Africa as a Global Player in the Supply and Demand of Energy

Frank Suedbeck Nithin Seenivasan

FH Aachen, Jülich. 4th November, 2011

Contents of the Presentation

1. Introduction2. Fossil Fuels in Africa3. Uranium in Africa4. Renewable Energies in Africa5. Problems plaguing Africa6. Possible Solutions7. Conclusion8. References

Facts About Africa I• Population:

– 920 Mio. people– 2,3% annual growth– Nigeria is the most populous

country (162,471,000 inhabitants)

• Size:– 30 322 573 km²– Algeria is the largest country

(2,381,741 km²)

Sources: UN, African Development Bank, creative commons

Facts About Africa II• GDP per Capita:

– Africa (average) 970 USD/a– Burundi 300 USD/a– Germany 35.700 USD/a

• Life expectancy:– Africa 54,4 years– Lesotho 45,6 years– Germany 80,1 years (retirement age 67)

Sources: CIA, African Development Bank

Energy in Africa

Source: uneca.org

Source: “Oil and Gas Journal”, 2005

Fossil Fuel in Africa

Proved Oil and Gas Reserves in Africa

Source: BP 19.10.2011

Source: Afrique Avenir – Rise of African oil production

Oil Production in Africa

Oil consumption

Source: BP

Although Africa has about 15% of the world‘s population and has a 12% share in global Oil Production it only consumes 3% of the globally consumed oil

Gas Production and Consumption in Africa

Potential

Huge Oil and gas fields are expected to be found in Africa:• Ghana, Kenia, South Africa, Mozambique, Tanzania

and Uganda are currently investing for on- and offshore hydrocarbon exploration

• Not necessarily good news for Climate activists and CO2 reduction policies!

Coal Reserves

Source: BP Statistical review of world energy June 2010

Coal Production

• South Africa has Africa's only significant coal reserves.

• It had 2009 coal production of 250.02 million tonnes, 4.13% of the world total.

• South Africa is the world’s third largest coal exporting country, exporting around 25% of its production internationally

• Total proved reserves 80408 Mt.

Coal Consumption• Electricity generation accounts for 43% of all coal consumed in South Africa (1997 estimate).• Around 35% of liquid fuel used in South Africa is derived from coal • Still a primary energy source for cooking, lighting and heating in many lower income families

Uranium in Africa

Uranium Reserves

Source: World Nuclear Association

Source: BBC, Sept 2002

Renewable Energy in Africa

Solar Energy in Africa

Source: National Renewable Energy Laboratory

Solar Collectors Covering 0.3 Percent of the Sahara Could Power All of Europe

Source: Popular Science, 22 Jun 09

DESERTEC

Source: Desertec Foundation

Current Utilization of Solar Energy

Source: ngpowerenergyafrica.com

Wind Potential in Africa

Source: Global Energy Network Institute

Biomass in Africa

Biomass in Africa

Source: Charcoalproject.net

Hydropower Potential vs Installed Capacity

Source: www.africaelectricity.com

Hydropower

Ethiopias Millennium Dam Project:- 5,250 MW of electricity- 4.7 U$ Billion investment- Operation start planned for 2017

“If Africa is so richly endowed with natural resources and such a huge potential for renewable resources, why is it still not a Global Player in Energy export?”

The Trillian Dollar question

Problems Businesses FaceMost problematic factors for doing business in Africa

Political Risks

Source: Aon Risk Map, 2011

Political Risks – The Libya Example

Source: African Development Bank

Possible Solutions I

Millennium Development Goals“They are the eight international development goals that all 193 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015”

Goal 1: Eradicate extreme poverty and hungerGoal 2: Achieve universal primary educationGoal 3: Promote gender equality and empower womenGoal 4: Reduce child mortality ratesGoal 5: Improve maternal healthGoal 6: Combat HIV/AIDS, malaria, and other diseasesGoal 7: Ensure environmental sustainabilityGoal 8: Develop a global partnership for development

Possible Solution II Clean Development Mechanism (CDM)

Source: greencleanguide.com

Conclusion

Africa has the theoretical Renewable Energy Potential to power the whole world, so there is no doubt that Africa is richly endowed with Energy Resources. But it’s biggest obstacle today is ITSELF, since political instability and poor governance hinders rapid development. The Global Community has the duty to help Africa solve its internal problems and to develop its Energy sector in a Clean and Sustainable way, for the Energy future and Environmental benefit of the world.

References

• http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa%20and%20Global%20Economic%20Trends-3Q2011.pdf

• http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/ADB_Pocketbook_2010_web.pdf

• http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_Competitiveness_Report_2011-1.pdf

• http://www.dpe.gov.za/parliamentary-906• http://www.25degrees.net/index.php?option=com_zine&view=article&id=713:energy-in-

south-africa-at-a-glance&Itemid=123• http://www.world-nuclear.org/info/inf112.html• http://www.pwc.dk/da/publikationer/assets/renewable-electricity.pdf• http://www.un.org/esa/sustdev/marrakech/EnergyConsumption.pdf• http://www.mbendi.com/indy/ming/coal/af/sa/p0005.htm• http://www.nrel.gov/gis/pdfs/swera/africa/africa_tilt.pdf• http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Full%20Document%20-

%20Oil%20and%20Gas%20in%20Africa.pdf