Africa's energy conundrum: fossil fuels or darkness?

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Author: Muloongo Muchelemba
3 February 2025

The Mission 300 Africa Energy Summit brought 30 African Heads of State and governments, business executives and development partners to Tanzania at the end of January 2025. The Dar es Salaam Energy Declaration committed to connecting 300 million Africans to electricity by 2030. There are currently 600 million people in Africa without access to electricity. Twelve countries also presented National Energy Compacts, which outlined targets to drastically scale up electricity access, increase renewable energy usage, and attract private investment. 

Tanzania's President Samia Suluhu Hassan hosted the Mission 300 Energy Summit in Dar es Salaam from 27-28 January 2025.

However, not everyone agrees that renewable energy is the sole answer for Africa’s power crisis. We will examine both sides of the argument.

The case for renewable energy in Africa

Africa has potential to become the renewable energy leader in the world. The continent has 60% of global solar potential and 12% of global hydro power potential. Renewable energy, particularly decentralised solar and wind systems, can provide faster and more cost-effective solutions to energy poverty compared to traditional fossil fuel infrastructure. Yet, renewables accounted for less than 4% of Africa’s total energy production in 2022, according to the International Energy Agency (IEA). 

Africa is one of the most vulnerable continents to climate change, despite contributing less than 4% of global greenhouse gas emissions. By embracing renewables, Africa can position itself as a leader in clean energy innovation. The global energy transition is accelerating, with renewables becoming increasingly cost-competitive. 

Successful renewable energy projects in Africa

Several countries in Africa have successfully embarked on the transition to renewables dominance:

Dam in Ethiopia
The Grand Ethiopian Renaissance Dam (GERD) will be the largest hydro power plant in Africa
  • Hydropower projects: the Grand Ethiopian Renaissance Dam (GERD) in Ethiopia is expected to be Africa’s largest hydropower plant once fully operational. It will have a full capacity of 6.45 GW and provide domestic electricity and exports to 13 countries. The 2,075MW Cahora Bassa hydroelectric dam in Mozambique supplies electricity domestically and exports to other countries in Southern Africa. The 250MW Bujagali Hydropower Plant in Uganda is an example of a successful public-private partnership in the renewables sector.
  • Solar projects: The 1.8GW Benban Solar Park in Egypt is the largest solar farm in Africa and reduces Egypt’s carbon emissions by two million tonnes annually. The 580MW Noor Ouarzazate Solar Complex in Morocco provides clean energy to over 1 million people and reduces Morocco’s carbon emissions by 760,000 tons annually.
  • Wind projects: the 310MW Lake Turkana Wind Power project in Kenya is the biggest wind farm in Africa. It meets 15% of Kenya’s electricity needs, powering over 1 million homes. The 120MW Ashegoda Wind Farm in Ethiopia supplies electricity to over 3 million people. The 30 MW Nouakchott Wind Farm in Mauritania meets 15% of Mauritania’s electricity needs.
  • Geothermal Projects: the 800MW Olkaria Geothermal Plant in Kenya is the largest geothermal power producer in Africa. It is a global leader in geothermal energy development and supplies 30% of Kenya’s electricity needs. The 150MW Corbetti Geothermal Project is under construction in Ethiopia.
  • Off-Grid and Mini-Grid Projects: the pay-as-you-go M-KOPA Solar platform provides affordable solar energy to over 1 million households in Kenya, Uganda, and Tanzania. The 1.3MW Nuru Solar Mini-Grids in the Democratic Republic of Congo provides reliable electricity to over 10,000 people in Goma.

The challenges that need to be overcome

Firstly, developed countries have pledged to provide $100 billion annually in climate finance to developing nations, but this promise has not been fully met. Africa alone needs $200 billion annually. Renewable energy systems often require advanced storage solutions and grid upgrades to ensure reliability. Many African countries lack the technical expertise and infrastructure to support these systems. Developed nations must fulfil their climate finance commitments and provide technical and financial support to help Africa transition to renewables.

Protest sign that reads Don't Cop out
The developed world is reneging on promises to fund the clean energy transition whilst pressuring developing countries to ditch fossil fuels

Secondly, the pursuit of renewable projects is also driving up the external debt burden. While renewables have lower operating costs, the initial investment required for infrastructure (e.g., solar farms, wind turbines, and grid upgrades) can be prohibitive for cash-strapped African governments. 

Lastly, growing the renewables sector should create jobs, stimulate local industries and attract foreign investment. The solar value chain, for example, includes solar panel manufacturing, installation, and maintenance. The reality is that most of the components for renewable energy are imported from China.

