IEA: Africa's average annual electricity investment needs will reach $120 billion by 2030

A study published Friday by the International Energy Agency (IEA) said African countries will need to quadruple their investment in the power sector over the next two decades to provide reliable electricity
to all Africans.

If African countries continue their policy trajectories, 530 million Africans will remain without electricity
by 2030, the IEA report said.
Providing reliable electricity to all Africans will require an investment
of about $120 billion a year, the report said.

Laura Cozzi, IEA's chief energy modeler, told reporters ahead of the report: "We're talking about 2.
5%
of GDP going into the power sector.
India has done this
for the past 20 years.
China did
it.
So it's doable
.
”

Harnessing technological advances and optimizing natural resources could help Africa's economy quadruple by 2040 while increasing energy consumption by only 50 percent
, the agency said.

Africa's population is currently growing
at more than twice the global average.
By 2040, it will have more than 2 billion people
.
Its cities are expected to add 580 million people, an unprecedented rate
of urbanization in history.

While this growth will boost economic growth, it will put pressure
on the power sector, which is already unable to meet demand.
Nearly half of Africans (about 600 million people) do not have electricity
.
The IEA found that Africa accounted for nearly 70 percent of the world's electricity deficit last year, a share that has nearly doubled
since 2000.

About 80% of companies in Sub-Saharan Africa suffered frequent power outages in 2018, resulting in financial losses that dampened economic growth
.

Harnessing renewable energy

The IEA proposes to change the way electricity is supplied, with mini-grids and independent systems such as home solar playing a greater role
in complementing traditional grids.

According to Fatih Birol, Executive Director of the International Energy Agency, with the right government policies and energy strategies, Africa has the opportunity to pursue a less carbon-intensive development path
than other regions.

"To achieve this, the enormous potential
offered by solar, wind, hydropower, natural gas and energy efficiency must be harnessed," he said.
”

The report notes that although Africa has the world's largest solar potential, its solar photovoltaic capacity is only 5 GW, less than 1%
of the world's total installed capacity.

To meet demand, African countries should add nearly 15 GW of photovoltaic power generation
per year by 2040.
Wind energy should also expand rapidly, especially in Ethiopia, Kenya, Senegal and South Africa
.
Kenya should develop its geothermal resources
.

Over the past seven years, significant natural gas reserves have also been discovered in Africa
.
Natural gas can provide reliable electricity and drive industry, but the development of the necessary infrastructure must be supported
by strong public policies.

The IEA said that even while expanding energy production to meet the needs of a growing population, Africa is expected to remain a relatively small producer of carbon dioxide that contributes to global warming
.

The study predicts that while Africa currently accounts for about 2% of global carbon emissions, this share will rise to only 3%
by 2040.