Energy

Southern Africa’s rich renewable resources could help form the basis for a thriving hydrogen economy. (Image source: Synergy Consulting)

According to Synergy Consulting, southern Africa stands at a pivotal moment in its energy transition, with the hydrogen economy emerging as a key element in the region's sustainable future

This potential shift could address energy security concerns, contribute to economic diversification, and support global decarbonisation efforts. As nations within the region explore this opportunity, several factors – including abundant natural resources, strategic partnerships, and technological advancements – will play crucial roles in shaping the future of hydrogen energy in southern Africa.

Abundant renewable resources

One of the most significant advantages for southern Africa in developing a hydrogen economy is the region's rich renewable energy resources. Countries like South Africa and Namibia have vast solar and wind energy potential, which are essential for producing green hydrogen through electrolysis. Green hydrogen, derived from renewable energy sources, is seen as a clean and sustainable alternative to fossil fuels. This presents an opportunity for southern African nations to leverage their natural resources to produce and export green hydrogen, positioning themselves as key players in the global hydrogen market.

South Africa, in particular, is well-positioned due to its established infrastructure and industrial base. The country has a history of hydrogen production through coal gasification and is home to some of the world’s largest platinum reserves, a critical material for hydrogen fuel cells. This makes South Africa a strategic location for developing a comprehensive hydrogen value chain, from production to utilisation in various industries.

Economic diversification and job creation

The hydrogen economy offers a path toward economic diversification in southern Africa, particularly for countries heavily reliant on fossil fuel exports. By investing in hydrogen technology, these nations can reduce their dependence on volatile oil and gas markets and create new revenue streams. Moreover, the hydrogen economy has the potential to generate significant employment opportunities, from research and development to manufacturing and logistics.

For instance, developing hydrogen production facilities, refueling stations, and fuel cell manufacturing plants would require a skilled workforce, contributing to job creation in urban and rural areas. This is particularly important in a region where unemployment remains a pressing issue.

Strategic partnerships and investments

The successful development of a hydrogen economy in southern Africa will depend on strategic partnerships and investments. International collaboration is essential, as it brings in financial resources, technical expertise, and market access. Partnerships with countries and companies leading in hydrogen technology can help southern African nations accelerate their hydrogen initiatives and integrate into the global hydrogen supply chain.

Several countries, including Germany and Japan, have already shown interest in collaborating with southern African nations on hydrogen projects. These partnerships could facilitate technology transfer, capacity building, and infrastructure development, crucial for the region’s hydrogen economy.

Challenges and the road ahead

Despite its potential, the hydrogen economy in southern Africa faces several challenges. These include high initial investment costs, the need for regulatory frameworks, and the development of a robust infrastructure. Additionally, ensuring that hydrogen production is truly green – i.e., derived from renewable sources – is essential to avoid merely shifting emissions from one sector to another.

In conclusion, while southern Africa has significant opportunities in the hydrogen economy, realising its full potential will require coordinated efforts across governments, industry, and international partners. With the right strategies in place, southern Africa could emerge as a leader in the global hydrogen market, driving sustainable development and economic growth in the region.

This article is authored by Synergy Consulting IFA

EGA offers solutions tailored for both local and export markets including in countries such as Malawi, Mozambique, Angola, Ghana, Zimbabwe, Zambia, Kenya, Tanzania, Uganda, Rwanda, Namibia, and Botswana. (Image source: EGA)

Ener-G-Africa (EGA), a provider of innovative energy access solutions, has relocated to a larger manufacturing hub in Paarl, South Africa

In doing so, the company has sought to significantly expand its operations, with the new facility boasting a cutting-edge solar assembly line that is capable of producing TÜV certified 550W and 275W solar panels as well as the existing 20W, 50W and 360W panels. This will help the company in its efforts to serve the South African market and export needs across Africa, adding to its comprehensive range of off-grid residential products.

“Our investment in state-of-the-art German technology allows us to produce highly advanced and reliable solar panels specifically designed for the African environment,” remarked Andre Moolman, CEO of EGA. “We are equally dedicated to training, upskilling, and employing women and young people from local communities in our solar assembly and manufacturing processes. By integrating automation in key areas, we ensure superior quality control and cost efficiency. This approach not only empowers individuals but also ensures that high-grade solar products are more affordable and accessible across Africa.”

