KEY POINTS



<ul><li>A document outlining the European Commission’s aims for the REPowerEU plan was published on Wednesday.</li><li>It highlighted the importance of energy savings, the diversification of energy imports and speeding up what it called “Europe’s clean energy transition.”</li><li>The EU’s desire to wean itself off Russian hydrocarbons means it will need to find oil and gas from other parts of the world to plug supply gaps.</li></ul>



The European Commission has fleshed out details of a plan to ramp up the EU’s renewable energy capacity and reduce its reliance on Russian fossil fuels, at the same time acknowledging that existing coal facilities may have to be used for “longer than initially expected.”



A document outlining the Commission’s aims for the REPowerEU plan was published on Wednesday, highlighting the importance of energy savings, the diversification of energy imports and speeding up what it called “Europe’s clean energy transition.”



In total, it envisages extra investment of 210 billion euros ($220.87 billion) between 2022 and 2027. When it comes to renewables’ share in the EU’s energy mix, the Commission has proposed that the current target of 40% by 2030 should be increased to 45%.



The Commission’s proposals came on the same day the governments of Denmark, Germany, the Netherlands and Belgium said they would aim for a combined target of at least 65 gigawatts of offshore wind capacity by 2030. By the middle of the century, they are aiming for 150 GW of capacity.



On the fossil fuel front, the situation is a challenging one. Russia was the biggest supplier of both petroleum oils and natural gas to the EU last year,&nbsp;<a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=EU_imports_of_energy_products_-_recent_developments#:~:text=Russia%20was%20the%20largest%20supplier,and%2C%20at%20some%20distance%20Algeria" target="_blank" rel="noreferrer noopener">according to Eurostat</a>.



The EU’s desire to wean itself off Russian hydrocarbons&nbsp;following the latter’s invasion of Ukraine&nbsp;means it will need to find oil and gas from other parts of the world to plug supply gaps.



The Commission said as much as 1.5 to 2 billion euros of investment would be needed to secure oil supply. To import enough liquefied natural gas and pipeline gas from other sources, an estimated 10 billion euros will be needed by 2030.



All the above comes at a time when the EU has said it wants to be carbon neutral by 2050. In the medium term, it wants net greenhouse gas emissions to be cut by at least 55% by 2030, which the EU calls its “Fit for 55” plan.



The Commission said REPowerEU could not work without what it called “a fast implementation of all Fit for 55 proposals and higher targets for renewables and energy efficiency.”



In this new reality, gas consumption in the EU would “reduce at a faster pace, limiting the role of gas as a transitional fuel,” the Commission said.



“However, shifting away from Russian fossil fuels will also require targeted investments for security of supply in gas infrastructure and very limited changes to oil infrastructure alongside large-scale investments in the electricity grid and an EU-wide hydrogen backbone,” it added.



“In parallel, some of the existing coal capacities might also be used longer than initially expected, with a role for nuclear power and domestic gas resources too,” the Commission said.



During a press conference on Wednesday the EU’s climate chief, Frans Timmermans, admitted that using less natural gas in a transitional phase would mean “you might use coal a bit longer — that has a negative impact on your emissions.”



“But if at the same time, as we propose, you rapidly speed up the introduction of renewables — solar, wind, biomethane — you then have the opposite movement,” he said.



Timmermans, who is the European Commission’s executive vice president for the European Green Deal, went on to stress the importance of finding a middle ground.



“If we can actually do what I say — reduce our energy consumption in combination with a speedier introduction of renewables — we will bring down our emissions even quicker than before,” he said.



“And then, of course we will have slightly higher emissions if people stick a bit longer to coal, but we need to strike the balance so that, on balance, we do not increase our emissions — we hopefully even decrease them more.”



Coal has a substantial effect on the environment, with Greenpeace describing it as “the dirtiest, most polluting way of producing energy.”



Elsewhere, the U.S. Energy Information Administration lists a range of emissions from coal combustion, including carbon dioxide, sulfur dioxide, particulates and nitrogen oxides.



The European Commission announcement drew criticism from a number of environmental organizations.



“These plans are supposed to fast-track the clean energy transition — but the European Commission’s latest strategy gives with one hand and takes with the other,” Eilidh Robb, an anti-fossil fuels campaigner at Friends of the Earth Europe, said.



“So-called REPowerEU contains useful and necessary strides towards renewable solutions but it simultaneously enables almost 50 fossil fuel infrastructure projects and expansions,” Robb said.

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Europe admits it’ll have to burn more coal as it tries to wean itself off Russian energy

Africa is a continent that is bearing the brunt of the devastating impact of climate change, yet it has contributed the least to global emissions. The low carbon output reflects Africa’s crippling energy deficit which has stymied industrialisation and economic development.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/CNBC-article-2-_800x600.png" alt="" class="wp-image-417164" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/CNBC-article-2-_800x600.png 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/CNBC-article-2-_800x600-300x225.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/CNBC-article-2-_800x600-120x90.png 120w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/CNBC-article-2-_800x600-768x576.png 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>Enlit Africa</figcaption></figure>



A new report from the Africa Finance Corporation sets out the continent’s stance of balancing the need for emissions reduction with critical development imperatives as Africa starts to look to net-zero.



<a href="https://www.enlit-africa.com/">Enlit Africa (the unifying brand for African Utility Week and POWERGEN Africa) invites you to join the conversation 7-9 June 2022 in Cape Town, South Africa</a><a href="https://www.enlit-africa.com/welcome">.</a> <a href="https://www.enlit-africa.com/the-event/attend">REGISTER TODAY</a>. 



“While renewable sources are the ultimate goal, Africa must also exploit its abundant reserves of natural gas as an essential transitional source of energy to support industrialisation – a position backed by the European Commission’s recent decision to classify natural gas as a form of green energy and a vital transition fuel in the path towards decarbonisation,” says the report.



A role for gas?



This is a position supported by <a href="https://www.enlit-africa.com/welcome">Enlit Africa 2022</a> (formerly African Utility Week and POWERGEN Africa), and one that will receive coverage at the event as delegates explore the topic of gas masterplans and the role of gas across the energy transition. <a href="https://www.enlit-africa.com/the-event/Learn/speakers">Speakers</a> sharing their thoughts on the role of gas include Thabang Audat, Chief Director: Planning, from the South African Department of Mineral Resources and Electricity. He is supported by Craig Morkel, Gas Economy Leadership Group Chairperson for the SA Oil and Gas Alliance, Hasnayn Ebrahim, MD, Africa Infrastructure Advisors and Maggy Shino, Petroleum Commissioner, Namibian Department of Minerals and Energy.



But the development of gas markets is not limited to that of natural gas only – but includes the possibilities to be explored through the development of a hydrogen market – not only as a source of primary energy, but also as a commodity for an export market.



Alternative fuels



This will form the basis of discussions at Enlit Africa around the development of a hydrogen market in Africa, plans to commercialise hydrogen and what the considerations are when it comes to pricing hydrogen.&nbsp; Joining this conversation are Siggi Huegemann, Chairman, African Hydrogen Partnership; Hendrik Louw, CEO, Northern Cape Economic Development, Trade and Investment Promotion Agency, and representative from the Department of Science and Innovation, South Africa



Attendees and exhibitors at Enlit Africa represent the leading suppliers, experts and energy professionals from Africa and around the world, offering an opportunity to network and engage with utilities, municipalities, OEMs, government, regulators, EPC, developers, financiers and the entire energy ecosystem. <a href="https://www.enlit-africa.com/the-event/attend">Register today.</a>



The UN Office for Disaster Risk Reduction estimates that the cost of structural damage caused by natural disasters in Africa will climb to $145bn a year by 2030. The continent thus needs strong and resulting buildings to rebuild ocean and river defences and infrastructure in transport, construction of electricity grids and off-grid energy. This will in turn help develop sustainable mining and the circular economy that could drive growth and job creation.



