By Abbas Nazil
Africa’s energy sector is undergoing a transformative shift, balancing the dominance of fossil fuels with a rapidly growing investment in renewable energy.
The continent’s energy needs are largely met by traditional sources, with fossil fuels contributing to nearly two-thirds of its annual power generation.
However, a surge in renewable energy projects, backed by substantial funding, signals a promising transition toward a greener future.
Recent discoveries in the oil and gas industry have highlighted the ongoing relevance of fossil fuels in Africa.
In January 2024, the Mopane-1X well in Namibia unveiled a significant light oil reserve, with Portuguese multinational Galp and its partners estimating a potential 10 billion barrels of oil.
Shell continued this trend with its fifth oil find in Namibia’s Orange Basin, confirming deposits at the Enigma-1X well.
Meanwhile, Italy’s Eni made a notable discovery of light oil, gas, and condensates offshore Ivory Coast in March, while BW Energy and Panoro located oil reserves in Gabon’s DHBSM-2P well, estimated to hold 5 to 6 million barrels of recoverable oil.
Chevron also reported a major near-field oil discovery in Nigeria’s Western Niger Delta, with a production potential of up to 17,000 barrels per day.
Despite these advancements, the development of new coal and gas-fired power plants has seen a significant decline, with a 70% reduction over the past five years.
However, fossil fuels remain pivotal in meeting the continent’s energy demands, showcasing the persistent reliance on traditional energy sources even as global trends shift toward renewables.
On the other hand, Africa’s renewable energy sector is gaining unprecedented traction. The African Union has set an ambitious target of 300 GW of renewable capacity by 2030, up from an expected 72 GW in 2024.
In 2023 alone, investments in renewables reached a record $15 billion, marking a notable increase compared to the previous year.
Countries like South Africa, Egypt, Morocco, and Kenya are leading the charge, with substantial advancements in solar, wind, and geothermal energy projects.
South Africa’s burgeoning solar industry, in particular, has provided a stable and reliable solution to the country’s chronic power shortages.
Yet, the progress is uneven across the continent. While some nations pioneer renewable energy adoption, others lag significantly, emphasizing the need for widespread investment to achieve the African Union’s 2030 objectives.
Regional and international funding initiatives have bolstered this energy transition. South Africa’s Presidential Climate Commission, for instance, launched the Just Energy Transition Investment Plan, seeking nearly $98.7 billion to support clean energy projects between 2023 and 2027.
Senegal also secured $2.7 billion from the International Partners Group to transition toward a low-carbon economy.
At the global level, agreements at COP29 in Azerbaijan to triple climate finance for developing nations aim to raise $300 billion annually by 2035.
While these pledges mark progress, experts argue they fall short of addressing the vast energy and climate challenges in Africa.
As Africa navigates its energy future, the coexistence of fossil fuels and renewables underscores the continent’s complex energy dynamics.
Investments in both sectors reflect the urgency of meeting immediate energy demands while advancing sustainable solutions.
Addressing disparities in energy development and increasing support for underdeveloped regions remain critical to ensuring a balanced and inclusive energy transition.
