Green energy to fill East Africa's industry energy gap
As the trend suggests, more industries are opting for on site and off grid power sources in the face of power shortage and increased consumption in East Africa.
Rajesh Ramesh, Senior Manager, Business and Project Development, Amea Power LLC joins CNBC Africa for more.
Fri, 19 May 2023 12:08:56 GMT
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AI Generated Summary
- The energy gap in East Africa poses a significant challenge, with the region requiring an estimated 40,000 megawatts by 2030 to meet the growing energy demands.
- Industries in East Africa are increasingly turning to commercial and industrial solar PV, biogas, and other clean fuel alternatives to power their operations, citing cost-effectiveness and environmental benefits.
- Policy frameworks and effective regulations play a crucial role in facilitating the adoption of green energy in industries, with countries like Uganda focusing on connecting industrial parks to the main grid powered by hydropower.
In recent years, industries in East Africa have been facing challenges due to power shortages and increased consumption. Many companies are now turning to on-site and off-grid power sources to meet their energy needs. The shift towards green energy is becoming a prevalent trend in the industrial sector, driven by the need to bridge the significant energy gap in the region. Rajesh Ramesh, Senior Manager at Amea Power LLC, sheds light on the growing preference for green energy in East Africa's industries.
The energy gap in East Africa is substantial compared to other regions like the UAE. With a population of about 450 million people, the region has an install capacity of only 19.8 gigawatts, highlighting the vast disparity in energy consumption. By 2030, an estimated 40,000 megawatts will be required to meet the growing energy demands of the industrial, private, and commercial sectors in East Africa.
Many industries in Eastern and Southern Africa are turning to commercial and industrial solar PV and clean fuel alternatives like biogas to power their operations. Countries like Kenya are seeing a surge in solar power projects, with over 400 megawatts of projects expected in the next five to ten years. The shift towards solar power is driven by the economic advantage it offers in terms of cost-effectiveness compared to grid connections.
Policy plays a crucial role in facilitating the adoption of green energy in industries. Uganda, for instance, is focusing on connecting industrial parks to the main grid, predominantly powered by hydropower. The country has a robust policy framework supported by strong leadership and effective regulations. However, bureaucratic hurdles often slow down the implementation of these policies, hindering industries from decarbonizing at a faster pace.
The COVID-19 pandemic and global crises have underscored the importance of self-sustainability and reducing dependencies on imports. By investing in solar PV and clean energy solutions, industries in East Africa can enhance their manufacturing capabilities, reduce operating costs, and stimulate job creation. Import substitution through improved manufacturing processes fueled by green energy can lead to a more self-sustaining economy.
The transition towards green energy not only benefits the environment but also contributes to economic growth and social development. As industries increasingly embrace clean power sources, there is a potential for lower energy costs, improved employment opportunities, and enhanced living standards for the community. The shift towards green energy is paving the way for a greener, more sustainable future in East Africa's industrial sector.