Coal has long played a critical role in the energy mix of African countries. Serving as an important baseload power source, sizeable domestic deposits and growing regional demand have seen countries such as South Africa, Zimbabwe, Botswana, and more turning to coal to fuel economic growth and resilience.
Coal accounted for 28 per cent of Africa’s total electricity in 2021. Despite this, coal remains a highly controversial topic. Stakeholders from across the globe are increasingly calling for an end in the usage of coal despite its crucial role in powering economies.
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Even in the face of an international energy crisis, developed countries in Europe – despite pressuring Africa to abandon the resource – are turning to coal to power their economies. This move is a firm testament to coal’s significance in industries, even in the era of transition to clean energy.
Germany, for instance, the world’s eighth-largest coal producer and fourth-largest coal user, raised its coal imports by 12 per cent last year as a result of the Russian-Ukrainian war. The UK allowed the first new coal mine in nearly 30 years in 2022. These same nations assert, however, that coal has no future in Africa.
The economic cost of abandoning coal
Africa does not have the privilege of simply abandoning coal. The resource serves as one of the biggest baseload power sources for a number of African economies. Abandoning coal would result in no available energy for many sectors including healthcare, education, business, and transport.
South Africa, for example, relies on coal for 80 percent of its energy needs. Even though this reliance is expected to decrease as other power alternatives come online, by 2030, coal will still account for 65 percent of the energy mix. Facing infrastructure breakdowns due to a lack of investment in coal plants, South Africa now experiences blackouts of over ten hours a day. This is a tragic given that the country boasts of 53 billion tonnes of coal reserves.
Notwithstanding power supply, the coal industry employed over 93,000 people in 2021. What’s more, it contributed $25.58 billion (R480 billion) to South Africa’s GDP in 2021. Abandoning coal will not only remove a viable power supply but worsen joblessness while stifling economic growth.
In neighbouring countries in the southern Africa area, the scenario is remarkably similar. Botswana relies on coal for 80 per cent of its power needs. In Zimbabwe, coal makes up 29 per cent of the country’s energy mix. The figure is expected to increase as hydropower becomes increasingly unreliable in Zimbabwe. Therefore, what type of future can we envision if Africa stops using coal?
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Transitioning to renewable energy
Renewable energy sources, particularly solar power, offer ideal alternatives for addressing Africa’s electricity needs. Currently, around half of sub-Saharan Africa’s population lacks access to electricity. The few who do have it pay significantly higher prices compared to global consumers. Power shortages also impose a considerable cost on the continent, resulting in a two to four per cent GDP loss each year.
With the population expected to double by 2050, electricity demand is projected to grow by three per cent annually. However, relying on the current energy mix of coal, oil, and traditional biomass is unsustainable and poses health and environmental risks. To achieve a healthy environment and meet emission targets, African governments must transition to a renewable energy mix.
Fortunately, technical developments enable the creation of an energy system that relies primarily on renewable resources. This will promote economic expansion and aid in the reduction of emissions. In addition to promoting sustainable development, investing in renewable energy also generates new job opportunities.
Harnessing solar and wind energy
The expansion of renewable electricity generation on a significant scale in Africa is a great opportunity presented by solar and wind energy. These renewable energy sources are now more economically viable because their prices are on line with those of fossil fuels. With its consistent and plentiful sunshine, Africa provides ideal circumstances for the production of solar energy.
Investments in renewables are gaining momentum across the continent. Already, there are successful projects in South Africa, Uganda, and Zambia conducting renewable-energy auctions that attract competitive prices and private investors. South Africa already boasts several solar power plants with capacities exceeding 100 megawatts. In Kenya, the Lake Turkana Wind Power project is another success story.
Despite these positive developments, solar and wind power accounted for only three per cent of Africa’s electricity generation in 2018. In other regions worldwide, solar and wind power accounted for 7 per cent of electricity generation. The electricity supply in Africa heavily relies on fossil fuels (79 per cent), and hydropower (16 per cent).
Challenges with renewable energy
One of the challenges with renewable energy has always been its variable supply. This often poses difficulties in relying on renewables as a consistent source of electricity. However, technological advancements have made significant progress in stabilizing the electricity supply from renewables.
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These advancements include utilizing hydropower as a buffer during peak demand. There are also plans of integrating electricity production from different geographic regions through grids. Adjusting electricity demand to match supply, and implementing energy storage solutions such as flow batteries and hydrogen electrolysis is being explored, too.
Currently, the share of variable renewable energy in total energy production remains low, minimizing concerns about variability. As the share of renewables increases, these innovative solutions can be implemented at a reasonable pace, ensuring a reliable and sustainable energy supply for Africa.
