Felix - Twayigize@strathmore - Edu +254 745718101: Africa's Renewable Future: The Path To Sustainable Growth

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2end Strathmore University Research and Innovation Symposium

Africa’s Renewable Future: The Path to Sustainable Growth

Twayigize Felix Junior1


1
Strathmore University, Nairobi, Kenya.
*[email protected]; +254 745718101

Background
One of the particularities of Africa is to be a continent blessed in energy resources. Our
Continent benefits from a long duration of the sunshine and has big infrastructure in term of
dams. But also, it is one of the continent in which at night, millions of people do not have access
to electricity. This paper will address that problem and it will propose itself as a way to take so
that we can achieve good energy resources management.
Objectives
To attain it objectives: giving relevant solutions to renewable energy barriers in Africa. This
paper will look up to some countries as a case study, especially countries that do have resources
but are facing challenges to go 100% renewable and also, it will give some reliable example of
countries which are striving and trying to meet their renewable power needs.
Methodology
For our research, we will use qualitative method to bring efficiency and relevance to our
information. We will try to known at which cost can we go renewable in Africa, and what kind
of barriers we might face.
Results
According to IRENA (International Renewable Energy Agency) and many other various sources,
the cost of running renewables is cheaper but it capital cost requires large funds. By using
examples, we will show that Africa needs to have good policies that will attract investors and
good partnership between the public and the private sector to enable the raised of finances.
Probable barriers will be divided into 3: Political, Socio-cultural and Financial.
Conclusion
Our countries have the potential; we just need to switch on the light to renewables by using
effective solutions. The research paper will summarise itself by showing what we have (our
resources), at which cost (Cost of renewables), and how best to have them (relevant solutions to
implement green energy).

Background
Africa is a large and diverse continent in terms of economic resources its 54 countries bear. 
Among these resources, Africa is particularly fortunate when it comes to renewable energy
resources. For example, the Global Wind Atlas identifies significant wind speeds in the Sahara
and the Horn of Africa as well as on the coastal areas of southern Africa. Additionally, our
continent is blessed with higher solar radiation and it is among the parts of the globe that benefit
from the longest duration of the sunshine, around 1 750 to 2 500 kWh/m2/per year (IRENA,
September 2016).  With these few statistics, one can see the potential for a 21st-century energy
revolution right here in Africa. Nonetheless, despite those infrastructures Africa still one of the
countries that have millions of people living without electricity. Every country needs energy to
fuel economic growth, and African countries are no exception. But while more than 13 percent
of the world’s population lives in sub-Saharan Africa, the region has less than 3 percent of the
world’s total power-generation capacity. Esa.un.org. (29 July 2015).  "World Population
Prospects – Population Division". Retrieved 29 September 2015. This paper has for objective to
address the need for reliable energy access for households and businesses to pave the way
for productive use of renewable energy. 

Methods

To achieve this objective, this paper will first elaborate on the capacity and opportunities that are
available for Africa to use clean energy. Secondly, it will explore whether the cost of
implementing clean energy is affordable, such as Solar or Wind. Thirdly, the paper will look at
the barriers that unable Africans to use the green energy. Then it will give relevant
recommendations for the way forward. 

Talking about energy in Africa generally is a very broad topic to tackle. For this reason, I will
use the Democratic Republic of the Congo (DRC) as a case study for countries that have energy
resources but are among those that are still stagnating into difficulties in terms of distributing
energy-produced power to their populations. I will also take South Africa (SA) as a case study
for countries that, a decade ago, were facing challenges with regard to energy implementation
but have overcome by coming up with robust policies. Other than these case studies, this paper
will rely on the use of qualitative research in advancing its arguments and make it more reliable
and efficient.

Results

Economic growth comes hand in hand with growth in energy distribution. The Renewable future
of Africa, therefore, has the potential to lead African countries to a sustained economic growth.
We looked above on what resources we have and still Africa have more to offer.

In DRC for example we have one of the biggest dams in Africa on the Congo River, the Inga
dam. According to Grand Inga Development (World Rivers Review, V20 N2, p. 6-7).

