If the West was worried about China before, now there’s even greater concern as the Asian superpower is discussing energy ventures with its neighbor Russia.
The two look to partner on natural gas, with eyes also on partnering for other ventures in Africa. Though both will look into oil and gas partnerships, if the past is any indicator, Africa’s renewable energy sector could receive a boost.
China appears to tackle the African continent’s natural resources in a different manner. The country wants to expand its hydrocarbon ventures, but in doing so, other projects like those in the renewable energy sector have been pushed to the forefront. This could be a strategic move by the Chinese in order to acquire favor with African governments and also to lay to rest the fears from the West as to its real motivations.
For instance, Zambia has been looking to increase its mining capacity while generating more electricity to meet local demand. China is not only paying attention to the southern African nation’s mining industry, but is also helping to refurbish its Kariba North Bank hydropower station (Zambia Ups Mining, China Ups Zambia’s RE…Coincidence?). China is eying key sectors including renewable energy and finance with the country injecting $9.3 billion into the continent. The next five years could see substantial growth in Asian investments for the Sub-Saharan energy market, according to an analysis released by Frost & Sullivan.
China recently signed a pact with Seychelles for a project to harness solar and biogas power. Seychelles Minister of Foreign Affairs Jean-Paul Adam said, “We believe that China and Africa have an ideal opportunity to work together to set an example for the world on best practices eco-friendly technology transfer, to enhance the development of renewable energy.” Not surprisingly, the archipelago is also conducting seismic surveys in search for its potential to join other African hydrocarbon exporters.
And Russia is hoping to accrue the same favor with African governments that China seems to have gained, but there’s one problem. Places like Namibia are far more leery to conduct business with the Eastern European country because of previously unkept promises and Cold War days. However, that hasn’t stopped Russia in other countries. In 2009, Russian President Dmitry Medvedev ended his tour of Africa in Angola where he pledged that Russia would finance two Angolan hydroelectric projects totaling 2,000 MW. More recently in October, Tanzania signed a deal with Russian company Borodino for the construction of the Rumakali hydropower plant, estimated to cost around $700 million. Is it once again mere coincidence that each of the countries listed have proven hydrocarbon reserves or uranium that could further nuclear powers?
Russia does not have the capital to compete with its Asian neighbor, but partnering for ventures through Africa is a strategic alliance – and one that is sure to drive Western powers to come up with new strategies in order to compete.
Have you seen 2010’s final edition of Alternative Energy Africa? Get your subscription NOW and don’t forget to ask about our plans for 2011. Email lgraves@AE-Africa.com for special rates prior to Jan. 1, 2011.