Hon. Kornelia Shilunga Deputy Minister of Mines and Energy Finding the perfect Energy Mix for Africa 2016/04/25

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1 Hon. Kornelia Shilunga Deputy Minister of Mines and Energy Finding the perfect Energy Mix for Africa 2016/04/25 1

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3 Outline Mandate Africa s Energy overview Energy Strategies for Africa Energy Mix for Africa 3

4 Africa s Energy Mandate Secure sufficient and reliable supply of sustainable energy support to the growing needs of the population. Redress inequalities in provision of energy supplies. Ensure that increases of energy supply and utilization are sustainable, competitive and economically efficient. Achieve a high level of investor confidence in the energy sector, resulting in fixed inward investment and economic benefits. Move towards the sustainable use of natural resources for energy production and consumption. 4

5 Africa Energy overview Many countries in Africa are making conscious efforts in becoming more energy independent and sustainable. African countries need energy to contribute to a better quality of life. Modern energy unlocks access to improved healthcare, improved education, improved economic opportunities and, even, longer life. African countries are seeking to be energy independent in order to reduce exposure to unreliable energy imports and attain a state of energy security. Solving any country s energy problem requires a combination of several energy sources towards achieving an efficient, reliable and sustainable energy generation to transmission and distribution processes while preserving the environment. 5

6 Africa has enormous potential for cleaner energy natural gas, biomass and hydro, solar, wind and geothermal power. Africa is characterized by power shortages, restricted access to electricity and dependence on biomass for fuel. Energy-sector governance and financial transparency will help bring light in the darkness (Africa Progress Report, 2015). African countries should deepen their international cooperation in achieving favourable investments in energy infrastructures and supply. Africa has an abundant reserves of fossil fuels and renewable assets that policy makers should explore and include in policy discussions and negotiations. With the turmoil of increasing population growth and urbanisation in African countries, demand for energy has increased tremendously putting pressure on the already existing infrastructures and supply. 6

7 Energy Strategies for Africa African countries should embrace change and work towards (COP 17, Durban, South Africa): Ensuring access to modern energy Enhancing and fostering clean energy investments. The above can be achieved through: Public -Private Partnerships (focusing on finances), Maximisation of the leverage of our interventions Enhance the level of regional integration/regional trade of electricity with other countries. 7

8 Regional integration can be achieved through interconnections with African bodies such as ECOWAS, NEPAD, COMESA, EAC, ECCAS, and other bodies. Transforming our energy needs towards renewable energies which are more low carbon Shifting towards developing small scale and short term energy projects while still planning on large and long term projects African countries should partner up with financial and technical institutions to acquire more funding and expertise to develop and implement energy projects in a win -win situation 8

9 Energy Mix for Africa There are currently five energy sources of electricity supply in Africa: Fossil fuel contributing about 40% South Africa has (38%), while Egypt, Algeria, Nigeria, Libya & Morocco has (46%) of fossil fuels respectively Hydropower making up about 32% - Africa has one of the world s largest proposed hydro scheme in the DRC called Inga with a generation capacity of MW. Inga is a priority project for a number of Africa development organizations, including the New Partnership for Africa s Development (NEPAD), the Southern Africa Development Community (SADC), East African Power Pool (EAPP) and ESKOM, Africa s largest power utility, among others. 9

10 Coal making up about 7% - South Africa remains one of the top ten coal producers in the world and the first in Africa, responsible for about three percent (3%) of the world coal usage followed by Zimbabwe. The country also has the world s ninth largest proven reserves of coal at 30.2 billion tons. Nuclear making up around 5% - South Africa is the only country in Africa with a commercial nuclear power plant. Koeberg nuclear power station has a generation capacity of more than MW Various renewable energies 16% - There is a combination of modern renewable energy technologies found in Africa with the highest deployment potential for These include biomass for cooking, hydropower, wind, and solar power. 10

11 These resources present a huge challenge to the continent as they are not evenly distributed and are limited. Without energy security and the appropriate mix of energy sources, most countries in Africa risk disappointing investors as well as their own citizens. Some energy sources need to be reduced and substituted by new modern clean energy ones 11

12 Conclusion In recent years the global demand for energy has escalated exponentially with pressure on power supplies resulting from rapid population growth and increased international economic production. African governments needs a huge capital outlay to invest in the energy generation sector to address their energy challenges. Developed countries with intensive technical know-how should engage in partnership in developing energy resources 12

13 THANK YOU/VIELEN DANK Tel Fax Private Bag Windhoek Namibia 13