Dave Lello, chief business development officer at EGA, added, “With our modules being manufactured locally, it means we have been able to adapt our design, specifically for the requirements of the African market, particularly the 275W panels. No other manufacturer currently makes 275W panels configured quite like this. They have been designed with flexibility in mind while maintaining the voltage output of larger panels in order to integrate with most standard industry inverters.

“They are specifically tailored to offer higher capacity in a smaller area. For example, on an unusually shaped roof, you can fit more panels, which means more power.”

Lello also noted the practicality of the 275W panels for residential use. “One panel can replace a 2x150W configuration at a lower cost whilst requiring less space,” he surmised. “Likewise, 2x275W panels will generate better performance than three of the 150W panels currently on the market, reducing the number of panels needed.

“The flexibility of our 550W and 275W panels allows for combined use within the same string, optimising performance for various configurations, including east-west orientations, which are beneficial for maximising energy use throughout the day,” Lello explained.

According to Sherisse Alexander of WATT Renewables, solar and storage presents a ‘win-win’ for Nigeria as it seeks to manage its forthcoming data centre market explosion. Click here to read the opinion piece in full.

A global shortage of power is inhibiting the growth of the data centre market. (Image source: Adobe Stock)

With Nigeria’s data centre industry set to explode – doubling capacity from 116MW in 2024 to a forecasted 226MW in 2029 – Sherisse Alexander, chief business officer at WATT Renewable Corporation, discusses how the country can affordably secure the power to make this vision of connectivity a reality, and whether a solar array with battery energy storage can be a feasible solution to this challenge

A global shortage of power is inhibiting the growth of the global data centre market, and Nigeria will be affected more than most. According to the International Energy Agency, IEA, the country’s electricity grid collapsed 46 times between 2017 and 2023. With an unreliable grid, data centre operators in Nigeria are faced with regular unplanned loadshedding events and the need to install back-up generation to maintain uptime for data centre users. However, while fossil fuel generators have been the go-to back-up power choice for many years, record high fuel and equipment costs along with fuel scarcity issues, are forcing businesses to reconsider their options for this new wave of data centre build out.

Globally, the installation of renewable energy – notably solar, wind and batteries – to power data centres has seen a huge boost in the last few years as the world’s largest operators such as Microsoft and Google seek to achieve net zero by 2030. In the US for example, over 4GW of renewable capacity was contracted by data centres including Amazon, Meta and Google’s parent company Alphabet Inc in the last 12 months alone. Closer to home, Microsoft, in partnership with G42, is investing US$1bn to build a geothermal powered data centre in Kenya. In South Africa, Africa Data Centres and Distributed Power Africa broke ground on a 12MW solar farm in April.

Until recently, businesses in Nigeria have been somewhat hesitant to explore the potential of solar plus storage due to its higher capital expenditure in comparison to fossil fuels. However, while fuel prices have levelled somewhat since the 1,000 Naira highs of 2023, it seems unlikely that it will settle back down below 750 Naira without a new subsidy to prop up petrol prices or a period of economic stagnation. This change in dynamics means that solar plus storage has become much more economic in comparison to its fossil fuel counterparts. Particularly if data centre operators sign up to a long-term power purchase agreement (PPA) of 15-20 years.

One of the key challenges often levelled at solar and wind is that of its need for space. While data centres typically need to be close to urban areas to afford fast and reliable connections, renewable generation requires space. However, as the solar and data centre industries have developed there are now several potential workarounds.

Renewable power purchase agreements

Renewable electricity can be purchased under a PPA from an offsite generator. Such an agreement would provide the data centre operator with a guaranteed price per kWh creating energy price security while alleviating local grid constraints. 46GW of wind and solar power purchase agreements were announced publicly by businesses in 2023 according to BNEF with the market growing around 33% on average since 2015.

