Unlocking Africa’s green energy future

By Nadja Haakansson, Siemens Energy Managing Director for Africa

Africa stands at a pivotal juncture in shaping its energy future. More than 600 million people in Africa, comprising 43% of its population, lack access to electricity, the majority residing in sub-Saharan Africa. Yet Africa’s exceptional green energy potential means this energy poverty need not persist indefinitely. Tranformation is feasible with a clear focus on the critical prerequisites and an understanding of the issues that still impede progress.

The continent is ideally positioned to produce more than enough clean energy from wind, solar, natural gas, hydrogen, and other sustainable resourcesm to meet its needs and those of its trading partners, such as Europe. However, a few enabling factors must come together to create the green energy future Africa needs.

Africa requires greater investment, public private partnership, mutually beneficial local and international collaboration, reliable end-to-end supply-chain networks and infrastructure, as well as empowerment of local workforces and communities to reach its full green economic potential.

Africa’s green energy leadership potential

Africa can emerge as a prominent global exporter of green energy. By 2030, renewable energy is projected to account for over 80% of new power generation capacity in sub-Saharan Africa. yet while the continent has 60% of the world’s most favourable solar resources, its installed solar photovoltaic capacity is just 1%. Already the most costeffective power source in many parts of Africa, solar is poised to surpass all other energy sources across the continent by 2030.

Africa is favourably positioned to lead the global clean hydrogen economy. it has the potential to generate more than 310,000 terawatt-hours of hydrogen power annually from solar and wind power. this represents more than 100 times the continent’s current electricity consumption. A thriving hydrogen industry, producing up to 60 million tonnes per annum, could create nearly four million jobs across Africa and add up to uS$120 billion in GDP by 2050.

Hydrogen is also a precursor for various chemicals, such as ammonia and methanol, and is used as a fuel in industrial processes such as steel production. Green hydrogen production can, therefore, lead the way in developing several other low-carbon products while supporting greener industrialisation of the continent. Meanwhile, conventional yet modern energy infrastructure, such as natural gas power plants and pipelines, can provide energy stability, thereby supporting the development of renewable-energy industries and economies in Africa until the energy transition is complete.

Investment requirements for Africa’s green energy future

Africa must more than double its energy investment this decade to realise its energy and climate aspirations. this necessitates an annual commitment exceeding uS$190 billion from 2026 to 2030, with two-thirds directed to clean energy ventures.

Lessons gleaned from international initiatives such as the united States’ inflation Reduction Act (iRA) and the European Green Deal, which aim to de-risk and incentivise significant green energy investments, can offer valuable insights. However, bridging the gap between theory and practice hinges on the right regulatory frameworks to facilitate the development of profitable value chains that benefit African societies.

Collaboration with trading partners

Transformative growth for African green economies can be unlocked if there is fair and mutually beneficial collaboration with international suppliers, customers, and funders. Africa does not need new resource colonialism or conflict. This has been the overwhelming consensus at various international meetings between African and European energy partners.

A just energy transition is possible if governments and regulatory bodies work with the private sector, civil society, legislature, and academia, to create enabling environments for mutually beneficial, largescale clean energy projects. The willingness and stewardship of African heads of state to support the diligent allocation and timely execution of infrastructure projects is critical for success.

Transitioning to affordable, reliable and sustainable energy in Africa

To enable the just energy transition in Africa, we must invest in electricity supply whilst minimizing the risk of creating stranded assets. t he right bridging technologies can leverage Africa’s natural resources and pave the way for sustainable growth. Hydrogen-capable gas turbine technology can mitigate the risk of stranded assets during this transition. Our gas turbines are largely hydrogen capable today, and by 2030, we aim to make them run entirely on hydrogen.

To ensure energy security and resilience, governments should support the development of flexible, resilient power grids, and regional power pools. Flexibility is key to integrating more variable renewables, with grid interconnections, and natural gas plants all playing their part. Governments must address bureaucratic red tape, political and economic instability, lack of planning, as well as unfavourable tax and financing regimes. These large, capital-intensive investments in infrastructure must outlive transient governments by ensuring they remain part of a long-term roadmap that cannot be challenged every election.

The importance of stable infrastructure

Expanding and modernising Africa’s electricity infrastructure, including its vital regional power pools, requires a radical improvement in the financial health of public utilities, which economic and management crises have battered.

New green industries need strong, stable, interconnected energy grids, reliable supply chains and logistics networks, safer transport routes, and a stable and reliable transitional electricity supply. Conventional power infrastructure must be adapted for the energy transition.

Countries cannot incorporate more green energy if their grid connections are inadequate. In many parts of Africa, offtakers cannot access new clean power until grids are expanded to connect centres of production and demand. In Nigeria, for example, the national peak demand for electricity is about 20,000 MW. At present, the country has only about 5,000 MW on the grid at any given time due to connection limitations that cause stranded capacity. We are working with the authorities to expand, strengthen and increase grid capacity to ensure access to stable, reliable, and affordable energy for society.

People at the centre

Africa boasts exceptional human resources capable of steering a successful energy transition. To unlock this potential, Africa and its trading partners must create opportunities for skills transfer and knowledge sharing. This is why we have nearly 500 highly skilled employees across eight African countries. Working closely with governments and academia is essential to support schools and universities, develop training facilities, and empower communities.

Despite the challenges, Africa has a very promising energy future. The focus now must be on setting up new industries with widespread and long-lasting benefits for the continent and its customers so that we can create solid green economies across the continent.