The pandemic has triggered a reduction in demand for electricity globally as commercial and industrial activities slowed down, and people worked from their homes.
Electricity demand in South Africa decreased significantly at the height of national lockdown. Currently, in most African nations, demand is now growing as economies reopen. Given that several African countries joined the crisis with an electricity supply scarcity, governments would need to outsource more power in the future.
The Bank suggests that the most efficient way to counter that supply gap is by using adjustable technologies like renewable energy projects. The crisis could induce various African countries to incorporate renewable energy earlier than expected. The primary renewable energies that would impose maximum benefits are wind and solar.
The International Energy Agency (IEA) projected that renewable energy demand would increase in 2020. It further released the cost-effectiveness and flexibility of solar and wind energy, which will gain a competitive advantage over other forms of energy. Additionally, green energy will fasten the economic recovery process in most states.
The issue of unstable electricity supply by renewable energy technologies gets solved by rapid developments in storage systems. Conversely, Africa still lags in the availability of subsistence battery utilities.
Further, considering the limited timeframe, renewables could bridge the gap, and experts indicate that these ventures would also include investments in storage units. Gas will also complement energy production to stimulate the planned projects. Besides creating a window for the initiation of the project, consolidation of private and municipal efforts in the South African government will also prompt the advancement of the schemes.
Decentralized energy systems will stimulate innovation in a broad economic sense. There will be massive cost benefits incurred from having every sector connected to proprietary energy grids. Various mining parties are also reaping from the benefits of hydrogen power in their operations.
In economies such as Nigeria, self-generated power accounts for a significant portion of the energy sector. The country will thus quickly decentralize its energy production in many industries earlier than anticipated. The approach towards a green economy initiative secures funding set for recovery processes to compel the achievement of the plan in the current pandemic state.
Additionally, considering the ballooning focus on sustainable environmental and social status, countries will benefit from global financers. The private and public corporations will also require to cooperate to streamline the achievement of the green economy in the African continent.
In conclusion, the African economy will advance its renewable energy mission faster due to the changing and decreasing demands of fossil fuel energy.