Daniel Schroth, Acting Director for the Department of Renewable Energy and Energy Efficiency at the African Development Bank (AfDB), talks about how scaling up public- private sector parternships and pursuing Africa’s untapped energy potential can help the continent transition to cleaner, more affordable and sustainable energy sources.


THE PATH TO AFRICA’S ENERGY TRANSITION


OPEC Fund Quarterly: What are the biggest challenges in Africa on energy access and energy transition? Daniel Schroth: The provision of clean and affordable energy access is a prerequisite to ending poverty, yet close to 600 million people in Africa continue


to live without access to electricity and more than 900 million without access to clean cooking solutions. The economic impact of COVID-19 in Africa has rolled back some of the gains made in recent years in reducing Africa’s energy access deficit. As a result, an estimated additional 30 million Africans are living without access to electricity. The pandemic has revealed the inequalities in access to reliable energy and healthcare and has highlighted the need to accelerate energy access in the continent.


Although Africa is a minor contributor


to climate change, it bears the brunt of its adverse impacts across all economic sectors1


. The continent accounts for “ 18


Although Africa is a minor contributor to climate change, it bears the brunt of its adverse impacts across all economic sectors.


Daniel Schroth


only six percent of global energy demand and little more than three percent of electricity demand. While the combination of agriculture, forestry, and land use makes up the largest share of Africa’s emissions, Africa’s development trajectory and population growth with increasing demand for energy will see the share of energy raise in Africa’s future emissions. Accelerating Africa’s energy transition while advancing universal electricity access is therefore key and will require:


• Scale-up of national and regional utility-scale renewable energy generation capacity: By 2030, Africa’s energy generation deficit will be about 200 GW, making increased generation capacity a priority. The falling cost of renewable energy technologies


presents an opportunity for African countries to leapfrog. With the cost of storage still relatively high there is a continued need for natural gas as a transition fuel. The increased provision of concessional resources through instruments such as the Green Baseload component of the Bank’s Sustainable Energy Fund for Africa (SEFA) can facilitate an acceleratated energy transition.


• Strengthening national and regional transmission and distribution systems: Generation capacity must be developed in tandem with transmission and distribution interventions and regional interconnections. Enhanced power system flexibility will be key to the integration of higher shares of variable renewables.


• Scale-up of decentralized renewable energy solutions: Most Africans without electricity live in rural areas, where extending the grid is not economical. Decentralized solutions such as mini-grids and solar home systems are expected to account for over half of new electricity access by 2030, according to the International Energy Agency.


• Bolstering the sustainability of sector and power utilities and enhanced energy efficiency: Utilities’ financial and operational efficiency is crucial for the long-term sustainability of the power sector.


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