Energy Transition In Africa Research Articles

Productivity costs of the green energy transition in Africa

AbstractTransitioning to renewable energy generates tangible benefits in terms of the environment and emissions of greenhouse gases. However, the economic productivity costs of switching to clean energy cannot be overlooked, in addition to the large resource requirements, potential disruption in energy systems, risks of job losses, and emergence of new inequalities. Therefore, it is crucial to identify and quantify synergies and trade‐offs. This paper investigates the productivity cost of abandoning the use of fossil fuels in African countries, using econometric techniques applied to panel data, including the fully modified ordinary least square. The paper finds that, while renewable energy supply is beneficial to increase total factor productivity, in general, a shift toward a higher share of renewables in the power mix is not without productivity cost on the economy. The analysis accounts for other sources of productivity, such as human capital and the diffusion of embodied technology imported from abroad into local markets. The data also reveal that the energy transition could have heterogeneous effects depending on the regions' and countries' characteristics and stages of transition.

Africa’s Transition from Fossil Fuels to Renewable Energy Toward the Circular Economy

The term "circular economy" has gained popularity over the past decade, particularly in sustainability, resource management, and productivity. Increasingly, both public and private organizations are exploring its application in daily operations. This article reviews the literature on Africa's energy transition and whether it can be guided by circular economy principles. The study finds that Africa's energy demand will rise significantly due to industrialization and population growth. While Sub-Saharan Africa relies mainly on renewable energy, countries like Algeria, Nigeria, Morocco, South Africa, and Egypt still depend heavily on fossil fuels. Researchers suggest that a circular economy approach could promote renewable energy adoption. However, more research is needed to explore the potential of circular principles in supporting the energy transition.

Application of Article 6-Linked Debt-for-Climate Swap for the Clean Energy Transition in Africa

This study presents an innovative financial model that integrates the debt-for-climate swap mechanism with Article 6 of the Paris Agreement, specifically designed to support Africa’s transition to clean energy. The model connects debt-for-climate swaps with the creation of internationally transferred mitigation outcomes (ITMOs), offering mutual benefits for both debtor and creditor nations. This approach aims to improve the debt sustainability of African countries while strengthening their climate resilience by combining Article 6 of the Paris Agreement with Official Development Assistance (ODA). Additionally, this model aligns with key Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals). Furthermore, the study proposes a restructuring of existing environmental safeguards by incorporating the “Do No Significant Harm” (DNSH) criteria and environmental contribution indicators to ensure alignment with the minimum safeguards mandated by Article 6 and international development standards. Through quantitative analysis, our findings indicate that the proposed debt-for-climate swap model could significantly contribute to Africa’s clean energy transition, address the region’s external debt challenges, and enhance climate resilience.

Digital economy, financial development and energy transition in Africa: Exploring for synergies and nonlinearities

The transition to sustainable energy for all is a crucial aspect of the sustainable development goals, particularly Goal 7, which underscores the need for clean and affordable energy. This requires the development of digital infrastructure and a strong financial system. As a result, this study contributes to knowledge by exploring the synergies and nonlinear effects of the digital economy and financial development on renewable energy, which remains underexplored. To this effect, this study recruits the dynamic panel threshold and the generalised method of moments estimations to evaluate the linear, synergies and nonlinearities among these factors using a panel of forty-seven African countries. The key empirical results are stated as follows: (1) renewable energy is positively impacted by the digital economy; (2) the impact of the digital economy on renewable energy is moderated by financial development. This suggests that to ensure the propelling effect of the digital economy on renewable energy, there is a need for a stable and robust financial system; and (3) the study further found nonlinear effects of the digital economy and financial development on renewable energy, which takes a U-shaped relationship, implying that low level of digitalisation and financial development may hinder the transition to renewable energy, while high levels of these factors are essential to expedite the transition to a more sustainable energy system. Hence, African countries must embrace digitalisation and commit significant financial resources to developing their digital infrastructure to facilitate the achievement of the net zero agenda.

(Re)examining the intersection between energy justice and energy transition in Africa

Today, energy justice and energy transition are converging, particularly in Africa. This intersection is crucial for achieving sustainable development and addressing the challenges of climate change. The context of energy transitions in Africa necessitates a thorough examination of the continent's unique challenges and opportunities. Mainstreaming the justice dimension and adopting comprehensive policy frameworks that balance developmental concerns and market creation are crucial for achieving a clean energy transition and sustainable development in Africa. Despite the increasing research on energy justice, the emphasis has been predominantly on energy transitions in the Global North, leaving Global South contexts, including Africa, underrepresented. However, considering that fast-growing regions in Africa, South Asia, and Southeast Asia are expected to contribute significantly to future energy demand, this article investigates how energy justice principles can be used to guide and shape the energy transition in Africa. The goal is to ensure that the transition is inclusive, sustainable and beneficial for all segments of society. It highlights the need for comprehensive policy frameworks that balance developmental concerns and market creation.