The focus of the Energy Storage and Alternative Solutions sessions during Enlit Africa will focus on how alternative energy source such as renewable energies, are providing certainty and energy security to mines and other large industrial concerns, not only in the case of loadshedding, but also in response to the effects of climate change. However, the conversation will also focus on opportunities to utilise renewable energy to bring electricity to clinics and communities and how collaboration between mines and the communities surrounding them can be beneficial for all.



Innovation



In order to effect change, Africa-based institutions like the IFC need access to essential climate funds through financial innovation to support resilient building and investment in localised mass-scale manufacturing and processing. The IFC’s Green City Action Plan is one such initiative. Speaking at Enlit Africa,&nbsp; representatives from the IFC will share how, by working with the City of Ekhuruleni, they have developed a Green City Action Plan that sets out actions that can help CoE meet its climate mitigation and sustainability targets. The Green City Action Plan leverages a new IFC platform, APEX, which is supported by the APEX Online Application Tool that helps quantify and prioritise policy and investment solutions across four key sectors: energy, transport, water, and waste.



Innovative finance mechanisms and unpacking the reality of the just energy transition for Africa are topics of discussion at Enlit Africa. <a href="https://www.enlit-africa.com/the-event/attend">Register today</a>. 



Information about the programme, speaker line up, networking, roundtable and site visit opportunities can be found by visiting <a href="https://www.enlit-africa.com/programme">https://www.enlit-africa.com/programme</a>.



Back at the CTICC <a href="https://www.enlit-africa.com/welcome">Enlit Africa 2022</a> will return to the CTICC in Cape Town with a world-class exhibition, showcasing the latest technology and services on offer in the sector. Known for its compelling content and speakers, the organisers will not disappoint, with two keynotes and most of the content presented in speaking hubs on the expo floor. Conference delegates will also be able to enjoy the networking and site visits that the event has popularised for over two decades. Strict health and safety COVID-19 protocols will be observed. Industry support Eskom, the Department of Mineral Resources and Energy and the City of Cape Town have been official hosting partners of the event for many years and 2022 will be no exception. <a href="https://www.esi-africa.com/" target="_blank" rel="noreferrer noopener">ESI Africa</a>, the continent’s leading news provider for power and energy news, is the official host publication.



<a href="https://www.enlit-africa.com/welcome">Enlit Africa (formerly African Utility Week and POWERGEN Africa)</a> is Africa’s leading exhibition and conference, gathering the power and energy industry’s most influential professionals and decision makers from across the continent for three days of relevant, accredited technical and strategic conference seminars, valuable networking opportunities and access to world-class products and solutions.



Enlit Africa is organised by&nbsp;<a href="http://www.wearevuka.com/" target="_blank" rel="noreferrer noopener">The Vuka Group&nbsp;</a>(formerly&nbsp;<a href="http://www.clarioneventsafrica.com/" target="_blank" rel="noreferrer noopener">Clarion Events Africa</a>), a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, ecommerce and CX sectors. Other well-known events by The Vuka Group include&nbsp;<a href="http://www.drcminingweek.com/" target="_blank" rel="noreferrer noopener">DRC Mining Week</a>,&nbsp;<a href="https://www.africaminingforum.com/" target="_blank" rel="noreferrer noopener">Africa Mining Forum</a>,&nbsp;<a href="https://www.nigeriaminingweek.com/" target="_blank" rel="noreferrer noopener">Nigeria Mining Week</a>,&nbsp;<a href="https://generationehq.com/smarter-mobility-africa/" target="_blank" rel="noreferrer noopener">Smarter Mobility Africa</a>,&nbsp;<a href="https://ecommerce-africa.com/" target="_blank" rel="noreferrer noopener">ECOM</a>&nbsp;and&nbsp;<a href="https://cemafricasummit.com/" target="_blank" rel="noreferrer noopener">CEM Africa</a>.



<a href="https://www.enlit-africa.com/">Enlit Africa (the unifying brand for African Utility Week and POWERGEN Africa) invites you to join the conversation 7-9 June 2022 in Cape Town, South Africa</a><a href="https://www.enlit-africa.com/welcome">.</a> <a href="https://www.enlit-africa.com/the-event/attend">Register today</a>.

CNBC-article-2-_800x600

The role of gas in Africa’s energy sector is just one of the strategic angles being pursued at Enlit Africa

<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="1200" height="628" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1.png" alt="" class="wp-image-416689" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1.png 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1-300x157.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1-820x429.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1-160x84.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/CNBC-article-option-1-768x402.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



COP26 was a ‘mixed bag’ for developing countries, unlocking some much-needed funding mechanisms, even as it under-delivered in other areas. The issue of funding is one that has been high on the international agenda for many years, along with the shortfall between pledges made to aid with climate adaption and mitigation and what was actually realised.



Coming away from COP26, the shift in the discussion around financing was highlighted by an agreement between the United State,&nbsp;France, Germany, the United Kingdom, the European Union (EU) and South Africa to decarbonise South Africa’s energy sector and finance mitigation measures to protect against job losses in the sector.



A just energy transition



As the largest emitter of carbon in Africa, South Africa’s Just Energy Transition Partnership (JETP) deal will demonstrate that a shift from a heavily coal-dependant country to a decarbonised one is not only possible, but that it can be done without sacrificing economic growth.



The keynote sessions of&nbsp;<a href="https://www.enlit-africa.com/welcome">Enlit Africa [formerly African Utility Week and POWERGEN Africa]&nbsp;[7-9 June 2022]</a>, will focus on understanding the finance options, the priorities and the roadmap of the&nbsp;JETP. But more importantly,&nbsp;the discussions expand the conversation across the continent, asking how finance of that magnitude can be mobilised to support Africa’s energy transition.



<h2 class="wp-block-heading"><a href="https://bit.ly/3MwqMM9">REGISTER HERE TO ATTEND AS A DELEGATE</a></h2>



It&#8217;s all about collaboration



The theme for this year’s event – Collaboration to fast forward Africa’s energy transition – recognises that collaborative efforts will&nbsp;drive the energy transition. Collaboration between public sector and private sector; between utilities, regulators and government; across generation to distribution, from manufacturer to financier to end user &#8211; all have a role to play in ensuring the energy system of tomorrow is sustainable, affordable and achievable.



More broadly, the realities of Africa in transition need to be considered and carefully planned to avoid a multitude of challenges. These include not adding to the debt burden of African countries in order to meet climate ambitions; and recognition that as the continent that contributes the least to global emissions, Africa is in a unique position to ask for meaningful financial and technical contributions from the international community.



Attendees and exhibitors at Enlit Africa represent the leading suppliers, experts and energy professionals from Africa and around the world, offering an opportunity to network and engage with utilities, municipalities, OEMs, government, regulators, EPC, developers, financiers and the entire energy ecosystem.



