Nearly 100 percent renewables in Africa by 2050
A new MCC study shows that climate protection and growth in Africa are compatible—if the countries cooperate and costs continue to fall.
The new findings question the claim that African climate policy should primarily rely on carbon capture and storage (CCS) and biomass. The researchers compared different climate policy scenarios by using so-called “Integrated Assessment Models” (IAM). They can show that prices for renewables have fallen faster and—at the same time—opportunities for dealing with fluctuations in renewable energy can be used more flexibly than previously considered. The goal of the Paris Climate Agreement to limit global warming to below 2°C is thus very much compatible with strong economic growth in Africa.
However, a major hurdle for the expansion of renewables in Africa are the relatively high capital costs: Greater investment risk—for example due to political uncertainty—is reflected in higher interest rates and thus higher costs for investors. In the long term, stable political and legal conditions for investors are required to further reduce those costs. On the other hand, fossil fuels would become less attractive if their external costs to society, such as negative effects on health and environment, were reflected in sufficiently high carbon prices.
Although electricity on the African continent could come almost entirely from renewable energy, the optimal energy mix varies considerably between African countries. “Kenya, for example, is already the global market leader for off-grid photovoltaics and can concentrate on expanding electricity supply to rural areas,” says Schwerhoff. “In Nigeria and South Africa, on the other hand, there is a strong fossil-fuel industry that stands in the way of a rapid transition.”