Africa Energy Outlook 2022

World Energy Outlook Special Report: Africa Energy Outlook 2022

Overview

The International Energy Agency (IEA) has been working on African energy issues for over two decades. This latest edition of the Africa Energy Outlook, part of the World Energy Outlook series, provides a comprehensive analysis of the energy sector in Africa, focusing on the challenges and opportunities for a sustainable and modern energy future.

Key Data and Insights

• Investment Needs: Achieving universal access to modern energy services by 2030 requires an annual investment of USD 25 billion, equivalent to the cost of building one liquefied natural gas terminal.
• Sustainable Africa Scenario: In this scenario, all energy-related development goals are met, including universal access to modern energy services and the full implementation of African climate pledges.
• Energy Mix: Solar energy is highlighted as a key pillar for building Africa's new energy economy, alongside energy efficiency.
• Fossil Fuels: Despite high current prices, the report notes the declining demand for fossil fuels as the transition to clean energy advances.
• Opportunities: African countries can leverage areas such as critical minerals and green hydrogen to hedge against new risks and seize emerging opportunities.

Challenges

• Covid-19 Impact: The pandemic has pushed more than 20 African countries into debt distress and reversed progress on expanding access to electricity.
• Energy and Food Prices: The war in Ukraine has led to violent increases in energy and food prices, exacerbating the situation in developing countries.
• Data Gaps: Africa faces vast gaps in reliable data and statistics, making it difficult to fully understand the energy sector's development.

Policy Recommendations

• International Support: Stronger national institutions and clear strategies are needed to stimulate necessary investments, supported by international cooperation.
• Negotiations: The report aims to aid governments in preparing for international negotiations, particularly at the COP27 Climate Change Conference in Egypt.

Stakeholders

• Authors: The report was prepared by the World Energy Outlook team in collaboration with various directorates and offices of the IEA, led by Laura Cozzi.
• Contributors: Key African experts from various organizations provided data, analysis, and guidance.

Conclusion

The report underscores the importance of addressing energy poverty and climate change in Africa, advocating for a more modern, clean, and affordable energy future. The IEA hopes this report will help African governments and the international community build a better energy future for all Africans.