EXPERTS SAYS AFRICA TO HAVE QUICKER ENERGY TRANSITION THAN OTHER CONTINENTS
Africa is set to achieve a quicker transition to renewable energy than any other continent, Mikir Shah, CEO of reinsurer Africa Specialty Risks (ASR).
Shah is Kenyan and a former CEO of AXA Africa Specialty Risks. His role in Africa-focused reinsurance gives him a unique perspective on energy investment and projects on the continent. He has been seeing an increase in enquires related to solar, wind, geothermal, and hydroelectric power projects. Solar is leading the way, with interest spread broadly across the continent.
He points to the fact that climate change is occurring twice as fast in Africa compared with the rest of the world, even though the continent produces only 3% of world carbon dioxide emissions. “The continent will see the fastest transition,” Shah says. “Africa will be powered more by renewable energy than any other continent,” due to its strong resources in solar and wind, and relative lack of legacy energy infrastructure.
Around 43% of Africa’s population, or 600 million people, lack access to energy, according to the IEA. Fossil fuel exploitation, for example in Nigeria and Angola, has a long history but has done little to increase access to power or improve living standards for the bulk of the population. Shah does not accept the argument that oil and gas can bring about a just energy transition that broadens access to power. Most of the hydrocarbons recently discovered in West Africa are likely to be exported outside the continent, he says.
- The transition to renewables, Shah says, will be achieved by a mixture of strengthening existing national grids, and developing local and off-grid solutions.
- A key benefit of increasing access to renewable energy, he adds, is that Africa’s ability to produce its fertilizers for food production, rather than relying on imports, will be improved.
Shah is confident that investment and project insurance demand points to a leap forward for African renewable energy.
SOURCE: 360 Mozambique