I.A.M - Magazine - Page 23
LEADERS CORNER
The Way Forward
Powering Climate Action: In the post-COP26 era,
power interconnections have gained recognition as
essential enablers of climate action. The Green Grids
Initiative (GGI) launched at COP26 aims to mobilize
climate finance specifically for transmission infrastructure,
with the African Development Bank (AfDB) leading the
Africa-focused Green Grids Initiative (GGI) Working
Group established in 2021.
Several major initiatives showcase the climate benefits
of regional integration, including: the planned Mega
Solar Parks between Botswana, Namibia, and South
Africa will increase clean electricity trade in Southern
Africa; the ambitious Desert-to-Power initiative will
provide 10 GW of clean energy to Sahel countries; solar
and wind resources, coupled with Battery Energy
Storage Systems (BESS) when integrated across power
pools, can optimize hydro reservoir management and
enhance grid stability.
Desert to Power: This initiative aims to leverage the
Sahel's abundant sunlight to generate 10 GW of solar
capacity across 11 countries, bringing electricity to 250
million people in a region where access rates currently
range from 8-88%. Beyond electrification, this $20
billion initiative addresses economic development,
agricultural productivity, food security, and regional
stability challenges through strategic solar investments.
The landmark Mauritania-Mali Transmission Project will
create a 1,500 km high-voltage connection, build 100
MW of solar power, and connect 100,000 households.
Burkina Faso is advancing multiple projects, including
four solar plants totalling 52 MW and mini grids connecting
50,000 rural households. In Chad, the Djermaya solar
plant and Power Sector Support Project together will
impact nearly 318,000 people with improved electricity
access. In Djibouti 30 MW of Solar PV/BESS is currently
under construction and another 12 MW is at early states
of implementation.
Approved Desert to Power projects will deliver nearly
790 MW of solar capacity, and benefit approximately 5.8
million people.
Persistence Path to Integration
Despite significant progress, numerous obstacles continue to
impede the full realization of Africa's regional power
integration; principal amongst them is the political will to
cooperate in power systems development and operations
exacerbated by political tensions between neighbouring
countries. The African Union's Development Agency
(AUDA-NEPAD) with the support of the African
Development Bank is championing the political
mobilization of member countries to promote integration
of the power systems.
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Africa’s solar capacity
alone, exceeds twice the
combined electricity
generation of China and
the United States.
The most basic challenge remains the limited extent of
physical interconnections. Even where transmission
lines exist, power trade often fails to reach its potential
due to weak alignment between national development
plans and regional Master Plans. Additionally, tensions
prevail among countries on the push for national energy
self-sufficiency and regional energy cooperation. More
education is required for regional member states to fully
appreciate the full benefit of regional energy cooperation.
Regulatory frameworks present another hurdle. The
absence of harmonized rules for cross-border wheeling
charges creates uncertainty and friction in electricity
markets. Meanwhile, limited private sector participation
and persistently high tariffs constrain both investment
and access. The Bank is actively supporting regional
regulatory authorities with the harmonization of regulatory
frameworks and grid codes to support the development of
competitive power markets.
Addressing these challenges will require innovative
approaches to financing, increased public-private
partnerships in transmission development, technical
assistance for regulatory harmonization, and strengthened
regional institutions.
The Bank is already pioneering such solutions, having
secured over $170 million from the Green Climate Fund
for the Desert to Power Financing Framework, which will
help overcome physical interconnection limitations and
address regulatory barriers.
The AfDB was also glad to be appointed the lead institution
for the South Africa G20 Presidency priority area on
African Interconnectivity and Energy Pools where it will work
with key stakeholders to advance Africa's regional energy
cooperation, including regional interconnectivity,
cross-border energy infrastructure and policy harmonization.