Techno-economic analysis of a grid/fuel cell/PV/electrolyzer system for hydrogen and electricity production in the countries of African and Malagasy council for higher education (CAMES)

The current electricity challenges in Africa have spurred the interest of governments in incorporating renewable energy sources into the energy mix. The use of hybrid solar energy systems has become a practical choice for electrification. The novelty of the paper is threefold: (i) The Grid/Fuel Cell/PV/Electrolyzer hybrid system is modeled, simulated, and optimized in for some communities of the nineteen countries of the African and Malagasy Council for Higher Education (CAMES) for the very first time; (ii) The levelized costs of hydrogen and energy were evaluated and compared; (iii) PV, fuel cell, grid purchases, and grid sales power productions were determined and compared. The study findings showed a levelized cost of energy varying between US$ 0.238/kWh (in Madagascar) and US$ 0.344/kWh (in Gabon). Subsequently, among the West, Central, and East African countries of CAMES, Mali, Chad, and Burundi were the countries with the smallest LCOE respectively. Also, the levelized cost of hydrogen ranged between US$ 1.84/kg (in Madagascar) and US$ 2.17/kg (in Gabon and Equatorial Guinea). The computation of the net present cost indicated a variation between 183,536 US$ (in Madagascar) and 216,115 US$ (in Gabon). The PV, fuel cell, grid purchases, and grid sales power productions were between 34,044 kWh/year (in Gabon) and 53,176 kWh/year (in Mali) for PV productions; between 43,526 kWh/year (in the Democratic Republic of Congo) and 43,784 kWh/year (in Chad) for fuel cell productions; between 29,976 kWh/year (in Senegal) and 30,700 kWh/year (in the Congo Republic) for grid purchases power productions; and between 11,604 kWh/year (in Gabon) and 29,608 kWh/year (in Mali) for grid sales productions respectively. It was concluded that the PV power production was the highest power generated by the hybrid system when compared with fuel cell, grid sales, and grid purchases power productions. Concerning the PV penetration, it varied between 54.2 % (in Gabon) and 84.7 % (in Mali). The present work is aimed at decision-makers so that they become aware of the need to urgently develop the renewable energy sector in the countries for a successful energy transition in Africa.

Renewable energy projects in Africa: A review of climate finance strategies

This paper provides a concise overview of the comprehensive examination undertaken to assess climate finance strategies associated with renewable energy projects in Africa. The continent, endowed with abundant renewable resources, faces the dual challenge of meeting its rising energy demand while addressing climate change concerns. This review delves into the diverse landscape of renewable energy initiatives across Africa, emphasizing the pivotal role of climate finance mechanisms in driving sustainable development. The study explores a myriad of renewable energy projects, encompassing solar, wind, hydro, and geothermal technologies, implemented to mitigate the environmental impact of conventional energy sources. It investigates the financial instruments deployed to support these projects, including international funds, grants, loans, and public-private partnerships. The analysis considers the effectiveness of climate finance in fostering the adoption and scaling-up of renewable energy solutions within the unique socio-economic contexts of African nations. Furthermore, the research investigates challenges and opportunities associated with climate finance strategies in the African renewable energy sector. Common barriers, such as regulatory frameworks, institutional capacity, and market dynamics, are examined, alongside success stories that highlight innovative financing models and project implementations. The study also sheds light on the role of regional collaborations and the involvement of local communities in ensuring the sustainability and resilience of renewable energy projects. In addition, the review critically assesses the alignment of climate finance strategies with international climate goals, including the Paris Agreement. It analyzes the extent to which these strategies contribute to both mitigating greenhouse gas emissions and promoting adaptation measures in the face of climate change impacts. The findings aim to provide policymakers, investors, and stakeholders with valuable insights into refining and enhancing climate finance strategies for a more impactful and inclusive renewable energy transition in Africa. This review synthesizes a comprehensive understanding of the current state of renewable energy projects in Africa, emphasizing the critical role played by climate finance in advancing sustainable development. The insights generated from this analysis contribute to the ongoing discourse on effective climate finance strategies, offering a roadmap for fostering resilient and low-carbon energy systems on the African continent.

