PwC has anticipated that clean sources, fuelled by steady investments in solar, wind and hydropower, would account for 25 per cent of Africa’s power mix by 2025,

It said despite an increase in renewable capacity, actual clean energy output has struggled to match capacity growth, with last year seeing less than a one per cent increase in power generation from the previous year.

PwC Africa Energy Utilities and Resources Leader, Andries Rossouw, said this during the media launch of PwC’s new report, titled ‘Africa Energy Review 2024: Driving energy access through collaboration’.

Stakeholders have highlighted the need for investment in infrastructure and technology to enhance grid efficiency, energy storage and resilience. Rossouw mentioned that power generated over the last decade has increased by 12.5 per cent, which is four times less than the increase in capacity.He said the trend is due to ageing fossil fuel plants, particularly coal-fired power stations with declining availability factors and weather-dependent non-dispatchable solar PV.

The report mentioned that across Africa, approximately 600 million people do not have access to reliable power and that while the continent contributes to the global need for energy, there has been a considerable shift to address the energy needs.

PwC South Africa Energy Utilities and Resources Associate Director, Julie Rosa, said the African energy sector is undergoing momentous change, driven by shifts in project structures, market dynamics and regulatory environment. She called for a strong push for greater collaboration across borders, public-private partnerships and regulatory reforms, which are crucial for attracting investment and fostering innovation.

“This way, large-scale projects like Morocco’s Noor Solar Complex and fostering energy security through competitive markets are possible,” she said. PwC Africa Oil and Gas Leader, Pedro Omontuemhen, said despite significant advancements across regions in Africa, challenges remain in infrastructure and financing, underscoring the need for continued investment and collaboration to meet growing demands and a transition to sustainable energy systems.

“Several factors have caused the global energy landscape to shift dramatically in recent years with the post-pandemic recovery, geopolitical tensions and climate challenges being among them and these have made Africa’s energy poverty more poignant. However, we are seeing greater commitments to leveraging renewable energy resources more heavily globally and in Africa,” he said.