Obama’s Power Africa Initiative Will Increase Energy Access Using Wind, Solar -- and Coal

Ken Silverstein | Jul 09, 2013

While a deep recession has has taken its toll on Americans and their economy, a perpetual haze is cast over sub-Saharan Africa and its financial future. To that end, President Obama is pushing his so-called Power Africa initiative that aims to double the access to electricity in that region of the world.

The foundation of any economy is the ability to access reliable energy so that goods and services can be produced and transported. Just how do the less fortunate stay warm in the winter and feed their livelihoods? Firewood, charcoal and kerosene — energy sources that are dirty and unhealthy. The reality is that 85 percent of those living in rural areas in sub-Saharan Africa lack any modern forms of power.

Power Africa will build on Africa’s enormous power potential, including new discoveries of vast reserves of oil and gas, and the potential to develop clean geothermal, hydro, wind and solar energy,” says President Obama. “It will help countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions.”

According to the International Energy Agency, sub-Saharan Africa will require more than $300 billion in investment until 2030 to prop up the modernization effort there. The United States will kick in $7 billion over the next five years, and it will work with six partners, initially: Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. The goal is to add 10,000 megawatts of cleaner and more efficient electricity power generation.

Meantime, private partners are contributing more than $9 billion, which they hope will add an additional 8,000 megawatts of electricity. Among them: General Electric, Heirs Holdings, Symbion Power, Aldwych International, Harith General Partners, Husk Power Systems and the African Finance Corporation.

“Throughout our 150 years of history in Africa, we have always strived to contribute to social and economic development, financing trade and investment across the continent,” says Peter Sands, chief executive of Standard Chartered, which is also contributing $2 billion to the cause.

Baby Steps

Similarly, United Nations has launched the Sustainable Energy for All program that has a lofty goal of providing universal energy access by 2030. It also aims to double the use of both energy efficiency tools and renewable energy fuels during the same time period. Private companies, along with governments and development agencies, have given $50 billion over the last year to the effort.

Beyond improving human lives and the environment, public-private partnerships will create meaningful jobs for local populations. To get there, both the UN and global lending institutions such as the World Bank are saying that they will place more emphasis on green technologies than on fossil fuels, which will still remain part of its tool box and loan portfolio.

To be sure, critics say that Africa can’t expand its power production or its economy without employing more coal. In a column for the National Review, Robert Bryce says that the demand for energy is escalating in those countries and that the continent is awash in coal. Putting two-and-two together, the Manhattan Institute scholar says that while the U.S. can afford to explore greener options, the less-developed countries cannot. As such, global carbon emissions will rise as those nations seek to increase their quality of life.

Coal used for electricity generation in Africa has risen by 15 percent from 2002 to 2012, says Bryce, which equates to a 35 percent increase in carbon dioxide emissions there. Here in the United States, coal use has dropped by 21 percent during the same time, he adds, resulting in a 8 percent fall heat-trapping emissions.

Roughly, 1.4 billion people do not have any electricity, says the UN. Most of those are in Asia and sub-Saharan Africa. Other areas without power include swaths of Latin America and the Philippines. Based on current population trends, 1.2 billion -- or 15 percent of the world's population -- will still lack such access in 2030.

The World Bank says that the problems in sub-Saharan Africa are particularly acute. It notes that on a per capita basis, power generation in the poorest areas there is about one-tenth of other hard-pressed places. About 30 African countries experience frequent outages and load shedding.

The Obama administration’s initiative is laudable. And while it may help to ease the pain, it is just the beginning. The reality is that the sub-Saharan Africa will have to burn more coal to get ahead -- a fact that the developed world must incorporate into its thinking. Such consumption and productivity, though, can be supplemented with cleaner innovations that will be shared by and financed from those public and private entities that are involved with Power Africa.


EnergyBiz Insider has been awarded the Gold for Original Web Commentary presented by the American Society of Business Press Editors. The column is also the Winner of the 2011 Online Column category awarded by Media Industry News, MIN. Ken Silverstein has been honored as one of MIN’s Most Intriguing People in Media.

Twitter: @Ken_Silverstein

energybizinsider@energycentral.com

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