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In their latest Africa Energy Review 2023, PwC looks at the challenges and opportunities inherent in the continents energy sector, positing that Africa is now emerging as a key enabler to the global energy transition.
The report places a heavy emphasis on how global energy dynamics affect Africas fossil fuel exploration, usage and export. The consulting firm sees an opportunity for Africa to fill a gap created by Russia reducing gas supplies to Europe.
Recent energy market volatility tells PwC that reliable energy availability and pricing "are key considerations for many governments in the selection of their respective energy strategies."
"The solution for the power sector is not an either/or, renewables or natural gas, proposition. It requires a multipronged approach to decarbonisation with renewables and natural gas power at its core.
"There is a will to transition to cleaner energy and there is momentum with numerous planned renewable energy projects, although it is tempered by a lack of finance, associated transmission and other infrastructure and the need to significantly increase uninterrupted power for all," reads the report.
It says the continent has significant renewable energy potential, particularly in the North and South, from which to develop renewable energy and become more energy secure in a sustainable net-zero manner.
Gas flaring and CCUS
The firm sees the development of gas as very necessary in Africa, especially since current and future gas developments need to reduce and tackle methane emissions to meet greenhouse gas emission targets.
"Even with new projects in Africa coming online, the current level of emissions and flaring need to be reduced significantly. Africas gas production global share is at 6.2% while it flares 29.2bcm annually or 20.0% of the global total.
"Key areas for reduction are the elimination of all non-emergency flaring and processes with carbon capture, utilisation and storage (CCUS).
"It is estimated that this can add 5% to the cost of production. The most impactful and cost-effective way to reduce methane emission is the elimination of non-emergency flaring and development of a gas economy, particularly gas to power," said PwC. |
