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He adds that although renewables are perceived as
cost-effective in terms of a solution to Africa’s energy
needs, the “right energy mix” is one that always needs
to meet demand requirements. “This means that
peaking, mid-merit, and base-load stations needs to be
optimised for lowest cost and availability.”
THE DEMAND CONUNDRUM
Another concern that Blom raises is that South
Africa, once the current energy capacity expansion
is completed, will have more than 55GW energy
generating capacity against energy demand of less
than 30GW. “This is predicted to fall further and faster
if [the South African government’s] energy efficiency
strategy is successful,” Blom says.
Riccardo Ridolfi, founder and CEO of Equatorial Power,
is of the view that other African countries too could
face a period of an imbalance between energy supply
and demand.
“The current supply deficit will be toppled over, and
governments and utilities will face a demand deficit,”
he says. “Therefore, sustainable demand growth for
productive use of energy in rural areas ought to be an
May 2018 Volume 24 I Number 3
area of innovative focus in the next few years.”
He stresses that there is indeed a huge prospective
demand for electricity in Africa with an increasing focus
on industrial development.
“However, the principal challenge that most sub-
Saharan African governments is facing is finding a
balance between adding new-generation capacity and
building the economic tissue to absorb it, while keeping
the price of energy as low as possible.”
AFRICA’S COMMITMENT TO CLEAN ENERGY
The continent is eager to shift from fossil fuels for
energy generation to renewables, as is evident from an
agreement reached in December 2015 whereby African
countries launched the Africa Renewable Energy
Initiative (AREI), to give all Africans access to energy
that is mostly based on renewable sources by 2030.
However, the transition to clean energy will not be
as quick as previously thought, the Africa Progress
Panel report notes, as the current levels of growth in
generating energy from renewable sources are not
enough to displace fossil fuels and there are significant
costs involved to switch to renewables. PA
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