African Union Development Agency and the African Development Bank Published Propositions of a Baseline Research that Stared into the Growth of a Continental Energy Grid and Market

By Abdul Rahman Bangura–

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The research, financed by the European Union, is the primary stride in an enterprising project to establish an efficient, competitive energy sector that enables to serve Africa’s vast non-connected population, which is crucial to the continent’s economic futures. The suggestions were communicated at a roundtable meeting between the partners organized by the African Development Bank on October 28th, 2020.

The African Energy Ministers authorized AUDA-NEPAD to improve a continental communication master plan during the AU Specialized Technical Committee meeting on Infrastructure (Transport, Energy and Tourism) held in Nouakchott and Cairo in 2018 and 2019, respectively.

“This will be a game changer since, in the long term; a continental transmission network will allow energy trade within Africa, as well as off the continent, with Europe and Asia through existing links,” asserted, Dr. Ibrahim Mayaki – Chief Executive Officer of the
African Union Development Agency-NEPAD.

The baseline survey comprises the first of two phases of the master plan. The next phase encompasses the progress of the plan itself. Also, the European Union (EU) approved to fund Phase 1 under its EU Technical Assistance Facility (EU TAF) for sustainable energy, under the scope of the African Union-European Union cooperation to reconcile the African Single Electricity Market Regulatory Framework.

The baseline study goals included: a review of the existing master plans formulated by each of the five regional power pools in Africa and to identify power generation capacity and power demand up to 2063 and to develop the terms of reference for phase 2.

“Our continent has a vision to develop a single electricity grid that will guarantee secure, reliable, affordable and sustainable electricity supplies to enhance the economic prospects of the continent, especially for our children. This can only be realized with a well-coordinated, widely accepted and highly articulated master plan,” stated, Cheikh Bedda – Director Energy, at the African Union Commission.

The suggestions of the baseline study include: establishing a permanent unit to develop the master plan in order to generate a skills transfer within AUDA-NEPAD and the five regional power pools, and aligning the plan with existing infrastructure projects, such as those identified under the Program for Infrastructure Development in Africa (PIDA), a combined endeavor of the African Union Commission, AUDA-NEPAD and the African Development Bank. The next steps are to develop the terms of reference for phase two and to discuss how the master plan will be financed.

“The continental master plan will provide a holistic roadmap to connect countries within a single regional power pool and to connect the power pools into a single electricity market, promoting energy access and regional integration,” noted, Kevin Kariuki – Vice President for Power, Energy, Climate & Green Growth at the African Development Bank
Group.

Over 640 million Africans have no access to energy, approximating to an electricity access rate for African countries at just over 40he lowest in the world. Per capita consumption of energy in sub-Saharan Africa (excluding South Africa) is 180 kWh, compared to 13,000 kWh per capita in the United States and 6,500 kWh in Europe.