asa

1
Key Findings
https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Africa in an evolving global context. Todays
  global energy crisis has underscored the urgency,
  as well as the benefits, of an accelerated
  scale-up of cheaper and cleaner sources of
  energy.
• Russias invasion of Ukraine has sent food,
  energy and other commodity prices soaring,
  increasing the strains on African economies
  already hard hit by the Covid-19 pandemic.
• The overlapping crises are affecting many parts
  of Africas energy systems, including reversing
  positive trends in improving access to modern
  energy, with 4 more people living without
  electricity in 2021 than in 2019. They are also
  deepening financial difficulties of utilities,
  increasing risks of blackouts and rationing.
• These problems are contributing to a sharp
  increase in extreme poverty in sub-Saharan
  Africa, with the number of people affected by
  food crises quadrupling in some areas.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Africa is already facing more severe climate
  change than most other parts of the world,
  despite bearing the least responsibility for the
  problem.
• With nearly one-fifth of the worlds population
  today, Africa accounts for less than 3 of the
  worlds energy-related carbon dioxide (CO2)
  emissions to date and has the lowest emissions
  per capita of any region.
• Africans are already disproportionately
  experiencing the negative effects of climate
  change, including water stress, reduced food
  production, increased frequency of extreme
  weather events and lower economic growth all of
  which are fuelling mass migration and regional
  instability.
• -----------
• Africa Population 1,43 billion (Feb. 2023)
  (17.8 of the world population)
• World Population 8,02 billion (Feb. 2023)
  (Source Worldometer)

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• For all of these difficulties, the global clean
  energy transition holds new promise for Africas
  economic and social development.
• As of May 2022, countries representing more than
  70 of global CO2 emissions have committed to
  reach net zero emissions by around mid-century.
• This includes 12 African countries that represent
  over 40 of the continents total CO2 emissions.
• These ambitions are helping set a new course for
  the global energy sector amid declining clean
  technology costs and shifting global investment.
• African countries nearly all of which are party
  to the Paris Agreement on Climate Change are
  poised to capture the technology spillovers of
  these changes and attract increasing flows of
  climate finance.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• This (African Energy Outlook 2022 Outlook
  explores a Sustainable Africa Scenario (SAS) in
  which Africa rides these shifting tides to
  achieve all African energy-related development
  goals on time and in full.
• This includes universal access to modern energy
  services by 2030 and the full implementation of
  all African climate pledges.
• Realising all of these goals is a formidable
  undertaking.
• African countries need to take the lead with
  clear strategies and policies, while
  international institutions must reinforce their
  commitment to significantly increase their levels
  of support.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Energy Access Affordable energy for all Africans
  is the immediate and absolute priority. Universal
  access to affordable electricity, achieved by
  2030 in the SAS, requires bringing connections to
  90 million people a year, triple the rate of
  recent years.
• At present, 600 million people, or 43 of the
  total population, lack access to electricity,
  most of them in sub-Saharan Africa.
• Countries such as Ghana, Kenya and Rwanda are on
  track for full access by 2030, offering success
  stories other countries can follow.
• Our (IEA) detailed analysis shows that extending
  national grids is the least costly and most
  prudent option for almost 45 of those gaining
  access to 2030.
• In rural areas, where over 80 of the
  electricity-deprived live, mini-grids and
  stand-alone systems, mostly solar based, are the
  most viable solutions.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Share of people gaining ACCESS TO ELECTRICITY by
technology in Africa in the Sustainable Africa
Scenario, 2022-2030
Share of people gaining ACCESS TO CLEAN COOKING
by technology in Africa in the Sustainable Africa
Scenario, 2022-2030
Ethanol 6
Biogas 10
Stand alone 27
Improved cookstoves 41
Electricity 10
Grid 42
Mini grid 31
LPG 33
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Additional information

