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Africa Energy Outlook 2023

Renewables as the pathway to energy prosperity

Africa is a continent rich in energy and related resources, but hindered by widespread energy poverty. The Africa Energy Outlook 2023 delves into this paradox that the African continent presents. This comprehensive report is a roadmap towards a brighter future, focusing on charting Africa's energy landscape as it transitions towards renewables and cleaner energy sources.

Africa Energy Outlook 2023 podcast

New podcast release! In this episode, listen to Deloitte’s industry leaders discuss the latest insights from the Africa Energy Outlook 2023, and the key gaps to bridge to achieve Africa’s 2030 energy goals.

Africa Energy Outlook 2023 podcast

 

Accessibility, affordability and sustainability are key to achieve Africa’s energy goals

 

The transition to cleaner sources of energy, such as to natural gas, hydropower, wind, solar, modern biogas, and green hydrogen, presents an opportunity to bridge the developmental gap left by decades of energy poverty. Perhaps as importantly, access to cleaner sources of energy could also present the much-needed impetus to building new industries that attract new players, ecosystems, skills and human capital, technology and access new markets.

 

What’s underway – A snapshot of six African economies’ plans and ambitions

 

Included in the report is a snapshot of six African economies’ specifically looking at their energy transition strategies, resource endowments, how future energy mixes are envisioned, as well as the intended steps to achieve these energy mixes. Countries included are Mozambique, Angola, Nigeria, Côte d’Ivoire, South Africa and Morocco.

Key gaps to bridge Africa’s 2030 energy goals:

Africa’s universal energy access goals will require a sufficient increase in modern primary energy supply to meet rising demand estimated to rise by a third.

The traditional use of bioenergy for cooking will require a shift towards modern energy sources.

By 2030, solar and wind will likely together will need to provide 27% of power generation, with electricity demand increasing by 75%. 40% of the annual energy investment would need to be dedicated to solar, wind, and other low-carbon sources.

Increasing Africa’s capacity to achieve universal access to energy by 2030 would likely require at least US$25 billion per year, specifically in distribution networks, power generation plants and off-grid solutions.

Africa has vast natural gas potential with recent major discoveries. These are mostly undeveloped, so significant greenfield spending (US$375 billion over the next decade) would be required.

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