A deep dive into topics of importance



Conference sessions focused on alternative funding mechanisms and public private partnerships will address some of the questions around financing, while roundtable discussions will provide an opportunity for attendees to dig deeper into the plethora of climate funds and opportunities for impact investment and discuss the ever important question of risk allocation and mitigation.



Generation from both traditional and renewable energy will include&nbsp;discussions on efforts being made to convert existing power generation plant,&nbsp;electrification projects and alternative generation options such as offshore wind and hybrid systems. The attendees will also discuss how disruptive renewable energy systems are providing an element of security for industrial and commercial concerns around the continent as a means of addressing power outages and unreliable supply.



Commercial and industrial delegates will get to explore the role of energy storage,&nbsp;wheeling tariffs at municipalities and self-generation. All of these discussions will provide tangible, actionable steps for those entities interested in generating their own electricity and explain how energy storage will underpin the shift to more renewable energy integration for municipalities, utilities and private generators.



Information about the programme, speaker line up, networking, roundtable and site visit opportunities can be found by visiting <a href="https://www.enlit-africa.com/the-event/Learn/programme">https://www.enlit-africa.com/the-event/Learn/programme</a>



Disruptive technologies



An entire section of the programme will be dedicated to the role of storage in the power sector, including how to&nbsp;integrate battery energy storage systems [BESS] at a municipal level,&nbsp;storage, renewable energy and society; and the role that new generation and storage is playing in Africa’s mining sector.



Appreciating the technical, financial and logistical opportunities and areas of caution will provide utilities, governments and all power sector players the ability to plan an energy transition that addresses the objectives of SDG7 and meets Nationally Determined Contributions announced during COP26. Additionally, it will also open up avenues for new business models. Specifically, the conference will focus on the development of the hydrogen economy, understanding the development of national hydrogen strategies and the economic structures and pricing that will support it.



<h2 class="wp-block-heading" id="h-register-here-for-free-exhibition-pass"><a href="https://bit.ly/3LlkZsH">REGISTER HERE FOR FREE EXHIBITION PASS</a></h2>



Back at the CTICC <a href="https://www.enlit-africa.com/welcome">Enlit Africa</a> will return to the CTICC in Cape Town with a world-class exhibition, showcasing the latest technology and services on offer in the sector. Known for its compelling content and speakers, the organisers will not disappoint, with two keynotes and most of the content presented in speaking hubs on the expo floor. Conference delegates will also be able to enjoy the networking and site visits that the event has popularised for over two decades. Strict health and safety COVID-19 protocols will be observed.



 Industry support Eskom, the Department of Mineral Resources and Energy and the City of Cape Town have been official hosting partners of the event for many years and 2022 will be no exception. <a href="https://www.esi-africa.com/" target="_blank" rel="noreferrer noopener">ESI Africa</a>, the continent’s leading news provider for power and energy news, is the official host publication.



<a href="https://www.enlit-africa.com/welcome">Enlit Africa (formerly African Utility Week and POWERGEN Africa)</a> is Africa’s leading exhibition and conference, gathering the power and energy industry’s most influential professionals and decision makers from across the continent for three days of relevant, accredited technical and strategic conference seminars, valuable networking opportunities and access to world-class products and solutions.



<a href="https://www.enlit-africa.com/welcome">Enlit Africa</a> is organised by&nbsp;<a href="http://www.wearevuka.com/" target="_blank" rel="noreferrer noopener">The Vuka Group&nbsp;</a>(formerly&nbsp;<a href="http://www.clarioneventsafrica.com/" target="_blank" rel="noreferrer noopener">Clarion Events Africa</a>), a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, ecommerce and CX sectors. Other well-known events by The Vuka Group include&nbsp;<a href="http://www.drcminingweek.com/" target="_blank" rel="noreferrer noopener">DRC Mining Week</a>,&nbsp;<a href="https://www.africaminingforum.com/" target="_blank" rel="noreferrer noopener">Africa Mining Forum</a>,&nbsp;<a href="https://www.nigeriaminingweek.com/" target="_blank" rel="noreferrer noopener">Nigeria Mining Week</a>,&nbsp;<a href="https://generationehq.com/smarter-mobility-africa/" target="_blank" rel="noreferrer noopener">Smarter Mobility Africa</a>,&nbsp;<a href="https://ecommerce-africa.com/" target="_blank" rel="noreferrer noopener">ECOM</a>&nbsp;and&nbsp;<a href="https://cemafricasummit.com/" target="_blank" rel="noreferrer noopener">CEM Africa</a>.



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ENLIT AFRICA TO ADDRESS AFRICAN POWER SECTOR CONCERNS AROUND ENERGY TRANSITION

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We all know how government’s Health department has arguably been the busiest during the pandemic, but another department that’s also been in trouble is Mineral resources and energy. Among other things, they’ve had to make sure that enough power is generated for Eskom to keep our lights on. Mineral Resources &amp; Energy Minister, Gwede Mantashe joins CNBC Africa to unpack South Africa’s energy plan.

Minister Gwede Mantashe on latest developments in South Africa’s energy sector

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.
The African Development Bank Group (www.AfDB.org) and the Government of Tanzania have signed loan agreements totalling $140 million to finance the construction of the 50-megawatt Malagarasi hydropower plant in Western Tanzania.

The agreements cover a $120 million sovereign loan from the Bank and $20 million from the Africa Growing Together Fund (AGTF), administered by the Bank. Emmanuel M. Tutuba, Permanent Secretary at the Tanzania Ministry of Finance and Planning, and Nnenna Nwabufo, Director General of the Bank Group’s East Africa Regional Development and Business Delivery Office, signed the agreements.
The funds will be used to construct the plant and an evacuation transmission line, as well as to add 4,250 rural electrification connections, providing reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma Region.
Tutuba said, “I would like to re-affirm the government’s commitment to working closely with the Bank in efforts to realize our national and international development aspirations. The government will take all necessary measures to ensure successful implementation of this project as planned.”
He lauded Tanzania’s cordial relationship with the African Development Bank that goes all the way back to 1964. He noted that the country was a proud founding shareholder who regard the Bank as a “development partner of choice.”
The project is one of Tanzania’s priorities under its Second Five-Year Development Plan and will also advance the objectives of the country’s Vision 2025. It also aligns with two of the Bank’s High Five strategic priorities, namely, Light up and Power Africa and Improve the quality of life for the people of Africa.
Nwabufo said, “The signing of the loan agreements is another testimony of our joint commitment to working together to support Tanzania’s development aspirations. Malagarasi Hydropower is one of the flagship projects in Tanzania’s Second Five-Year Plan. We appreciate the trust the Government has put in the African Development Bank and we are committed to remaining a privileged and trusted partner of choice.”
The project is one of six transformative infrastructure projects, with a total value of $1.12 billion, that the African Development Bank has approved in Tanzania over the last three years.
The Bank Group’s total ongoing commitment in Tanzania, about $2.33 billion in value, covers the key sectors of transport, energy, water supply and sanitation, agriculture, governance and finance.
The Africa Growing Together Fund is a facility sponsored by the People’s Bank of China and administered by the African Development Bank.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact: Olufemi Terry Communication and External Relations Department African Development Bank email: o.terry@afdb.org
About the African Development Bank Group: The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states.

