Energy

According to IRENA solar PV and onshore wind will have the biggest impact on the tripling of renewables. (Image source: Adobe Stock)

According to the International Renewable Energy Agency (IRENA), renewables are remaining competitive despite fossil fuel prices returning closer to historical cost levels

These findings were revealed in the Renewable Power Generation Costs in 2023 report, released by IRENA at the Global Renewables Summit during the UN General Assembly in New York. It showed that the years of falling costs and improving technology for renewables (particularly in regard to solar and wind), has made the socio-economic and environmental benefits of renewable energy development uniquely compelling.

As such, the organisation has shown that of the 473GW of renewables added in 2023, 81% had lower costs than their fossil fuel alternatives. The report also found that the renewable power deployed globally since 2000 has saved up to US$409bn in fuel costs within the power sector.

“Renewable power remains cost-competitive vis-à-vis fossil fuels,” remarked IRENA’s director-general Francesco La Camera. “The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions. Prices for renewables are no excuse anymore, on the contrary. The record growth of renewables in 2023 exemplifies this. Low-cost renewables represent a key incentive to significantly increase ambition and triple renewable power capacity by 2030, as modelled by IRENA and set by the UAE Consensus at COP28.”

Triple renewable target

The goal of tripling renewables by 2030 was set at COP28 and requires global renewable energy capacity to reach 11.2TW by the end of the decade. This averages out to 1,044GW of new capacity added annually in this time. Previously, IRENA has warned that the world is at great risk of missing this target and the new report offers advice to ensure this is not the case.

Principally, it suggests that progress must be supported by key energy transition enablers such as storage. Battery storage project costs have dropped by 89% between 2010 and 2023, facilitating the integration of high shares of solar and wind capacity by helping address grid infrastructure challenges.

“In the coming years, remarkable growth across all renewable energy sources is expected, giving countries great economic opportunities,” added La Camera. “Our analysis indicates that solar PV and onshore wind will have the biggest impacts on the tripling of renewables. Thanks to low-cost renewables in the global market, policy makers have an immediate solution at hand to reduce fossil fuels dependency, limit the economic and social damage of carbon-intensive energy use, drive economic development and harness energy security benefits.”

In 2023, the global weighted average cost of electricity from newly commissioned renewable projects across most technologies fell, for solar photovoltaics by 12%, for onshore wind by 3%, for offshore wind by 7%, for concentrating solar power by 4% and for hydropower by 7%.

In non-OECD economies where electricity demand is growing and new capacity is needed, renewable power generation projects with lower costs than fossil fuel-fired equivalents for their country and region will significantly reduce electricity system costs over the life of their operation.

The project will deliver clean energy for two-wheelers. (Image source: Adobe Stock)

Kofa Technologies Ltd, a Ghanaian company providing clean and portable battery solutions, and PASH Global, a leading impact investor, have announced the expansion of Kofa’s battery swapping network in Ghana

This Special Purpose Vehicle (SPV) expansion is backed by a £2.35mn (US$3.04mn) commitment from Shell Foundation, co-funded with the UK Government through its Transforming Energy Access (TEA) platform. Shell Foundation and TEA are committing an additional £1.4mn (US$1.86mn) to support Kofa's e-bike asset financing, research on the impact of Kofa’s multi-use battery technology, and operating expenses.

The network is targeting a deployment of 6,000 batteries and up to 100 swap stations across Ghana, ensuring that energy is accessible anytime, anywhere, and promoting the transition to clean energy and the large-scale adoption of EVs in Africa. PASH also intends, in due course, to transform these swap stations to be fully powered by solar power, further increasing the impact of the station.

Clean energy for electric two-wheelers

The project aims to deliver reliable, affordable, and clean energy for electric two-wheelers while also supplying power to small businesses and homes that currently depend on small petrol generators—helping to displace these generators and significantly reduce reliance on fossil fuels. Preliminary analysis indicates that electric motorcycles in Ghana are already up to 20% cheaper to operate compared to internal combustion engine (ICE) vehicles. As battery prices continue to decline, these savings are expected to increase, further incentivising the shift to electric vehicles.

