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Africa shares global energy concerns – WEC
 
10th February 2012
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Africa shares many of the concerns that worry global energy leaders, says World Energy Council (WEC) secretary-general Christoph Frei.

This was revealed in the WEC’s latest ‘World Energy Issues Monitor’, a survey of its members’ perceptions of the most significant issues affecting the global energy agenda. These concerns include volatile energy prices and the uncertainty created by events in the Middle East and North Africa.

Another uncertainty is the increased prudence of investors in a gloomy economic out- look when it comes to financing capital-intensive infrastructure projects across the energy sector, especially in renewable energies where small and medium-sized companies prevail.
Frei states that some of the specific concerns at the top of African energy leaders’ minds are related to energy poverty, with a large portion of the continent’s population recording high levels of social poverty and lacking access to modern energy.

“The energy-water nexus is also high on the African agenda with an increasing sense of urgency in implementing power plants’ dry cooling systems to secure enough water to sustain the current population.”

Frei notes that these are some of the many challenges faced by the African energy sector that will be discussed at this year’s Africa Energy Indaba.

The indaba is formally recognised as the WEC’s African regional meeting. It is aimed at facilitating interaction between energy leaders to help build a sustainable energy future for the continent.

“Our organisation represents 3 000 members from government, private and State corpora- tions, academia, nongovernmental organisations and energy-related stakeholders, located in over 90 countries, including 20 African States.

“Our objective is to inform energy strategies at a global, regional and national level, as well as to facilitate dialogue between energy leaders. I am confident that our association with the Africa Energy Indaba, which we consider the prime forum covering the energy issues affecting Africa, will help us improve dialogue and share insights and best practice to build a more sustainable energy future in the region,” he says.

Meanwhile, Frei highlights that renewable energies are expected to play an important role in the rural electrification process but are facing constraints in terms of investment, suitable social and environmental frameworks, political stability and bold economic reforms.

This is also the case for large-scale hydropower projects, which can be a key asset for Africa, that are being held back.

Innovation clusters like smart grids and sustainable cities are of interest; however, to progress towards these cleaner and innovative energy systems, the issues of technology transfer, capacity building and policymaking, governance and corruption need to be dealt with.

“There is no single solution to overcoming the varied nature of African energy challenges. Each African country, in accordance with its resources, infrastructure and social development characteristics, needs to find its own way of balancing the trade-offs between the three dimensions of the ‘Energy Trilemma’ to ensure security of supply, affordability and respect for the environment.

“We believe that energy policies establish the frameworks for markets to deliver and provide the long-term strategic planning and stability needed to secure the vast amounts of capital and investment that are required to develop energy infrastructure and support innovation.

“When access to capital is the main challenge, specifically in such an uncertain economic context, finding the right balance for the ‘Energy Trilemma’ is the best way to attract investors,” says Frei.

He believes in the critical importance played by evidence-based, robust and transparent energy policies to achieve energy sustainability, and in the need for policymakers to share and discuss policy experience and information.

Forums such as the Africa Energy Indaba provide invaluable opportunities for policymakers to exchange, learn from best practice policy and adapt global learning to local arrangements to ensure that sustainable energy solutions for Africa are identified, he states.

Edited by: Chanel de Bruyn

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CHRISTOPH FREI Some of the specific concerns at the top of African energy leaders’ minds are related to energy poverty
 

CHRISTOPH FREI Some of the specific concerns at the top of African energy leaders’ minds are related to energy poverty
 
RENEWABLE-ENERGY SOURCES Renewable energies are expected to play an important role in the rural electrification process
 

RENEWABLE-ENERGY SOURCES Renewable energies are expected to play an important role in the rural electrification process
 
 
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