Is Africa being naive about renewable energy?

Critics of Africa’s all-in approach to renewable energy point to the hypocrisy of the developed countries. Their push for Africa to pursue the clean energy pathway is a case of do as I say, not as I do. 

Developed countries have historically been the largest emitters of greenhouse gases, contributing significantly to climate change. Many Western countries and financial institutions advocate for Africa to transition to clean energy, yet continue to invest in fossil fuels themselves. Africa is being pressured to restrict fossil fuel use under the guise of climate action, but these same resources are then extracted and exported to power economies in Europe, the USA and Asia. If the global polluters continue to use fossil fuels, how exactly will Africa’s renewable energy efforts shield them from climate change effects?

For example, Germany imported €180M worth of coal and coal briquettes in October 2024. The previous month, a newspaper article reported that Germany was “patiently waiting for South Africa to move away from coal”. The European Union’s biggest economy also offered South Africa around $20m to support efforts to move to wind and solar. It is worth noting that coal made up 30% of Germany’s energy mix in 2022.

Coal-plant polluting the atmosphere
Coal-fired power station in North Rhine, Westphalia, Germany

The World Bank and IMF discourage financing for African fossil fuel projects but an investigation revealed that some funding is going against their own green pledges. The campaign group Urgewald identified $3.7billion in trade financing from the World Bank in 2022 that likely indirectly funded oil and gas projects.

The push for clean energy in developing countries can be perceived as a way for wealthier nations to maintain their economic dominance while restricting the development pathways of poorer nations. This dynamic raises questions about equity and justice in global climate policy.

The case for a gradual energy transition

Developed countries historically built their economies on fossil fuels and they remain the dominant fuel source for energy production. In North America, natural gas, oil and coal accounted for 81.2% of energy production in 2022. The energy mix from oil, natural gas and coal for the same period was 83% in Asia and 70.5% in Europe. In the Middle East, natural gas and oil were 98% of energy production in 2022.

Africa’s energy demand is growing rapidly as populations expand and economies follow the industrialisation pathway. Many African countries are still working to provide reliable energy access to their populations. Coal and other fossil fuels are often seen as affordable and reliable options for rapid industrialization and economic development. Asking these countries to leapfrog straight to renewables without adequate financial and technological support can be seen as unfair, especially when developed nations continue to benefit from fossil fuels.

Coal is the cornerstone of South Africa's energy system, with more than 80% of its electricity generated from coal-fired power plants. Africa’s leading economy and most industrialised country accounts for 15.5% of the continent’s energy production. There are coal- fired power plant projects (expansion and new) underway in Mozambique, Malawi, Tanzania and Zambia, all of whom (except Malawi) have significant coal deposits

Africa can adopt a balanced energy mix, combining renewables with transitional fuels like natural gas and coal to meet immediate energy needs while building a sustainable energy future.

candle
For many Africans, the daily lives of electricity have been replaced by candles and darkness

Conclusion

From a long-term perspective, transitioning to clean energy today is the best option for Africa. Climate change is real and Africa has the most to lose if carbon emissions are not reduced.

However, Africa cannot continue to be subservient to the rest of the world. The dark continent, which has contributed the least to global carbon emissions and is the least developed, is the one that is making the ultimate sacrifice by exporting its fossil fuels to other parts of the world and staying in darkness. Make that make sense!

African countries are expected to borrow billions of dollars (mainly from developed countries) to invest in renewable energy projects that offset carbon emissions by developed countries? Africa is getting played. Given the failure of the carbon credits markets to adequately compensate Africa, developed countries must pay for the renewable energy projects as compensation.

We need to come to the negotiating table with a different approach and make commitments that are rooted in reality. African governments need to realise that their people need electricity today, not the promise of clean energy in 2030 and beyond. Balancing short and long term needs, with African people at the heart of decision-making, is how we will judge the success of the Dar es Salaam declaration.

making a fire
The Hadzabe tribe of Tanzania making a fire the traditional way. The inability to increase energy supply to meet demand is setting Africa back

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Comments

One comment on “Africa's energy conundrum: fossil fuels or darkness?”

  1. I am fascinated by the importance of energy access in sparking development in Africa and also did mu research on the externalities of production of electricity from decentralized minigrids in South Africa. Challenges such as low private sector investment surfaced and the need to ensure financial sustainability of this projects were also common. This conference in Dar Salam and further implementation of these discussions and negotiations should be the first of many to come. The sustainable development of Africa lies in the decisions we make as a continent by ourselves today.

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