JOHANNESBURG, South Africa, December 2, 2021 / APO Group / –
DLA Piper (www.DLAPiper.com/) Africa has published the Africa Energy Futures: Horizon 2030 report. Comprised of 21 country chapters, the report is an in-depth look at the continent’s situation as it pertains to the energy transition, as well as the challenges and opportunities that will arise in the next five to ten years. Each country chapter answers the same set of questions and themes, allowing for comparative analysis.
While significant strides are being made in the decarbonization of African countries, with 12 of the 21 countries in this report already relying on clean energy as a significant part of their energy mix, many jurisdictions still rely heavily on clean energy. fossil fuels. There are also significant differences between countries in the diversity of energy supply and energy systems, which is resulting in inconsistent development across the continent.
Despite these differences, the report identifies a clear theme of African governments increasing renewable energy capacity, both as part of a pro-energy transition agenda and as the most effective way to meet the growing demand for energy, which is expected to double by 2040. In some jurisdictions (Angola, Burundi and Ethiopia) this will take the form of expanded hydropower capacity and in others the focus is on solar and wind infrastructure development (Botswana, Kenya and South Africa) in each case with the aim of reducing dependence on fossil fuels. and biomass sources.
Other trends emerging from the report are:
• Almost all 21 countries surveyed have legislative and / or investment programs for renewables, presenting both an opportunity for African nations to lead the energy transition and a large-scale investment opportunity across continents.
• The use of fossil fuels and biomass is projected to continue to play a large part of the energy mix for nearly all jurisdictions over the next five to ten years. However, the outliers (Algeria, Angola and Nigeria) continue to encourage and secure investment in new oil and gas developments.
• Incentives for the transition to renewable energy are recognized and recognized in African markets. In particular, it is seen as a solution to overcome generation deficits, as well as a way to achieve middle-income country status by 2030.
• The key to achieving the energy transition will be implementation. Countries will need to ensure that they have not only attractive legislative frameworks, but also a real push from governments to incentivize investment in clean energy and “bankable” projects.
James Carter, Director and Partner in DLA Piper’s UK Energy and Natural Resources Practice, said: “Given the context and post-COP26 findings, there is a lot of focus on how the energy transition will help stop climate change. Africa, due to its size and anticipated future growth and development, will play a key role in decarbonizing the global economy through the adoption of renewable energy and other technological advances. Our report highlights how far African countries have come and what can really be achieved in the 2030 horizon. “
To download a copy of the report, use this link (https://bit.ly/31r9Wfd)
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