• Stand-alone power system (SAPS or SPS), also
  known as remote area power supply (RAPS), is an
  off-the-grid electricity system for locations
  that are not fitted with an electricity
  distribution system. Typical SAPS include one or
  more methods of electricity generation, energy
  storage, and regulation.
• In remote locations, stand-alone systems can be
  more cost-effective than extending a power line
  to the electricity grid (the cost of which can
  range from 15,000 to 50,000 per mile). But
  these systems are also used by people who live
  near the grid and wish to obtain independence
  from the power provider or demonstrate a
  commitment to non-polluting energy sources.
• Successful stand-alone systems generally take
  advantage of a combination of techniques and
  technologies to generate reliable power, reduce
  costs, and minimize inconvenience.

https//www.energy.gov/energysaver/grid-or-stand-a
lone-renewable-energy-systems
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Additional information

• Stand-alone power system (SAPS or SPS)
  (continues)
• Some of these strategies include using fossil
  fuel or renewable hybrid systems and reducing the
  amount of electricity required to meet your
  needs.
• In addition to purchasing photovoltaic panels, a
  wind turbine, or a small hydropower system, you
  will need to invest in some additional equipment
  (called "balance-of-system") to condition and
  safely transmit the electricity to the load that
  will use it.
• This equipment can include
• Batteries
• Charge controller
• Power conditioning equipment
• Safety equipment
• Meters and instrumentation.

https//www.energy.gov/energysaver/grid-or-stand-a
lone-renewable-energy-systems
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Additional information

• Mini Grid also sometimes referred to as a "micro
  grid or isolated grid", can be defined as a set
  of electricity generators and possibly energy
  storage systems interconnected to a distribution
  network that supplies electricity to a localized
  group of customers. "They involve small-scale
  electricity generation (10 kW to 10MW) which
  serves a limited number of consumers via a
  distribution grid that can operate in isolation
  from national electricity transmission networks.
• Mini-grids have a unique feature as they can
  operate autonomously without being connected to a
  centralized grid. However, the mini-grid may be
  designed to interconnect with the central grid
  which means it operates under normal conditions
  as part of the central grid with disconnection
  occurring only if power quality needs to be
  maintained. For instance in the case of a central
  grid failure. Alternatively, a mini-grid may be
  designed to operate autonomously in a remote
  location with the option to connect to a central
  grid when grid extension occurs.

Mini-grid policy toolkit http//www.minigridpolic
ytoolkit.euei-pdf.org/policy-toolkit
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Additional information

• Sizing -There is no one single definition about
  the size of the mini-grids. Some organizations
  define mini-grids in terms of the generation
  capacity i.e. between 10 kW to 10 MW. Others
  define it in terms of customers reached i.e.
  mini-grids reaching 20-100 customers are called
  micro mini-grids and mini-grids reaching over 500
  customers are called full mini-grids. A general
  consensus is that mini-grids should supply more
  than a few kW of electricity to multiple
  consumers such as community, hospitals or
  schools.
• Technologies - Mini-grids can be powered with
  different technologies such as solar, hydro,
  biomass or wind and are also coupled with energy
  storage systems such as batteries. The most
  common types of mini-grid technologies are
• Solar mini-grids
• Wind mini-grids
• Hydro mini-grids (MHP) has the lowest levelized
  cost of generation and is at par with grid
  electricity. Unlike large hydropower, they do not
  require a dam/reservoir for water storage. They
  are mostly run-of-river and therefore have very
  little environmental impacts.
• Hybrid mini-grids - Mini-grids with renewables
  sources when coupled with non-renewable sources
  such as diesel systems or with other renewable
  sources are called hybrid mini-grids. These
  mini-grids are flexible as they can generate
  power on demand. Examples of hybrid systems are
  solar-diesel mini-grids and solar biomass
  mini-grids.

