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How do we ensure and prioritise energy security for economic development
As Africa rises out of poverty, affordable and accessible energy becomes to sustain this development. Equally, Africa needs the developed world to invest in climate change technology and projects which will allow it to develop at an increased pace without placing additional pressures on the green house gas emission levels.
“What the developed world is failing to understand is that Africa’s development means a higher demand for energy,” says Shaun Nel, Program Director of the Energy Intensive User Group (EIUG).The eradication of poverty in Africa will resulting in a higher demand for goods such as washing machines and mobile telephony which will require increasing energy supplies he adds. If the globe demands low emissions and a shift to clean energy based technology, then Africa will require international funding he adds.
Calling on the continent not to leverage their commodity wealth including coal reserves is unrealistic and unfair since Africa, compared to the rest of the developed world, has done little in comparison to contribute to the current climate change predicament.
Africa contributes very little to global climate change, with low carbon dioxide emissions from fossil fuel use and industrial production in both absolute and per capita terms.
South Africa is by far the largest culprit of emissions in the African region, responsible for 39% of the continent’s total. Another 42% comes from Algeria, Egypt, Libya, and Nigeria combined.
Even still according to the Intergovernmental Panel on Climate Change (IPCC), Africa will be first and hardest hit by global climate change. Africa is also among the least equipped to adapt to its adverse effects.
“As a commodities endowed country, industry and mining contribute significantly to the South African economy. For this reason, South Africa must leverage this endowment to foster economic and job growth. South Africa cannot afford to place hurdles in the path of labor absorptive sectors – which in South Africa is the energy intense sectors,” says Nel.
South Africa’s carbon path for example is linked directly to electricity consumption; as such South Africa’s ability to meet emissions reduction targets requires a transformation of Eskom toward low carbon generation. This transformation however is costly and long-term.
“The challenge then is balancing energy security, emissions and the cost of affordable electricity,” says Nel.
If South Africa was no longer able to utilize its coal reserves locally, it would be forced to export the commodity and result in carbon leakage. – another reason why a binding global agreement addressing climate change is important.
While there exists major opportunities for decentralized energy generation in Africa these are often untapped opportunities because of a lack of funding. Furthermore access to low carbon generation options is often stifled due to regional conflict and lack of regional cooperation.
Grand Inga for example is the world’s largest hydropower scheme proposed for the Congo River in the Democratic Republic of Congo (DRC). The massive dam is part of a greater vision to develop a power grid across Africa that will spur the continents industrial economic development. But with an estimated price tag of US$80billion, the project cannot proceed without international funding and support.
While climate change plays on the public consciousness the world cannot forget to keep concerns around climate change in proportion to the full range of global concerns such as poverty alleviation and energy security in the developing world.
Shaun Nel and a host of other high level African energy professionals will engage at the up and coming Africa Energy Indaba. Africa Energy Indaba will be their platform to share their insights on this and many other pertinent topics in this rapidly evolving field within the African context. The Africa Energy Indaba is scheduled to take place from February 21 – 23 at the Sandton Convention Centre in Johannesburg, South Africa.
About the EIUG
Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa. The EIUG is dedicated to the promotion of the interests of high quantity energy users in South African Industry and aims to ensure the continued availability of low cost, high quality electricity supply on a reliable basis for energy intensive industrial players. Visit https://www.eiug.org.za/
About Africa Energy Indaba 2012
Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visit www.energyindaba.co.za
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