Co-locating edge data centres with solar

Data centre operators could opt to blend hyperscale facilities with edge data centres. Located on the outskirts of town, edge data centres have much smaller footprints and lower energy needs. Some of these data centres could be co-located with onsite renewable generation. With some clever design work – for example incorporating solar onto carports – a significant amount of the data centre’s electricity baseload could be covered by solar plus storage.

Rooftop solar for inner city locations

Inner city data centre locations could mount rooftop solar as well as batteries that would charge from the grid and supply emergency electricity in the event of an outage. Although this would only cover a small percentage of the power required, it would soften grid related price and outage shocks.

More than just connectivity

The positive economic impact of improved connectivity is well documented, for example a 10% increase in mobile adoption increases GDP by 0.5% to 1.2% on average. Banking is a great example of how connectivity has transformed the lives of Africans with the continent now considered the digital banking leader having brought banking to millions of people who lack access to traditional services.

Reliable access to data, now, is a must, and as data centres come online, there are further benefits created when data centre operators opt for solar plus storage. Less generator use means less noise and air pollution – two factors that are the cause behind a major public health crisis that in unfolding in many of Nigeria’s towns and cities.

In 2018, a study conducted by the World Bank in Lagos found that air pollution led to over 11,200 premature deaths with children under five the most affected. The same study also found that air pollution caused US$2.1bn in losses over the course of the year. Generators were found to be the third most contributing factor to air pollution behind transport and industrial emissions.

Generators also contribute significantly to noise pollution with a study conducted in Kano finding that noise levels reached as high as 82Db, just a few decibels short of causing permanent hearing loss. With little being done to improve the situation, many Nigerians have become apathetic to it despite the physical, mental and financial toll that generators take.

Solar plus storage solutions are a win-win for everyone. Data centre operators benefit from a reduction in their reliance on fossil fuels reducing their exposure to fossil fuel related price shocks. In the case of onsite generation, solar plus storage directly improves energy security and reliability and, on every site, it helps to improve local air quality and reduce noise levels. Local businesses and households also benefit, with solar plus storage helping to alleviate the strain on the grid posed by a new data centre, while also enjoying cleaner air, quieter streets and better connectivity.

The move is expected to accelerate South Africa’s renewable energy transformation. (Image source: AIKO)

VEERS Group, a black-owned and operated company with a firm track record in the energy sector, has formed a joint venture with AIKO, a solar technology leader, in order a bid to revolutionise the utility-scale and distributed solar sectors across South Africa

The joint venture will focus on advancing both the utility-scale and distributed solar sectors across the country, while expanding its distribution footprint throughout the African continent. By leveraging AIKO’s industry-leading N-Type ABC solar modules, the collaboration aims to significantly accelerate South Africa’s shift towards a low-carbon future. The venture will make these solar technologies widely accessible across utility-scale, commercial, industrial, and residential sectors.

Meimei Yu, head of MEA Sales at AIKO, commented, “We are thrilled to partner with VEERS Group, whose deep local expertise perfectly complements our cutting-edge technology. By merging global innovation with local knowledge, we are confident this joint venture will not only accelerate South Africa’s energy transition but also serve as a model for sustainable growth worldwide. Together, we are committed to delivering the highest-efficiency solar solutions, making a lasting impact on South Africa’s renewable energy landscape.”

The newly established Aiko Energy SA Ltd will be the operational arm of this joint venture, underscoring a strong commitment to local content and empowerment. AIKO has also reiterated its intention to aligning its operations with the principles of black economic empowerment and localisation, ensuring that its business strategies are tailored to meet the unique needs of the local market. This partnership not only leverages VEERS Group‘s expertise in South Africa but also prioritises community engagement and upliftment, reinforcing AIKO’s pledge to drive meaningful, sustainable growth in the region.

Hashveer Singh, CEO of VEERS Group, added, “Innovation and sustainability have always been at the forefront of our organisation. AIKO’s stellar reputation and aligned values make them the perfect partner for this journey. We look forward to bringing AIKO’s most efficient solar products to the South African market, providing utility projects with revolutionary efficiency upgrades. This partnership sets a new standard for performance and sustainability in the region, benefiting all stakeholders involved.”