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The AU is looking to drive initiatives through key partnerships Energy efficiency in Africa has re-emerged as a key priority for countries on the continent, with the aim of reaching a 50% increase in energy productivity by 2050 and 70% by 2063. At COP29 in Baku, Azerbaijan in November 2024, the African Union (AU) launched the African Energy Efficiency Programme (AEEP) and the African Energy Efficiency Alliance (AEEA) geared toward reaching those energy efficiency numbers. And in December, the AU and the European Union (EU) announced a joint partnership to “forge a continental approach to a fully integrated, competitive, and harmonised energy market that will improve energy access for all African citizens and accelerate the sustainable development of the continent.” Three initiatives underpin this partnership: The African Single Electricity Market (AfSEM), The Continental (Power System) Master Plan (CMP), and The African Energy Efficiency Strategy (AfEES) and Action Plan, currently under development. AfEES and Action Plan is led by the African Energy Commission (AFREC), in collaboration with the Regional Centres for Renewable Energy and Energy Efficiency (CREEE) and other energy stakeholders, and supported by the European Union’s Global Technical Assistance Facility for Sustainable Energy (EU GTAF). The AU said that energy efficiency is central to Africa’s efforts to enhance energy access, reduce greenhouse gas emissions (GHGs), lower energy costs and foster a clean energy transition. Projects to serve this ambition are starting to emerge. Senegal project to drive energy efficiency in lighting lamps On Monday (13 January), the African Development Bank (AfDB) announced that it has approved an €8,51 million (around $8,7m) loan for Senegal’s “Programme to Promote Efficient Lighting Lamps” (PPLEEF). The AfDB describes the PPLEEF as a trailblazing initiative to advance energy efficiency in the country. “This marks the Bank’s first fully dedicated demand-side energy efficiency investment project, setting a new benchmark for sustainable development across Africa,” said the AfDB. The PPLEEF initiative is poised to transform energy usage in Senegal, benefitting nearly 700,000 households and 80,000 small businesses across Dakar, Thiès and Diourbel regions. By replacing outdated incandescent bulbs with modern LED lighting, the project will deliver substantial energy savings, reduce electricity costs and significantly cut carbon emissions, said the AfDB. Reducing energy demand Central to the initiative is its innovative on-bill financing model, which enables consumers to repay the cost of the new lighting through monthly energy savings. “This model ensures the programme is both accessible and affordable for all participants.” The AFDB said that beyond its immediate benefits to Senegal, the PPLEEF is a replicable and scalable model for other African nations. Jalel Chabchoub, the AfDB’s Chief Energy Efficiency Officer in the Renewable and Energy Efficiency Department, highlighted the broader significance of the initiative: “The PPLEEF is a milestone for Senegal’s national commitment to sustainable development and universal energy access. “This programme will reduce energy demand and consumption during peak hours, and the on-bill financing approach will be used subsequently to introduce more efficient appliances. As the first phase of Senegal’s general lighting programme, PPLEEF will pave the way for a more sustainable energy future not only in Senegal but across Africa.” The AFDB said that beyond its immediate benefits to Senegal, the PPLEEF is a replicable and scalable model for other African nations. Drive to increase energy efficiency across sectors in Africa By reducing energy consumption, the programme delays the need for costly investments in new power plants, particularly during periods of peak demand. “This project will have a positive impact on household and small business budgets by reducing their energy bills,” said Mame Coumba Ndiaye, General Director of Senegal’s Agence pour l’Économie et la Maîtrise de l’Énergie (AEME). “It will relieve the grid with annual electricity savings of more than 189GWh. These savings will be redirected to reinforce electricity availability and improve access for the population,” she said. The AU said AfEES lays out a roadmap for implementing energy-efficient practices across key sectors, including power, industry, agriculture, buildings, transport and clean cooking, as well as a clear pathway to achieving the AU’s ambitious energy productivity targets. Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the African Union Commission, said at COP29: “We are currently mobilising stakeholders to implement the African Energy Efficiency Strategy and Action Plan. Through this strategy, we aim to enhance Africa’s energy productivity by 50% by 2050 and 70% by 2063, in alignment with the global target to double energy efficiency by 2030.” Energy efficiency means energy savings According to the African Energy Commission (AFREC) savings assessment report, African countries could save up to 175TWh (equivalent to over 80 new 500MW power plants) by 2040 through appliance market transformation initiatives. These savings are based on market transformation efforts targeting lighting, cooling appliances, motors, and transformers. Dr. Abou-Zeid underlined that it will require collaboration across governments, businesses, development partners, academia, and civil society. “Realising these goals requires both technical expertise and financial resources. That is why we are launching the African Energy Efficiency Alliance (AEEA), which will serve as a collaborative platform for knowledge sharing, advocacy, research, and fund mobilisation for energy efficiency programs across Africa.” The International Energy Agency’s (IEA) Energy Efficiency 2024 report pointed out that average annual energy intensity improved in Africa by around 1.6% on average in 2022-2024, more than twice the average annual rate in 2010-2019, enhancing efficiency across the continent. The report said that while progress slowed during COVID-19 due to lower economic growth in 2020 and rebounding energy demand in 2021, the continent has seen efficiency recover since 2022. The AU-led initiatives plan to improve on this progress. Partnerships crucial in attaining energy goals The AEEA aims to unite a wide range of stakeholders from regional energy centres and economic communities to governments, development partners, businesses, NGOs, and research institutions to accelerate Africa’s transition towards energy-efficient systems. EU Directorate-General for International Partnerships Carla Montesi reiterated the urgency of global collaboration to meet the energy efficiency targets. “The EU, in partnership with AFREC, is launching the African Energy Efficiency Alliance to contribute to the doubling of global energy efficiency improvements by 2030, as called for by COP28. This platform is crucial for fostering collaboration and increasing technical and financial commitments to support Africa’s energy transition.” Africa faces significant energy challenges, with over 600 million Africans in particular in rural areas lacking access to electricity. Rapid urbanisation and population growth will triple the demand for electricity alone by 2040, while at the same time there is a huge untapped potential for renewable energy and energy saving on the continent. |