Mini-grid policy toolkit http//www.minigridpolic
ytoolkit.euei-pdf.org/policy-toolkit
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Africa Energy Outlook 2022- KEY FINDINGS

• Achieving universal access to clean cooking fuels
  and technologies by 2030 requires shifting 130
  million people away from dirty cooking fuels each
  year.
• Today, 970 million Africans lack access to clean
  cooking.
• Liquefied petroleum gas (LPG) is the leading
  solution in urban areas, but recent price spikes
  are making it unaffordable for 30 million people
  across Africa, pushing many to revert to
  traditional use of biomass. Countries are
  re-evaluating clean fuel subsidy schemes and
  exploring alternatives such as improved biomass
  cook stoves, electric cooking and biodigesters.
  The improvement rates needed for universal clean
  cooking access by 2030 are unprecedented, but the
  benefits are huge reducing premature deaths by
  over 500 000 a year by 2030, drastically cutting
  time spent gathering fuel and cooking, and
  allowing millions of women to pursue education,
  employment and civic involvement.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• The goal of universal access to modern energy
  calls for investment of USD 25 billion per year.
• This is around 1 of global energy investment
  today, and similar to the cost of building just
  one large liquefied natural gas (LNG) terminal.
• Stimulating more investment requires
  international support aided by stronger national
  institutions on the ground laying out clear
  access strategies only around 25 African
  countries have them today.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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What is LPG?

• LPG (Liquified Petroleum Gas) is a portable,
  clean and efficient energy source which is
  readily available to consumers around the world.
  LPG is primarily obtained from natural gas and
  oil production but is also produced increasingly
  from renewable sources.
• Its unique properties make it a versatile energy
  source which can be used in more than 1,000
  different applications.
• In its liquid form, LPG looks like water. Yet,
  because of its unique properties, one litre of
  liquid LPG, expands to 270 litres of gaseous
  energy allowing a lot of energy to be transported
  in a compact container.
• The Story of LPG (8 min.)
• https//www.youtube.com/watch?voRbrfzPluTEt3s
• Global Renewable LPG Pathways to 2050 (2 min)
• https//www.youtube.com/watch?vdd2sv_Uapcs

https//www.wlpga.org/about-lpg/what-is-lpg/
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What is LNG?

• LNG (Liquified Natural Gas) is natural gas that
  has been cooled to 260 F (162 C), changing
  it from a gas into a liquid that is 1/600th of
  its original volume. This dramatic reduction
  allows it to be shipped safely and efficiently
  aboard specially designed LNG vessels.
• Specialized ships link worldwide LNG production
  and regasification facilities to create a safe,
  reliable and efficient network to transport
  liquefied natural gas around the world. LNG ships
  are equipped with sophisticated leak detection
  technology, emergency shutdown systems, advanced
  radar and positioning systems, and numerous other
  technologies designed to ensure the safe and
  secure transport of LNG.

https//www.chevron.com/operations/liquefied-natur
al-gas-lng
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What is LNG?

• LNG is returned to a gaseous state at LNG import
  and regasification terminals around the world.
• Once it has been warmed to become natural gas, it
  is dispersed through pipelines for use by homes
  and businesses. It can be used in a variety of
  ways Residential uses for natural gas include
  cooking, heating homes and generating
  electricity, while commercial uses for natural
  gas include heating, generating electricity,
  manufacturing products like fertilizers, paints
  and medicines, and occasionally fueling
  commercial vehicles.
• Regasification refers to the conversion of LNG
  back to natural gas. After arriving at its
  destination, LNG is warmed to return to its
  gaseous state and delivered to natural gas
  customers through local pipelines.
• Liquified Natural Gas From Treatment To
  Transport ExxonMobil (413 min.)
• https//www.youtube.com/watch?vrjlRTFyennU

https//www.chevron.com/operations/liquefied-natur
al-gas-lng
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What is LNG? (CONOCO Chevron videos)

