Energy

Africa in 2024 exemplified resilience and ambition, with strides in renewables, infrastructure development, and global energy partnerships. (Image source: Synergy Consulting)

According to Synergy Consulting, 2024 was the year that Africa showcased its potential as a critical player in the global energy market and highlighted its evolving energy landscape in light of the dual pressures of rising energy demand and climate goals

Renewable energy gains momentum

Renewable energy investments across Africa surged in 2024, driven by growing international interest and local commitments to clean energy. The solar sector saw notable consolidation as companies merged to scale operations and foster innovation. Countries like South Africa and Morocco led the way with major solar and wind projects, emphasising energy security and sustainability. Despite this progress, clean energy investments remained a fraction of what is required to meet the continent’s development goals.

Advancements in battery energy storage systems (BESS)

Battery Energy Storage Systems (BESS) are redefining their role within solar energy infrastructure, particularly in behind-the-meter installations. Previously regarded as supplementary backups, batteries are now central to efficient energy management. By leveraging advanced algorithms to forecast energy usage, batteries are used strategically to align energy supply with demand, optimising consumption patterns.

This evolution improves solar system performance and supports grid stability by mitigating peak load stresses. Additionally, standalone BESS is emerging as a cornerstone in utility-scale renewable energy developments. These systems are increasingly deployed to address electricity supply challenges, enhancing the integration of renewable sources while fostering partnerships between public and private entities. This shift highlights the growing importance of BESS in creating resilient, flexible energy systems.

Expansion of gas infrastructure

Natural gas emerged as a focal point for African energy strategies. Africa's gas-to-power market made significant strides in 2024, with increased investments in infrastructure and regional collaborations. Major liquefied natural gas (LNG) projects in Nigeria, Mozambique, and Senegal drove the sector’s growth, supplying both domestic grids and exports to Europe amid global energy shifts. Improved pipelines and storage facilities enhanced distribution, while public-private partnerships boosted the reliability of power supply in underserved regions.

This evolution emphasised gas as a transitional energy source, bridging the gap between fossil fuels and renewables while supporting industrial growth and energy security across the continent.

Innovations and regional cooperation

In 2024, Africa’s power pools – Eastern Africa Power Pool (EAPP), West African Power Pool (WAPP), and Southern African Power Pool (SAPP) – have advanced significantly in promoting regional electricity integration and market development:

1. Eastern Africa Power Pool: The EAPP has expanded its cross-border energy trade and refined its operational framework to facilitate real-time electricity exchanges. Leveraging renewable energy potential, it integrated markets across its member states, allowing surplus energy from renewable sources like wind and geothermal to be traded efficiently. This helped mitigate shortages in neighboring countries and reduced dependency on high-cost fossil fuels during peak demand periods;

2. West African Power Pool: The WAPP focused on bolstering regional grid infrastructure and implementing a day-ahead power market. This market structure encouraged competition among utilities and independent power producers (IPPs), driving down consumer energy costs. Significant investments were made in interconnections, enhancing the reliability of electricity supply across member countries while expanding access to cleaner energy sources;

3. Southern African Power Pool: SAPP witnessed increased participation from private sector IPPs, particularly in renewable energy. New interconnection projects improved cross-border electricity flows, ensuring better utilisation of surplus power in countries with higher generation capacity. SAPP also introduced new market platforms that allowed for shorter-term contracts, fostering flexibility and resilience in addressing power imbalances.

Overall, these developments have strengthened regional cooperation, improved energy access, and encouraged investments in sustainable energy solutions, laying the groundwork for a more unified and resilient power sector across Africa.

The road ahead

While progress in 2024 was encouraging, Africa's energy future requires accelerated investment and policy reforms. Strengthening public-private partnerships, fostering innovation, and ensuring equitable energy access will be critical to building a sustainable and inclusive energy landscape for the continent.

In conclusion, Africa in 2024 exemplified resilience and ambition, with strides in renewables, infrastructure development, and global energy partnerships. However, addressing financing gaps and improving energy equity remain urgent priorities.

This article is authored by Synergy Consulting IFA.

COP29 concluded with the Baku Finance Goal agreement. (Image source: UNFCCC)

There has been a mixed response to the outcome of COP29 and the Baku Finance Goal (BFG) that was announced in the final hour

There was plenty of drama in the conclusion of the 29^th edition of the United Nations Climate Change Conference, held in Baku, as international stakeholders representing 200 countries vied to hammer out a deal that would continue the energy transition and support developing countries in their battle against climate change.

