According to the African Energy Chambers outlook in 2022, Over 580 million (almost 46%) of the continent’s population lack access to electricity. To “make energy poverty history by 2030”, Africa’s electricity generation capacity needs to expand rapidly by over 6% a year to support strong economic growth, foster industrialization, and safeguard livelihoods.
Despite Africa’s expected growth in renewable power generation by close to 14.5% in 2021, it is not enough was not enough to stem the overall decline of 2.5% in a generation brought about by the pandemic. Conventional fuels such as coal, oil, and natural gas collectively accounted for three-quarters (75%) of Africa’s power generation. The report, therefore, concludes, that Rapid moves to attain net-zero at all costs will severely negatively impact Africa and hence highly unrecommendable.
The oil and gas sector is expected to see an increase in sanctioning and investment activities in 2022 as a result of improved cash flows from oil and gas companies, especially in the latter part of 2021 following demand and supply recovery from the low levels in 2020. Africa’s oil and gas industry will continue its increased exposure to gas projects, as demand for gas increases and gas establishes itself a key force in the drive to decarbonize, whilst at the same time meeting the continent’s energy needs.
From its inception in 2019, the AEC’s yearly outlook report has sought to provide key stakeholders and the general public with reliable and actionable information on Africa’s energy sector, guiding key players on investments for the year to come. It explores the forces shaping the continent’s energy sector and provides key insights and trends that the industry and key stakeholders should pay attention to for the near future.
The State of African Energy 2022 report outlines the expected state of the Oil, Gas, and Power industry in 2022, with a key emphasis on the effects of energy transition on the Oil & Gas and Power sectors. It’s without a doubt that energy poverty needs to be eradicated.
This flagship energy outlook is the Chamber’s guide to investors and major players within the energy sector, that provides a comprehensive approach to battling energy poverty – one that includes gas-to-power initiatives – and we’re seeing movement in that direction. More than a dozen African countries are already using natural gas they produce themselves or import from other countries to generate electricity. And new projects are on the way.
“The African Energy Chamber is committed to helping Africa’s energy sector stakeholders navigate a complex and ever-changing global energy landscape. Through the State of African Energy 2022 energy outlook, the Chamber continues on its mission to support the dynamic private sector and unlock the continent’s remarkable energy potential,” says NJ Ayuk, Executive Chairman of the African Energy Chamber.
The Chamber’s energy outlook, The State of African Energy 2022, will launch via a webinar launch taking place on 25 October 2022 15:00 to 16:15 (SAST, during which industry experts will join the executive chairman of the African Energy Chamber NJ Ayuk, to share their view on the outlook for 2022 and what that means for the future of Africa’s energy. The State of African Energy 2022 outlook will be available for download after lunch on the African Energy Chamber website.