As African countries pursue an energy transition, it is vital that this process be just and takes into account the impact on jobs and communities, and this requires a number of considerations, including developing proper policy, being cognisant of regional differences while also seeking an integrated approach, and pursuing an ideal energy mix.

This was indicated by speakers during the African Energy Indaba on March 1.

Richards Bay Industrial Development Zone CEO Thabane Zulu emphasised that the energy transition in South Africa could not simply be an exercise of switching from coal to renewable energy, owing to the labour implications this would have.

He said all strategies in pursuing an energy transition must avoid job losses and, rather, should consider various business strategies that could increase jobs for people, especially historically disadvantaged people who may not yet have the necessary skills for the renewable energy market.

Importantly, he said the technology being considered as part of the transition must not create a jobless society.

Zulu emphasised that various policy options must be considered, that communities must be involved and that opportunities must be sought for small to medium-sized enterprises.  

African Development Bank renewable energy and energy efficiency acting director Daniel Schroth emphasised that the energy transition needed to be considered on a country-by-country basis, owing to the differences across the region, with no one-size-fits-all solution.

He said the local endowments of each country needed to be considered as they looked to advance their energy transitions.

City of Cape Town energy executive director Kadri Nassiep said that, on a country level, defined pathways were required from national government. Those then enabled cities to implement solutions.

He said that while this had been started quite well in South Africa, it needs to be scaled up.

Nassiep said the country had to balance providing energy access to a growing population with how responsible it was as a nation from an environmental perspective.

Therefore, he said cities would need to open markets to do this and should shoulder more responsibility that the national government is not able to undertake.

He also said that while it was important for more opportunities to be created for independent power producers, it was also necessary to consider where the benefits of this were localised.

In terms of policy, Schroth said this required a holistic approach, as it was not limited to just an energy transition policy, but included others as well, such as industrial policy. Therefore, he called for an integrated process that took into account all the different aspects of an energy transition, as well as the role different stakeholders must play – a horizontal, multi-stakeholder process.

This was reiterated by Enel Green Power South Africa regulatory affairs head Boitumelo Kiepile, who said that what could be localised was the policy pathways that were in place at a local level.

Kiepile said that while renewables must be pursued, it must be ensured that this was done in a way that made them financially accessible for the people.

Schroth also said there were considerable opportunities in Africa within the energy transition, especially in new trends like energy storage. Here, he highlighted the potential of green hydrogen, with the country being among those that have the highest theoretical potential to viably produce green hydrogen in the world.

Schroth also emphasised the need to consider and pursue what an ideal energy mix would look like, rather than a myopic focus. He highlighted the need for a pragmatic standpoint in this regard, which charted a way forward that was still aligned with the commitments that African countries had made in terms of global climate agreements.

This was reiterated by IAH Investments director Louis van Pletsen, who pointed out that no country in the world could subsist on a single source of generation. He emphasised that there needed to be a transition over time – moving gradually away from coal-based resources and adding in renewable and other energy sources, which had already started happening.

African Development Bank energy financial solutions, policy and regulations director Wale Shonibare, meanwhile, touched on the need for green capital to fund the just energy transition.

He noted that large renewable projects would require considerable financing, with the utilities in the region not strong enough to provide the bankable offtake

He emphasised that as large project are pursued for development, it is important that these be interconnected across the entire continent, rather than a single-buyer model that relies on one weak utility buyer.

Shonibare said Africa was not receiving enough of the climate finance that is available, with only a fraction allocated to the continent, and it needing considerable adaptation finance.

He emphasised that African governments must consolidate investments, and move away from silo approaches. He said they should mobilise both local and institutional investors, to put money into infrastructure that will allow it to anchor more renewable energy projects.