Tanzania: African Development Bank Group signs loan agreements for $140 million to increase power generation

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.
The Sustainable Energy Fund for Africa (SEFA) has extended a $1 million grant to help accelerate African countries’ transition to flexible green grids and other clean power solutions ahead of the 2021 United Nations Climate Change Conference, COP26, scheduled to be held later this year.

The technical assistance grant, sourced through a SEFA Rapid Response Facility, will enable up to five African countries participating in a COP26 Energy Transition Council process to assess potential gaps in policy, regulatory and institutional frameworks; develop approaches to increase the contribution of grid-connected renewable energy generation; as well as identify financing mechanisms.

Dr. Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the African Development Bank said: “The SEFA RRF will buttress the groundwork for accelerating the deployment of renewable energy in selected African countries, thereby complementing the Bank’s efforts towards a just energy transition for the continent.”

The SEFA Rapid Response Facility, part of COP26 Energy Transition Council efforts, is designed to be flexible and responsive to the energy-transition requirements of participating Governments.

Dr. Daniel Schroth, Acting Director, Renewable Energy and Energy Efficiency Department at the Bank added that “the SEFA RRF also serves to prepare the ground for subsequent investments in renewable energy projects by the Bank and SEFA, under its Green Baseload component.”

The United Kingdom established the COP26 Energy Transition Council in September 2020 to drive the shift to clean energy ahead of COP26. Members include multilateral development banks, international financial institutions, technical cooperation organizations and donor Governments.

A Special Fund managed by the African Development Bank, SEFA (https://bit.ly/3bTLh5m) provides catalytic finance for renewable energy. The overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa and United Nations Sustainable Development Goal 7.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact: Olufemi Terry Communication and External Relations Department African Development Bank Email: O.Terry@afdb.org
Technical Contact: THOBELA, Moeketsi Chief Investment Renewable Energy Investment Specialist SEFA/PERN, African Development Bank Email: m.thobela@afdb.org

Sustainable Energy Fund for Africa extends grant to speed countries’ energy transition ahead of COP26

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.

Hosted by, and produced in partnership with NVentures, this edition features five offshore asset presentations from leading independents: Africa Energy Corp, VAALCO Energy, Impact Oil &#038; Gas, Heritage Oil and Eco Atlantic. All five centre around prospective opportunities offshore Africa, from Equatorial Guinea to Southern Africa; a region which has recently been in the industry spotlight for its high-profile discoveries and deepwater plays – signalling the possibility of further groundbreaking reserves.

Each presentation gives an in-depth look into the asset or portfolio opportunity, including: license details, exploration history, available data, farm-in process and timelines.

The presentations include:

 	Garrett Soden, President, CEO &#038; Director of Africa Energy Corp presents their portfolio of world-class assets offshore Southern Africa 	David DesAutels, EVP Corporate Development at VAALCO Energy presents high-value opportunities across Block P, offshore Equatorial Guinea 	Philip Birch, Exploration Director at Impact Oil &#038; Gas presents their targeted billion-barrel portfolio 	David McGurk, Exploration Director at Heritage Oil, presents their drill-ready, low-risk exploration opportunity lying at the heart of a world-class petroleum system 	Selma Usiku, Senior Geologist at Eco Atlantic Oil &#038; Gas; presents highly prospective opportunities in the Walvis Basin, offshore Namibia. 
For 2021, AOW looks forward to hosting a full day’s programme of the Africa Independents Forum, as we welcome 20+ Independents to the Main Stage to present world-class farm-ins and the hottest asset opportunities from across the continent.

Partners of AOW’s Africa Independents Forum include: NVentures and Farmout Finance Forum.

To access the digital edition of the Africa Independents Forum, click here (https://bit.ly/3fIaLEb).
Distributed by APO Group on behalf of Africa Oil Week.
For more information, please contact: Shelby O’Brien Africa Oil Week Email: Shelby.OBrien@hyve.group
About Africa Oil Week: Africa Oil Week (www.Africa-OilWeek.com) is the voice of E&#038;P and aims to power the sustainable future of the Africa upstream. Now entering its 27th year of the show, the event brings together governments, national and international oil companies, independents, investors, the G&#038;G community and service providers.
Media files

To celebrate Africa Day, Africa Oil Week launches an exclusive digital, pre-event edition of the Africa Independents Forum, showcasing prospective offshore opportunities across Africa

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.

By Charity Migwi and Nicole Rodel

The world has no business investing in new fossil fuel developments in our race to the 1.5°C pathway. The International Energy Agency’s (IEA) newly released Net Zero by 2050 roadmap (https://bit.ly/3vmJj5j) has closed the door on new fossil fuel extraction, and fossil fuel giants have lost their claim to fame of new oil and gas reserves being aligned with the Paris Agreement. It’s a small victory for climate, and the big polluters, governments, and public finance institutions will have a tough time giving grounds for dirty developments &#8211; but there is seemingly no slowing down Total SE, Standard Bank and AfDB from riding their gravy train through Africa at full steam ahead.

Since 2012, Total SE has been the largest fossil fuel spender in Sub-Saharan Africa (https://bit.ly/3ujpZ7N). The French energy giant expanded its dominance in the region when it signed the Shareholding Agreement (SHA) and the Tariff and Transportation Agreement (TTA) alongside the governments of Uganda and Tanzania, with Tanzania recently signing the Host Government Agreement (HGA) (https://bit.ly/3uhmr5N). This deal has paved the way for oil exploration in the Albertine Graben and the construction of the longest heated pipeline in the world, the East African Crude Oil Pipeline (EACOP). The signing of this long awaited deal has spelled doom for communities affected by the project as compensation delays and mixed messages have only triggered anguish (https://bit.ly/3uekZkV) and controversy among the Project Affected Persons (PAPs). Not only will tens of thousands of people be displaced but locals risk losing their land in exchange for peanuts as the valuation report used by the government relies on old property rates (https://bit.ly/3oUBSQr). In consequence, Total will continue enriching itself at the expense of already vulnerable East Africans.

EACOP is not the only African charm for the French energy giant. Its mega Liquified Natural Gas (LNG) project in Mozambique is targeted for completion in 2024 &#8211; and the added conflict has displaced hundreds of thousands of people (https://bit.ly/3oM0GtK) from their homes, farmlands and fishing areas, leaving them without livelihoods and reliant on food aid. Total’s operation in Mozambique has ignited flames for the province of Cabo Delgado as the gas industry is fuelling social tensions. The already vulnerable locals are feeling frustrated being caught up in the manifestation of the paradox of plenty. Their resource rich province is being plundered by political and global economic elites as they suffer violence, human rights abuses and massive displacements, amid escalating insurgencies and security threats conveniently labelled as terrorism. In response, Total declared force majeure on its $20 billion LNG project (https://reut.rs/3yEAc27), thereby absolving itself of its commitments and contractual obligations, while still holding the major benefits of being the project concessionaire even at a time when survival is at stake.

The effect of Total’s presence ranges from human rights violations, violent conflict, environmental destruction, displacement, and death; all while fueling the climate crisis. Environmental racism has put black, indigenous, and people of colour communities in the path of polluters and the climate crisis &#8211; one of the biggest global threats to ensuring human rights and dignity for all.

