The Accelerated Partnership for Renewables in Africa (APRA), an African country-led international alliance of governments and stakeholders, that has convened its first forum in Nairobi, Kenya, set to discuss Africa’s renewable energy priorities and investment needs.
According to the International Renewable Energy Agency (IRENA), which is spearheading APRA’s initiative as a secretariat, the forum that brought together APRA’s member countries and partners would play a key role in holding multi-stakeholder discussions and project matchmaking.
IRENA Director General Mr. Francesco La Camera indicated today, in Nairobi that official data from his agency shows that 473 GW and 87% of newly installed capacity of renewable was added in 2023 globally of which Africa contributes only 1.6%.
Therefore, Mr. Francesco said, the high level and expert discussions would focus in enabling frameworks, innovative financing instruments, and the development of supply chains in APRA countries.
IRENA’s Energy Transition Accelerator Financing (ETAF) Platform is an inclusive, multi-stakeholder climate finance mechanism, aims at advancing the global energy transition in developing economies. Platform, 55% of the projects received are from the sub-Saharan Africa. However, most of the projects face challenges in business development stages, never reaching the stage when financiers can look at them, he added.
Cabinet Secretary of the Kenyan Ministry of Petroleum and Energy J. Opiyo Wandayi, in his opening remark at the occasion highlights the crucial role of Renewables investment in Africa as the continent has received only about 3% of global energy investments. “Despite the fact that our continent is home to 17% of the world’s population, a population that is projected to double in the next 30 years.”
Mr. Francesco pointed out that In 2023 Sub-Saharan Africa energy-transition-related investment was 40 times less than the world average per capita. “This mismatch between investment and need is a clear indicator that we must take bold and deliberate steps to bridge the gap”
He emphasized that climate change and environmental degradation are among the most urgent and formidable global challenges confronting humanity today, and they are progressing at a pace faster than we had anticipated.
“With less than seven years remaining to adjust our course, we are rapidly running out of time to stay within the 1.5-degree pathway and achieve the Sustainable Development Goals. Tripling the deployment of renewable energy is a crucial part of the strategy to reach these global targets.”
As to him, many countries have embraced renewable energy to accelerate their energy transition efforts. Kenya itself stands as a leader, with over 90% of our electricity coming from renewable sources—primarily geothermal, wind, and solar.
The continent should also implement risk mitigation instruments that will attract private investors, including partial risk guarantees, concessional financing, and innovative financial mechanisms such as blended debt and grant instruments.
According to the General Director, the global investment in energy transition technologies, including energy efficiency, reached a record high of USD 1.3 trillion in 2022. However, annual investments need to at least quadruple to remain on track to achieve the 1.5°C Scenario in IRENA’s World Energy Transitions Outlook 2023.
Investments in Renewables are also not flowing at the pace or scale needed to accelerate progress towards universal energy access; investments in off-grid renewable energy solutions in 2021 – at USD 0.5 billion – fell far short of the USD 2.3 billion needed annually in off-grid solar products alone (not including mini-grids).
Despite the investment challenges Africa is facing, the continent has a great potential for energy transition from fossil fuel to renewable ones. Africa is home to abundant renewable energy potential—solar, wind, geothermal, and hydropower—which, if properly harnessed, can fuel significant gains in GDP, employment, and human welfare.
The Nairobi Declaration, adopted by Heads of State at the African Climate Summit, has reimagined Africa’s future as a thriving, resilient continent that embraces Climate-Positive Growth. It has positioned the transition to renewable energy as a catalyst for energy access, security, and green growth.
Founded at the African Climate Summit in September 2023, by Kenya, Ethiopia, Namibia, Rwanda, Sierra Leone and Zimbabwe, with support from Denmark, Germany, the UAE and IRENA, the APRA aims to accelerate energy transitions in respective countries.
African APRA member countries include Kenya, Ethiopia, Ghana, Namibia, Rwanda, Sierra Leone, and Zimbabwe, with Denmark, Germany, the UAE, and the US as partner countries; the Global Energy Alliance for People and Planet and the Rockefeller Brothers Fund as supporting partners; and the IRENA serving as the secretariat.
IRENA’s membership comprises 169 countries and the EU. Together, they decide on the Agency’s strategic direction and programmatic activities, in line with the global energy discourse and priorities to accelerate the deployment of renewables-based energy transitions worldwide.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
BY MEKONNEN TESHOME
THE ETHIOPIAN HERALD WEDNESDAY 16 OCTOBER 2024
