The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Ishmael Ackah, on Monday, 14th March 2022, presented a paper at a three-day Commonwealth Science Conference, Sub-Sahara Africa Follow-on Meeting held in Accra, capital of Ghana.
The 3-day conference, which took place from 14th-16 of March 2022, was held at the Academy of Arts and Sciences at which programme , the Executive Secretary of the Commission presented a paper on the ‘Political Economy of the Energy Transition’.
The Energy Economist, in his presentation, hinted that Africa’s energy apart from South Africa, the continent of Africa’s energy mix is dominated by hydro technology.
He also noted that economies such as Nigeria and Angola are structured around the oil and gas industry , with oil contributing to about 70 per cent of government revenues in Angola.
He emphasised that petroleum revenues have been used for investments, social interventions and debt repayment.
For instance, oil revenues in Ghana contribute substantially to the Free Senior High School Initiative which was rolled by the Government as part of the human capital development strategy.
He pointed out that, approximately 730million people in Sub-Saharan Africa rely on the traditional use of solid biomass, mainly fuelwood, charcoal and dung for cooking, typically with inefficient stoves or simple three-stone fires, in poorly ventilated spaced.
He was quick to add that transition implies diversified and competitively priced energy sources which will address the continent’s need for industrialisation and access in an environmentally sustainable manner.
In his view, there should be research, capital injection, resource base and good governance to achieve this.
Referring to 2021 UNESCO report, he indicated that Africa’s gross expenditure on research as a proportion of GDP averages 0.5 per cent compared to the world average of 2.2 per cent. There is no known country in Africa that is spending one per cent of its GDP on research.
Dr. Ackah said in his presentation that while some Sub-Saharan African countries lack reliable electricity infrastructure, there is a potential opportunity to develop this infrastructure in a more sustainable way other than countries have done in the past through a move towards national electrification.
He said countries that can provide, carbon free generation could benefit from abundant solar and wind resources.
He noted that these can be financed investing in cost-reducing technologies, adopting a pay-as-you-go arrangement to help spread upfront cost of renewable energy technologies, structuring payments for new renewable energy technologies so that they are similar to costs of the energy sources they are replacing.
Additionally, collaborative investments, with the active engagement of local investments as well as alternative financing sources such as bonds, enhanced refinancing opportunities could all be considered.
In the area of governance, Dr Ackah stated that setting in place right regulatory policies and institutional frameworks can lead to unbundling electricity service provision and the opening up of competition in the sector.
Setting multi-year tariffs with adjustment clauses, clear renewable energy targets, which align with climate and sustainability targets, together with a clear and transparent procurement processes will all aid in providing a transparent and accountable governance process.
The provision of information through public education , dissemination of research findings and strengthening of technical capacity to build domestic innovative capabilities, including skills set for installing, maintaining and repairing renewable energy technologies, and engaging with local communities including women, in training and maintenance of these systems will go a long way in transitioning energy divide.
He intimated that the natural gas is a good transbridger fuel. In his estimation gas is a clean source of energy and a good complement to renewables.
Natural gas can support the economic transformation of the continent through chemical production, fertilizer manufacturing, cement, and clean cooking fuels. Thus, leaving natural gas on the ground will just delay or deny Africa’s chance of industrialising.
Dr. Ackah concluded by saying tat Africa needs to be part of the value chain and not a mere consumer of technologies.
Source: https://energynewsafrica.com