Unlocking the continent’s vast energy potential entails a transformative solution – besides the transition to green energy, a just transition requires strengthening transmission networks and scaling distributed renewable energy systems into unserved and underserved regions to connect 600 million people still in the dark.
We are witnessing a long-overdue surge in international interest in Africa’s power sector. This momentum was in full display at the Mission 300 Africa Energy Summit in Tanzania organised by the African Development Bank and the World Bank. But Africa’s ‘Just Energy Transition’ remains just as elusive – Africa accounts for less than 3 percent of global energy-related CO₂ emissions, yet bears a disproportionate impact of climate change, according to the International Energy Agency (IEA).
Given the sense of urgency that comes with bringing affordable power and development to 600 million people still in the dark, the continent should act faster and be bolder to win the race Africa urgently needs to deliver on its development agenda, and significantly increase supply to meet ambitious economic growth targets.
These priorities require bold investments, innovative solutions and strategic partnerships. Achieving these goals without further delay will also involve carefully leveraging all available energy sources – renewables in tandem with responsibly harnessed fossil fuels.
Historically, energy consumption in many African countries has been minimal, largely due to low industrialisation. At the start of the century, 25 percent of inhabitants in sub-Saharan Africa had access to electricity. By 2021, even though access had doubled, there are still 40percent lacking electricity – a sobering statistic given the continent’s vast energy potential across renewables and untapped hydrocarbon reserves.
During the same period, other regions relied heavily on fossil fuels to drive their growth, whereas Africa consumed a fraction of that, demonstrating a huge disparity and the need for a ‘just’ transition.
Transformative solution: Distributed Renewable Energy systems
The IEA estimates that achieving universal access to electricity in sub-Saharan Africa by 2030 will require about $22bn of investment annually. This does not include transmission infrastructure, which will need more than $45bn over the next eight years.
While utility-scale generation projects remain vital, Distributed Renewable Energy (DRE) systems offer an immediate, scalable and cost-effective path to electrification, particularly in underserved and rural areas. These systems, including mini-grids and solar home installations, require around 30 percent less investment than traditional grid extensions and can reduce carbon emissions by up to 50 percent compared to diesel-based solutions.
Nigeria’s rural electrification programme, for example, illustrates the transformative impact of DRE systems in rapidly bridging the energy-access gap. Natural gas power plants, especially where reserves are ample, can help provide stable baseload capacity to complement and accelerate the rollout of renewables.
However, more transmission infrastructure is required to realise the vision of connecting millions of Africans to electricity, as it is important to ensure that power is not only generated but also delivered affordably and reliably, to all. While renewables can be deployed relatively quickly, the necessary transmission infrastructure often takes longer to develop.
Significant underinvestment in transmission on the continent – stemming, mostly, from limited fiscal capacity – compounds the challenge. Africa has around 112,000km of high-voltage transmission lines; by comparison, France alone maintains about 105,000km. This creates obstacles in scaling energy deployment and ensuring connectivity for the people who need it most.
Many regions also remain unserved or underserved due to regulatory hurdles, financing gaps and fragmented energy markets. To tap into Africa’s full potential, innovative investment models, policy reforms and cross-border collaboration must take centre stage. Public-private partnerships (PPPs) offer a crucial mechanism to address these challenges; transmission PPPs show how shared financing models can help governments overcome resource limitations.
From vision to action through strategic investment
Achieving a just and inclusive energy transition requires governments to prioritise energy infrastructure and establish transparent governance frameworks. In parallel, international stakeholders – including development finance institutions and philanthropic organisations – should work with regional and domestic sector participants to mobilise more concessional funding and risk-mitigation instruments to attract private capital.
The private sector plays an equally critical role, not only by providing finance but also by driving innovation. Collaborative approaches among governments, private firms and multilateral organisations can spur breakthroughs in energy technologies such as battery storage, green hydrogen, next-generation wind and wave energy solutions – needed to successfully transition from fossil fuels.
Scaling up risk capital support to project development will be critical to mobilising private sector investment at scale.
Africa’s energy transition is not solely about going green; it’s about powering a future where development and sustainability go hand-in-hand. Strengthening transmission networks and scaling distributed renewable energy systems are the keys to success. With green technologies becoming more accessible and affordable – and with the responsible use of Africa’s oil and gas resources – there is no longer a need to choose between development and sustainability. The continent can, and must, pursue both.
Alain Ebobissé is the CEO of Africa50, a pan African infrastructure investment platform.
Article first appeared in The Africa Report.
Photo by Matthew Henry via Unsplash.
