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How Africa can accelerate its just energy transition
The world is transitioning to a cleaner energy mix to mitigate the effects of climate change on the environment and the economy. While Africa is investing in renewable energy sources, the continent still remains heavily reliant on fossil fuels for power. Arun Velusami, Partner, Infrastructure, Energy, Resources and Projects at Hogan Lovells joins CNBC Africa for more.
Fri, 22 Oct 2021 13:33:06 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The significant gap between Africa's renewable energy capacity and its reliance on fossil fuels highlights the urgent need for a more sustainable energy mix on the continent.
- Businesses in key sectors like mining and automotive are facing increasing pressure to adopt cleaner practices to meet global environmental standards and consumer demands.
- Investing in upgrading Africa's grid infrastructure and promoting the development of industrial estates with renewable energy solutions are key strategies to accelerate the continent's green energy transition.
Africa is at a pivotal point in its energy transition journey, with a growing focus on shifting towards renewable energy sources to combat climate change and reduce carbon emissions. Despite significant investments in renewable energy projects such as solar and wind power plants, the continent still heavily relies on traditional thermal generation sources like coal, gas, and oil. According to a study by the International Energy Agency in 2019, less than 1% of Africa's power is generated from renewable sources, highlighting the long road ahead to achieve net zero emissions. This reliance on fossil fuels not only poses environmental risks but also economic challenges, as the global market increasingly demands cleaner products and stricter regulations on emissions. Companies in key sectors like mining and automotive are already feeling the pressure to clean up their operations to remain competitive in the global marketplace. Green credentials are becoming a crucial factor in business decisions, with consumers and investors alike demanding environmentally sustainable practices. However, transitioning to green energy comes with its own set of challenges for African businesses. The continent's outdated transmission systems and unstable grid lines make it difficult to integrate renewable energy sources effectively. The intermittent nature of renewables, such as solar and wind power, requires a robust and reliable grid infrastructure to ensure a steady power supply. Many companies are taking small steps towards sustainability by implementing rooftop solar panels and exploring off-grid solutions to reduce their reliance on conventional energy sources. While these efforts are commendable, they represent incremental progress towards a more sustainable future. To accelerate Africa's green energy transition, there is a pressing need to invest in upgrading the continent's transmission and distribution systems. Enhancing the grid infrastructure will not only support the integration of renewable energy but also provide businesses with a more reliable power supply. Additionally, promoting the development of industrial estates with dedicated renewable energy solutions can further boost green energy adoption across various sectors. By fostering a conducive environment for businesses to invest in clean energy projects, Africa can expedite its transition towards a cleaner and more sustainable energy mix. While the path to achieving net zero emissions may be long and challenging, the potential benefits for both the environment and the economy are substantial. Collaborative efforts between governments, industries, and investors will be crucial in driving Africa's green energy agenda forward and ensuring a more sustainable future for the continent and its people.
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