Economy Energy

Four top trends to watch in the African energy sector in 2024

As we head into 2024, the renewable energy sector is set to see innovation that will transform the way energy is accessed, stored and deployed across Africa. Paul van Zijl, Group CEO at Starsight Energy (https://StarsightEnergy.com/), discusses 4 key trends that he thinks will profoundly shape the industry over the next year.

 

Batteries will provide benefits far beyond backup for behind-the-meter projects

One of the most significant shifts in solar technology revolves around the integration of battery energy storage systems (BESS) – especially for behind-the-meter solar (also known as onsite solar). Traditionally, batteries were seen primarily as backup storage when paired with a solar system, ensuring a steady power supply during cloudy days, nighttime or when the grid is unavailable. However, in 2024, the focus is vastly shifting towards load management, where batteries play a dynamic role in optimising energy consumption.

As the trend for the deployment of batteries across the continent grows, cutting-edge management systems will become a key part of solar installations with an integrated battery component. These systems use advanced algorithms to predict energy demand patterns. This allows for the strategic use of battery storage – discharging it during expensive peak times and charging it using solar energy or the grid during off-peak – to reduce the costly demand charges that come with variable tariff structures. Along with enhancing the efficiency of solar systems, integrated battery storage solutions can also contribute to grid stability by reducing strain during high-demand periods.

When it comes to front-of-the-meter (or offsite) storage, BESS is also set to play a bigger role in the deployment of utility-scale renewable energy technology like wheeling – where power is generated at an offsite location (like a solar or wind farm) and transported using the available power network to different off-takers.

In South Africa for example, the national energy provider Eskom announced the deployment of around 343 MW in BESS projects as part of an overall 500 MW BESS initiative aimed at addressing the country’s long-running electricity crisis. The systems will be in remote areas (with limited access to Eskom’s network) but still close to renewable energy plants built by independent power producers (IPPs).

This collaboration between the public and private sectors supports more widespread deployment of utility-scale power and the adoption of renewable energy projects. By adding battery storage components to the national grid, businesses and consumers can gain quicker access to reliable electricity while the power utility can address peak energy demands more easily. This also ensures that the increasing amount of power generated from utility-scale solar projects can be stored and consumed outside of daylight hours to avoid stranded grid capacity.

Data, banking and tourism: The rise of sustainable off-grid solar solutions

Off-grid renewable energy solutions, including stand-alone systems and mini-grids, offer a unique opportunity to expand modern energy access services. The distributed nature of these systems allows them to be tailored to local conditions, tap into available renewable resources, deliver diverse energy services, and utilise local capacity to ensure long-term sustainability.

We will see a rise in these solutions as more and more commercial and industrial businesses realise the value of effectively moving off-grid. This will be prevalent in three industries:

As more and more businesses become aware of the benefits of off-grid solar, it is likely that we will see an even greater adoption of this technology in the coming year

Data centres: Africa is a global hub for data centres. According to research from African Infrastructure Investment Managers (AIIM), there is around 250 MW of installed data centre capacity across Africa – with the demand for centres in Africa expected to exceed supply by 300% by 2030. These powerhouses of technology rely heavily on a steady and safe electricity supply. From operating to maintaining their vast cooling systems, large data centres simply can’t afford the risk of a grid collapse or any possible power interruptions. Power autonomy is the name of the game here, making battery storage a necessity from the get-go.

Banking: While the prevalence of mobile financial services continues to soar on the continent, there is still a tangible need for brick-and-mortar banks and ATMs in countries where access to these services remains essential. These sites need to remain operational should there be any sort of grid collapse or catastrophic power failures – making an off-grid solution a non-negotiable component of the future of banking in Africa.

Tourism: With the rise of conscious consumerism and eco-tourism, sustainability is fast becoming the differentiating factor for discerning travellers choosing their next holiday destination. Luxury lodges in popular destinations in East and Southern Africa are fast moving towards fully off-grid solar battery operations to offer their guests uninterrupted access to power while boosting the lodge’s green credentials in the process.

As more and more businesses become aware of the benefits of off-grid solar, it is likely that we will see an even greater adoption of this technology in the coming year.

