The role of energy supply in the economic growth of any nation is germane. Adequate energy supply is essential to the socio-economic development of any nation. Improving energy supply in any nation calls for a robust policy framework that ensures the utilisation of the country’s cost-effective resources for power generation.
The role of workable policies cannot be overemphasised. Senegal has one of the most developed off-grid energy sectors in West Africa. One major contributing factor to this success is the government’s action as far back as the 1990s in creating regulations that led to an official framework for private construction and funding of largescale grid infrastructure, mini-grids and IPPs.This framework in itself propelled the country in its search for donor funding. Also, in Uganda, private project developers have found space for growth due to sectoral rules that have allowed the growth of private sector implementation of off-grid energy solutions in the country. According to reports, 18% of Ugandan households have adopted off-grid energy solutions for their energy needs.
Although clean energy has been identified as a cost-effective means of electrification across Africa, the lack of enabling policies has impeded large-scale clean energy adoption. Improving energy access for the millions of people currently without access will require the continent’s policymakers to develop and implement the right policies. Currently, only a few countries on the continent have a comprehensive policy on renewable energy. Policies are not just necessary to improve energy access; they also help identify the best, sustainable and cost-effective ways to do t is. For instance, the majority of countries are yet to develop and adapt an Integrated Resource Plan (I P). An IRP is an electricity planning approach that incorporates supply and demand-side planning to identify the adequate energy mix needed for long-term electricity supply at minimum cost and risk.
In the recent joint report between the International Renewable Energy Agency (IRENA), the United Nations Economic Commission for Africa (UNECA), and the Renewable Energy Solutions for Africa (RES4Africa), policy stands a major connecting rod between where Africa stands currently and where Africa could be. According to the report3, policies must now engage both the public and private stakeholders in Africa’s energy transition. Policymaking must lean heavily towards financing and implementing solutions that will serve as a means of ensuring equitable energy access for all Africans. In addition, policies should help in the creation of an enabling environment for private partners, allowing them to recoup their investments through cost-reflective tariffs. Another challenge policymakers must thoroughly consider is the implementation of policies.
Adequate implementation of policies is equally as important as the policymaking itself. Unfortunately, so many good policies are laying waste due to the lack of political will to enforce and regulate t em. Yet, policies are essential to positively shaping the macroeconomic outlook of any society. An expected outcome of effective policy is to enable development in Africa by driving widespread investment into sustainable energy projects. The opportunity that such increased investment poses to the socio-economy of African states cannot be overemphasised. Therefore, proper attention must be given to infrastructural development, institutional capacity development, engagement of multi-sectoral stakeholders, and the provision of technical and vocational training (skills development) for a successful energy transition.
Infrastructure development, enabling environment, and proper regulatory frameworks have thus played integral roles in developing the African energy sector and solving its energy, economic, and socio-economic challenges. However, for Africa’s energy sector to evolve and transition to low-carbon sources, our policies must enable it.