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COP27 is entering its second week in Sharm el-Sheikh, Egypt. On the occasion of this Climate Conference, the firm BloombergNef published a report which points to the weakness of investments in renewable energies in Africa.
The level of such investments in renewable energy in Africa is even considered “ alarming by BloombergNef. Last year, they fell to their lowest level in eleven years. They even showed a 35% drop in 2021 compared to 2020 while during this time they increased by 9% globally.
Of the 434 billion dollars invested in renewables across the planet, only 2.6 billion were invested in Africa for any type of solar, wind or geothermal renewable energy, or 0.6% of the world total.
Huge potential for Africa
Especially when it comes to solar. The International Energy Agency has calculated that 60% of the best locations for producing solar power are on the continent. But, for the moment, it only houses 1.3% of the solar capacities installed in the world. Capacities concentrated in a small number of countries. Egypt, Morocco and South Africa host two-thirds.
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Kenya also has an electricity mix that is fairly largely oriented towards renewable energies – mainly geothermal and hydropower – and is added to the list of countries that concentrate investments.
What limits these investments?
Admittedly, 86% of African countries have set themselves long-term objectives on so-called clean energies, compared to 57% in 2019. But the report estimates that the implementation mechanisms have remained weak. Among the points that should be improved according to the authors: planning to promote the expansion of electricity networks or the conditions of purchases and sales. BloombergNef suggests more frequent use of auction or tender systems.
Better knowledge of the opportunities linked to renewables by investors could also help to remove barriers. And private investors are not the only ones with a role to play.
Financing, one of the keys to a decarbonized economy
However, the developed countries, which have largely built their wealth with fossil fuels, are still not respecting their promise to increase to 100 billion dollars per year their aid intended for the reduction of emissions and adaptation to the impacts .
The question of supply significant technological and financial alternatives for the ecological transition was at the heart of the speeches of the Congolese authorities during the pre-Cop last month in Kinshasa.
In the meantime, the DRC, like Senegal, claims its right to exploit its recently discovered hydrocarbon resources.
At the podium of COP27, Macky Sall, the Senegalese president called for ” a fair and equitable green transition instead of decisions that harm the development process ” from his country. A point of view that is not shared by all. In Sharm el-Sheikh, climate activists are worried about the European gas rush. Thuli Makama, of Oil Change International, believes that European thirst caused by the war in Ukraine will be ” very short term “. The lawyer and activist from Eswatini therefore fears that African countries that have invested in new capacities will remain with “ stranded assets “, that is to say products that lose their value, ” clean-up costs and all the devastation that accompanies this industry. »
► Read also : South Africa struggles to phase out coal amid rising demand
A danger pointed out by a report that Carbon Tracker has just published today. The authors predict a weakening of Western investments and advise to bet on solar energy. According to Carbon Tracker, Africa could jump from the current 14 gigawatts of solar capacity to over 400 gigawatts by 2050.
► Read also: all our articles on COP27