(Re)examining the Intersection between Energy Justice and Energy Transition in Africa

(Re)examining the Intersection between Energy Justice and Energy Transition in Africa

Investigating the nexus of energy consumption, economic growth and carbon emissions in selected african countries

The study is focused on Sustainable Development Goals (SDGs) 7, 8, and 13. At the nexus of energy consumption, economic growth, and carbon emissions, we investigated the interactive effect of energy consumption and economic growth on carbon emissions for seventeen selected African countries using static panel estimation techniques using annual data from 2000 to 2017. The result shows that an increase in energy consumption positively affects economic growth and negatively affects carbon emissions. However, the impact of energy consumption on economic growth is greater than its adverse environmental effect. We found that economic growth (due to the energy transition in Africa) reduces or dampens the negative effect of energy usage on the environment (indirectly, mitigating carbon emissions). A notable implication of our finding is that the transition to renewable energy is moderating the adverse effects of increasing energy consumption and economic growth on the environment. So, in applying the energy intensity theory to sub-Saharan Africa, a modification is proposed: carbon emissions are directly proportional to the amount of fossil fuel energy consumed per unit of output. We recommend the prioritization of economic growth and productive use of energy towards effectively reducing the negative impact of energy consumption on the environment. Future studies could consider increasing the number of countries, and, if data is available, an artificial intelligence experiment could be undertaken to check the reliability of previous results. We also suggest that future studies consider investigating the persistence of emissions using energy and growth as key independent and moderating variables.

Oil price shocks and energy transition in Africa

When commodity prices rise in international markets, Africa's economic performance scarcely improves, and when commodity prices fall, its economic performance suffers substantially. This study examines the effect of oil price shocks on Africa's energy transition (ET). Data is obtained for 53 African countries between 2000 and 2020, with the Driscoll and Kraay and Panel VAR regression procedures used. The results reveal that oil price shocks have an adverse influence on Africa's ET, with the findings being strong in both rural and urban contexts. Furthermore, the results expose that the adverse effect is visible only in net crude oil exporting countries, whereas net oil importing countries have no significant effect. Moreover, oil price shocks cannot explain Africa's urban-rural differences in clean energy access. As policy implications, African policymakers should reduce the rural-urban gap in clean energy by investing more in clean energy and technologies in rural areas, which help enhance the resilience of the energy sector to oil price shocks.

Climate Change and Just Energy Transition in Africa

Climate Change and Just Energy Transition in Africa

The Challenges and Opportunities of Energy Transition across Africa

The provision of energy infrastructure is essential for economic growth, social cohesion, and environmental sustainability. This paper served to evaluate the challenges associated with energy development and transition across the African continent and proffer opportunities for sustainable transition. Extensive use of documents, official data and statistics on different aspects of the African society was employed for this study. Exploratory documentary research materials, extant literature, publications, journals and articles on the current status of energy generation and delivery in Africa, the concept of renewable energy pathways, the need for energy transitions and the major strategies in place in Africa and around the world were important study areas for this work. Exploratory research method and systematic review approach were used to study the energy transition techniques, challenges and opportunities across Africa. Important research points were the concept of renewable energy pathways, the need for energy transitions, the major strategies in place in Africa and around the world to meet with the zero-carbon emission strategies of 2050, the future directions in energy provision—renewable energy development, economic diversification and energy-efficiency in Africa and the effects of energy transition on the social, political, economic and cultural spheres across Africa. Results obtained showed that energy transition in Africa is rapidly growing, though differently across the region, following huge investments made into the renewable energy sector, legislations and policies on the fossil fuel usage and carbon emission and introduction of better and more efficient systems. Nevertheless, the challenges reported in this studying plaguing the African energy transition come in five spheres: social, political, economic, technological and cultural. These challenges seem to be ancient, ubiquitous and multidimensional. Harnessing the opportunities in renewable energy will surely boost the economy of the different case study countries. A willing socio-political disposition towards renewable energy sources, increased investment plan for cleaner energy, reduced emphasis on fossil fuels and private-public sector collaboration will surely be giant steps to tapping into the numerous benefits of renewable energy sources. Energy transition in African countries can only be achieved under the auspices of a strong political will, social drive, cultural motivation and technological inclination towards a sustainable transition to cleaner renewable energy sources and less focus on fossil fuels.

A Path Across the Rift: Informing African Energy Transitions by Unearthing Critical Questions and Data Needs

This issue brief reviews an analysis of African energy transitions and pinpoints critical questions we need to answer to foster science-based policymaking to enable decisions informed by clear and objective country-specific analysis. This also helps debunk common myths about the energy transition in Africa and identifies gaps in the current knowledge that warrant further research.

Coordinating an Energy Transition in Africa: Challenges and Opportunities

Coordinating an Energy Transition in Africa: Challenges and Opportunities

A Path Across the Rift: Informing African Energy Transitions by Unearthing Critical Questions and Data Needs

This issue brief reviews an analysis of African energy transitions and pinpoints critical questions we need to answer to foster science-based policymaking to enable decisions informed by clear and objective country-specific analysis. This also helps debunk common myths about the energy transition in Africa and identifies gaps in the current knowledge that warrant further research.