The conference opened under headlines dominated by Ilham Aliyev, the President of country host Azerbaijan, who described oil and gas as a “gift from God” and criticised misinformation spread by western media, charities and politicians. From this point, persistent protests from climate demonstrators and campaigners set the background clamour for the event as it ran through the agenda, as the spotlight began to focus the eventual deal that would mark its success, or otherwise.

As the debate began in earnest, the temperature began to rise and at one point in the proceedings it appeared as though a deal might not be reached following the breakdown of discussions and dozens of nations walking out.

However, this tumultuous finale, delegates returned to the room and a period of intense diplomacy saw a new deal struck in the dying hours of the conference

Over the line in Baku

The culmination of the debate was announced in the form of the BFG.

This represents a commitment to channel US$1.3 trillion of climate finance to the developing world each year. At its core is a target for developed countries to take the lead on mobilising at least US$300bn per year for developing countries by 2035.

In addition, there was a conclusion for the Article 6 negotiation on high integrity carbon markets under the UN. According to the COP29 announcement, financial flows from complaint carbon markets could reach US$1 trillion per year by 2050 and have the potential to reduce the cost of implementing national climate plans by US$250bn per year.

“We have unlocked one of the most complex and technical challenges in climate diplomacy,” said COP29 lead negotiator Yalchin Rafiyev. “Article 6 is hard to understand, but its impacts will be clear in our everyday lives. It means coal plants decommissioned, wind farms built and forests planted. It means a new wave of investment in the developing world.”

In addition, the full operationalisation of the Loss and Damage Fund was unveiled after originally being agreed during COP27 in Egypt. The fund aims to provide financial assistance to countries most vulnerable to the impacts of climate change, with the decision to launch operations made agreed during COP28.

COP29 went further by ensuring the fund’s operationalisation, including several important related agreements including the Trustee Agreement and the Secretariat Hosting Agreement. To date, the total pledged financial support for the fund exceeds US$730mn.

The best outcome or an “optical illusion”?

“When the world came to Baku, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts,” remarked COP29 President, Mukhtar Babayev. “With this breakthrough, the Baku Finance Goal will turn billions into trillions over the next decade. We have secured a trebling of the core climate finance target for developing countries each year.

“The Baku Finance Goal represents the best possible deal we could reach, and we have pushed the donor countries as far as possible. We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5°C. The years ahead will not be easy. The science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms.”

This positive judgement is not one universally shared however, with critics suggesting that developed countries were not meeting their responsibilities to raise resources to support developing nations. Indian negotiator, Chandni Raina was one of the leading voices in dissent, labelling it “an optical illusion” that “will not address the enormity of the challenge we all face.”

Ali Mohamed, Kenya’s special envoy for climate change and chair of the African group of negotiators, also expressed his disappointment. “Africa leaves Baku with realism and resignation as COP29 progress falls far short of our hopes,” he stated in a post on X. “When Africa loses, the world loses – its minerals, biodiversity & stability. The US$300bn/year by 2035 is too little, too late for a continent facing climate devastation while contributing least to emissions.”

While the debate continues for the time being over the effectiveness of the new deal, eyes are already looking ahead to COP30 which will be hosted in Brazil from 10-21 November 2025. Certainly, these proceedings will be heavily coloured by a new leader amongst the developed countries in the form of US President Donald Trump. Having recently nominated a fracking CEO to lead the US Energy Department, there are fears the President will step back from the country’s climate commitments.

Time, then, will tell whether the critics of the BFG are proven correct or whether the agreement will hold together the climate effort in the potentially subdued conferences that could lie ahead.

Launch of the facility will enable the African Development Bank to increase the reach of the CAW's efforts. (Image source: AfDB)

African Development Bank (AfDB) has unveiled its new Climate Action Window (CAW) Technical Assistance Facility at COP29

Before the conference, which is running in Baku from 11-22 November, the organisation stated its intention to mobilise additional resources for climate action in Africa and to launch a new approach to assess African economies. Following this, it has taken a ‘major step’ to address the continent’s climate finance gap by launching a new funding call with an initial allocation of US$56mn.

