Africa’s energy demand increases
According to projections published by the United Nations Population Division,
Africa’s population has grown by 30 million people in the past year and by 2050,
annual increases are expected to exceed 42 million people per year, meaning that
the total population would have doubled to 2.4 billion. This translates to 3.5
million additional people per month or 80 more people per minute. The vast
increase in the number of people in Africa, along with increased standards of
living, puts significant pressure on the demand for affordable energy.
In the past, there has been significant improvements and growth in the African
economy. Africa’s per capita energy consumption is growing faster than any
other continent, owed largely to increased infrastructure, investment, and
political stability. Africa’s population is characterised by young people and a
growing labour force. With 1.1 billion workers and rising, the continent is
expected to boast the world’s largest working-age population by 2034.
A progressive economy requires substantial energy for increased scale of
manufacturing, provision of services, and transport. Energy remains an essential
input to stimulate and ensure uninhibited economic development, driving
economic productivity and industrial growth. Energy remains fundamental to
the functioning of any modern-day economy.
Africa is still undergoing rapid urbanisation transitions, further contributing to
its economic development and energy consumption demands. More economic
activity translates into higher levels of income earned and, as wealth increases,
so does the demand for energy. Productivity in cities is cited as three times
higher than in rural regions and the United Nations predicts that over the
next decade, 187 million more Africans will reside in cities. This increase in
urbanisation will see a surge in the consumption of energy by households and
businesses alike, as it was reported that between 2010 and 2015, household
energy consumption increased at a rate of 4.2% compounded annually.
African economies are set to profit from rapidly advancing technological
devices, and as the advancement of such devices unfolds, there is an increase
in availability across the continent. The use of these electronic devices places
further demand on the energy equation. As people become wealthier, they
naturally desire more consumer goods, which subsequently utilise energy in
both their manufacture and usage.
The sharp increase in the demand for energy in Africa comes with many
opportunities. The continent’s expanding population numbers and a growing
economy on account of improved infrastructure; a young, sizeable workforce;
inward investment; and increased political stability, all contribute to the
energy system demand. Growing communities require additional energy to
accommodate their rising numbers, as does a developing economy to support its
growth through manufacturing and consumption activities. b
46 AFRICAN MINING MARCH - APRIL 2019
Africa’s demand for energy is steadily increasing and solutions to meet this
growth have become a major concern among the energy sector leaders within the
continent. Key factors contributing to this soaring energy demand are Africa’s
ever-growing population and the continent’s accelerating economic growth.
Africa’s energy future was the theme at this year’s Africa
Energy Indaba.
Africa Energy Indaba 2019
The Africa Energy Indaba took place on 19 and 20
February 2019, at the Sandton Convention Centre in
Johannesburg, South Africa.
This year marked the 11th edition of the Indaba,
with the theme, ‘Africa’s energy future’. The energy
gathering comprised a high-level, strategic summit
and focused on various topics, including energy
access, finance, renewables, and transmission and
distribution. Access to energy and the rate at which
Africa is realising this were among the dominant
topics of the event.
The International Energy Agency (IEA) has forecasted
(in Africa Energy Outlook 2014) that 70% of new
rural electricity supply in Africa will be provided by
independent systems and mini-grids by 2040.
Africa is rich in renewable energy sources, which
remain the most economical approach for powering
mini-grids. However, the development of mini-
grids poses several barriers that must be unpacked.
Challenges facing the development of private sector
mini-grids in Africa comprise gaps in the policy
and regulation governing mini-grids, along with
deficits in market data and linkages; capacity of key
stakeholders; and access to finance.
Mini-grids and off-grid power projects are set to
make a huge impact as Africa plays catch-up in its
generation capacity. Various solutions were discussed
and showcased at the Africa Energy Indaba to
provide the latest insights, trends, and applications to
ultimately increase energy access across the continent.
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