Speaking at the launch event, Lord Collins of Highbury, Parliamentary Under-Secretary of State (Africa) said, “Today’s announcement demonstrates the UK’s continued commitment to supporting clean energy initiatives across the world. This project not only fosters economic growth, it also strengthens the UK’s partnership with Ghana, contributing to a greener, more resilient future for Ghana.”

“The partnership between Kofa and PASH represents a powerful step forward in delivering sustainable energy solutions across Africa," said Kofi Owusu Bempah, founder and CEO of PASH Global. "With the strong backing of Shell Foundation and the UK Government, we are well-positioned to lead the charge in the e-mobility revolution, beginning with this transformative project in Ghana.”

“This initiative is a significant step toward cleaner, more sustainable energy solutions in Ghana. With the support of our partners, we are building a foundation that will not only benefit local communities and businesses but also serve as a model for clean energy innovation across Africa,” said Erik Nygard, CEO of Kofa Technologies.

AMEA Power signs PPAs for Africa's largest solar PV and Egypt’s first utility-scale battery storage projects, boosting clean energy future. (Image source: Adobe Stock)

AMEA Power, a rapidly expanding renewable energy company, has signed Power Purchase Agreements (PPAs) to develop Africa’s largest solar PV project and Egypt’s first utility-scale battery energy storage system (BESS)

Following the successful 500MW Abydos Solar PV Project, AMEA Power has secured two new landmark renewable energy projects in Egypt. The first is a 1,000MW solar PV power plant, coupled with a 600MWh BESS, to be constructed in the Benban area of the Aswan Governorate. This will become the largest solar PV and BESS project on the African continent. The second is a 300MWh BESS, expanding the existing 500MW Abydos Solar PV plant in Kom Ombo, Aswan. This project will pioneer the first utility-scale BESS solution in Egypt.

AMEA Power has formalized these projects by signing PPAs with the Egyptian Electricity Transmission Company. 

With a total investment of US$800mn, these projects underscore AMEA Power's commitment to Egypt’s clean energy transition and cement the country as a strategic focus for its future expansion. The projects are expected to generate around 2,500 jobs during peak construction and will provide clean energy to more than 769,800 homes, offsetting over 2,347,000 tons of carbon emissions annually.

Hussain Al Nowais, chairman of AMEA Power, remarked, “As the developer of the largest solar PV project in Africa and the first developer to undertake BESS in Egypt, our projects not only set a new benchmark in the renewable energy sector in Egypt and on the Continent but also demonstrates our leadership and innovative spirit in pushing the boundaries of what is possible. We are honored to play such a pivotal role in shaping the future of clean energy in Egypt and on the Continent and this investment is a testament to AMEA Power’s commitment to deliver large-scale renewable energy solutions. These projects are not just about generating power, they are catalysts for economic growth, job creation, and community empowerment. By investing in Egypt’s energy future, we are reinforcing our dedication to driving positive change and supporting socio-economic development across the regions we serve.”

This significant investment in renewable energy will not only enhance Egypt’s energy security and diversification but also help the country achieve its ambitious clean energy targets. Once operational, these projects will be crucial in addressing Egypt’s recent power outages. AMEA Power is proud to be at the forefront of the country’s transition toward a sustainable energy future.

AMEA Power is also committed to working closely with local communities, contributing to socio-economic development through its 'Community Investment and Development Programs.'

Caterpillar launches a hybrid microgrid system for telecom towers, reducing diesel use and emissions by 80%, while cutting operating costs. (Image source: Caterpillar)

Caterpillar Inc. has introduced an innovative integrated microgrid power system designed for telecommunications towers

This system is capable of reducing diesel fuel consumption and related carbon emissions by up to 80%, while also lowering total ownership and operational costs.

Initially available through Cat dealers in Africa and the Middle East, the system integrates solar PV panels and a Cat diesel generator to power telecom infrastructure while fully charging an energy time-shift storage system. When solar power isn’t available, such as at night or during bad weather, power is sourced from energy storage.

