A-Z of everything you need to know about China's intention to fund Africa's transition to renewable energy

 COP27: China declares its intention to fund Africa's transition to renewable energy.

From assisting in the development of transport network infrastructure in several African countries, China has once again begun moves to lead the way in partnering with the continent on the long road to accomplishing the ambitious energy transition.

China is home to 90% of the world's renewable energy technology, with solar alone expected to produce 361 GW by the end of 2021. China's total annual solar cell and module production capacity may expand to 600 GW by the end of 2022, according to Asia Europe Clean Energy (Solar) Advisory (AECEA).

As the world considers Energy for All as one of the Seven Sustainable Development Goals, the African continent is looking for development partners in the global North or South to help it achieve its net Zero energy target.

It is worth noting that Africa suffers a significant loss in energy per capita consumption despite being the least source of greenhouse gas emissions.

According to China's Special Envoy for Climate Change, Zhenhua Xie, "Africa boasts the world's richest endowment of renewable energy and the brightest future of renewable energy." Solar power costs have dropped by almost 90% in the last 20 years."

Some African countries are already pioneering hydrogen-powered electric vehicles, having recently entered the development nexus as global finance shifts to green energy on a major scale. The investment alone is expected to reach USD 1.4 trillion in 2022.

Zhenhua advises Africa to "seize renewable investment prospects given its young population to expedite renewable energy deployment given addressing climate change and driving the industrial revolution."

"China will exchange expertise in developing renewable energy with underdeveloped nations," Zhenhua said at a side event during COP27 in Egypt.

Portfolio of Renewable Investment in China

China has pledged to invest up to USD 1.2 billion in South-South cooperation in order to construct 40 mitigation programs in over 30 developing nations. Work is already being done in Ethiopia and Egypt. China Africa Cooperation signed the 2035 accord for investment in a new green growth pattern in 2021.

The agreement aims to strengthen Climate Change cooperation programs in clean energy and other low-emission areas such as renewable energy.

According to Senegal's Minister of Environment, Sustainable Development, and Ecological Transition, Alioune Ndoye, Africa is looking for investment in solar, wind, and geothermal energy, as well as gas and renewable energy.

"The Continent has just 30% of its energy mix made up of renewable energy, particularly in solar-powered street lighting." What is required is universal access to and affordability of energy. Africa desires growth and energy for future generations." Ndoye stated this.

According to Africa Union Commissioner for Rural Economy and Agriculture Josefa Leonel Correia Sacko, although Africa has 60% renewable energy endowment potential, only 1% is currently being utilized. Similarly to the continent's 60% arable land, the continent's net exports are just 35%.

Every year, the continent spends USD 45 billion on food imports. Similarly, renewable energy accounts for only 9% of African energy generation (6.8% hydro)." Sacko stated at COP27 as the Conference was discussing the issue of Energy.

Last year, Africa received only 2% of the USD 2.6 billion in renewable energy investment, primarily in solar.

Poverty from Inert Energy

According to the International Renewable Energy Agency, less than 3% (323,000) of the 12 million people working in the worldwide renewable energy business are in Africa, a continent with 600 million people living in energy poverty (IRENA).

Kenya, Ghana, and Rwanda are three African countries that are leading the way in renewable energy investment and are well on their way to completing the great energy shift. Even so, a sizable proportion of their population is among the 970 million Africans who lack access to clean cooking.

With only 30 million people having access to gas, Africa's extreme energy poverty forces many to rely on biomass energy sources, which are heavily responsible for deforestation across the continent.

Under the Sustainable Energy for All initiative, the world hopes to link 90 million people each year. Some financial institutions are introducing "partial risk guarantee instruments as a strategy to spur the renewable energy footprint" to accomplish this.

If Africa develops all of its discovered oil and gas facilities, it will emit 10 gigatonnes of carbon dioxide equivalent greenhouse gases into the atmosphere, increasing its contribution to about 3.5 percent.

Junfeng Li, President of the Chinese Renewable Energy Industry Association, asked Africa to reach out to China in order to address the continent's energy poverty.

"Wind and solar energy have the potential to address Africa's crisis." "Half renewable, half fossil."

Congo and Zambia are known to have 80% of the cobalt required for lithium battery production - a critical component for the SOLAR PV revolution. As a result of leapfrogging Africa to the big energy transition, these countries have established special economic zones for investors looking to develop the Cobalt reserves.

China Establishes a Renewable Energy Manufacturing Facility in South Africa

Yabin Xing, Talesun Solar's President of North America and Africa, reveals that China will do less talking and more action to help Africa leapfrog to a renewable energy future.

"We are currently constructing a factory in South Africa that will produce 300 Megawatts of energy each year." We want to make renewable energy solutions that can be deployed across the continent."

Benedikt Doenhoff, Market Intelligence & Business Development Manager at CSI Solar, cautioned that while renewable energy solutions can be installed quickly due to their ease of construction, they are difficult to integrate into national energy infrastructure.

"That is why we are assisting local designers and trainers in developing high-quality standards and infrastructure for renewable energy integration." We advise African countries to focus on acquiring standardized technologies rather than import taxes."

At the start of the talks, COP27 President and Egyptian Foreign Minister Sameh Shoukry stated, "Africa has a wealth of untapped resources that could be used in the manufacturing of renewable energy tools like electric batteries, wind turbines, and other low-carbon technologies to support global mitigation efforts."

"This is why we are assisting local designers and trainers in developing high-quality standards and infrastructure for renewable energy integration." We urge that African countries focus on importing standardized technologies rather than import taxes."

At the start of the talks, COP27 President and Egyptian Foreign Minister Sameh Shoukry stated, "Africa has a wealth of untapped resources that could be put to use in the manufacturing of renewable energy tools like electric batteries, wind turbines, and other low-carbon technologies to assist global mitigation efforts."