Joseph Nganga is the vice president for Africa at Global Energy Alliance for People and Planet (GEAPP) and Yemi Osinbajo is the former vice president of Nigeria and global advisor to GEAPP
Africa faces a unique situation in the global energy transition. With some 40% of its population lacking access to electricity, more than any other region it must balance the demands of energy security with the pursuit of a just and sustainable future.
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However, there are huge opportunities for tapping into the continent’s vast sources of solar and wind power. This includes battery energy storage systems (Bess), which offer a solution to renewable power’s variability by smoothing out supply fluctuations. But to realise this vision of widely available access to clean and reliable electricity, the continent must establish industries and strategies that help control its own energy destiny.
Boosting microgrids
Batteries are crucial to the clean energy transition. The International Energy Agency (IEA) describes batteries as the world’s fastest-growing energy technology that is commercially available, with lithium-ion battery costs dropping by more than 90% since 2010.
A non-negotiable element of the transition is modernising the power system’s backbone: electricity grids. This means a concerted focus to expand and revamp grids to accommodate new renewable energy sources and Bess, and build new transmission lines and distribution networks to connect power generation hubs with areas of demand. Only with this enabling infrastructure can Africa reap the full rewards of renewable energy development.
The World Bank and African Development Bank recently announced a bold plan to provide an additional 300 million people in Africa with electricity access by 2030, primarily through distributed renewable energy solutions — otherwise known as microgrids. Batteries can play a vital role in this plan. According to IEA, battery use is increasing in emerging markets and developing economies. Excluding China, nearly 400 million people in these countries are already gaining access to electricity through decentralised solutions like solar home systems and mini-grids with batteries.
Bigger, better Bess
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Recognising the continent’s energy interdependence, 10 African countries have joined the Global Leadership Council Bess Consortium which provides a platform for accelerated development of advanced energy storage solutions. The initiative sets a target of achieving five gigawatts (GW) of Bess commitments by the end of 2024 across Africa, Asia (excluding China), Latin America and the Caribbean.
This is a crucial step towards the broader goal of deploying 90GW worth of Bess across these regions by 2030, which can lower the average price of distributed renewable energy power from more than $0.5/kWh today, to below $0.25/kWh by the end of this decade.
By working together via the Consortium, African nations can unlock several advantages. Collaboration opens doors to larger-scale investments and funding opportunities for ambitious energy storage projects. This gives Africa an edge in attracting capital. By pooling resources and expertise in technology development, manufacturing, and procurement, African nations can drive down costs. This translates into more affordable Bess solutions and wider adoption.
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Rippling throughout society
Of course, rolling out Bess across Africa will be no easy feat. While it offers opportunities to enhance access to reliable and affordable clean energy and create new revenue models, inadequate regulatory frameworks, poor grid infrastructure and insufficient funding could impede its adoption. The Bess Consortium is playing a crucial role in overcoming these obstacles.
But Africa must persist with this task. Beyond its environmental impact, widespread adoption of Bess holds the key to establishing new manufacturing capabilities which translate into new employment opportunities and the growth of a green economy.
The World Bank has estimated that if South Africa established local production of battery minerals such as spherical graphite, lithium hydroxide, lithium carbonate and nickel manganese cobalt oxide — and invested in Bess integration — it could add R18.8bn ($1.1bn) and 25,500 direct and indirect jobs to the economy. South Africa is already a major miner of these critical minerals and through its automotive sector can leverage its existing relationships in the Bess value chain.
The benefits of Bess ripple throughout society. By ensuring a steady and reliable power supply, businesses can flourish and vital infrastructure, such as hospitals and schools, can operate optimally without disruptions. These advancements collectively uplift the quality of life for African citizens, paving the way for a greener future.
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