These hybrid power systems are particularly advantageous in remote regions where grid power is unreliable or absent, and where fuel delivery is both expensive and logistically difficult. The systems are designed to reduce total costs of ownership, slash fuel consumption and greenhouse gas emissions, and maximise reliability.

The modular structure of this system allows for scalability, enabling additional components to be added as power needs increase with growing traffic or network upgrades.

This proven system is also available through an Energy-as-a-Service agreement, offering a turnkey solution that addresses both power requirements and climate-related goals without the need for customers to buy or maintain the assets. Deployed and supported by select Cat dealers, this service agreement allows telecom operators to spread out startup costs while outsourcing maintenance and service responsibilities, reducing the risk of system obsolescence.

"As customers embark on the energy transition journey, they are seeking tailored solutions to meet their requirements," said Stephanie Baughman, retail vice-president for Caterpillar Electric Power. "Our hybrid solution for telecommunications towers combines next-generation power technologies with industry expertise and a flexible service agreement that delivers a sustainable, reliable, and cost-effective solution to our customers."

Caterpillar remains committed to a low-carbon future through ongoing investments in advanced products, technologies, and services. These include commercially available power solutions using hydrogen fuel; Distributed Energy Resource Management System (DERMS) software for energy asset management; a complete suite of hybrid energy technologies; Cat combined heat and power (CHP) and combined cooling, heat, and power (CCHP) systems; support for fuels such as hydrotreated vegetable oil (HVO), biodiesel, and fuel blends; and expertise in waste-to-energy applications like landfill gas and biogas.

MIGA and ISA launch the MIGA-ISA Solar facility to enhance solar energy access with concessional financing, focusing on Sub-Saharan Africa. (Image source: Adobe Stock)

The Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group, and the International Solar Alliance (ISA) have unveiled the MIGA-ISA Solar Facility, a multi-donor trust fund

This initiative, supported by the Indian government, aims to broaden global access to renewable energy.

The facility will integrate ISA’s technical expertise with MIGA’s financial mobilisation capabilities, creating an innovative approach to boost global solar energy adoption. It will provide concessional financing, including first-loss instruments and reinsurance, to enhance project viability and reduce the cost of MIGA guarantees. Additionally, MIGA and ISA will collaborate on launching new solar and distributed energy projects in eligible developing nations, with an initial focus on Sub-Saharan Africa and plans for worldwide expansion. This effort is part of a broader initiative supported by the World Bank Group and the African Development Bank to deliver 300 million new electricity connections in Sub-Saharan Africa by 2030.

Administered by MIGA, the facility will scale up guarantee issuances and attract private investment for solar and distributed energy projects, offering affordable risk mitigation solutions to support growth in ISA member countries. ISA has committed US$2mn in seed funding with a target to raise US$10mn for the facility, which is the inaugural program under ISA’s Global Solar Facility (GSF) aimed at raising US$200mn for African projects.

“MIGA is delighted to host the MIGA-ISA Solar Facility and support Sub-Saharan Africa in accessing reliable and clean electricity,” said Hiroshi Matano, MIGA executive vice- president. “The facility will attract private investment by providing risk mitigation and concessional financing, helping to lower costs and close the energy gap in underserved regions.”

To kickstart the facility, MIGA and ISA have already initiated a solar project in the Democratic Republic of Congo. This project is expected to cut operating costs by around 20%, leading to reduced tariffs for customers.

“ISA is excited to collaborate with MIGA on the facility to provide cost-effective guarantee solutions for decentralized solar projects in Africa,” said Ajay Mathur, ISA director general. “This is an important milestone in the roll out of ISA’s GSF. We look forward to delivering clean energy through this program to impact the lives of millions of Africans who remain off-grid to date.”

With approximately 675 million people lacking electricity access, and an anticipated 660 million remaining without power by 2030, the World Bank Group and African Development Bank are collaborating on a major effort to provide electricity to at least 300 million people in Africa by 2030.

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