February 26, 2024

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Africa to Spend $100 Billion on Energy Transition, Nigeria to Invest N7 Billion on Power Project


CEM REPORT, ENERGY | Energy transition in Africa is estimated to gulp an estimated $100 billion annually between 2020 and 2040.

The project is expected to provide 90 million people access to electricity and clean energy.

According to the president of the African Development Bank (AfDB), Akinwumi Adesina, while giving his keynote speech at the Berlin Energy Transition Dialogue, the bank is investing in clean cooking technologies that lower emissions.


While making a case for natural gas exploration and production on the African continent, noted that the AfDB is driving investments in renewable energy technologies but has since stopped funding coal-based projects on the continent.

He stated that Africa accounts for 6% of global energy use and 3% of global electricity demand and is completely energy poor but has made important progress in terms of access to electricity, stating that the population with electricity access has increased from 44% to 56% between 2010 and 2020.

“Despite the progress, close to 600 million people do not have access to electricity, and about a billion Africans lack access to clean cooking energy. To meet SDG 7 goals, Africa needs to connect 90 million people annually to electricity in the next eight years and shift 130 million people from dirty cooking fuels every year. Africa’s energy transition is a huge task and will cost an estimated $100 billion annually between 2020 and 2040.”

Adesina maintained that clean energy and universal access to electricity is possible in Africa at almost zero emission if the continent harnesses its massive potential in renewable energy sources.

“Estimates show that if Sub-Saharan Africa (with the exclusion of South Africa) were to triple all its electricity consumption overnight using only natural gas, the additional carbon dioxide would only constitute 0.6% of global emissions.

“So, shifting from firewood, charcoal, and kerosene to the use of liquified petroleum gas for cooking will lower emissions and improve lives across the board.”

While calling on Germany’s support on Africa’s energy transition, Adesina added that the AfDB has partnered with Africa50 and the African Union to launch the Alliance for Green Infrastructure in Africa (AGIA) which seeks to raise $10 billion to accelerate Africa’s transition to net zero emissions.

“The AfDB is investing in clean cooking technologies that lower emissions. Our investment in the SPARK + Africa Fund supports the development and distribution of clean cooking energy solutions, including biomass stoves, advanced biomass fuels, liquified petroleum gas (LPG), ethanol and biogas systems. It will deliver clean cooking solutions for about 2 million households and reduce around 16 million tons of CO2 equivalent of carbon emissions.”

Meanwhile, the March 2023 Energy and Utilities Africa Outlook report has revealed major upcoming power projects in Nigeria, which are either hydropower, transmission, or natural gas based.

The projects which are estimated to cost about N7 billion should lower the nation’s rank as the highest generator importer on the African continent, according to the Energy Commission of Nigeria and the International Renewable Energy Agency (IRENA), in January 2023.

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Alternative power source has continued to trend in the country as the Nigerian government cannot provide the needed electricity needed for businesses and households, generating between 4000 to 5000 megawatts (MW) of power.

The outlined projects include;

Kebbi Solar Independent Power Plant

Project nature – Utility-scale solar

Location – Kebbi state, Nigeria

Project stage – Plan

Cost – $6 billion

Five Solar Plants in Nigeria 961 MW

Project nature – Utility-scale solar

Locations – Nigeria

Project stage – Ongoing

Cost – $1.5 billion

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