$100 billion investment needed annually to meet Africa’s electricity demand

Over $100 billion investment is needed annually to meet African electricity demand by 2030, the Director General, National Office of Hydrocarbons and Mines of Morocco (ONHYM), Amina Benkhadra, has said.

Ms Benkhadra disclosed this when speaking at the 2024 Africa Gas Innovation Summit (AGIS) in Abuja on Thursday.

She explained that Africa faces several challenges including a low electrification rate, low agricultural yields, a low integration rate, and a deficit in advanced structures.

This, according to her, heightens the need for investment in the region, a need for the development of innovations and new technology.

“And when we see the energy needs, it is important to highlight that to satisfy the increasing African electricity demand, a large investment of over $100 billion is needed annually in the power sector by 2030,” Ms Benkhadra said.

At the same time, she said Africa’s growing electricity concept requires substantial investments in power infrastructure up to $3 trillion by 2050.

“We can also see that with its huge reserves of gas, the current gas infrastructure project pipeline can equate to $245 billion, with more than 90 per cent in the concept stage. To unlock Africa’s energy future, we will need to develop major infrastructure projects both at the level of national and local projects.

“So we have to raise the ambitions of Africa’s energy strategy to increase the power generation capacity, to deepen the reforms of our energy governance, to encourage public and private partnership investment, mobilise those international investments that we have seen just before and contribute to development through technology and innovation approaches,” she said.

She added that Morocco would continue to work with Nigeria and other African countries to ensure the delivery of the Nigeria-Morocco Atlantic Gas Pipeline project estimated to cost over $25 billion.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said “The transition to a sustainable energy future demands that we embrace innovative technologies and practices that minimise environmental impact while maximising efficiency and productivity.”

This, according to him, entails investing in cutting-edge research, promoting the deployment of advanced gas technologies, and encouraging the adoption of best practices across the industry.

Mr Ekpo, represented by the Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella, said with its abundant natural gas resources, Africa stands at a pivotal juncture and Nigeria must play a leading role in that.

“We have the opportunity to leverage these resources not only to meet our energy needs but also to drive sustainable development. Technological innovation lies at the heart of our endeavour. From exploration and production to transportation and utilisation, advancements in gas technology are revolutionising the sector.

“Innovations in liquefied natural gas (LNG), CNG for vehicles, gas-to-power solutions, and carbon capture and storage (CCS) are just a few examples of how technology is reshaping the landscape.

“As policymakers, we must create an enabling environment that fosters innovation. This includes providing incentives for research and development, facilitating partnerships between industry and academia, and ensuring a robust regulatory framework that encourages technological advancement while safeguarding public and environmental health,” he said.

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He noted that effective policy frameworks are the bedrock of a thriving gas sector, and such policies should address the unique challenges and opportunities of the African context, promote transparency and accountability, and ensure that the benefits of the gas sector are equitably shared.

In his address, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd) said Nigeria is blessed with abundant natural gas resources of more than 290 CF, which can be leveraged to address the various challenges in the country, by providing access to electricity, clean cooking fuel, autogas, and free stock for other industries, thereby generating wealth and improving our well-being.

Mr Kyari, represented by Olalekan Ogunleye, the executive vice president, gas, power, and new energy at NNPC Ltd, said that Nigeria is at the forefront of orchestrating a sustainable energy future for itself and Africa, leveraging on gas, technology, and innovation.

“To underscore the critical role of gas in economic development and to maintain energy security, NNPC has embarked on several gas infrastructure projects, some of which already have been commissioned, such as the second phase of the AHL gas processing plant, the 300-million-score-per-day AHL gas processing plant, and the AHL-23 CTMS gas pipeline projects, all of which were recently commissioned by the President of the Federal Republic of Nigeria,” he said.