Africa needs an out-of-the-box energy solution

Africa needs an out-of-the-box energy solution

Africa needs an out-of-the-box energy solution
This satellite image taken May 28, 2020, shows the Grand Ethiopian Renaissance Dam on the Blue Nile river in the Benishangul-Gumuz region of Ethiopia. (Maxar Technologies via AP)
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Africa’s energy supply is in crisis, a result of crumbling infrastructure, a rapidly growing population and the pressure of climate change. The crisis will not be solved by conventional means, and certainly not by increasing regional tension.
It is time for innovative solutions: Building transnational energy projects involving a combination of fossil fuel plants, green energy infrastructure and nuclear power. This might all sound like a pipedream, but it is not if the will is there. And there is no choice but to find it.
First, that dam. The Grand Ethiopian Renaissance Dam has been an ongoing source of tension for Ethiopia, Sudan and Egypt for all the wrong reasons. It could transform Ethiopia into an energy exporter. But as it is being filled, it would also limit the flow of the Nile to Egypt and Sudan. The dispute ironically highlights the need for regional power generation (and cooperation).
The economic cost of Africa’s growing power challenges is immense. The path forward needs to be nothing short of revolutionary. The solution lies in power plants designed to supply entire regions. But how and in what form?
Start with the “what.” Clearly, it must be sustainable, but wind and solar have obvious drawbacks with sustained output. Nuclear would address those issues and provide clean, cheap power. But with many African states politically unstable, the continent does not inspire confidence of security and nonproliferation. Until a mix of wind, solar and nuclear can be built up to meet current and future needs, the continent requires quick answers.
The best way to address this would be to build a fleet of modern, cleaner (but clearly not clean) fossil fuel plants that would eventually be phased out as solar, wind and nuclear come online with sufficient capacity. The immediate objection is that surely the point is to reduce carbon emissions, not add to them.
Africa contributes 3.8 percent to global greenhouse emissions — compared to China, the US and the EU at 23, 19 and 13 percent respectively. If current options are successfully pursued by individual African countries, the continent’s emissions would rise to around 5 percent of global share. But a clear plan for new, cleaner fossil-fuel plants supplying transnational regions can arguably have lower carbon emission rates. In the meantime, plans can be put in place to build sustainable power plants.

Africa’s future sits in African hands, but that does not mean it cannot accept help from friends who recognize mutual interests.

Joseph Dana

How to achieve this could be even more interesting. The UAE, a major oil and gas producer, is also at the forefront of carbon neutral solutions for the future. Perhaps a consortium involving the UAE and other transitioning oil producers could be convinced to finance and build the energy future of Africa. They have the capital and relationships with global engineering firms to build fossil fuel powered plants, and can then provide feedstock at below market rates, balanced against the income the plants would generate.
The UAE might then lead the next phase, with help from South Korea. It is at the forefront of sustainable energy research, and operates a nuclear power plant built by Seoul’s Korea Electric Power Corporation.
Indeed, the UAE, as an internationally trusted nuclear power producer, can bring its non-proliferation best practices to Africa. As a friend to African countries without the colonial baggage of the West or, more recently, the fraught relationship the continent has had with China, the UAE can partner African nations to ensure security. After building the UAE’s nuclear power plant, South Korea is eager to expand its nuclear portfolio into non-traditional markets. A fleet of nuclear power plants could be priced according to the benefits from an economy of scale.
For the Gulf, investing in Africa would ensure continued sale of their hydrocarbons as the West and Asia reduce their use of oil and gas; this would then transition to an income stream from renewable energy. For Africa, it means the investment and supply of power at low cost and eventually at low carbon-emission rates. As part of an overall carbon reduction strategy, Gulf power investors might be induced to finance climate change mitigation projects throughout the continent to address the greenhouse gas output of the initial fossil fuel plants.
With an array of foreign-built and operated power plants providing energy to countries across the continent, African economies would remove a major impediment to growth.
This is, admittedly, a rosy forecast. Nationalism runs deep across the continent, and it showed itself in the ongoing dispute over the Ethiopian dam project. Recent oil discoveries in South African territorial waters, as well as large natural gas deposits in Mozambique, could stymie regional tie-ups. Moreover, continental cooperation has been roadblocked for years, as exemplified by the African Continental Free Trade Area, which has stalled over the reticence of countries like Nigeria to ratify the terms.
Despite the obvious challenges, however, Africa needs an out-of-the-box solution before the twin factors of climate change and rapid urbanization force it to take more aggressive action. The continent is home to one of the youngest populations globally and has exceptionally high rates of urbanization. Power needs are only going to increase over time and there is no viable solution to the energy crisis.
In the absence of a continent-wide approach, individual countries will be forced to take reckless actions (such as damming transnational rivers) or to accept outside help on less than favorable terms. It is thus imperative that Africa creates the political will necessary to facilitate a continental power solution. Africa’s future sits in African hands, but that does not mean it cannot accept help from friends who recognize mutual interests.

Joseph Dana, based between South Africa and the Middle East, is editor-in-chief of emerge85, a lab that explores change in emerging markets and its global impact. Copyright: Syndication Bureau

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