- Almost all of the countries surveyed have legislative and/or investment programs in place for renewables, presenting both the chance for African nations to lead the energy transition and a large-scale cross-continental investment opportunity. Some of these legislative frameworks are in their infancy or require updates, but the overall trend is towards the implementation of energy transition policies in the near to medium term.
- It is anticipated that fossil fuels and biomass will continue to play a large part of the energy mix for at least 18 out of 21 of the jurisdictions surveyed. Further, some countries such as Nigeria continue to encourage and secure investment in new oil and gas developments.
- The incentives for transitioning to renewable energy are recognized and acknowledged in Africa’s markets. They include ensuring a reliable and clean supply of power to both overcome generation deficits/access to energy problems and to meet the increase in projected demand across the continent, as well as the promotion of economic development and investment in renewables.
- The key to achieving those goals will be implementation. Countries will need to ensure both that they have in place not only attractive legislative frameworks, but also real drive from governments to incentivize clean energy investment and “bankable” projects. The success or failure of implementing renewables policy varies by country, but will broadly depend upon overcoming bureaucratic and institutional obstacles, ensuring political stability, and overcoming ecological and sustainability challenges.
Link to source and download: https://www.dlapiper.com/en/africa/insights/publications/2021/11/africa-energy-futures/