IEA Foresees Huge Boost to African Renewable Energy Demand

SEATTLE (Oil Monster): The Paris-based International Energy Agency (IEA) has predicted huge boost to growth in renewable energy demand in the African region over the next five years until 2022.

The African renewable energy sector comprising of hydro, wind and solar is likely to witness robust growth with phenomenal jump in cumulative capacities. It must be noted that the a study conducted by University of California, Berkeley, and Lawrence Berkeley National Laboratory team had revealed immense potential for large solar and wind farms to replace conventional power plants.

According to Paolo Frankl, head of the renewable division at IEA, the installed capacity of renewable energy in the region is forecast to double from the present levels of around 35 gigawatts (GW) to in excess of 60 MW in the next five years. Ethiopia will lead the growth in hydro sector. The large number of ongoing hydro power projects including the 6,000 MW project along the Nile River may cater to the rising demand from the region. South Africa, Namibia and Nigeria will make significant advancements in solar energy. The growth in wind energy projects will be mainly driven by South Africa and Ethiopia. The South African administration had recently decided to investigate the delay in new solar and wind projects and take necessary administrative actions to accelerate those projects.

The Africa Renewable Energy Initiative (AREI) led by the African Union’s commission, the New Partnership for Africa’s Development (NEPAD)’s Agency, the African Group of Negotiators, the African Development Bank, the UN Environment Program (UNEP), and the International Renewable Energy Agency (IRENA) expects a total investment of at least $20 billion by 2020 in large-scale renewable energy projects across the African region. This in turn is expected to result in significant reduction in the continent’s green house gas emissions.

Developed countries have already pledged millions of dollars in funding to various renewable energy projects in the region. Most recently, Germany has announced an innovative liquidity facility scheme to provide funding to small and mid-scale renewable energy projects. Through the scheme, the German Federal Ministry of Economic Cooperation and Development will provide financial aids up to 32.9 million EUR as funding for such projects in order to harness the region’s renewable energy potential.