The CAW Technical Assistance Facility will support the preparation, financing and implementation of adaption and mitigation projects aligned with the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaption Plans (NAPs). It will aim to transform the development of climate projects across 37 low-income countries in the continent and is backed by funding commitments from partners such as the United Kingdom, Netherlands, Germany, and Switzerland. It will be accepting proposals from governments, regional organisations, NGOs, and Un agencies in ADF countries via its online portal.

“The CAW provides a veritable channel for countries to meet their global climate commitments,” remarked Kevin Kariuki, vice president of power, energy, and climate change at AfDB. “This facility will ensure that projects in Africa’s most climate-vulnerable regions are well positioned to attract significant funding, creating a win-win scenario where countries can achieve climate targets, while advancing sustainable development."

Enabling adaption projects in Africa

The launch was supported by a number of stakeholders from the countries that are set to benefit from the initiative who welcomed the new initiative.

“I would like to thank the African Development Bank and its partners, as these funds will finance the resilience of our people,” commented Côte d’Ivoire’s Minister of Environment and Sustainable Development, Assahoré Konan Jacques. “Specific activities have been identified and targeted, and I call on the African Development Bank to learn from the challenges other funds have faced, ensuring that CAW succeeds where others have struggled.”

Fatima Haram Acyl, the Chad Minister for Economy and Planning, added, “For countries like Chad, climate vulnerability is not just a term. Our people face floods, droughts, and immense losses, and we need real, fast-acting solutions. The CAW presents an opportunity to deliver transformative projects that strengthen our communities' resilience.”

Max Andonirina Fontaine, Madagascar’s Minister of Environment, surmised, “The CAW enables African nations to pilot initiatives that truly address our needs. With its flexible approach, we can, for example, fund ecotourism projects in Madagascar that both protect forests and create jobs – support that Africa urgently needs.”

In addition to the ENGIE equity injection, the initiative is also partially financed through the Facility for Energy Inclusion (FEI), managed by Cygnum Capital. (Image source: ENGIE Energy Access)

ENGIE Energy Access, a provider of off-grid solar solutions, has inaugurated five new solar mini-grids in Zambia as part of the ‘Increased Access to Electricity and Renewable Energy Production’ (IAEREP) initiative funded by the European Union

ENGIE Energy Access is committed to delivering 71 solar mini-grids across the country over the next two years, providing more than 70,000 lives in rural communities with clean energy in the process. Boasting a total installed capacity of 5.7MW, the mini-grids will power homes, schools, healthcare centres, businesses and government offices.

“Today’s inauguration represents a powerful step forward in our mission to bring life-changing, affordable, reliable, and sustainable energy solutions to the underserved communities in Zambia,” remarked CEO of ENGIE Energy Access, Gillian-Alexandre Huart. “These solar mini-grids are a game-changer for these communities. By providing clean energy, we are lighting up homes and empowering women and men, supporting businesses, in building a cleaner, more sustainable future. We are thrilled to anchor our ambition in the 1,000 mini-grid vision of H.E. the President of the Republic of Zambia Hakainde Hichilema. I am very proud of our dedicated team and grateful for our strong partnerships with the EU and the Government of Zambia.”

Reliable power for Zambia

The first 15 sites are expected to be fully operational before 2024 comes to a close. ENGIE Energy Access, in partnership with SagemCom as the contracted EPC, will construct, own, and maintain the mini-grids, ensuring reliable power for residential and commercial customers.

Helen Zulu, country director for ENGIE Energy Access Zambia, commented “Our team is deeply dedicated to creating opportunities for rural communities in alignment with our mission to deliver affordable, reliable and sustainable energy solutions. These mini-grids define the true meaning of life changing solutions, they will fuel entrepreneurship, improve education, and support better health outcomes for thousands of Zambians. We remain committed to going the extra mile in progressing energy access for communities that are beyond the grid.”

Chifunda Sikazwe, head of mini-grid operations at ENGIE Energy Access, also added, “Our solar mini-grids are designed to be simple yet highly adaptable and reliable in delivering service. We have utilized the latest technology and offer a flexible pay-as-you-go model through smart metering making electricity accessible to customers with varying payment capacities. Additionally, we prioritize safety in construction and are committed to strong environmental stewardship throughout Zambia.”