At the forefront of championing these crises is Standard Bank, as they continue to play an advisory role in organizing funding for the $3.5billion EACOP project as well as finance the Mozambique LNG to a tune of $485 million (https://bit.ly/3oPJt2x), thereby fuelling a climate catastrophe. In the meantime, Standard Bank prides itself in being a leading oil and gas sector banking team on the continent (https://bit.ly/3oPJt2x). With its tremendous assets totalling over $162 billion regionally, Standard Bank has the potential of influencing positive transformation across the African continent through clean renewable energy that will not only meet the continent’s energy needs but also create thousands of jobs. Instead, the bank opts for life long torture of already vulnerable communities by investing in fossil fuels.

While governments and fossil fuel companies champion these projects under the guise of economic revival and job creation, growing environmental, social, and governance concerns &#8211; and stranded assets &#8211; are beginning to make their way into the boardrooms of the public finance institutions footing the bill, in large part due to pressure from civil society and grassroots movements. The African Development Bank Group (AfDB) &#8211; who poured $400 million (https://bit.ly/3fNfAMr) into Total’s Mozambique LNG project, but strongly refuted claims (https://bit.ly/2QT8TQy) of its involvement in financing EACOP &#8211; recently released its draft Climate Change and Green Growth Strategic Framework for public comment, which finally put in writing that the Bank will “cease all investment in coal or coal-related technologies, ensuring that it will not perpetuate or provide longevity to coal”. The strategic framework tiptoes around the subject of natural gas, with the seemingly cuddlier cousin to coal and oil set to play a limited and transitional role in Africa’s energy access development goals, but no mention of oil is made whatsoever. However, a golden thread weaved throughout the draft policy is the AfDB’s commitment to Paris Alignment &#8211; and with the IEA’s new stance against oil and gas for a 1.5°C warmer world, it may be back to the drawing board for the AfDB to uphold their goal of operationalising the Paris Agreement.

The climate crisis is already here and hurting the most vulnerable people. In 2020, the warmest year (https://bit.ly/3fjafxd) on record, extreme climate disasters displaced more people globally than war (https://bit.ly/2RBFkDz). It is time for governments, public finance institutions, and fossil fuel giants to take heed of what we, the people (https://bit.ly/3bSbX6u), have been calling for (https://bit.ly/3bSbX6u), and reimagine our development pathway for a sustainable and equitable future. The people and the planet do not need to be weighed against profit and economic development. This is a climate emergency, and we need to use all of our energy and might to fight for the Africa we want &#8211; one that prioritises its abundance of wind and solar potential to fuel its prosperity and puts its people, heritage, and environment at the centre of our development.
 Distributed by APO Group on behalf of 350.org.
About the Authors: Charity Migwi is the Africa Regional Campaigner at 350.org Nicole Rodel is the Junior Manager, Communications and Campaigns, at African Climate Reality Project
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Polluters are slowing down Africa’s progress (By Charity Migwi and Nicole Rodel)

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.

Energy Capital &#038; Power (www.EnergyCapitalPower.com) – Africa’s leading energy event organizer – has reaffirmed its commitment to hosting events in Africa, as some organizers relocate overseas; Africa Energy &#038; Mining 2022 Conference &#038; Exhibition will be held in Cape Town on March 29-31, with an in-person and online Africa Energy &#038; Mining seminar to be held in Cape Town in November 2021 to set the agenda; The Africa Energy &#038; Mining series will explore emerging synergies between mining and energy in a post-COVID-19 environment, with a view to facilitating a continent-wide energy transition.

nergy Capital &#038; Power (ECP) is doubling down on its commitment to an Africa-focused 2021/2022 events calendar – citing the role of local capacity-building and investor engagement in enabling an African energy transition – ahead of its Africa Energy &#038; Mining (AEM) Conference &#038; Exhibition in Cape Town next March and an AEM online and in-person seminar and networking event in Cape Town in November.
As the energy sector faces systemic change, the success of the African continent in navigating a clean energy transition rests on its ability to mobilize domestic resources, establish local and regional value chains and chart its own path. This has led the event organizer to renew its pledge to building networking and deal-making opportunities on the ground, as well as restructure its flagship pan-African energy conference earlier this year into a more integrated and inclusive program. 
Under the theme, “Investing in the World’s Future Energy Value Chain,” AEM 2022 will unite the entire mining and energy value chain, exploring the role that renewables play in advancing Africa’s mining sector, as well as the value of mining in facilitating a continent-wide energy transition. While the events in November and March represent a continuation of ECP’s Cape Town conference series, AEM has expanded the scope to include investment opportunities across oil and gas, mining, power and renewables, along with emerging industry segments such as energy storage and hydrogen.
“Our unwavering commitment to the continent means that a pan-African energy event must take place in Africa,” says Kelly-Ann Mealia, Chairperson of ECP. “We support South Africa’s economic recovery and believe in positioning African innovation and resources at the heart of the energy transition. There is no better place to do this than Cape Town. We are continuing to invest in Africa’s future through our events, which unite leading industry players and decision-makers from across the continent. Unlike other event organizers, we are committed to working with the African public and private sectors to drive progress from within our key markets.”
“In recent weeks, we have seen promising signs from our government signaling expedited vaccine rollouts, streamlined safety protocols and a forthcoming return to professional events,” says Liam Beattie, Managing Director of HOTT3D, ECP’s exhibition partner. “With the support of the private sector and event industry associations such as the South African Events Council (SACIA), South Africa can declare itself reopen for business and compete with global venues in organizing professional, international events safely. In driving a post-COVID-19 recovery, now is the time to double down on – not withdraw from – the continent and enable the growth and survival of its events industry.”
The AEM event in November will gather southern African and pan-African delegates to set key agenda points, including but not limited to, energy storage, battery metals, and the future of African mining; the role of natural gas in Africa’s economies and new petroleum exploration; Africa as a global LNG leader; the future of African power grids and utilities; funding for gas-to-power projects; independent power producers, privatized power and Africa-wide electrification; the hydrogen revolution; and electric vehicles.
 Distributed by APO Group on behalf of Energy Capital &#038; Power.
To learn more about the Africa Energy &#038; Mining series and the post-COVID-19 energy and mining landscape in Africa, please visit www.EnergyCapitalPower.com. For sponsorship or exhibition opportunities, please contact sales@energycapitalpower.com.
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Energy Capital & Power stands by African Energy Events ahead of Africa Energy & Mining Conference

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.

By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org)