The dam has an expected generating capacity of 39,000 megawatt (MW), with 52 turbines each
has the capacity of 750 MW but in 2017 only 9% of the population have access to power
Export.gov (July 2017) DRC-energy. We have also, Grand Renaissance Dam in Ethiopia, and
the Aswan High Dam in Egypt.  So how can we provide all Africans with electricity and ensure
we have the energy we need to grow our economies without increasing harmful greenhouse gas
emissions?  And what about the cost for implementing renewables? Answers may be right
outside our windows. 

The International Renewable Energy Agency (IRENA) reports that costs for renewable energy is
down. In a recent report, IRENA noted that solar photovoltaic (PV) panels are more than 80 per
cent cheaper than in 2009. In addition, electricity costs from solar photovoltaic panels fell by
almost three-quarters from 2010-2017. So we need how much to build a renewable future?
To answer that question, we have to understand the Levelized Cost of Energy, or LCOE, for
various energy sources. 
 
The LCOE for a new power-generation facility calculates all of the costs associated with the
construction, operation, and maintenance of the facility — including any fuel needed to operate it
— and divides that by the amount of electricity it will generate over its lifetime. We end up with
a cost per unit of electricity produced, which allows us to compare costs across various energy
sources.
RENEWABLE INSTALLATION OPERATIONS & LEVELIZED COST
ENERGY TYPE COST (Kwh) MAINTENANCE OF ELECTRICITY –
COSTS: (% of LCOE $/Kwh
installation cost or
$/Kwh-Year.
Solar Photovoltaic $3.8 - $5.8 $10 - $45 $0.45 - $0.65
(PV)
Hydropower $9000 - $10500 $0.02 - $0.035 $0.17 - $ 0.29
Geothermal $1050 - $7650 2% - 2.5% $0.04 - $0.19
Wind $1850 - $5050 $0.013 - $0.025 $0.08 - $0.14
Biomass $1880 - $ 4260 Fixed costs: 3.2% -
4.2%
Variable costs: 3.8%-
4.7%

Source: Africa Shared Value summit, in May 2019, Nairobi.

Union of Concerned Scientists (December 20, 2017): Renewables are cheap to operate, but can
be expensive to build.
 
As nations are becoming more concerned about the threat of climate change, they are turning
increasingly to clean energy solutions. These renewable resources are rapidly becoming the
energy of the 21st century. In Africa, several barriers are stopping African countries to
implement in an overall manner the renewable energy.  We will divide them into Political,
Socio-Cultural, and financial.  
 
Lack of policies and regulations favouring the development of renewable energy technologies
can hinder adoption of these technologies. Due to the nature of renewable energy structures,
renewable energy market needs clear policies and legal procedures to increase the interest of
investors. This is because “enabling policies create stable and predictable investment
environments, help overcome barriers and ensure predictable project revenue streams”.
Additionally, regulatory measures such as standards and codes enhance the adoption of
renewable energy technologies by minimising the technological and regulatory risk that comes
along with investments in these projects.
 
Mohammed et al., (2013, p.461) in his study on renewable energy adoption in Sub-Saharan
Africa noted that many countries in the region have distinctive national renewable energy
policies whereas regional policies are not fully formed because of unsuitable implementation
approach. This means that, despite the many renewable energy policies developed in most of
these countries, it has been difficult to implement them mainly because they are immature.
 
Socio-cultural barriers, for example, households’ unwillingness to adopt renewable energy for
fear of unreliability, form one of the bases for failure to promote renewable energy technologies
in some countries. For example, general public disinterest and disengagement in wind energy
development were identified as the main social issues hindering renewable energy development.
Lack of knowledge and awareness of renewable energy technologies and systems amongst rural
communities is another challenge encountered in renewable energy development. For example, a
majority of people in Sub-Saharan Africa are uneducated and, therefore, they do not understand
the concept of renewable energy.
Those people in the region are also hardly oriented to technical and environmental impacts
associated with over-use of combustible renewables. These factors coupled together have slowed
down the rate of development, circulation and usage of renewable infrastructure and
technological knowledge. Therefore, the creation of awareness of renewable energy among
communities and a critical focus on their socio-cultural practices is required
 
The most obvious and widely publicized barrier to renewable energy is the capital costs, or the
upfront expense of building and installing solar and wind farms. Like most renewables, solar and
wind are exceedingly cheap to operate—their “fuel” is free, and maintenance is minimal—so the
bulk of the expense comes from building the technology.

Higher construction costs might make financial institutions more likely to perceive renewables
as risky, lending money at higher rates and making it harder for utilities or developers to justify
the investment. 

