The Gains and Pains of the Energy Transition: A Perspective on Sub-Saharan Africa

One in three Africans do not have access to electricity. In most places where lights are available, the power supply is either unstable or not affordable. The penultimate energy policy of an African government is therefore to address the challenges of access, reliability, and affordability by transitioning to cheaper, low-carbon-emitting, and renewable energy sources. These, in turn, are expected to help reduce poverty and inequality. The African continent, however, does not live in isolation. Africa has contributed to climate change, though marginally, and is being affected by same. This has led to the development of policies and programs to reduce energy-related carbon emissions, among other strategies. While this will contribute to reducing emissions, enhancing the diversity of energy sources, promoting energy security, and creating employment in the clean technology sector, there could be challenges with stranded assets, loss of petroleum revenues, and petroleum jobs. How can countries in Sub-Saharan Africa take advantage of the opportunities offered by the energy transition while minimizing the negative impact on their economies? This paper attempts to offer some recommendations. An analysis of energy policy and related documents relevant to Africa’s energy transition, as well as statistical energy databases were reviewed and applied in this study. Drawing from existing literature, the paper interrogates the gains and pains of the energy transition, and how countries in Sub-Saharan Africa can take advantage of the opportunities offered by the energy transition while minimizing the negative impact on their economies. The study reveals that while funding for renewable energy, energy efficiency, and clean cooking in Africa has been sourced from public, private, and development partners in the past, the dynamics are changing. Africa needs to be part of the value chain, and not a mere consumer of technologies. With reserves in resources required for the energy transition, steps should be taken to start building industries around these resources. A combination of gas-fired thermal plants, hydro, solar, concentrated solar power, and wind can serve Africa’s energy needs. African countries should target renewable energy deployment, for instance, grid solar solution for rural and residential urban areas, natural gas for industry and industrial heating, and hydro as a baseload, in addition to natural gas which has many applications beyond power generation. The review offered an assessment on why Africa needs a unique energy transition path, and how energy sector governance and investment financing of renewables on the continent can foster an effective energy transition.