• LNG 101 Pt. 1 Right for the Times (527 min)
• https//www.youtube.com/watch?vjcnxweX9jsQ
• LNG 101 Pt. 2 Liquefaction (344 min)
• https//www.youtube.com/watch?vk5Ah32zX2JE
• LNG 101 Pt. 3 Comparative Technologies (437
  min)
• https//www.youtube.com/watch?vdOI9F3e8vjI
• LNG 101 Pt. 4 Compressor Drivers (419 min.)
• https//www.youtube.com/watch?v2h0nI24yUEo
• LNG 101 Pt. 5 Heat Exchangers (337 min.)
• https//www.youtube.com/watch?vKTkOjIH5B18
• Safe and Reliable Delivery of Liquified Natural
  Gas (LNG) (241 min)
• https//www.youtube.com/watch?vNYNoFGzzHLo

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Africa Energy Outlook 2022- KEY FINDINGS

• Energy demand and efficiency As Africas demand
  for modern energy grows, efficiency keeps it
  affordable
• Demand for energy services in Africa is set to
  grow rapidly maintaining affordability remains
  an urgent priority.
• Africa has the worlds lowest levels of per
  capita use of modern energy. As its population
  and incomes grow, demand for modern energy
  expands by a third between 2020 and 2030 in the
  SAS. However, under existing subsidy schemes,
  current price spikes risk doubling energy subsidy
  burdens in African countries in 2022 an
  untenable outcome for many facing debt distress.
• Some countries, including Egypt, Ethiopia and
  Uganda, are being driven to halt or reduce
  subsidies, or to reinstate fuel taxes due to
  growing financial burdens. International support
  must play a role in the near term to manage
  prices, but better targeting of subsidies to the
  households most in need is essential.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Efficiency helps temper demand growth, reduces
  fuel imports, strain on existing infrastructure
  and keeps consumer bills affordable.
• Energy and material efficiency reduces
  electricity demand by 230 terawatt-hours in 2030
  30 of electricity demand today.
• Building codes and energy performance standards,
  which restrict the sale of the least efficient
  appliances and lighting, make up 60 of these
  savings.
• Energy demand for fans and air conditioning still
  quadruples over the decade as urbanisation and
  climate change rapidly increase the need for
  cooling in Africa, calling for a strong focus on
  efficient cooling solutions.
• (Note Material efficiencyusing less of a
  material to make a product or supply a serviceis
  gaining attention as a means for accomplishing
  important environmental goals. The ultimate goal
  of material efficiency is not to use less
  physical material but to reduce the impacts
  associated with its use.
• Material efficiency strategies include, for
  example, products that last longer,
  remanufacturing and modular manufacturing, reuse
  and recycling of product components, using less
  material in product designs, or redesigning
  manufacturing processes to use less energy, less
  water or less raw materials.)

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• As Africas industry, commerce and agriculture
  expand, so too does the need for productive uses
  of energy.
• In the SAS, energy demand in industry, freight
  and agriculture grows by almost 40 by 2030.
• Increased production of fertiliser, steel and
  cement as well as manufacturing of appliances,
  vehicles and clean energy technologies helps to
  reduce the burden of imports in Africa, which
  stands at over 20 of GDP today.
• Some parts of industry expand their use of the
  latest, most efficient technologies. In
  agriculture, which represents one-fifth of
  Africas GDP, irrigation pumps are electrified,
  reducing diesel generator use, and cold-chains
  (temperature-controlled supply chains) are
  extended, boosting agricultural productivity and
  the scope for these products to reach urban
  markets.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Fuel supply Electricity will underpin Africas
  economic future, with solar leading the way.
• Electricity is the backbone of Africas new
  energy systems, powered increasingly by
  renewables. Africa is home to 60 of the best
  solar resources globally, yet only 1 of
  installed solar PV capacity.
• Solar PV already the cheapest source of power
  in many parts of Africa outcompetes all sources
  continent-wide by 2030. Renewables, including
  solar, wind, hydropower and geothermal account
  for over 80 of new power generation capacity to
  2030 in the SAS. Once coal-fired power plants
  currently under construction are completed,
  Africa builds no new ones, underpinned mainly by
  Chinas announcement to end support for coal
  plants abroad. If the investment initially
  intended for these discontinued coal plants were
  redirected to solar PV, it could cover half of
  the cost of all Africas solar PV capacity
  additions to 2025 in the SAS.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Power generation capacity additions in Africa in
the Sustainable Africa Scenario, 2011-2030
Levelised cost of electricity by technology in
Africa in the Sustainable Africa Scenario,
2020-2030
GW
USD per MWh
Gas CCGT
Renewables 242 GW
Renewables 25 GW
Fossil fuels 83 GW
Fossil fuels 46 GW
CCGT Combined Cycle Gas Turbine (The design uses
a gas turbine to create electricity and then
captures the resulting waste heat to create
steam, which in turn drives a steam turbine
significantly increasing the system's power
output without any increase in fuel. GW Gigawatt
1 billion watts 1000 Megawatts
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Africa Energy Outlook 2022- KEY FINDINGS