Seamless access to renewables through a reimagined aggregation model

We will certainly see a shift towards aggregated solutions, wherein energy providers will consolidate diverse technologies and services into comprehensive packages in 2024. This trend is driven by the recognition that a holistic approach to energy solutions is not only more convenient for consumers but also more effective in optimising energy production and consumption.

This can be done in several ways. For example, trading of electricity in South Africa allows a service provider of solar energy to buy and sell, excess wind energy without having to invest substantial capital expenditure amounts. Similarly, instead of having gas-powered energy compete with renewable energy, the aggregation model will also allow providers of such services to aggregate their energy solutions and provide the client with a holistic offering. The goal is to provide consumers with a seamless and integrated final product that maximises the benefits of renewable energy across various aspects of their daily lives. The real value for customers lies in a collaboration of providers who can meet their specific needs and power the entire energy lifecycle.

Tackling complexities through an increasingly consolidated sector

As the solar industry matures, a trend towards consolidation will become increasingly evident in 2024. Larger energy companies will consider merging or acquiring smaller players, creating more robust and diversified entities. This consolidation is driven by the desire to achieve economies of scale, increase market share, and foster innovation by pooling resources and expertise.

Consolidation in the industry is not limited to manufacturers but extends to service providers, research and development firms, and energy management companies. By joining forces, these entities can tackle the complexities of the evolving energy landscape more effectively, driving down costs and accelerating the adoption of alternative energies across the continent.

This trend is fostering the emergence of holistic service providers capable of providing end-to-end solutions that address the diverse needs of businesses, consumers and communities. Our recent market-milestone merger between Starsight Energy (https://StarsightEnergy.com/) and SolarAfrica (https://SolarAfrica.com/) is a case in point. Customers in Eastern, Southern and Western Africa can access our comprehensive mix of cost-effective solutions that provide power security and carbon reduction. These include solar energy, battery storage, wheeling, and energy management, among others.

The future is bright. If 2023 was anything to go by in terms of transformation for the energy sector, 2024 will be marked by accelerated innovation and a collective commitment to harnessing the full potential of renewable energy that holds the promise of a more resilient, more sustainable, and more tightly connected energy future for Africa.

Leave a Comment

Your email address will not be published.

You may also like

Business Energy

NNPC Ltd Secures 10-Year Gas Supply Agreement with Dangote Refinery

post-image

 

In a significant development for Nigeria’s industrial sector, the Nigerian National Petroleum Company (NNPC) Limited, through its subsidiary, NNPC Gas Marketing Limited (NGML), has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE. The agreement, signed by Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President/CEO of the Dangote Group, took place at Dangote’s Corporate Head Office in Falomo, Lagos State.

The 10-year deal will see NGML supply Dangote Refinery with 100 million standard cubic feet per day (MMSCF/D) of natural gas, which will serve both as power generation fuel and as feedstock for the refinery’s operations in Ibeju-Lekki, Lagos State. The agreement outlines that 50 MMSCF/D will be a firm supply, with the remaining 50 MMSCF/D allocated as interruptible natural gas supply.

This strategic partnership aligns with President Bola Ahmed Tinubu’s policy to harness Nigeria’s vast gas resources to boost industrial…

Read More
Business Economy Gadgets Government Society Software

NITDA Director General Emphasizes Cybersecurity Governance at Jaiz Bank Board Meeting

post-image

 

In response to growing global cyber threats, Kashifu Inuwa Abdullahi, Director General of the National Information Technology Development Agency (NITDA), delivered an essential presentation on cybersecurity to the Board of Directors at Jaiz Bank’s headquarters in Abuja. Addressing the board’s role in strengthening cybersecurity governance, Abdullahi focused on critical areas such as risk management, resource allocation, and readiness to counter cyber attacks within the financial sector.

During his presentation, Abdullahi highlighted the Nigerian government’s ongoing efforts to secure digital assets through the National Cybersecurity Architecture, overseen by the Office of the National Security Adviser. This initiative underscores a national commitment to fortifying the country’s cyber defenses in the face of increasing threats.