To better solve those problems, in recent years, many African countries began to explore their
renewable energy potential, through good policies, by supporting their economy, and enhancing
education. And some relevant solutions could be to create good policies through a competitive
procurement program, which promotes energy companies and businesses to bring shared value
by developing renewable generation facilities for the national power grid, and by accelerating the
deployment of renewable energy through policies that contribute to create an enabling
environment for attraction of investments.
 
For example, in 2011, the Government of South Africa launched a competitive procurement
program for renewable energy called the Renewable Energy Independent Power Producer
Procurement Program (REIPPPP). Since the launch of this public-private partnership, US $16
billion in private-sector investment has been committed for 79 awarded projects totalling 5,243
MW of renewable energy. 

The program has resulted in significant reductions in tariff rates for solar photovoltaic (PV) and
wind over a short period. Rural development is also being positively impacted by the deployment
of renewable energy technologies through the REIPPPP. As of 2016, more than 50 of those
projects were already operational and generating more than 2 gigawatts of power for the grid.
That is 2 billion watts — enough to provide energy to more than a million homes.  When all of
the projects that have been approved to date are completed, they can generate more than 6.5
gigawatts of power for the grid, this is tripling South Africa’s current renewable generation
capacity. And the government has committed to doubling that number again by 2025. 

Governments can also finance energy project through Public Private Partnerships like in Uganda,
which had previously one of the lowest electrification rates in the world. Only 2% of its rural
population had access to electricity, and the country suffered from frequent rolling blackouts
requiring expensive emergency generation, costing USD 9 million per month. In 2007, to meet
these shortfalls, the government decided that the least cost option was a USD 860 million
hydroelectric power plant in Bujagali, 8 km down the Nile from Lake Victoria.

However, it needed financiers and large hydropower developers to implement the project. The
government established a public-private partnership called Bujagali Energy Limited, which
would own the plant for a 30-year concessionary period before transferring it to Uganda.
Multilateral lenders including the World Bank, the European Investment Bank, and the African
Development Bank joined in with private financiers, such as South Africa’s ABSA Capital and
Standard Chartered Bank. Commissioning of the dam took place in August 2012. Today the 250
MW hydropower plant meets half of Uganda’s energy needs. The project’s construction created
over 3,000 local jobs. Bujagali was registered in 2012 as a Clean Development Mechanism
project, making it the largest ever registered in a Least Developed Country.

Some Countries also are turning waste into renewable energy, that enable them to engage the
population into the education of clean energy and give them the opportunity to participate in the
energy sector’s progress. In Rwanda more than 80% of the energy comes from solid biomass,
which is either burned as is, or turned into charcoal. Such use of biomass is inefficient. To help
preserve its biomass resources, the Government of Rwanda is promoting biogas as an alternative
fuel for cooking and lighting in households and public institutions.

Bio-slurry, a by-product of biogas production, can be used to replace inorganic fertilisers in


agriculture. In 1998 the Energy, Water and Sanitation Authority began scaling-up biogas
production for cooking and sanitation in schools and prisons. In 2009, it launched an additional
programme for domestic cooking and lighting in places without access to electricity. Initially
supported by the Government of the Netherlands, since 2012 the programme has been fully
transferred to the Government of Rwanda. Every Rwandan with at least two cows is encouraged
to build a biogas plant.

Conclusion

Africa has world-class clean energy potential. To stand out in the renewable energy sector as a
continent and particularly as a country we will need implement good policies that attract
investment, promoting the private sector to offer modern infrastructure, enhancing our education
to overcome technical barriers, and entering into partnership public-private sector to raise
budgeted funds. There is no one-size-fits-all solution for meeting Africa’s complex energy needs.
The options should be tailor-made for each region and country but the continent can no longer
afford development setbacks; there is need for political will at the local level, and technical and
financial support at the global level to choose priorities that address the majority of Africans’
needs.

Acknowledgements:
I thank God, who gave me the strength and courage when preparing this paper.
I am grateful also to the organizing Team of the Symposium for this great opportunity.
My thanks to Arnold Nciko wa Nciko (4th year Student in LLB at Strathmore University and
Editor at Strathmore Law review) for his amazing collaboration and help.
I thank also my Parents for their warm encouragements and love and my friends who supported
me.
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