Southern Africa is said to have positioned itself as a leader in renewable energy development-particularly in solar and wind, with South Africa dominating the region’s investments. Namibia is focusing on renewable build-out to support green hydrogen production, capitalising on its abundant solar and wind resources, with its oil and gas finds likely to make it a new regional energy hub.
Pedro Omontuemhen, PwC Africa oil and gas leader said despite significant advancements across these regions, challenges remained in infrastructure and financing, underscoring the need for continued investment and collaboration to meet growing energy demands and a transition to sustainable energy systems.
“Several factors have caused the global energy landscape to shift dramatically in recent years-with the post-pandemic recovery, geopolitical tensions and climate challenges being among them-and these have made Africa’s energy poverty more poignant,” Omontuemhen said.
“However, we are seeing greater commitments to leveraging renewable energy resources more heavily globally and in Africa.”
South Africa has made considerable progress toward liberalising its energy sector, with a major update being the signing of the Electricity Regulation Amendment Act in August this year.
Julie Rosa, PwC South Africa energy utilities and resources associate director said, key stakeholders highlight the need for investment in infrastructure and technology to enhance grid efficiency, energy storage and resilience.
“There is a strong push for greater collaboration across borders, public-private partnerships, and regulatory reforms which we know are crucial for attracting investment and fostering innovation,” Rosa said.
“This way, large-scale projects like Morocco’s Noor Solar Complex and fostering energy security through competitive markets are possible.”
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