On May 18, 2021, the International Energy Agency (IEA) released “Net Zero by 2050: A Roadmap for the Global Energy Sector,” which outlines plans for the global energy sector to reach “net zero” greenhouse gas emissions by 2050.
Achieving net zero emissions means the amount of greenhouse gases being emitted into the atmosphere would equal the amount being removed. Achieving this balance, the IEA maintains, would require more than aggressive carbon-capture measures: It would call for a swift and immediate shift from petroleum energy sources to energy provided through naturally replenished sources like wind, water, and solar power.
From an environmental standpoint, this is a great concept.
But we live in reality. And today, in real-world Africa, this goal is not feasible. Nor is it advisable. While I agree with their data on many topics, the IEA’s conclusion is flat-out wrong on this issue. Africa needs oil and gas.
Unreasonable Objectives
Some of the critical steps in IEA’s roadmap include:
 	No new investment in new fossil fuel supply (including oil and gas) after 2021 	No new sales of fossil fuel boilers after 2025 	No new internal combustion engine (ICE) car sales after 2035 globally 	60% of car sales are electric by 2030, and 50% of heavy truck sales are electric from 2035 
These steps assume a lot about the state of the world — assumptions that are faulty, especially for Africa. For one, it will require universal energy access by 2030, meaning that everyone has access to electricity and clean cooking. And with approximately 592 million Africans currently without this access, we’re going to be hard-pressed to flip that switch in less than 10 years.
The IEA’s roadmap to net zero also relies on unprecedented investments in renewables — a substantial boost in clean energy investments from the $1 trillion made over the last five years all the way up to $5 trillion annually by 2030 — and cooperation from policymakers who are unified in their efforts. In this idyllic partnership, our Western counterparts talk a good game. But the fact is, to date, these same Western countries have invested little to no funding into Africa&#39;s renewables space. To our dismay even the International Oil Companies that have tried to accept the IEA’s publicity stunt have little or no renewable projects in Africa.
“For many developing countries, the pathway to net zero without international assistance is not clear,” OPEC wrote in response to IEA’s roadmap release, issuing a “critical assessment” on the very same day. “Technical and financial support is needed to ensure deployment of key technologies and infrastructure. Without greater international co‐operation, global CO2 emissions will not fall to net zero by 2050.”
As I have stated in the past, demonizing energy companies is not a constructive way forward, and ignoring the role that carbon-based fuels have played in driving human progress distorts the public debate. We cannot expect African nations, which together emitted seven times less CO2 than China last year and four times less than the US, according to the Global Carbon Atlas, to undermine their best opportunities for economic development by simply aligning with the Western view of how to tackle carbon emissions.
Creating New Problems
China, meanwhile, appears willing to continue investing in fossil fuel projects in Africa. This means that to keep their nations energized, African governments will have little choice but to partner with China — whose performance is notoriously poor when it comes to environmental protection, despite having signed the Paris climate accord. In this scenario, China will become the most influential entity in the African oil and gas industry. And giving China (or any foreign entity) such a monopoly is a dangerous play.
For the IEA plan to work, no new oil and natural gas fields would be developed. The potential energy security risk here is twofold: Concentrated production means that demand will exceed the supply of traditional fuels, while new energy security issues emerge related to the new technologies such as cybersecurity and a dwindling supply of rare earth and critical minerals. And energy insecurity brings economic insecurity and geopolitical instability.
At the same time, a ban on fossil fuel production would bring about the collapse of many carbon-dependent governments. The oil industry is the primary source of income for many African nations. Without the continuation of petroleum production — or time and opportunities to cultivate new revenue sources — their economies will suffer — along with their citizens.
Interestingly, the very announcement of this roadmap features an admission by IEA Executive Director Fatih Birol that net zero will unhinge socioeconomic structures.
“This gap between rhetoric and action needs to close if we are to have a fighting chance of reaching net zero by 2050 and limiting the rise in global temperatures to 1.5 °C. Doing so requires nothing short of a total transformation of the energy systems that underpin our economies,” Birol wrote.
And many of the world’s economies cannot bear this.
Excellent Points from Australia
Energy officials from Australia, for example — incidentally, one of the IEA member countries —  had plenty to say in response.
“There are many, ways to get to net zero, and the IEA just looked at one narrow formula,” said Australian Petroleum Production and Exploration Association chief Andrew McConville. “The IEA report doesn&#39;t take into account future negative emission technologies and offsets from outside the energy sector — two things that are likely to happen and will allow vital and necessary future development of oil and gas fields.”
In urging policymakers to maintain a degree of skepticism about the wisdom of the IEA roadmap, McConville isn’t alone.
“We are bringing emissions down,” stated Angus Taylor, Australia’s Minister for Energy and Emissions Reduction, “but we’re going to do it in a way that ensures we’ve got that affordable power that Australians need.”
Rather than being dictated to by entities abroad, Taylor argued that Australia must proceed at a pace that makes sense locally. And part of these local considerations includes ensuring that people have energy and jobs. The IEA’s call to cease investment in fossil fuels will impede both of these metrics.
“Global gas demand is forecast to grow by 1.5% on average per year out to 2025, providing incentive to ensure our large gas fields … are developed as soon as possible,” said Keith Pitt, Minister for Resources. “Large upcoming offshore developments … will create thousands of new high-wage jobs.”
Africa’s Realities
The same holds true for African countries.
While environmental causes are a major focus in the West, lawmakers in Africa’s developing countries are more concerned with living wages and supplying basic necessities to the continent’s growing population.
The IEA plan amounts to austerity measures that would see Africans leaving petroleum resources in the ground. It would essentially brand poor Africans criminals — or at the very least enemies of the environment — for using fossil fuels.
This is folly. Let’s keep in mind the critical role that natural gas is playing in the global transition to clean energy: It’s an affordable and reliable bridge to renewables. And natural gas is particularly important to Africa. As I’ve written in the past, the African Energy Chamber’s 2021 Africa Energy Outlook report projects that African gas production and consumption are going to rise in the 2020s. As a result, Africa’s natural gas sector will soon be responsible for large-scale job creation, increased opportunities for monetization and economic diversification, and critical gas-to-power initiatives that will bring more Africans reliable electricity. These significant benefits should not be dismissed in the name of achieving net zero emissions on deadline. To tell African countries with gas potential like Mozambique, Tanzania, Equatorial Guinea, Nigeria, Senegal, Libya, Algeria, South Africa, Angola and many others that they cant monetize their gas and rather wait for foreign aid and handouts from their western counterparts makes no sense.
What’s more, we can’t overlook the fact that renewable energy solutions are still young technologies —they are less reliable and more expensive per unit of power than tried-and-true petroleum products. Not only that, but achieving net zero by 2050 would require widespread adoption of technologies that are not even available yet.
Don’t get me wrong: I understand the importance of working toward renewables. I believe they are the future of the energy industry. But the global energy transition must be inclusive, equitable, and just. Unfortunately, the roadmap laid out by the IEA is none of these.
The IEA is a respected institution whose opinions help shape the rhetoric of the global energy market. So instead of mandating these strict guidelines from abroad, the IEA should try working with African countries to find solutions that we can actually abide. At the very least, I encourage the IEA to consider partnerships with African Private sector and financial institutions, whose collaboration with indigenous and international energy stakeholders provides invaluable insight from all sides across the energy industry. The IEA should use its voice to push for what I have always believe Africa needs the most at this time,  free markets, personal responsibility, less regulation, low taxes, limited government, individual liberties, and economic empowerment will boost African energy markets and economies.
Africa deserves the chance to capitalize on its own oil and gas to strengthen itself, rather than being bullied onto a path determined by Western institutions that don’t face the same obstacles. We must be able to improve our energy sector by exploring our continent’s full potential in a way that benefits our people.
Distributed by APO Group on behalf of African Energy Chamber.
Media files

Net Zero? Not For Africa. Not Yet. Africa Must Fight Energy Poverty with Oil and Gas Development (By NJ Ayuk)

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Africa requires millions of investments into the energy sector to boost the critically low access to electricity and other forms of energy on the continent. CNBC Africa spoke to William Brent, Chief Campaign Officer at Power for All to discuss energy trends and how the Biden administration will shape investments into the sector.

Power for All’s William Brent on energy trends to watch in 2021

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The Executive Chairman of the African Energy Chamber, NJ Ayuk says even though oil and gas activities have taken a hit due to the COVID-19 pandemic, optimism surrounding African projects, fiscal regime and investments still exists. He joins CNBC Africa’s Kenneth Igbomor to discuss the future of energy in Africa.

