n o i t i s n a r a T c y i r g f r A e n n E i Edited by Thokozani Simelane and Mohamed Abdel-Rahman Energy Transition in Africa First Published in 2011 by the Africa Institute of South Africa PO Box 630 Pretoria 0001 South Africa ISBN: 978-0-7983-0294-4 © Copyright Africa Institute of South Africa 2011 No part of this publication may be reproduced, stored in a retrieval system, or trans- mitted by any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission from the copyright owner. To copy any part of this publication, you may contact DALRO for information and copyright clearance. Any unauthorised copying could lead to civil liability and/or criminal sanctions. 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Cover design: Berekile Pila Projects +27 (0)12 346 2168 Design, layout and typesetting: Berekile Pila Projects +27 (0)12 346 2168 Cartography: Elize van As, Africa Institute of South Africa Copyediting: Ken McGillivray Proofreading: Clarity Editorial Printing: Bhubezi Printers Contents Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi About the Editors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xii About the Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Abbreviations and Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix Mohamed Abdel-Rahman and Thokozani Simelane An Overview of Renewable Energy Production in Africa . . . . . . . . . . . . . . . xix Africa’s Role in Renewable Energy Supply . . . . . . . . . . . . . . . . . . . . . . . . . . .xx Investment Approach Required to Migrate to a New Energy Paradigm . . . . xxi Contents of this Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxii Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii 1 Energy revolution in Africa and its future potential in supplying energy to the world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Kamelia Youssef and Shingirirai Mutanga Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Evolution of Africa’s Energy Statistics from 1973 to 2008 (2009) . . . . . . . . . . 2 Status of Africa’s Energy Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Advantages of Using Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Status of Africa’s Energy Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Role of Africa in Supplying Energy to the World . . . . . . . . . . . . . . . . . . . . 7 Energy Transition in Africa iii Contents Renewable Energy Technologies as Drivers of Africa’s Energy Supply . . . . . 7 Hydropower in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Biomass Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Wind Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Solar Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Nuclear Energy in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 2 Africa’s nuclear power potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Its rise, recession, opportunities and constraints Mojalefa Murphy Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Basic Science and Technology of Nuclear Power . . . . . . . . . . . . . . . . . . . . . 23 Nuclear Fuel Cycle and Uranium Enrichment . . . . . . . . . . . . . . . . . . . . . . . . . 26 The Uses of Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Africa’s Potential to Exploit Nuclear Power . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Nuclear Industrial Development in South Africa: 1950 to 1970 . . . . . . . . . . . 33 Ratcheted Up Nuclear Industrialisation and Weapons Development: 1970 to mid-1980s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Rapid Nuclear De-industrialisation: Mid-1980s to Date . . . . . . . . . . . . . . . . . 37 Post-Apartheid Nuclear Vision Defi ciency Disorder . . . . . . . . . . . . . . . . . . . .41 Sabotage of African Nuclear Power Potential . . . . . . . . . . . . . . . . . . . . . . . . . 44 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 3 State of energy infrastructure in Africa . . . . . . . . . . . . . . . . . . . . . 55 How much investment is needed to migrate to renewable energy? Walid El-Khattam, Salma Hussein and Mohamed Abdel-Rahman Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Overview of Africa’s Sub-Regions and Power Pools . . . . . . . . . . . . . . . . . . . 56 Africa’s Current Energy Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Non-Renewable Energy Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 iv Energy Transition in Africa Contents Overview of Africa’s Electricity Accessibility and Infrastructure . . . . . . . . . 71 Electricity Infrastructure in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Scaling Up Renewable Energy in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Current Renewable Energy Applications in Africa . . . . . . . . . . . . . . . . . . . . . 80 Barriers to Renewable Energy Development in Africa . . . . . . . . . . . . . . . . . . 83 Financing Renewable Energy in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 4 Human capital requirements for sustainable renewable energy production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Timothy Simalenga Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Overview of Existing Training Needs and Skills Development . . . . . . . . . . 102 Long-term Education and Training Strategy for Renewable Energy Engineers and Technicians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Human Capital Development through Formal Training . . . . . . . . . . . . . . . . 106 Analysing a Project for Renewable Energy Training and Development . . . . 107 Human Capital Development through Informal Training . . . . . . . . . . . . . . . 107 Building a Sustainable Human Capital through Informal Training . . . . . . . . 109 Informal/In-service Training and Human Capital Opportunities in the Renewable Energy Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110 Human Resource Development for Research and Renewable Energy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Conclusion and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 5 Investment requirements for Africa to lead in renewable energy production and distribution . . . . . . . . . . . . . . . . . . . . . . . 123 Salma Hussein, Walid El-Khattam and Mohamed Abdel-Rahman Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Electricity Industry Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 Cash Flow in the Electricity Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Types of Electricity Sector Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Regional Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Energy Transition in Africa v Contents Nature of Electricity Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Bottlenecks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Prerequisites for Resource Mobilisation to the African Continent’s Energy Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 Steps to Establish an Investment-Conducive Environment for Large Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Small and Medium Enterprises in Energy . