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AEW Highlights Critical Minerals Role in African Renewables Growth
Africa must expand its renewable energy manufacturing capabilities and leverage its critical minerals to foster growth in its renewables sector, according to James Mackay, Managing Director at the Energy Council of South Africa.
Speaking on a panel discussion during African Energy Week: Invest in African Energies’ Pre-Event Technical Workshops, Mackay said the high cost of renewables in Africa could be lowered by enhancing local manufacturing capacity, making vital technologies more accessible for project developers.
“Egypt is currently leading in solar manufacturing, but other African governments should work to attract investments and implement policies that incentivize manufacturers to establish operations on the continent,” stated Mackay.
Carlos Torres Diaz, Senior Vice President & Head of Gas and Power Markets Research, Rystad Energy highlighted Africa’s youthful workforce as a strategic advantage in developing innovative solutions required to harness the continent’s 30% share of global critical minerals. According to Diaz, the focus is no longer solely on replacing fossil fuels but on integrating all energy resources and using digital tools to stabilize the power grid.
“Gas-to-power solutions remain essential for stability alongside renewables,” he noted.
Despite holding 40% of the world's total solar potential, Africa currently accounts for less than 2% of the global solar-based power generation, according to Nivedh Das Thaikoottathil, Senior Analyst - Renewables & Power at Rystad Energy. Thaikoottathil pointed out that Africa has high wind potential as well, at 100,000 TWh per year. The share of renewables could increase from 27% today to 43% in 2030.
Commenting on high-growth renewable energy markets in Africa, Thaikoottathil said South Africa, Могоссо, Egypt, Tunisia, Algeria, Kenya, Mozambique, Ghana, and Mauritania are the key and emerging players.
"We are seeing a lot of renewable projects being announced in Africa. Additionally, there a lot of interconnector projects proposed to connect North Africa and Europe, with 24 GW of proposed capacity aimed at linking the regions," he said.
AEW: Invest in African Energies 2024 is held alongside the Critical Minerals Africa Summit which will run from November 6 – 7 November in Cape Town, offering delegates access to the full scope of energy, mining and finance leaders.