African Energy Week 2024: Local Manufacturing Key to Advancing Green Technologies
While steps are being taken to roll out green energy initiatives across Africa, the renewable energy industry will require greater investments in local capacity.
The African continent is developing promising green technologies to address energy access disparities and to foster economic growth. Its countries should take an active role in local sustainable energy solutions, rather than merely being consumers of these technologies.
Local Capacity Needed To Advance Green Technology
At a dedicated panel session at African Energy Week: Invest in African Energies 2024, panellists emphasised the need for countries already producing oil and gas to utilise local energy resources for the purposes of enhancing value and meeting domestic needs, particularly for secluded and rural areas that do not have access to energy on the grid.
They agreed that green technology and innovation could not be advanced without significant investments in local capacity, particularly in manufacturing and grid infrastructure.
Moderated by S&P Global Head of Energy Transition, Ashutosh Singh, panellists of the Advancing Green Technology and Innovation in Africa session further agreed that while renewable energy may not create immediate large-scale jobs, strategic planning by policymakers could lead to millions of new opportunities as the sector evolves.
James White, CEO of Comet Energy, highlighted that legislative barriers also exist in many African nations.
In South Africa, for instance, larger solar installations connected to the grid need a generation license from National Energy Regulator of South Africa (NERSA). This, White believes, adds an additional layer of complexity and can deter potential investors or developers from pursuing solar projects.
Although recent amendments to policies have raised the threshold for embedded generation projects without a license to 100 MW, navigating these regulations still poses significant challenges, he noted. “We also need to look at developing local supply chains, which are needed to further drive down costs and improve accessibility to technologies,” he said.
Africa’s Green Hydrogen Potential
Dennis Bauer, Senior Executive Energy Transition Advisor, Neuman & Esser discussed the potential of hydrogen as key to Africa’s energy transition.
By 2035, more than 50 million tons per year of cost-competitive green hydrogen can be produced on the continent by blocks in Morocco, Egypt and South Africa. However, Bauer emphasised that localised supply chains are necessary to support these developments. “Developing local manufacturing capabilities for battery components and other technologies can significantly reduce costs and enhance sustainability,” he said.
The panel discussion also touched on advancements in solar technology, noting improvements in efficiency and flexibility that can facilitate deployment in remote areas.
CEO of South African National Energy Development Institute (SANEDI), Dr Zwanani Titus Mathe, stressed the importance of learning from successful models surrounding new green technologies, like China’s investment in research and development (R&D).
“We need to establish centres of competence across Africa focused on R&D, manufacturing, and skills development to position the continent as a leader in green technology. As African nations commit to investing in green innovation, collaboration among governments, businesses, and communities is also essential,” he said.
Director of International Relations at IFP Energies nouvelle (IFPEN), Dr Said Nachet, concluded that Africa has the potential to lead in green technology. “By harnessing local resources and fostering innovation, the continent can emerge as a hub for green technology and sustainable energy solutions,” he said.
