The IEA has painted Africa in a favorable light when it comes to renewable energy and economic development. According to Fatih Birol head of the IEA at the launch of the World Energy Report 2015, the continent could be the first region in the world to power its economic development on renewable energy rather than fossil fuels.
“I’m very excited about this,” said Birol. “When we look at the history of energy – in Europe, the US, China – economic development was realized by a substantial amount of coal. But in Africa, we may well see, for the first time, a region [realizing] its economic growth using renewable energy.”
Aiding Africa is the fact that the price of renewable technology, such as solar panels, continues to fall. The price of solar panels fell by 75% from 2009 to 2014, which means producing energy from something that the continent has plenty of makes more and more sense to African governments.
Energy demand is growing in Africa, the Middle East and south-east Asia, said Birol, but India is “the engine of the global energy demand” now that China’s energy demand is plateauing.
The World Energy Outlook report, the “bible” of the sector, which comes out annually takes a special look at India. It predicts that industrial growth, with the government’s emphasis on “make in India”, will lead to a rapid growth in energy demand, which means coal and oil consumption will grow in India according to Birol. Despite the surge in fossil fuel usage, Birol said India is also focusing on renewables, with a pledge to have 40% of power sector capacity non-fossil fuels by 2030.
Low oil prices are affecting Africa’s exporting countries; Libya, Algeria, Nigeria, and Angola. However countries in East Africa such as Mozambique and Tanzania are becoming significant natural gas exporters and users. The report predicts that nearly 40% of the total power generation capacity in Africa will be from renewables by 2040.