Page 9 - Energize December 2022

INDUSTRY NEWS

Key insights energy access targets. This presents
• By type, the hydropower segment accounted for the highest revenue share of 29,4% significant opportunity for private-
in 2021 and will expand further at a steady CAGR from 2022 to 2030. Hydropower, sector stakeholders to participate in the
alternatively referred to as hydroelectric power, offers benefits to the communities energy realm, provided the policy and
and is pivotal in supporting climate change by providing storage, power and flexibility regulatory frameworks are conducive
services. and systematically implemented.
• By end user, the industrial segment accounted for a revenue share of approximately The global clean energy transition
62,5% in 2021. The considerable need for clean electricity is anticipated to proliferate holds new promise for Africa’s
the number of utility projects and charge the PV modules market expansion across economic and social development,
the industrial sector. According to the Solar Energy Industries Association, there are with solar and various other
over 37 GW of renewable energy power plants in operation in the US in 2020, with an renewable sources offering substantial
additional 112 GW in development. potential for growth if governed
• By region, the market across Asia-Pacific has generated a revenue share of more appropriately. To this end, African
than 40,6% in 2021. The rising demand for renewable energy in the Asia-Pacific nations are well positioned to benefit
is ascribed to the growing installation of solar power projects in China and India. from these trends and attract an influx
However, the global renewable energy market across Europe held the largest share of climate funding.
in 2020, accounting for more than one-third of the market, owing to a sharp rise in Africa’s flagship energy conference,
investments in renewable energy. the Africa Energy Indaba (AEI) is set to
explore multiple strategies to transition
Major market players include ABB, ACCIONA, EDF, Enel Spa, General Electric, Geronimo the continent’s energy system towards
Energy, Invenergy, Innergex, Tata Power, Xcel Energy Inc. realising all African development goals,
including universal access to modern
An African perspective and affordable energy services by 2030.
The current global energy crisis reaffirmed the urgency with which Africa needs to The 1 Edition of the AEI, to be
5th
expedite investment in cleaner, more cost-effective energy alternatives. Considering held in Cape Town, South Africa, from 7
the surge in global aspirations for reducing emissions, coupled with the declining costs to 9 March 2023, will provide a crucial
of clean technologies, and evolving international investment trends and patterns since platform for African leaders to define
COP26, many shifts in investments are expected to be observed in the coming decade. the agenda for the medium to long
Renewables are not only anticipated to take the lion’s share of investments but are poised term, considering the next decade is
to be Africa’s primary source of electricity by 2030, notably solar photovoltaic, wind and monumental for both global climate
hydropower. action and the essential investments
Such investments into renewable energy infrastructure will expedite Africa’s that will enable Africa – home to the
transition to cleaner technologies. Further to this, an equal amount of investment is world’s youngest population – to thrive
imperative to develop Africa’s transmission and distribution networks to fully realise in future decades.

energize | December 2022 | 9