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Publication - Global Grids, Money and Models: Unblocking Investment and Unlocking Africa’s Renewable Energy Future
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New renewable energy projects are taking longer to connect to the grid, and the cost of connecting wind and solar farms to the grid is also on the rise. In many countries, archaic grid systems are frequently touted as one of the biggest barriers to the decarbonisation of electricity. Renewable energy generation has seen extensive innovation and investment – now grids must follow suit.
Globally, transforming grids to meet our future needs is going to require USD 21 trillion of investment by 2050. This is needed to fund over 80 million kilometres of electricity lines by 2040, equivalent to the total amount installed over the last 100 years.
Increasing investment into grid systems is also an investment into socio-economic development – expanding access to affordable, reliable and sustainable energy for all, as highlighted by the United Nations’ Sustainable Development Goal 7, is a major priority. Across Africa, over 600 million people continue to be without access to reliable electricity.
As we work towards a global energy system that is ultimately inclusive at its core, it is vital that all people are empowered by access to electricity.
Throughout the African continent, nations are diverse culturally and economically.
Their renewable energy resources also vary considerably. There’s no one-size-fits-all. The most suitable grid infrastructure solution will depend on the unique conditions of each country and local areas within it. In some rural areas, a decentralised approach to electrification is best, with 27 million people in Africa already gaining access via mini-grids – small groups of connected generators independent from the national grid.
Following extensive conversations and workshops with industry experts globally, this report has identified an overarching opportunity for the private sector to help accelerate the build-out of national grid infrastructure across Africa and unlock even more funding.
The following themes have emerged: the need for greater collaboration between the public and private sector, the necessity to place people at the heart of any grid development, the opportunity to utilise advances in digital technologies, and the importance of creating policy environments that enable innovation and change.
We believe that together this has the power to catalyse the shift to a cheaper, cleaner and fairer energy system for everyone.
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