Page 8 - AfrElec Annual Review 2021

AfrElec MARCH AfrElec

Africa’s wind growth stalls in 2020

as barriers to investment remain

Africa’s wind sector still lags behind the rest of the world, providing
just 0.9% of new capacity in 2020, writes Richard Lockhart

AFRICA AFRICA and the Middle East reported 8.2 The economics of renewable energy, espe-
GW of new wind installations in 2020, almost cially for utility-scale wind projects, are tougher
WHAT: the same as in 2019 and just 0.9% of the 93 GW in areas with limited customers on the grid.
Africa and the Middle installed globally, the Global Wind Energy coun- Utility-scale projects also face considera-
East saw 8.2 GW of new cil said in its Global Wind Report 2021, pub- ble market barriers to get projects through the
wind capacity in 2020 lished this week. development pipeline to grid connection. One
Additions were 53% higher than in 2019, solution is decentralised energy, also known as
WHY: driven by continued expansion in China and the mini-grids or off-grid project, the report found.
Installations dipped US, as the coronavirus (COVID-19 pandemic Nevertheless, the report called for long-term
slightly as the pandemic did not hold back wind farm growth. political economy planning, strong regulation
hit hard in the region Total global wind power capacity is now of the power sector and innovative financing
743 GW, helping the world to avoid over 1.1bn models to incentivise private investment in
WHAT NEXT: tonnes per year (tpy) of CO2. renewables.
Growth is set to double Yet despite increasing growth in 2020, the Another key change needed is for African
in the next five years, led GWEC urged policymakers to take urgent governments to redirect the subsidies they pro-
by South Africa, Egypt action to triple annual additions to 280 GW per vide to fossil fuels towards electricity networks,
and Morocco in Africa year in order to have a chance of reaching net decentralised projects and clean energy assets.
and Saudi Arabia in the zero by 2050 and keeping global warming well The report forecast that annual additions in
Middle East below 2°C, one of the main targets of the Paris Africa and the Middle East could reach 2 GW
Agreement. in 2021, rising to 4.2 GW by 2025. However, the
“Our current market forecasts show that 469 good news is Africa and the Middle East is the
GW of new wind power capacity will be installed only region where additions are forecast to dou-
over the next five years,” said Ben Backwell, CEO ble between those two dates.
at GWEC.
“But we need to be installing at least 180 In Africa
GW of new capacity every year through 2025 South Africa, one of the continent’s largest econ-
to ensure we remain on the right path to limit omies, features both a large industrial base and
global warming well below 2°C – meaning we an established national grid. Yet it also possessed
are currently on track to be 86 GW short on many rural and slum areas which suffer from
average each year. And these installation levels unreliable or non-existent grid connections, a
will need to scale up to 280 GW beyond 2030 to problem seen in many semi-urban and township
deliver carbon neutrality by mid-century. Every areas across the continent.
year we fall short, the mountain to climb in the In terms of government policy, the report said
years ahead gets higher,” he added. that South Africa had pledged to reach net zero
by 2050, joining major global players such as the
Barriers to investment EU, Japan, South Korea and China.
As Africa is way behind other regions in terms of The energy sector contributes close to 80%
additions, the continent faces a number of barri- of the country’s total GHG emissions, of which
ers to be overcome if wind is to a major contrib- 50% are from electricity generation and liquid
utor to providing universal access to power and fuel production alone.
reducing emissions. To combat this, the government wants GHG
These structural barriers include energy emissions to peak in 2025, before falling to
access shortfalls and affordability gaps in the 17-78% above 1990 levels by 2030.
power sector. The government wants 14,400 MW of new
Indeed, 770mn people worldwide still lack onshore wind capacity by 2030, making wind
electricity access, and this is set to shrink only 18% of total capacity by 2030, and 6,000 MW of
moderately to 430mn people by 2030, with con- new solar PV.
centration in sub-Saharan Africa and South Indeed, the government is pursuing a pol-
Asia. icy of wind and solar PV, backed up by battery

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