Assessing Africa’s energy future

The energy sector currently accounts for two-thirds of global carbon emissions and expedited progress on energy efficiency and low-carbon sources in the energy mix is required to achieve deep decarbonization.



1. We need an energy transition.



Business as usual will use up the Paris Agreement carbon budget within 20-30 years and bring us towards a hothouse earth. We need a transition from energy that emits greenhouse gases to renewable energy to avoid this fate.



2. We know what we need to do.



The broad shape of the energy transition is to reduce demand where possible through energy efficiency and behavioural change, decarbonize electricity, electrify everything you can and use some variety of renewable-based hydrogen for the rest. To transition at the necessary pace may also require the use of biomass and emissions removal technologies.



3. The energy transition will be difficult.



Fossil fuels provide around 80% of global energy supply and are the foundation of modern society. Many countries and companies are dependent on the wealth generated by fossil fuels and the Bank of England has noted that up to $20 trillion of assets are at risk from the energy transition. South African Banks must work with public sector, for mitigation and policy mindfulness to allow the economy to be ready with measures and targets set.



4. The forces of transition are likely to prevail.



Those who would benefit from a transition vastly outnumber those who benefit from continuity; 80% of people live in countries that import fossil fuels. Just 1% of the global workforce works in the fossil fuel industry and a large share of the rents from fossil fuels flow into the hands of a small number of fossil fuel exporters.



We are living in a fast changing world and South Africa needs to have foresight on what will replace coal exporting , we can use it locally while catching up to make our production cost effective.



5. The energy transition is just.



The global view is, Fossil fuels are used mainly by the rich and the few, while their costs are shouldered mainly by the poor and the many. In contrast, renewables are everywhere, can be deployed at any scale and are being used to solve last-mile problems and provide electricity to the 1 billion people who lack it. Domestically, we are one of the leading exporter of coal, which require reflectiveness and mindfulness leadership on policy transitions. The International Renewable Energy Agency (IRENA) predicts an energy transition that will create more new energy jobs than fossil fuel jobs, while South Africa can lose jobs when the transition is not planned well.



6. We have technology solutions.



There are rising numbers of technology solutions available to start the transition in a cost-effective manner. Efficiency gains have already curbed energy demand growth from 3% to around 1% on average and could drive growth still lower. Reflecting on the manufacturing technologies we can take advantage to match the global manufacturing industry standards and have smart factories and smart industries with innovation factor driven tier systems.



7. Incumbents are at risk.



Peaking demand and technological competition put incumbent players in the energy system at considerable risk of lower prices and stranded assets if they fail to react in time. Coal became too expensive to the South African economy, making electricity prices more expensive to businesses and households, which suggest adaptation to renewables and transition to cost effective electricity. That’s the only way South African manufacturing industry can peak and be competitive. Coal is too expensive to the South African economy, we must manage production to serve the required just transition phase and decarbonize the future economy.



8. We need more policy action to reach Paris goals.



Policy-makers need to take much more assertive action if they wish to drive the transition fast enough to meet the aspirations of the Paris Agreement. There is tremendous scope for major policy action.



9. Policy-makers need to plan for change.



Policy-makers need to retool fossil fuel dependent states and systems, to retrain workers in order to ensure that the transition is just, to plan for new sources of tax revenue and to hold back from investing capital in assets which are likely to be stranded by the transition. Eskom and coal companies must start training a pool of their staff for the just transition or renewable energy materials and management of systems. Transformation must be communicated to all staff in time and have a decade or two decade plan that will make ease to tailored programmes to shape human capital to the decarbonized future economy.



It remains uncertain on how the political economy will play out in South Africa. Every country is different and there is no single solution. Some countries&#8217; fossil fuel interests have been able to seize the reins of government to try to hold back an energy transition, while the energy transition will also create new constituencies that benefit from investment and growth as well as jobs in the wider economy. The sustainability and Impact Investment criteria forces unlisted investments and banks adapt to the just transition.



Miyelani Mkhabela is an Executive Director for Antswisa Transaction Advisory Services.

miyelani mkhabela

Nine ways to decarbonize the South African energy sector

Africa needs to spend 28.6 billion-a-year until 2030 to have any hope of to closing Africa’s yawning energy gap, but it is unclear where the money will come from.



Most Africans live without electricity as most nations struggle to generate the electricity the continent’s emerging economies need. South Africa’s national power generator Eskom – with a struggling national grid putting out 40,000 MW &#8211; generates half of the continent’s electricity. Even South Africa struggles to keep the lights on and countries with tiny electricity, like Malawi, struggle even more and find it an obstacle to growth. &nbsp;&nbsp;&nbsp;&nbsp;



Nigerian Damilola Ogunbiyi, the special representative for sustainable energy foraAll and Co-Chair of United Nations-Energy, confirmed that the energy gap in Africa was huge and would need at least $28.6 billion-a-year, until 2030, to close it. She told CNBC Africa that the question was how to gather the money.



“We need everything on the table. We need public sector support and also private money to come in. There can’t be one source of money. We need to convince private investors that putting power into Africa it is an investment,” says Ogunbiyi. &nbsp;



“I think what this pandemic has taught us is that if we don’t work together, then everyone is going to suffer. &nbsp;



Ogunbiyi was encouraged greatly by the electrification programme in the country of her birth. She said five million Nigerians, in rural areas, had been connected to solar power.



“In a large scale oil energy producing nation, that is not bad,” she says

Damilola Ogunbiyi_Headshot

How we can  close the 28 billion dollar-a-year energy gap in Africa

Five years into the African Development Bank’s ambitious New Deal on Energy for Africa (NDEA), the Bank’s investments are set to provide electricity access to around 13 million people and deliver about 55,000 km of distribution lines, and 6,700 km of transmission lines, of which 3,200 km are for regional interconnections.



The NDEA called for a substantial increase in investments to realize the Bank’s High 5 priority to “Light Up and Power Africa,” which aims to mobilize finance and expertise to expand access to reliable, sustainable energy for more than 200 million Africans through investments in power generation, inter-connections, transmission and distribution. This effort is critical to unlocking Africa’s vast economic potential, enabling the growth of value-adding industries and services, and, most importantly, unleashing the ingenuity of the continent’s 1.3 billion people.



The strategy was grounded in the recognition that partnerships are central to its success. In collaboration with African countries, the Bank’s interventions have ranged from setting up the right enabling policy environment, supporting utilities, to increasing the number of bankable energy projects. Additionally, the Bank is accelerating major regional projects and driving integration through the Program for Infrastructure Development in Africa, whilst also supporting bottom-of-the-pyramid energy access programs.



Priority was given to investments in low-carbon technologies, set to contribute to over 2 GW of additional generation capacity by harnessing the large, hydro, solar, geothermal and wind resources of the continent. Yet this is only the beginning, as much of the work to date has been centered on setting up the right frameworks to mobilize different partners and alternative forms of capital to tackle the various challenges in the sector at country, sub-regional and regional levels.



Indeed, mobilizing partnerships and rolling out countrywide energy transformation are continuous works in progress. In 2019, as testament to the Bank’s efforts in enhancing dialogue and consensus, the G5 Heads of State endorsed the Bank’s Desert to Power initiative, intended to build the world’s largest solar zone across the Sahel by adding up to 10 GW of solar generation capacity through public and private interventions. The Yeleen Solar Program in Burkina Faso – the first of dozens of similar projects expected to flourish across the Sahel region – will provide energy to 150,000 households in rural areas through solar mini-grids and solar home systems, and an additional 52 MW of grid-connected solar generation, enough to power 30,000 new households.