• Flexibility is key to integrating more variable
  renewables, with grid interconnections,
  hydropower and natural gas plants playing notable
  roles.
• Regional power pools contribute to improving
  reliability of supply a major problem in
  Africa.
• Expanding and modernising Africas electricity
  infrastructure requires a radical improvement in
  the financial health of public utilities, which
  have been battered by recent economic crises and
  longstanding under-pricing of electricity.
• Regulatory reforms are a priority, particularly
  cost-of-service electricity pricing reforms,
  which are in place or under discussion in 24
  African countries to date.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Gas and oil production focuses on meeting
  Africas own demand this decade.
• Africas industrialisation relies in part on
  expanding natural gas use. Natural gas demand in
  Africa increases in the SAS, but it maintains the
  same share of modern energy use as today, with
  electricity generation from renewables
  outcompeting it in most cases.
• More than 5 000 billion cubic metres (bcm) of
  natural gas resources have been discovered to
  date in Africa which have not yet been approved
  for development. These resources could provide an
  additional 90 bcm of gas a year by 2030, which
  may well be vital for the fertiliser, steel and
  cement industries and water desalination.
  Cumulative CO2 emissions from the use of these
  gas resources over the next 30 years would be
  around 10 gigatonnes. If these emissions were
  added to Africas cumulative total today, they
  would bring its share of global emissions to a
  mere 3.5.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Modern energy demand in Africa by selected fuel
in the Sustainable Africa Scenario, 2020 and 2030
Cumulative energy-related CO2 emissions and CO2
emissions from using gas from Africas
discovered, not yet approved fields
Share in TPED ()
Gt CO2
Africa (1890-2020) 41Gt
EJ
Natural Gas
Renewables
Rest of world (1890-2020) 1 500 Gt
8 EJ
7 EJ
6 EJ
5 EJ
EJ Exajoule
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Africa Energy Outlook 2022- KEY FINDINGS

