Energy Efficiency, GHG Emissions - November 15, 2022
Africa Clean Energy Investment at an 11-year Low
New capital allocated for wind, solar, geothermal and other renewable power projects in Africa fell to an 11-year low, according to a new report from BloombergNEF. Despite Africa’s outstanding natural resources, rapidly growing electricity demand and improving policy frameworks, only $2.6 billion of capital was deployed for new wind, solar, geothermal or other renewable power-generating projects in 2021.
While investment in renewables globally rose 9% from 2020 to 2021 to reach an all-time high, renewables investment in Africa slipped 35% year-on-year. The continent accounted for just 0.6% of the $434 billion invested in renewables worldwide.
“The global transition from fossil fuels to clean energy has the potential to benefit economies and health across Africa,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and Founder of Bloomberg LP and Bloomberg Philanthropies in a statement. “But as this new report details, clean energy investment in Africa is at an alarming low level. Changing that requires new levels of collaboration to identify viable clean energy projects and bring more private financing and public support to them – so we can turn Africa’s potential as a global clean energy leader into reality.”
BNEF's study found that clean energy investment in Africa is highly concentrated in a handful of markets. South Africa, Egypt, Morocco, and Kenya have accounted for nearly three-quarters of all renewable energy asset investment since 2010 with a total of $46 billion. All others have secured just $16 billion over that time.
Africa lags far behind the rest of the world in achieving the United Nations’ Sustainable Development Goal 7 of having clean, affordable energy for all its citizens. Among all those lacking access to electricity globally, 77% or 564 million reside in sub-Saharan Africa, according to the World Bank.