Africa’s energy landscape is transforming rapidly due to the urgent need for clean, affordable energy and the global push for sustainability.
Challenges and Opportunities
The Africa Energy Outlook 2022 report by the IEA highlights the continent’s struggle with the global energy crisis, worsened by the COVID-19 pandemic and geopolitical tensions.
Despite these challenges, there is a silver lining. The crisis has accelerated the scale-up of cheaper and cleaner energy sources, with African countries committing to net-zero emissions by mid-century.
Investment and Growth
Investment in Africa’s energy sector is rising, with the share of energy investment in Africa’s GDP expected to reach 6.1% in the 2026-30 period.
However, this is still only around 5% of the global total in the IEA’s Net Zero Emissions by 2050 scenario.
The Renewable Energy Market Analysis report by the International Renewable Energy Agency
(IRENA) reveals that only 2% of global investments in renewable energy over the last two decades were made in Africa.
This indicates significant room for growth and investment opportunities in the sustainable energy market.
Renewable Energy Potential
Africa’s potential for renewable energy is vast, with abundant resources in wind, solar, hydro, and geothermal energy.
The costs of renewables are falling, making them increasingly accessible.
The last decade has seen a ten-fold growth in average annual investments in renewable energy, from less than USD 0.5 billion in the 2000-2009 period to USD 5 billion in 2010-2020 2 .
Some Key Players
Strauss Energy
Strauss Energy, based in Kenya, manufactures energy-generating roofing tiles, also known as building-integrated photovoltaics (BIPV). Unlike traditional installations where solar panels are mounted on the roof, Strauss builds roofing tiles with integrated solar cells. It costs about $4,000 to $5,000 to roof a three-bedroom house. Homeowners can earn income by selling excess power to the grid and can recoup their investment within three years by selling surplus energy. Buyers
also have the option to install enough tiles to meet their personal power needs.
CLASP
CLASP enhances the energy and environmental performance of everyday appliances, aiming for a more sustainable world. Their programs advance off-grid solar technologies for energy-
impoverished communities and work to mitigate the climate impact of air conditioning. CLASP promotes affordable, low-impact, high-quality appliances and serves as a leading international resource for appliance energy efficiency policies and market acceleration initiatives.
BioLite
BioLite delivers clean cooking and solar home energy products in 17 countries. Since its founding in 2009, BioLite has provided energy solutions to over 700,000 customers, generated over 840 million hours of electricity, and offset nearly 300,000 tons of CO2 emissions. In 2020,
the company secured a $5 million investment to expand geographically, develop new products, and streamline supply chains.
TRINE
TRINE addresses energy poverty by enabling digital investments in solar energy projects through its platform. The platform connects investors with projects that need clean energy solutions, providing social and environmental benefits along with financial returns.
ENGIE Energy Access Kenya
Formerly known as Mobisol, ENGIE Energy Access Kenya offers rent-to-own solar home and business systems in Africa. It is the largest rent-to-own solar service provider in Africa, recognized for its innovative contributions to clean energy access and sustainable development.
ENGIE Energy Access Kenya is expanding into new markets and diversifying its product portfolio to stimulate economic and social development.
Powerhive
Powerhive develops off-grid utility solutions to provide clean energy access globally. It offers tools and services for profitable rural electrification projects and provides technology that can be
integrated with new or existing mini-grids. Powerhive also assists businesses with the development, deployment, and operations of energy projects.
SOLEKTRA International
Founded by Samba Bathily, Akon, and Thione Niang, SOLEKTRA International spearheads the Akon Lighting Africa initiative. The company claims to have installed 100,000 solar street lamps
and 1,200 solar micro-grids in 15 countries. They developed the ‘Free Light SOL-SL01A’, asolar-powered LED light. In 2015, SOLEKTRA started the Solar Academy in Bamako, Mali,
aiming to train 200 workers annually in energy installation and maintenance.
X-Solar
Nairobi-based X-Solar specializes in providing maintenance-free solar power solutions for off- grid areas and reliable backup power. The company aims to deliver dependable solar energy products across Africa.
Sistema.bio Sistema.bio offers biodigester technology to convert waste into renewable energy and biofertilizer. In 2021, the company sold over 14,000 units and served 200,000 users in 30 countries, with operational hubs in Mexico, Colombia, Kenya, and India. Their prefabricated,
robust biogas systems are designed for a wide range of farms and sanitation projects.
WidEnergy
WidEnergy engages women in Africa’s energy transition using a pay-as-you-go model for solar-powered homes and appliances. The startup works with female sales agents to distribute renewable energy solutions in Zambia, aiming to minimize default risks and develop a high-
quality lending portfolio.
The Road Ahead
For sustainable energy suppliers and manufacturers, Africa presents a landscape ripe with potential.
The transition to a renewable-based energy system is essential for a climate-safe future and aligns with sustainable development goals.
The continent’s diverse energy needs and untapped resources offer a unique opportunity for stakeholders to invest in and shape the future of
Africa’s energy systems.
In conclusion, while the current market situation for sustainable energy suppliers and manufacturers in Africa faces challenges, the opportunities for growth, investment, and impact are immense.
With the right policies and international support, Africa can harness its renewable resources to fuel not only its energy needs but also its economic growth and social development.
Source : Property Express Magazine -Joycelyn Marigold
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