Across Africa, approximately 600 million people do not have access to reliable power, the PwC Africa Energy Review 2024 has established.
The gathering of experts and sundry energy stakeholders held on 31 October, however, noted that while the continent contributes to the global need for energy, there has been a considerable shift in recent years to address these energy needs.
In PwC’s newly released Africa Energy Review 2024: Driving Energy Access Through Collaboration report, it said “Africa is making slow, steady progress towards energy security, which will only be enhanced through collaboration.”
The review also established that while a lot of focus should be on North Africa because of the investments from Europe; in West Africa, Nigeria, Ghana and Mauritania will continue to play dominant roles in the energy sector of this region.
The gathering also noted that the big thing coming from the energy sector in Nigeria is the Dangote Refinery, and it was observed that the buy-crude-in-Naira and sell-petrol-in-Naira policy would be impactful in the country.
PwC Africa Oil and Gas Leader, Pedro Omontuenhen, who made the observation at the meeting, said fingers would be crossed to wait to see the impact of the policy in the country’s energy sector in the near future.
Andries Rossouw, PwC Africa Energy Utilities and Resources Leader, said: “We anticipate that clean power generated in Africa will increase to 25% by 2025 as growth in solar, wind capacity and hydro generated power continues. While Africa has seen an overall increase in clean energy generating capacity, actual power generated in 2023 increased by less than 1% from the previous year.
“Power generated over the last decade has increased by 12.5%, which is four times less than the increased capacity. This is due to ageing fossil fuel plants—particularly coal-fired power stations—with declining availability factors and weather-dependent non-dispatchable solar PV and wind replacing that supply with lower efficiency factors.”
The gathering also noted that North Africa’s energy landscape is evolving with a strong oil and gas sector alongside a growing emphasis on renewable energy sources that include wind, solar and green hydrogen. “Key players like Egypt, Algeria and Morocco are using their resource wealth to transition towards renewables while maintaining their positions as natural gas exporters.
“In East Africa, countries like Kenya, Ethiopia and Tanzania are making strides in expanding renewable energy and improving rural electrification. With major projects like the Lake Turkana Wind Farm, Kenya has achieved over 75% electricity access and aims for 100% renewable generation by 2030.
“Meanwhile, Southern Africa has positioned itself as a leader in renewable energy development—particularly in solar and wind, with South Africa dominating the region’s investments. Namibia is focusing on renewable buildout to support green hydrogen production, capitalising on its abundant solar and wind resources, with its oil and gas finds likely to make it a new regional energy hub.”
PwC Africa Oil and Gas Leader, “Despite significant advancements across these regions, challenges remain in infrastructure and financing, underscoring the need for continued investment and collaboration to meet growing energy demands and a transition to sustainable energy systems,”
Pedro Omontuemhen also said “Several factors have caused the global energy landscape to shift dramatically in recent years—with the post-pandemic recovery, geopolitical tensions and climate challenges being among them — and these have made Africa’s energy poverty more poignant. However, we are seeing greater commitments to leveraging renewable energy resources more heavily globally and in Africa.”
On key developments across Africa, it noted this: “South Africa: South Africa has made considerable progress toward liberalising its energy sector, with a major update being the signing of the Electricity Regulation Amendment Act in August 2024.
This act introduces sweeping reforms designed to create a competitive electricity market and modernise the sector, aligning with the country’s goals to end load-shedding and secure long-term energy stability.
“Egypt: Progress continues with the construction of the 4.8GW El Dabaa Nuclear Power Plant—the country’s first nuclear plant.
“Uganda: Construction progresses on the 1,443km East African Crude Oil Pipeline (EACOP) transporting crude oil to Tanzania. The entire operation is expected to be completed in 2025, boosting regional energy security and economic growth.
“Senegal/Mauritania: Phase 1 of the Greater Tortue Ahmeyim (GTA) Project, an LNG project, is set to begin operation at the end of 2024, with the project expected to produce 2.5 million tons of gas annually from 15 trillion cubic feet of gas reserves.
In a report, key stakeholders highlight the need for investment in infrastructure and technology to enhance grid efficiency, energy storage and resilience. There is a strong push for greater collaboration across borders, public-private partnerships, and regulatory reforms which we know are crucial for attracting investment and fostering innovation. “This way, large-scale projects like Morocco’s Noor Solar Complex and fostering energy security through competitive markets are possible,” says Julie Rosa, PwC South Africa Energy Utilities and Resources Associate Director.
While a just energy transition is also the direction in which we should all be moving, for Africa, it must learn to maximise its value from fossil fuels while this transition happens. “The recent gas and oil discoveries in Namibia and Mozambique are poised to boost economic growth by creating jobs, enhancing energy security and attracting foreign investment,” says Roelof van Huyssteen, PwC South Africa Energy Law and Strategy Senior Manager. “At the same time, we need to continue with the momentum we have gained on the renewable energy front, capitalising from the continent’s vast natural resources, which will help reduce our reliance on fossil fuels and promote sustainable growth.”
PwC Energy Review 2024 said: “We take a closer look at some of the key developments influencing change across Africa’s energy landscape, assess the progress made towards a just energy transition, look at gas as the bridge to a greener future, and highlight the importance and power of multi-sector collaboration.
“Energy access is undeniably one of the most crucial components of modern-day living. Reliable energy supply ensures that economies are growing by supporting critical industries like mining, manufacturing, agriculture, healthcare and education while improving the lives of billions of people.”
In Africa’s energy snapshot, the PwC noted that “in 2023, clean generation capacity increased by 7.1%, fossil fuel generation by 0.1% and total generation by 1.8%”.
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