Africa Would Need $190 Billion in Investment Per Year To Meet Energy Demand – Sobogun

In order to achieve its energy and climate goals and increase socioeconomic prosperity on the continent, Seyi Sobogun, Head, Capital Projects, Egbin Power Plc, a Sahara Power Group Company, has estimated that Africa will need to invest around $190 billion annually between 2026 and 2030.

Sobogun revealed the number while presenting a paper at the just-completed West Africa Power Pool Conference in Dakar, Senegal, with the title “Energy Mix – The Challenges with Funding and Deploying Commercially Viable Renewable Energy Solutions.”

To achieve Africa’s energy and climate goals, Sobogun stated, “Energy investment has to more than double this decade.” He cited the International Energy Agency’s Africa Energy Outlook for 2022.
By 2030, it would total over $190 billion annually, with two-thirds going to clean energy.

Sobogun stated that Africa would need about $2.64 trillion, or roughly the size of her GDP, to rely entirely on renewable energy sources for the generation of electricity by 2050, noting that natural gas would continue to be used in the continent’s energy production even though renewables were anticipated to increase from 21% of electricity generation in 2020 to 59% by 2030.

The infrastructure needed for the generating, network, and storage systems, as well as other enabling costs, he claimed, would also need to be funded in order to install the renewable energy sources.

Solar, wind, and hydropower generating are the most practical renewable energy options in Africa, according to Sobogun.
He emphasized that Nigeria’s capacity for photovoltaic electricity made solar energy more feasible for investors and customers.

According to him, the Lagos solar solution would have a significant beneficial influence on economic operations and will assist over 20,000 homes.

Investments in renewable energy in Africa have received funding from both public and commercial sources, including foreign donors, banks, and development finance organizations.

Africa received a total of $109 billion in governmental contributions in the energy sector between 2000 and 2019.
A little under $60 billion of that was allocated to the renewable energy industry.

Source: Oriental News Nigeria.

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