Unlocking Africa's Renewable Energy Potential

By Mark Hankins, Mathias Gustavsson and Federico Hinrichs
02 October 2012   |  

With the right stimuli, delivered through a multi-pronged strategy, renewables will take off in sub-Saharan Africa.

Like blind men describing an elephant, African pundits talk about renewables in terms of individual perceptions, needs and inclinations, and often in ways that put the overall issue completely out of perspective.

For example, academics tell us about ample solar, wind, hydro and biomass resources that, properly harnessed, could change the energy picture in Africa. Environmentalists talk about deforestation, unsustainable use of charcoal in cities and the risks associated with biofuel production. Social entrepreneurs speak of replacing kerosene with pico-solar systems. Carbon traders highlight opportunities for wind parks on growing power grids. Community activists want programmes to widen energy access with hydro, solar, wind and co-generation electricity. Climate changers talk mitigation and adaptation strategies and politicians make sweeping statements about new investment programmes.

Though the pundits are each ‘right’ in their particular prescriptions, in the noise of the discussions we end up blind to the ‘big picture’. Yes, given the proper stimuli, renewables can and will take off in Sub-Saharan Africa. Appetite and resources are clearly there.

Unfortunately, renewables are not making fast enough progress in Africa. Electricity sectors still rely primarily on petroleum, coal and large hydro. Rural areas have poor electricity access and remain overly reliant on biomass sourced from dwindling forests. Policies are murky, technical capacity is low and, where there is cash, finance terms are absurd. While power companies in Africa are starved for electricity and struggling to supply growing demand, in most countries renewables are not filling the gap fast enough and renewable energy companies are frustrated.

As is still the case in many developed countries, renewables in Africa must overcome significant financial, political and social barriers. Primary among these are a low level of understanding among all stakeholders, inertia and lack of lack of transparency from governments and lack of investment finance across the board. Despite hundreds of small ‘projects’ by committed groups, overall policy and industry infrastructure remains incomplete in most countries.

When talking of renewables, there are two key story lines: firstly, use of renewables to build power infrastructure and secondly, use of renewables to increase access to modern energy services. Renewable sector growth depends on both of these. In fact, development of renewable energy infrastructure and increased access are intertwined and cannot be seen in isolation. Renewable energy infrastructure usually predicates the use of renewables to increase access and attempted use of renewables to increase rural energy access without investment in renewable energy infrastructure has, in many places, lead to much lower impacts.