Transforming Africa’s energy systems will demand significant investment, according to the International Renewable Energy Agency (Irena).
Energy remains one of the biggest challenges facing the continent despite efforts made at national and regional levels. It is estimated around 580 million Africans still do not have access to any modern source of electricity.
According to Irena, falling technology costs have made renewable energy a cost-effective way to generate power in Africa. The agency has joined forces with the United Nations Development Programme (UNDP) to unlock the capital necessary to help African countries realise their full renewable energy and economic potential.
According to Irena, Africa has the potential to install 310 gigawatts of clean, renewable power to meet nearly a quarter of its energy needs by as soon as 2030. But, it says, it is crucial that countries step up efforts to generate significant investments and opportunities to boost the growth of renewable energy.
It is estimated that the continent requires an annual investment of at least $70 billion in renewable projects until 2030 for clean energy transformation to take place. The agency pointed to ongoing work to address energy needs by the likes of Burkina Faso where an Abu Dhabi Fund for Development (ADFD) loan of $5.5 million will contribute to the construction of a 3-MW solar PV power plant in the country.
The project is expected to extend electricity to approximately 40 000 people in rural areas. In Chad, the ADFD has provided a loan of $15 million that will be used to construct a 6-MW solar power plant.
The latest Irena report states that renewables accounted for at least 70% of total capacity expansion in almost all regions in 2019, other than in Africa and the Middle East where they represented 52% and 26% of net additions respectively.
