The Africa50 initiative has committed 100 million US Dollars to the International Renewable Energy Agency’s (IRENA) energy transition project.
IRENA and the Africa50 group signed this agreement at the OPEC Fund for International Development’s forum in Vienna Austria.
According to the agreement, the Arica50 group, a Pan-African infrastructure investment and asset management group pledges to support the Energy Transition Accelerator Financing (ETAF) which is run by IRENA.
The ETAF platform aims at mobilizing funds for projects in energy transition globally. ETAF programs are also run in most African countries hence the need for an African investment and partnership in ETAF projects.
The agreement between Africa50 and IRENA on the ETAF was signed by Mr. Francesco La Camera the Director-General of IRENA and Mr. Alain Ebobissé, the CEO of Africa50. The two identified the need for collaboration on energy transition projects in Africa.
Sub-Saharan Africa has a high incidence of energy poverty with most households in Sub-Saharan Africa not having access to electricity and clean energy.
According to Mr. La Camera, the Director General of IRENA, data shows that the lack of electricity in Sub-Saharan Africa has increased.
The Need to Tackle Electricity Issues And Renewable Energy
Mr. La Camera stated that there is a need to tackle the electricity issues and renewable energy is a good direction to follow. Identifying climate-safe solutions that can help provide electricity that is clean and accessible is key to Africa’s energy transition.
Comments from the CEO of Africa50 also show the importance of the ETAF project implemented by IRENA. According to Mr. Alain Ebobissé, Africa must pay attention to reducing carbon emissions as it concentrates on economic development.
Mr. Alain Ebobissé reiterated the need for Africa to invest in clean energy that helps to reduce emissions which is an important aspect of SDG 7. To ensure Africa meets its obligations according to SDG7 infrastructure must be put in place to meet the net-zero emissions target.
Africa50, a Pan-African group established by African governments in collaboration with the African Development Bank (AfDB) aims to bridge the infrastructure gap in Africa through the facilitation of projects throughout Africa.
The project scope of Africa50 is medium-scale to large-scale with specific emphasis on the impact of the project on development. The organization also pays attention to the ability of their projects to deliver returns to their investors with less risk.
Africa50 Partnered Projects
Africa50 partners have supported several projects in Africa, such as the Volobe Hydropower Plant with an investment of 100 million Euros. The project in Volobe is expected to increase electricity generation by 20% and create about 1000 direct jobs.
The Azura-Edo project in Nigeria provides electricity through a large privately financed independent power plant. In Egypt Africa50 invested in a solar plant that helped to reduce Carbon emissions by 350,000 tons and supplied 420,000 households with clean electricity.
Other projects supported by Africa50 are in the fields of information communication technology such as the Kigali Innovation City in Rwanda, the Poa Internet project, and the PAIX Data Center in Accra.
IRENA created the ETAF platform as a multi-stakeholder platform that aids in advancing global energy transition. The ETAF has been able to 1.25 billion US Dollars from six institutions with more to be announced.
Through the US$1.25 billion received from partners, the ETAF platform has invested in 1.5 gigawatts of renewable energy projects which will be completed by 2030.
Moreover, IRENA has also invested in projects that are geared towards meeting the National Determined Contributions (NDCs) of the SDG. For a project to be approved as an ETAF project, the project must meet some conditions set by ETAF.
The geographic scope of the project must be in IRENA member countries. Renewable energy and decarbonization technologies must be employed, with the project aligning to climate change conditions and contributing to the NDCs and SDGs.
The commitment of Africa50 to aid the IRENA in implementing more ETAF projects is a step in the right direction to ensure African investors contribute to the development of clean energy in Africa. These investments will help to reduce the clean energy gap in developing countries, and also provide some economic gains in the form of employment and improve the standard of living of Africans.
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