In the COP28 Summit, Africa declared its readiness to curb global climate change. This is through investment and restructuring of sectors like energy, changing them to reach net zero emissions and a green economy. Africa is transforming its renewable energy sector differently, including the following.
First is the large-scale adaptation of battery storage energy systems for onsite solar projects. This initiative makes batteries more than a backup to solar power, with case studies like the South African electricity crisis showing the importance of storing energy. Therefore, batteries will provide a solution to load-shedding and offer a safer option for the African climate.
Another potential development is the integration of off-grid renewable power solutions. This includes African government investment in mini-grids. The projects are essential in utilizing local renewable resources like solar and wind energy.
According to African Infrastructure Investment Managers (AIIM), mini-grids can provide powerhouses with energy. They usually require 250MW capacity to run, which at times can be inconsistent, thus affecting different businesses and social amenities.
Lastly, mergers in the energy sector will rise in 2024. More prominent energy companies will consider merging with minor entities and developing all-rounded renewable energy developers. This will help achieve better market share, economies of scale and encourage innovation in the renewable sector.
Therefore, 2024 is proving to be a big year in renewable energy, with different nations like Kenya, Morocco, South Africa, and Uganda taking the lead. Private investors are also eyeing the opportunity and investing considerable amounts in the industry.
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