A Path Across the Rift: Informing African Energy Transitions by Unearthing Critical Questions and Data Needs

This issue brief reviews an analysis of African energy transitions and pinpoints critical questions we need to answer to foster science-based policymaking to enable decisions informed by clear and objective country-specific analysis. This also helps debunk common myths about the energy transition in Africa and identifies gaps in the current knowledge that warrant further research.

Do remittances align with energy transition in Africa? An approach with the level of income of countries

AbstractThe main objective of this paper was to highlight the nexus between migrant remittances and energy transition in a panel of 45 African countries from 2000 to 2020. The study utilized several estimation techniques ranging from fixed and random effects to two‐stage least square. The empirical findings suggest that remittances reduce energy transition in African countries. However, the growth of remittances reverses this relationship. There is therefore an U‐shaped relationship between remittances and energy transition in Africa. Furthermore, when disaggregating countries by income level, the results reveal that in low‐income countries, remittances reduce energy transition, but this effect is reversed in low‐ and middle‐income countries. Remittances are therefore a determinant in the choice of households for the process of energy transition. Thus, in order to take advantage of this relationship, African countries need to emphasize policies that can increase the flow of remittances by improving their financial system. In addition, migrant remittances contribute to improving access to modern, reliable, and affordable energy services through income growth of remittance‐receiving households.

Barriers to powering past coal: Implications for a just energy transition in South Africa

The feasibility of South Africa's just energy transition, as dictated by the speed of phasing out coal and scaling up renewables, will rest on a range of techno-economic, socio-political, and socio-technical factors. Interactions between these dimensions of the transition carry significant implications for energy justice. In response, this paper proposes the Just Transition Feasibility Framework (JTFF) to better evaluate how feasibility constraints may impact South Africa's energy transition ambitions, and its more recent commitments to energy justice. Drawing on qualitative findings from interviews with South African energy experts, the study provides critical insights on the national- and community-scale implications of current energy policies. The analysis highlights socio-political constraints related to the Renewable Independent Power Producer Programme (REI4P) which aggravate energy vulnerabilities and misrecognition of places. In addition to strategically tackling a range of techno-economic and socio-technical constraints which are seen to exacerbate distributive injustice, the South African government should extend the 50 km radius scheme of the REI4P to a wider and more inclusive regional basis. Foremost, policy interventions must seek to realign South Africa's Minerals Energy Complex towards a just transition pathway committed to renewable electrification, community empowerment, and sustainable socio-economic structures.

Whose just energy transition? A South African perspective

AbstractSouth Africa's energy transition is underway and the country has adopted a just transition framework for its execution. However, the energy transition in South Africa is confronted by a multitude of socioeconomic challenges. This perspective focuses on urgent issues regarding South Africa's energy transition. The author argues that South Africa's energy transition needs a people‐centered approach; it must place the needs of all citizens at the forefront and leave no‐one behind. The transition must bring to the fore a new economic development pathway that is driven by renewable energy to create new sectors for economic growth, to create decent work, to reduce persisting energy inequalities and to address the ongoing energy crisis. Furthermore, developed economies will be essential in assisting South Africa with a financing deal for its energy transition. It remains to be seen whether the financing deal will indeed be realized. Also, there must be transparency between partners regarding the nature and structure of these deals, and that this finance be channeled to the most vulnerable victims of climate change. South Africa's energy transition model is the first of its kind globally; the world is watching keenly to see whether the country can succeed. Therefore, the challenge remains for South Africa to ensure that the energy transition addresses the country's socioeconomic challenges and prioritizes its people.This article is categorized under: Policy and Economics > Energy Transitions

Energy transition in Africa: The role of human capital, financial development, economic development, and carbon emissions

The current energy structure of most economies must be upgraded to a renewable energy source (RES) to help mitigate ecological dilapidation and achieve sustainable development goals. The transition to RES has recently received attention from energy experts, international bodies and environmental scientists. However, there is contrasting evidence on what factors affect the evolution and deployment of RES, especially from the perspective of emerging African economies. Hence, the current analysis sought to explore the influence of economic development (ECD), carbon emission (CEM), human capital (HUC), financial development (FID), and the country’s risk factors, such as political risk (POR) and institutional quality (INQ) on the development of RES. The research employed a panel dataset from 1990 to 2020 and used the newest estimation approach of Cross-Sectional Augmented autoregressive Distributed Lag (CS-ARDL) to establish the long-run connection among the variables. The study confirmed the prevalence of the “energy-led ECD hypothesis”. In addition, the empirical findings indicated that RES deployment could be facilitated through ECD, CEM, FID and HUC. Moreover, the country’s risk factors, which include POR and INQ, had an inverse connection with the deployment of RES. Lastly, there is a unidirectional causality between CEM, FID, HUC, INQ and RES, while a directional causality exists between ECD, POR and RES. The paper highlights a variety of policy angles to help with the expansion of RES in emerging regions.