Page 6 - AsianOil Week 29 2020

AfrElec RENEWABLES AfrElec

Standard Bank calls for green and

flexible energy systems in Africa

AFRICA THE coronavirus (COVID-19) crisis has high- in storage technologies, which would further
lighted that Africa needs to develop flexible enhance the flexibility of these systems.
energy systems, South Africa’s Standard Bank Gas-to-power projects will also be able to pro-
Group said in a recent note. vide dispatchable power solutions, complement-
The bank sees renewables and decentralised ing renewables.
technologies playing a far larger role in cre- Alongside launching bid window five of the
ating these new approaches to the delivery of Renewable Energy Independent Power Procure-
electricity. ment Programme (REIPPP), finalising plans to
Worldwide, the pandemic has created both enable the private sector and municipalities to
a decline and change in electricity demand as secure their own power supplies would also be a
commercial and industrial activity slowed and welcome development in South Africa, the bank
people worked from home. said.
In South Africa electricity demand reduced Decentralised green energy solutions, which
by as much as 7,500 MW on average in March promote innovation as they are purpose-built
and April at the height of lockdown. and not connected to national grids, will con-
But demand is now increasing in most Afri- tinue to gain momentum as municipalities, min-
can states as economies re-open. Considering ing houses and industrial firms seek to ensure
that many African countries entered the crisis cost certainty and reliability of supply.
with a shortfall of energy supply, governments Some mining groups in Africa are even turn-
will need to procure more power in the months ing to hydrogen power to diversify their elec-
ahead, the bank said. tricity mixes – an indication that the fledgling
“Given that renewables are currently the hydrogen economy is garnering more interest.
most economically viable source of energy in “In countries such as Nigeria – where the
most countries, we expect that the COVID-19 electricity self-generation market is 55% larger
crisis will accelerate the pace at which these than the main grid – we expect the country will
technologies are adopted on the continent, with start to seriously consider pivoting to decentral-
hydro, wind and solar being the most attractive ised renewable solutions as oil subsidies near an
technologies,” said Rentia van Tonder, head of end, so as to decrease the supply shortfall and
power at Standard Bank. better service the large and geographically frag-
According to the International Energy mented population,” said van Tonder.
Agency (IEA), renewables are the only energy Meanwhile, African nations are well placed
source set for growth in demand in 2020, with to implement a ‘green stimulus’ strategy, as the
solar and wind offering falling costs and the European Union and other markets have done.
ability to adjust more easily to fluctuations in “This approach would increase the potential
demand. to secure additional green funding for the conti-
“This further strengthens the case for eco- nent’s COVID-19 recovery measures,” said Greg
nomic recovery strategies to be underpinned Fyfe, head of energy and infrastructure finance
by investments in renewable energy,” said van at Standard Bank.
Tonder. “With government finances under strain
Rapid advancements in storage technologies amid the pandemic, public-private partnerships
are addressing the problem of intermittent sup- will be essential for the energy infrastructure
ply of electricity by renewables, but there are no build programme to be a success. Banks will
utility-scale battery storage facilities in Africa. need to work closely with governments, devel-
With electricity demand recovering, South opment finance institutions and other financiers
Africa’s Department of Mineral Resources and to mobilise funds and expertise,” explained Fyfe.
Energy recently announced that it was preparing “Given the heightened focus on environmen-
bid documentation for the emergency procure- tal, social and governance factors as well as sus-
ment of 2,000 MW of generation capacity. tainability, we would also expect global investors
Given the time constraints, renewables may and financiers to continue to pursue opportuni-
be best suited to plug the gap, and there are signs ties in the renewables space,” he added.™
that these projects could include investments

P6 www. NEWSBASE .com Week 29 23•July•2020