• Production of oil and gas remains important to
  African economic and social development, but the
  focus shifts to meeting domestic demand.
• Global efforts to accelerate the clean energy
  transition in the SAS risks dwindling export
  revenues for Africas oil and gas.
• Between now and 2030, Africas domestic demand
  for both oil and gas accounts for around
  two-thirds of the continents production.
• This puts greater emphasis on developing
  well-functioning infrastructure within Africa,
  such as storage and distribution infrastructure,
  to meet domestic demand for transport fuels and
  LPG.
• In parallel, African countries focus on
  strengthening energy efficiency policies, and
  expanding renewables and other clean energy
  technologies.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Near-term market opportunities must not distract
  from declining oil and gas export revenues in the
  future.
• New projects benefit from speed to market,
  minimising project costs and delays, and reducing
  methane emissions.
• Current price surges are providing a short-term
  boon to African producers, with new deals signed
  to deliver Algerian gas to Europe, along with
  renewed momentum to develop and expand LNG
  terminals in Congo, Mauritania and Senegal. With
  the European Union aiming to halt Russian gas
  imports towards 2030, Africa in principle could
  supply an extra 30 bcm in 2030. Reducing flaring
  and venting could quickly make at least 10 bcm of
  African gas available for export without the
  development of new supply and transport
  infrastructure. New long lead time gas projects
  risk failing to recover their upfront costs if
  the world is successful in bringing down gas
  demand in line with reaching net zero emissions
  by mid-century.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Critical minerals Critical minerals present a
  major economic opportunity.
• Africas vast resources of minerals that are
  critical for multiple clean energy technologies
  are set to create new export markets, but need to
  be managed well.
• Africa accounts for over 40 of global reserves
  of cobalt, manganese and platinum key minerals
  for batteries and hydrogen technologies. South
  Africa, Democratic Republic of the Congo and
  Mozambique have a significant share of global
  production today, but many other countries may
  hold undiscovered deposits.
• In the SAS, Africas revenues from critical
  mineral production more than double by 2030.
  However, investment in mineral exploration in
  Africa has been declining in recent years.
  Reversing this trend hinges on improved
  geological surveys, robust governance, improved
  transport infrastructure and a particularly
  strong focus on minimising the environmental and
  social impacts of mining operations.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Critical minerals Critical minerals present a
  major economic opportunity.
• Africas vast resources of minerals that are
  critical for multiple clean energy technologies
  are set to create new export markets, but need to
  be managed well.
• Africa accounts for over 40 of global reserves
  of cobalt, manganese and platinum key minerals
  for batteries and hydrogen technologies. South
  Africa, Democratic Republic of the Congo and
  Mozambique have a significant share of global
  production today, but many other countries may
  hold undiscovered deposits.
• In the SAS, Africas revenues from critical
  mineral production more than double by 2030.
  However, investment in mineral exploration in
  Africa has been declining in recent years.
  Reversing this trend hinges on improved
  geological surveys, robust governance, improved
  transport infrastructure and a particularly
  strong focus on minimising the environmental and
  social impacts of mining operations.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Revenues from copper and battery metals in
Sub-Saharan Africa in the Sustainable Africa
Scenario, 2020-2030
Lithium, 0.5 billion
Graphite, 0.2 billion
Nickel, 1.5 billion
Manganese, 5.7 billion
Cobalt, 14.9 billion
Billion US Dollars
Graphite, 0.1 billion
Nickel, 1.5 billion
Manganese, 3.1 billion
Cobalt, 3.1 billion
Copper 24.6 billion
Copper 13.7 billion
2020
2030
https//www.iea.org/reports/africa-energy-outlook-
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Africa Energy Outlook 2022- KEY FINDINGS

• Hydrogen - Africa can become a leading player in
  hydrogen made from renewables
• Africa has huge potential to produce hydrogen
  using its rich renewable resources.
• A number of low-carbon hydrogen projects are
  underway or under discussion in Egypt,
  Mauritania, Morocco, Namibia and South Africa.
• These are focused primarily on using
  renewables-based power to produce ammonia for
  fertiliser, which would strengthen Africas food
  security.
• Global declines in the cost of hydrogen
  production could allow Africa to deliver
  renewables-produced hydrogen to Northern Europe
  at internationally competitive price points by
  2030.
• With further cost declines, Africa has the
  potential to produce 5 000 megatonnes of hydrogen
  per year at less than USD 2 per
  kilogrammeequivalent to global total energy
  supply today.

