Renewable energy for Africa is an important tool to increase economic development, but certain forms of renewable energy are better for different areas within the continent despite the amount of wind, solar, and hydro potential. The European Commission’s Joint Research Center (JRC) published a study that mapped the potential of African renewable energy sources like solar, wind, biomass, and hydropower. In addition, the study factored in the cost efficiency of the particular technology and environmental sustainability.
It comes as no surprise that North Africa garnered the most attention with its wind and solar energy potential, but in order for the region to succeed the technologies need to be cost competitive with cheaper fossil fuels. Yet the region’s grid infrastructure is more advanced than other parts of Africa and suited to deploy large-scale wind (also mentioned for large-scale wind implementation is South Africa). Close to 95% of Egypt’s population has access to electricity as opposed to only 40% of Nigerians combined with only 10% of Sierra Leone residents having access to power.
These sub-Saharan African countries, like Nigeria and Sierra Leone, rely mostly on firewood and charcoal to carry out basic needs representing 80% of total energy use. However, the JRC report found biomass to be a more viable option. And investors are rising to the occasion as Standard Chartered bank recently announced that it would provide Ghana a $5-million loan to support biomass energy projects in the country. The Bank’s managing director, origination, and client coverage Ahmad Pirzada said: “This is a perfect fit with our sustainable finance approach and the opportunities presented by renewable energy.”
Alternative Energy