Powering Africa’s future: key documents officially adopted to pave the way for a sustainable African Single Electricity Market and a Continental Power System Masterplan

On September 15th, the Ministerial decision-making organ of the African Union for the energy sectors officially adopted the key documents to pave the way for a sustainable African Single Electricity Market and a Continental Power System Masterplan.

The meeting marked a milestone in the implementation of three flagship initiatives supported by the European Union’s Global Technical Assistance Facility (EU GTAF). The ministerial representatives:

  • Approved the strategic and action plans of the African Single Electricity Market (AfSEM) which aspires to become one of the world’s largest electricity markets by 2040 by enhancing access to reliable, affordable and sustainable electricity in Africa.
  • Adopted the synthesis report of the Continental (Power System) Master Plan (CMP), which is the “blueprint” of the AfSEM, providing the necessary infrastructure to link all national and regional Power Pools’ transmission networks and enabling intra-regional electricity trade.
  • Called for the adoption of the AfSEM and CMP to become an AU Agenda 2063 Flagship Project.
  • Discussed the African Energy Efficiency Strategy (AfEES), which explores and defines the role of energy efficiency technologies in the energy mix of the continent, pledging to achieve a 50% increase in energy productivity by 2050.

The documents present a strategic roadmap for the implementation of the three initiatives which come at a time when the electricity demand in Africa is projected to rise significantly in the years to come due to rapid industrialisation, urban migration, high household incomes and the impact of climate change. At the same time, about two-thirds of Africa’s population still lack regular access to electricity today.

A unique example of collaboration in the framework of the Global Gateway Strategy

The mission of the AfSEM and CMP is to co-create a harmonised, well inter-connected and competitive continental African electricity market delivering secure, reliable, affordable and sustainable electricity services.” The projects’ timeline is divided into several progressive development phases – of which an important step was marked last week. Substantial increase in investments is necessary to raise Africa's installed electricity generation capacity from 266 GW currently to around 1,218 GW by 2040. Meeting this ambitious target will require an estimated cumulative investment of USD 1.3 trillion

These initiatives constitute a unique example of collaboration of African energy stakeholders and are part of the EU continental actions in the context of the Africa-EU Green Energy Initiative (AEGEI). They are fully integrated into the Global Gateway Strategy of the European Union, which aims at investing in sustainable infrastructure projects around the world with a dedicated package worth €150 billion for Africa only. This package will focus on supporting Africa's energy transition, digital transformation and sustainable infrastructure. The AfSEM , CMP and AfEES are key priority initiatives for the EU in this context, and the Global Gateway Strategy provides an opportunity to accelerate their implementation, while also other sources of funding will be mobilised.

Ensuring commitment and contributions from all parties involved is therefore of paramount importance and the landmark STC meeting in Zanzibar underscored a pivotal moment in this respect, setting an important foundation for the three energy initiatives which will provide access to reliable and sustainable electricity to 1.3 billion people in the future.

 

Additional information:

https://au.int/en/afsem

https://nepad.org/continental-master-plan