Africa’s energy expenditure in 2024 will reach $110 billion, according to intergovernmental organization the International Energy Agency (IEA). The IEA’s World Energy Investment 2024 report (http://apo-opa.co/464PGxm) shows that Africa’s fossil fuel (http://apo-opa.co/461wgJP) supply and power will account for $70 billion of the continent’s energy expenditure. In light of this growth, IEA Africa Program Officer Rita Madeira will speak at this year’s MSGBC Oil, Gas&Power 2024 conference and exhibition (http://apo-opa.co/466EDna) – taking place in Dakar from December 3-4 – where she is expected to provide insights into the energy access challenges and opportunities in West Africa.
Madeira has experience working with African governments on power and infrastructure projects across the continent. Her work with the IEA supports the continent’s clean energy transition strategy and energy access ambitions. She has also worked on the enhancement of energy data collection and strengthening the relationship between the organization and sub-Saharan African countries. As such, her participation at MSGBC 2024 is poised to show how untapped hydrocarbon and renewable energy resources can be leveraged to kickstart regional power development.
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In its findings, the IEA showed that Africa’s annual energy investments are equivalent to roughly 1.2% of the continent’s GDP and insufficient to achieve 2030 universal access and climate-related goals. Up to $200 billion in investment will be required per annum through 2030 to satisfy the increasing energy demand driven by population growth. The report shows that Africa must accelerate investments in grid modernization and expansion, increase grant funding for vulnerable households and de-risk projects to attract and scale up renewable energy funding.
The report also showed that global investment in upstream oil and gas is set to hit $570 billion this year, representing an increase of 7% compared to 2023. Around 40% of total upstream investment is expected to be allotted to existing fields while approximately 33% will be invested in frontier fields. The remaining 7% will be invested in unconventional petroleum-bearing formations.
The MSGBC region is home to major oil and gas discoveries including the $4.6 billion Greater Tortue Ahmeyim development, straddling the maritime border between Mauritania and Senegal; the $5.2 billion Sangomar field development, offshore Senegal; and the $4.6 billion BirAllah gas field, offshore Mauritania. As such, a significant wave of investment is expected in oil and liquefied natural gas development in the coming years as new projects start operation in the second half of the decade.
In addition to upstream investment, investment in sustainable energy by oil and gas companies grew to approximately $30 billion in 2023, according to the report. Hydrogen electrolyzers witnessed the largest growth in low-emission fuel investment, having risen to around $3 billion per year. Countries like Mauritania and The Gambia are making strides towards securing investment for billion-dollar hydrogen projects while regional counterparts accelerate the development of renewable energy systems. Exciting projects to watch include the $34 billion green hydrogen project in Mauritania, The Gambia’s green hydrogen strategy and Guinea-Conakry’s deployment of its 300 MW Amaria and 294 MW hydro projects.
During the 2023 edition of MSGBC Oil, Gas&Power, the IEA launched its Renewable Energy Opportunities for Mauritania report. Madeira presented the report’s key findings, which showcased Mauritania’s high-quality wind and solar resources and the government’s vision for sustainable economic development. During this year’s event, Madeira will expand on the report’s findings, offering an update on capital expenditure projections, strategic areas of growth in MSGBC energy and opportunities for grid modernization and expansion.
Distributed by APO Group on behalf of Energy Capital&Power.