Africa's potential as a global renewable energy player
Solar energy, minerals resources and manufacturing
China dominates in renewable energy supply chains and total installed capacity
Despite substantial raw material mining, Africa is a minor player in renewable energy material processing, manufacturing, assembly, and installed capacity (example of solar PV in graphs below). In the past two decades, Africa has attracted only 2% of worldwide investments in renewable energy and employs less than 3% of the global renewable energy workforce.
But Africa’s potential is immense:
(1) 60% of the world’s best solar resources
Africa currently has 13 GW of solar capacity, which is less than 1% of the total installed solar capacity. However, its abundance of sun leads to an annual average solar irradiation of over 2,000 kWh/m2. As per IRENA, utilizing just 1% of its land, Africa's solar technical potential is an enormous 7,900 GW.
(2) Significant production and reserves of minerals crucial for renewable energy products
Central and Southern Africa hold crucial mineral reserves for manufacturing renewable energy products, including electric batteries, wind turbines, and solar PV modules.
(3) Assembly of solar PV modules can already be cost competitive in some African countries relative to China.
The Sustainable Energy for All report identifies 10 African countries with medium or high feasibility for manufacturing renewable energy products. A first step can be module assembly, and while the estimated cost is higher compared to China, some African markets are becoming competitive.
What are your thoughts on Africa's future role in renewable energy markets? Hit reply - we'd love to hear from you!
To dive deeper, make sure to check out:
Sustainable Energy for All: Africa Renewable Energy Manufacturing
IRENA: Renewable Energy Market Analysis: Africa and its Regions
Do you have feedback for us? Please let us know!
Best,
Carolin
for the Exseede Team