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Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
This was according to World Energy Council world energy trilemma executive chairperson Joan MacNaughton, who gave the keynote address at the seventh yearly Africa Energy Indaba, in Johannesburg, on Tuesday.
She added that many countries were also struggling to balance the energy trilemma of energy security, energy equity and environmental sustainability.
“If one goal in the trilemma is neglected, energy challenges will occur,” she stated.
Another challenge was that energy demand in Africa had grown by almost 50% since 2000, while only 7% of the continent’s hydropower potential was being used. She added that over 30% of oil and gas discoveries in the last five years had been made in sub-Saharan Africa.
Meanwhile, MacNaughton acknowledged that there were examples of best practices on the continent, including South Africa’s Renewable Energy Independent Power Producer Procurement Programme and the country’s Integrated Resource Plan.
She further cited Ghana’s independent power producer programme and Ethiopia’s hydropower projects as examples of best practices.
Further, she advised policymakers to focus on reducing political and regulatory risks.
“They must have a clear vision for sustainable energy and a master plan with defined energy sustainability goals. Policymakers must also define coherent, long-term and predictable energy policies, underpinned with well-implemented regulation. They must recognise that investors are not going to provide capital without an attractive profit,” she stated.