https//www.iea.org/reports/africa-energy-outlook-
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https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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US Dollars/kg
H2 production potential, Million tons)
https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• People-centred transition - People must be at the
  centre of Africas new energy economy
• Home-grown energy industries can reduce imports,
  create jobs and build the local capital base.
• In the SAS, around 4 million additional
  energy-related jobs are needed across the
  continent by 2030, largely to reach universal
  energy access in sub-Saharan Africa.
• Many of the jobs offer entry into the formal
  economy and increase entrepreneurial
  opportunities for women.
• African energy companies play an increasing part,
  with joint ventures and technology transfer
  helping develop local know-how.
• Implementing an African Continental Free Trade
  Area also helps broaden domestic markets for
  African energy firms.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Investment Climate change calls for investment
  in adaptation
• Africa will remain a minor contributor to global
  emissions, yet it needs to do far more to adapt
  to climate risks than the rest of the world.
• By 2050, Africa accounts for no more than 4 of
  cumulative global energy-related CO2 emissions,
  regardless of the scenario.
• With todays policies, the global average
  temperature rise is likely to hit 2 C around
  2050, but this would probably result in a median
  temperature rise of 2.7 C in North Africa.
• That would reduce African GDP by around 8 in
  2050 relative to a baseline without any climate
  impacts.
• Losses in some regions such as East Africa would
  reach around 15.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
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Africa Energy Outlook 2022- KEY FINDINGS

• Investment (continues)
• Urgent action to adapt to climate change would
  reduce the severity of these economic effects but
  require much more investment.
• Funding for climate adaptation could reach USD
  30-50 billion per year by 2030 a huge increase
  on the USD 7.8 billion that was provided by
  advanced economies for adaptation projects in
  2019.
• Some of this will be needed to make Africas
  energy systems more resilient against climate
  risks three-fifths of Africas thermal power
  plants are at high or very high risk of being
  disrupted by water stress and one-sixth of
  Africas LNG capacity is vulnerable to coastal
  flooding.

Water stress occurs when the demand for water
exceeds the available amount during a certain
period or when poor quality restricts its use.
Water stress causes deterioration of fresh water
resources in terms of quantity (aquifer
over-exploitation, dry rivers, etc.)
https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
37
Africa Energy Outlook 2022- KEY FINDINGS

• Unlocking more finance remains key to Africas
  energy future
• Multilateral development banks must make
  increasing financial flows to Africa an absolute
  priority.
• To mobilise the amount of investment envisioned
  in the SAS, they will need to increase
  concessional finance to Africa and use it more
  strategically to better leverage private capital.
  
• This includes domestic financial markets, which
  need to more than double in size by the
  second-half of this decade.
• New capital sources, such as climate finance and
  carbon credits, can bring more international
  financial flows to bear.
• However, cross-cutting investment risks such as
  high debt burdens remain a challenge.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
38
Billion US Dollars
Average annual energy investment in the
Sustainable Africa Scenario, 2016-2030.
192 billion
99 billion
2016 - 2020
2026 - 2030
https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
39
Africa Energy Outlook 2022- KEY FINDINGS

• Unlocking more finance remains key to Africas
  energy future
• Achieving Africas energy and climate goals means
  more than doubling energy investment this decade.
  
• This would take it over USD 190 billion each year
  from 2026 to 2030, with two-thirds going to clean
  energy.
• The share of energy investment in Africas GDP
  rises to 6.1 in the 2026-30 period, slightly
  above the average for emerging market and
  developing economies.
• But Africas energy investment in that period is
  still only around 5 of the global total in the
  IEAs Net Zero Emissions by 2050 Scenario.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings
40
Africa Energy Outlook 2022- KEY FINDINGS

• Unlocking more finance remains key to Africas
  energy future
• Africas energy future requires stronger efforts
  on the ground that are backed by global support.
• The COP27 Climate Change Conference in Egypt in
  late 2022 provides a crucial platform for African
  leaders to work globally to identify ways to
  drive these changes.
• This decade is critical, not only for global
  climate action, but also for the foundational
  investments that will allow Africa home to the
  worlds youngest population to flourish in the
  decades to come.

https//www.iea.org/reports/africa-energy-outlook-
2022/key-findings