- Developed nations can leapfrog by not embedding inflexible fossil fuel-based systems.
- South Africa can solve its load-shedding dilemma and save up to $26 billion by 2032.
According to reports from Wärtsilä’s power system modelling of three African countries, Nigeria, South Africa, and Mozambique, Developed nations can leapfrog by not embedding inflexible fossil fuel-based systems. The report also shows that a combination of climate finance, effective planning and system reforms will be an essential enabler of such a massive transformation. The report highlights that energy access can be increased and costs reduced by replacing coal with clean energy combined with energy storage and battery systems. This will improve the sustainability and reliability of the energy supply. The model results showed that renewable energy and flexibility could generate enough energy to provide power for close to 100 million people who currently do not have energy access in South Africa, Mozambique, and Nigeria.
The president and CEO of Wärtsilä Corporation said, “Despite contributing less than 3% of the world’s energy‐related carbon emissions, African countries are among the hardest hit by climate change. COP27, hosted in Egypt, is the perfect opportunity to deliver on global climate finance pledges so that, as a global community, we can seize this moment to act and unlock Africa’s renewable potential; that investment must be combined with effective planning and system reforms to increase energy access and create future renewable energy systems.”
Wärtsilä modelled power system decarbonisation pathways for three African countries, using PLEXOS, an independent market simulation software, which shows that Nigeria can cut electricity costs by 74% on its path to net-zero by 2060. Also, South Africa can solve its load-shedding dilemma and save up to $26 billion by 2032. By adding 40 GW of wind and solar PV generation. Finally, Mozambique can reduce emissions and save $84 million. By adding 200 Mw of low-cost renewable energy annually.
The research aimed to support African countries that wish to shape multi-year plans and develop optimal power systems for the future that could stimulate investment by setting out clear strategies to build well-functioning flexible renewable grids. In placing value on flexibility and encouraging the market to the market, laying the foundations for more flexible and reliable grids to support high levels of renewable energy while increasing energy access