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Financing Approaches in Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Egypt: A Case Study of Renewable Energy Projects Development in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141 6 Africa’s technology options for renewable energy production and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Bamikole Amigun, Martin Kaggwa, Josephine Musango, Shingirirai Mutanga, Thokozani Simelane and William Stafford Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Africa’s Renewable Energy Potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 State of Renewable Energy Technologies in Africa . . . . . . . . . . . . . . . . . . . 146 Requirements for Successful Take-off of Renewable Energy Technologies in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Conversion Technologies for Renewable Energy Resources Available in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Industrial Ecology of Renewable Energy Technologies – A System Dynamics Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 7 Conclusion and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . .173 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 vi Energy Transition in Africa Foreword Th e prevailing period of energy transition provides a myriad development opportunities for Africa. To capitalise on the opportunities presented, Africa needs to understand its strengths and capabilities of the role it is going to play in a global economy driven by renewable energy sources. Africa has the advantage of migrating to renewable energy sources, and thus becoming a major supplier of renewable energy to the world. Unlike most developed countries, Africa has a minimal investment locked into fossil-fuel-based energy sources. It is naturally endowed with various sources of renewable energy and thus has an opportunity to lead the fi eld in the provision of renewable energy. But to achieve this Africa needs to develop or acquire technologies that will be relevant and aff ordable, design strategies that will guide the process of migrating to renewable sources of energy, reduce high levels of illiteracy among the users of the technologies to be deployed, and invest in the infrastructure that will be required to migrate to renewable sources of energy. Th is book discusses all these matters and is thus of interest to read- ers in all African countries, and indeed further abroad. It also provides an interesting account of how Africa has lost out on nuclear energy. Th is raises a strong warning that Africa must not step aside when the rest of the world is developing its capacity in search for alternative sources of energy. While Africa’s inability to benefi t from its large deposits of uranium can be attributed to the high cost of nuclear power, a closer examination of the development of Africa’s nuclear capabilities reveals considerable social and economic dynamics that relentlessly undermine its scientifi c and technological advancement. At this crucial moment in energy transition, I trust that Africa is not going to repeat the mistakes of the past. I have found the contents of this book interesting in that they highlight Africa’s strength in participating in renewable energy developments, the scale of investment needed, human capital require- ments and the technological options that are available to Africa. I would like to thank the Africa Institute of South Africa for con- tributing to the development of knowledge about and for Africa, and I Energy Transition in Africa vii Foreword encourage it to continue to do so, especially using the innovative model of working with African scholars across the continent and the diaspora to make the vision of the twenty-fi rst century an African century. I hope that academics, policy makers and the public will fi nd this publication a useful reference in the course of their work or general reading interests. Naledi Pandor Minister of Science and Technology South Africa viii Energy Transition in Africa Preface Th e world’s energy consumption and demand is increasing exponen- tially. In 2007, the world consumed an estimated 18 trillion kWh of generated energy. By 2030, the demand for energy will have increased to 31 trillion kWh, of which an estimated 20 trillion will be generated from renewable sources. Of critical concern is that the world’s supply of fossil fuels and its reserves are decreasing, and locating new reserves has become diffi cult. Th us it is imperative to explore renewable sources of energy. Th e need to migrate to renewable energy is further driven by people’s desire and commitment to halt climate change and its eff ects. Th is shift in energy sources pose both a challenge and opportunity for Africa, as it will need substantial investment in infrastructure, tech- nology and human capital to be able to catch up with the international trends of generating and supplying energy from renewable sources. Africa has the advantage that it is endowed with abundant sources of renewable energy, which, if fully exploited, can place the continent at the forefront of the world’s energy production and supply. An indication of the interest in Africa, is that the Desertec Foundation intends to use solar power generated in Africa to supply Europe with 15 per cent of its energy needs through an investment of €400 billion from 2011 to 2031. While this appears to hold hope for Africa, the reality is that the continent still has a huge shortage of energy. Only 34 per cent of Africa’s population have access to modern forms of energy, with large disparities between countries, and between urban and rural areas within coun- tries. Th e energy supplies will have to increase at least four- to sixfold by 2025 for the continent to meet its energy needs. Currently, 30 African countries experience chronic blackouts. Th erefore power shortages are the single most debilitating on Africa’s economic growth. Th e most severe challenges facing Africa with regard to energy gen- eration include inadequate development of the energy infrastructure, high capital costs attached to energy projects, the lack of fi nance and investment in energy projects, and lack of technical expertise. Solving these problems will require effi cient planning, investment and effi cient Energy Transition in Africa ix