The race towards a low-carbon future is well underway, and Africa has a tremendous opportunity to seize the advantages of this global energy shift. It’s time for bold leadership. Robust, proactive government policies will not only pave the way for a more sustainable Africa but can also establish the continent as a trailblazer in the clean energy space.
Our continent has a track record in renewables. High energy costs and infrastructure challenges have driven Kenya to adopt renewables at scale. The Kenya Renewable Energy Association (KEREA) estimates that 300,000 rural households have solar home systems, with 20,000 systems installed each year.
The groundwork was laid as a consumer protection measure in 2012 with the enactment of the Energy (PV solar) Regulations by the Energy Regulatory Commission (ERC). These regulations were introduced to protect consumers from low-quality solar products and unskilled or incompetent technicians in the market, requiring a licence from the ERC to operate as an installer or equipment provider.
Vendors and contractors were also made responsible for any defects in the design and specifications of complete solar PV systems unless customers bought individual system components from different vendors.
According to the East African Community Customs Management Act 2004, specific solar-powered equipment and accessories, such as deep-cycle sealed batteries designed solely to utilise and store solar power, are exempt from import duties.
These conditions have propelled renewables to 87.8 percent of total electricity generation in 2022 according to the International Energy Agency.
Despite the efforts of the Kenya Off-Grid Solar Access Project (KOSAP), a prominent project funded by the World Bank, only 20 percent of the population has access to the electricity and clean cooking solutions it provides. KOSAP, which is led by the Ministry of Energy, aims to bring these solutions to remote, sparsely populated, and historically neglected areas of Kenya.
Deep attention to our continent’s unique challenges can see African leaders seize the opportunity for innovation and deploy solutions to large-scale energy challenges. Thoughtful policymaking and strategic spending can make Africa the test bed and development hub for distributed renewable energy (DRE) projects that could significantly benefit the Global South.
Craft specific plans
Kenya’s example demonstrates the crucial need for African governments to develop nation-specific plans that address urgent priorities and leverage unique resource availability. These plans must include transparent timelines, targets, and accountability mechanisms, not just aspirational goals. Outdated regulatory procedures often hinder renewable energy projects. Proactive streamlining aligned with community needs lays the foundation for implementing value incentives like feed-in tariffs that can drive the sector’s growth and attract investments.
Kenya’s success in enhancing its solar capacity demonstrates the impact of implementing standard power purchase agreements and feed-in tariffs for independent power producers below 50MW. This spurred a comprehensive dialogue on national energy bill reforms, introducing concepts like net metering for private consumers and removing licensing requirements for certain internal use plants below a specified threshold.
South African President Cyril Ramaphosa used this precedent to make a historic regulatory change by amending Schedule 2 of the Electricity Regulation Act in August 2021 to increase the threshold over which a private power project must apply for a generation licence from 1MW to 100MW.
The first two projects to obtain approval from the National Energy Regulator of South Africa (NERSA) were 100MW solar PV projects situated in the North West Province of South Africa. These projects commenced construction in the subsequent year. The SOLA Group, in partnership with Tronox Mineral Sands, will undertake the construction, financing, and operation of these projects.
By streamlining the registration process for these private projects to make them quicker and easier than previous requirements, African states are making it easier for the private sector to assist in delivering meaningful change.
Cultivating domestic expertise
Further investment in programmes that cultivate domestic expertise in renewable energy technologies is crucial. Intellectual property protections that encourage local innovation can play a significant role alongside policies that enforce regulations.
Without incentives for innovation, service providers can begin to resent taxation and open up the market to international domination by external operators who have economies of scale and can easily undercut locals.
African leaders should engage in global partnerships with nations that have developed intellectual property in the renewables space to ensure knowledge transfer and the democratisation of clean technologies through fair trade agreements.
This approach will ensure the continent is not left behind in the global clean energy race and that there is continuity of employment, especially in communities that derive economic value from the fossil fuels industry.
Strategically linking clean energy investments with job creation initiatives can promote economic growth and foster public buy-in for the transition. Nigeria’s energy transition plans estimate up to 340,000 jobs will be created by 2030 and up to 840,000 jobs will be created by 2060 driven mainly by the power, cooking and transport sectors.
From an overall national grid perspective, gas will still underpin much of the initial expansion to underserved areas, and ease the skills transition into renewables. What is crucial in the Nigeria approach is an emphasis on a realistic timeline for the transition to clean energy that includes skills transfer and capacity building using available resources.
Shared vision, locally-led approach to implementation
A shared African vision for a green economy can attract international investments and strengthen the continent’s bargaining power on the global stage. The inaugural Africa Climate Summit showed the power of collective action when calling for financial reforms to aid the continent in the transition. However, this must be balanced by carefully selecting transition paths that work within each nation.
Collaboration on critical infrastructure projects and sharing resources and expertise optimises project efficiency and ensures regional energy security. This is not just about power; it’s about unlocking potential. The transition to clean energy presents Africa with a unique opportunity to drive inclusive economic growth, create decent jobs, increase energy access, and address the stark realities of energy poverty. Africa must lead its own energy story.
With clear-eyed leadership, forward-looking policies, a focus on domestic development, and strategic partnerships, the energy transition can redefine the continent’s future. It’s time for African governments to showcase visionary leadership and unwavering follow-through. By seizing this clean energy moment, Africa can power a bright future for generations to come.
Professor Yemi Osinbajo, Global Adviser for the Global Energy Alliance for People and Planet.
Article first appeared on The Africa Report.
Photo by Achrafpictures via Iwaria.