Achieving the objectives of the New Deal on Energy for Africa will require a significant increase in private sector investments. The Bank catalyzes more private investments into independent power producers and off-grid projects through partnerships with project developers, commercial banks, private equity funds, institutional investors and other development finance institutions. Over the past five years, the Bank’s interventions reached $1.5 billion in private sector operations, corresponding to 1.7 GW additional generation capacity through independent power producers.



In addition to mobilizing concessional resources through bilateral and multilateral sources – notably from the European Union, Green Climate Fund and Climate Investment Funds – the Bank hosts the Sustainable Energy Fund for Africa (SEFA), one of the largest multi-donor technical assistance and concessional capital funds in the continent, designed to catalyze private sector participation in renewable energy.



In 2019, the Bank converted SEFA into a special trust fund to widen its interventions into green mini-grids to accelerate energy access to underserved populations; green baseload to support clean generation capacity; and energy efficiency to optimize energy systems and reduce energy intensity. SEFA is expected to contribute to the electrification of more than 7 million households by 2030.



The Bank is also actively supporting the mobilization of commercial capital through blended finance solutions. The Facility for Energy Inclusion, which was operationalized in 2019, is a $500 million investment platform organized around two funds – off-grid and on-grid – to provide flexible debt products, including in local currency, to emerging business models in the small-scale renewable energy space. The Facility for Energy Inclusion will contribute to more than 3 million new connections by 2030.



To enhance institutional performance and improve the enabling conditions to attract much needed investments, the Bank has also implemented initiatives such as the Electricity Regulatory Index to monitor and benchmark regulatory performance against best practices, the Sustainable Utilities Transformation Agenda, to build sustainable utilities and energy institutions, and the Africa Energy Portal to provide accurate, up-to-date data on Africa’s energy sector. In 2019, the African Development Bank reported that an additional 96 million African households had gained access to electricity between 2015 and 2019, with countries like Rwanda on track to achieve universal access by 2025. Despite this encouraging progress, close to 600 million Africans still lack electricity access and achieving universal access goals under SDG7 still requires greater and swifter efforts to meet the demands of Africa’s growing population.



Addressing electricity access remains a costly enterprise, with the International Energy Agency placing the price tag at around $120 billion annually through 2040, four times higher than current levels.



While our direct financial contribution is modest by comparison, we are confident that its judicious application to catalytic power projects, innovative financial structures, sector reform processes and acceleration of decentralized solutions will get us far in our mission.



Dr. Kevin Kariuki, Vice President, Power, Energy, Climate Change &amp; Green Growth, African Development Bank

VP Kevin Kanina Kariuki

COMMENT: A New Deal on Energy for Africa

CAPE TOWN (Reuters) &#8211; An explosion on Thursday at Astron Energy’s South African refinery in Cape Town has killed at least two people and injured several others, a source who works at the 100,000 barrel per day plant told Reuters.



“There are two people dead that I know of and many injured,” said the person, who was not authorized to speak to the media.



A company spokeswoman did not immediately respond to calls, and the fire brigade referred all queries to Astron Energy.



The plant, which was busy starting up after undergoing extended maintenance, was shut down after a fire broke out early on Thursday.

28d0e0af-milnerton-oil-refinery-astron-1200×858

BREAKING NEWS: Explosion at Astron Energy’s South African refinery kills at least two: source

The following is a media statement on behalf of South Africa&#8217;s Department of Mineral Resources and Energy:



REMARKS BY MINISTER
OF MINERAL RESOURCES AND ENERGY, MR GWEDE MANTASHE UNPACKING MINERAL AND ENERGY
INDUSTRIES’ RESPONSE IN PREPARATION FOR A NATIONWIDE LOCKDOWN, 25 MARCH 2020



The Department of Mineral
Resources and Energy yesterday met key stakeholders in the mining and energy
industries to consolidate plans to deal with the spread of Covid-19. This is in
support of the decisive action by the President of the Republic, HE Cyril
Ramaphosa, to institute a nationwide lockdown from 23:59pm on Thursday 26th
March 2020. 



Working together with the South
African Petroleum Industry Association, the Minerals Council SA and in
consultation with labour unions, we have developed a framework through which
these industries will implement the envisaged directives. 



This is being done in order to
safeguard the lives of people, while ensuring that the limited economic
activity which will be undertaken during this period is supported. 



In all our undertakings, we are
considering the health, security as well as socio-economic impact of COVID-19
on these industries. The industries will be required to prioritise the health
and safety of employees, suppliers, contractors and other relevant personnel. 



While demand is expected to
decline in the period ahead, as a result of restrictions on economic activity,
security of energy supply remains critical. The supply of fuel to the relevant
critical and essential services, as well as the supply of coal to Eskom for
electricity supply and liquid fuels production, are critical during this
period. 



We are mindful that in some
mining operations and processing plants a complete shutdown will not be
feasible, as a restart from scratch may be too costly. This would negatively
affect security of supply, and therefore the economy as a whole. 



We are adopting a risk-based
approach, with worst-case scenario planning, and all companies are required to
ensure that their business continuity plans are fit for purpose.



Broadly, the following are
measures being proposed for implementation:



MINING



<ul><li>Mining operations will be scaled down significantly, particularly deep level mining, which is labour intensive.</li></ul>



<ul><li>Essential services supporting the sector, including security and related infrastructure, maintenance, water pumping, refrigeration and ventilation will continue. </li></ul>



<ul><li>Mines supplying coal to Eskom will remain in operation, albeit at reduced production levels. </li></ul>



<ul><li>For exports, each case will be evaluated on its merits.  </li></ul>



<ul><li>Services being rendered to communities, such as the supply of water, will continue.</li></ul>



<ul><li>Production in the gold, chrome, manganese and other sectors will be scaled down; while the processing of surface material in the PGMs sector will continue for the production of – among others medical products. This will allow smelters, which cannot be switched on and off abruptly, to remain operational.</li></ul>



<ul><li>In order to contain the spread of COVID-19, travel will be restricted, in line with regulations to be outlined by the Minister of COGTA.</li></ul>



<ul><li>The Minerals Council has committed to avail its health infrastructure &#8211; facilities and staff – during the lockdown, to support Government efforts. </li></ul>



ENERGY



The following activities are
among those which will be considered an essential service:



<ul><li>The production and distribution of petroleum products, including fuel, paraffin and liquefied petroleum gas. This entails shipping, manufacturing, terminals, distribution and retail.</li></ul>



<ul><li>In the case of petroleum products, imports will be scaled back for the duration of the lockdown, as there will be excess capacity</li></ul>



<ul><li>Regulatory oversight on nuclear facilities, as well as nuclear safeguard inspections.</li></ul>



<ul><li>Production and supply of nuclear medicines and chemicals used at refineries.</li></ul>



<ul><li>The Safari-1 research reactor and support technical services.</li></ul>



Engagements are ongoing between
the sectors, the relevant government departments and state-owned entities. We
will continue to provide updates as the situation unfolds.



Thank you.



Issued
by Government Communication (GCIS) on behalf of the Department of Mineral
Resources and Energy 



25 March 2020



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

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