Africa’s energy landscape is undergoing a transformation, with SA emerging as a leader in the continent’s transition towards energy security, PwC’s Africa Energy Review 2024 report says.
According to the report, the continent’s clean energy generating capacity surged by 7.1% in 2023, setting the stage for a more sustainable future.
SA’s energy sector reforms have gained momentum after the landmark signing of the Electricity Regulation Amendment Act in August 2024. The legislation introduced reforms aimed at creating a competitive electricity market and modernising the sector. The country’s primary goal is to end load-shedding and secure long-term energy stability.
According to Andries Rossouw, PwC Africa Energy utilities and resources leader, Africa’s clean power generation is expected to increase to 25% by 2025.
“This growth will be driven by significant advancements in solar, wind and hydro-generated power. SA dominates the region’s renewable energy investments, particularly in solar and wind,” he said.
Africa’s clean power generation is expected to increase to 25% by 2025.
Despite this progress, challenges persist. Ageing fossil fuel plants and weather dependent renewable energy sources remain concerns. Rossouw emphasised the need for continued investment and collaboration to meet growing energy demands and transition to sustainable energy systems.
Other regional developments include Egypt’s construction of the 4.8GW El Dabaa nuclear power plant, Uganda’s progress on the East African crude oil pipeline, and Senegal and Mauritania’s Greater Tortue Ahmeyim liquefied natural gas project. Additionally, Mozambique’s Mphanda Nkuwa hydropower project and Namibia’s oil and natural gas discoveries, along with its Green Hydrogen initiative, are poised to drive energy growth on the continent.
Julie Rosa, PwC SA energy utilities and resources associate director, highlighted the importance of regulatory reforms, public-private partnerships, and investment in infrastructure and technology. Rosa noted that these factors were critical for advancing Africa’s energy landscape.
Roelof van Huyssteen, PwC energy law and strategy senior manager, emphasised that maximising value from fossil fuels while transitioning to renewable energy was crucial for Africa’s economic growth.
“This balanced approach will ensure the continent’s energy needs are met while promoting sustainable development,” Van Huyssteen said.
The report highlights that technological advancements, such as artificial intelligence (AI)-driven energy management, will also play a vital role in advancing Africa’s energy landscape. These innovations will enhance energy efficiency, reliability and access, paving the way for a resilient and sustainable energy future.
“As Africa continues its journey towards energy security, SA’s progress serves as a beacon of hope. With collaboration, investment, and innovation, the continent can overcome its energy challenges and achieve sustainable growth,” according to the report.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.