Quoting renowned investor Warren Buffett, Abdullahi emphasized the value of a bank’s reputation, warning, “It takes 20 years to build a reputation and only a few minutes of cyber-incident to ruin it.” He urged the board to prioritize cybersecurity…

Read More
Announcements Business Investments Society Software Sponsored Technology Trends

Feature: CodeFest International Launches Ebonyi Hackathon to Drive Tech Innovation in Ebonyi State

post-image

 

As technology continues to reshape industries and societies across Nigeria, CodeFest International is stepping up to bring this transformation to Ebonyi State with the launch of the Ebonyi Hackathon. This groundbreaking event is designed to spark innovation, cultivate talent, and address local challenges by fostering a tech-forward ecosystem in the region. We spoke with the organizers to gain insight into what inspired this initiative, their goals, and the future of the Ebonyi Hackathon.

Inspiring Innovation and Economic Growth

According to the organizers, the Ebonyi Hackathon is driven by a clear vision: to nurture a culture of innovation and entrepreneurship in Ebonyi State. “The hackathon was inspired by the need to foster technological advancement, enhance skill development, and support economic growth within the region,” they explained. By bringing together developers, designers, and entrepreneurs, the event aims to tackle real-world problems while creating opportunities for tech-savvy youths to contribute solutions that impact their…

Read More
Business Culture Economy

Charles Uche Emembolu, Founder of Dexude, Reflects on Nigeria’s Innovation Growth at 5th ISN Annual Gathering 2024

post-image

 

The 5th ISN Annual Gathering held in Uyo, Akwa Ibom, this month marked a significant milestone in the development of Nigeria’s innovation ecosystem. The event, with the theme “Scaling Together: Building a Collaborative Culture for Nigerian Innovation,” was an opportunity to reflect on the progress made and look ahead at the ambitious goals for the future.

Charles Uche Emembolu, Founder of Dexude and Chairman of the Innovation Support Network (ISN) Board, expressed pride in the accomplishments of the network since its inception in 2019. Emembolu highlighted the impressive growth of ISN, which now supports 207 innovation hubs across 30 states, up from 75 in its early years. The network has also been instrumental in supporting over 5,000 new businesses annually and impacting the lives of more than 42,000 beneficiaries, including youth, women, and people with disabilities.

“We’ve come a long way, and this year’s gathering is a testament to the power…

Read More
Business Culture Economy Environment

CIF Announces Historic Climate Finance Milestone with CCMM Listing on London Stock Exchange at COP29

post-image

 

 

Tariye Gbadegesin, Chief Executive Officer of the Climate Investment Funds (CIF), today joined UK Prime Minister Keir Starmer and World Bank President Ajay Banga at COP29 to unveil a groundbreaking achievement for climate finance. The CIF Capital Market Mechanism (CCMM) has been officially listed on the London Stock Exchange, marking a global first in climate finance.

This new initiative represents CIF’s most ambitious step yet to mobilize private capital for high-impact clean energy and technology investments, particularly in developing countries and emerging economies. CCMM will empower CIF to unlock the potential of capital markets and drive substantial climate investments worldwide.

“We are proud to take this major leap forward in mobilizing climate finance at scale,” said Gbadegesin. “Bold and creative solutions are essential to tap into private finance, and this listing is a testament to the potential of capital markets in addressing the climate crisis. Our goal is to ensure that…

Read More
Business Economy Finance Fintech

Singapore-based TransferTo and Pan-African Ecobank Group Forge Strategic Partnership to Expand Financial Access and Cross-Border Payments Across Africa

post-image

ransferTo (www.TransferTo.com), a  Singapore-based global technology group, and Ecobank Group (https://Ecobank.com), the leading pan-African financial institution, announce a landmark Memorandum of Understanding (MOU), laying the groundwork to transform financial access and cross-border payment solutions across Africa.

 

This strategic partnership brings together TransferTo’s companies —  Thunes (www.Thunes.com), Ezra (https://Ezra.world), DT One (www.DTOne.com) and Tookitaki (www.Tookitaki.com) – with Ecobank (https://Ecobank.com) to expand access to credit, digital products and cross-border payment solutions. The collaboration will create a safe, inclusive financial ecosystem that bridges markets, enabling swift reliable payments across borders and offers financial empowerment tools to millions of Africans and businesses.

By uniting their expertise, TransferTo and Ecobank will drive financial inclusion, empower underserved communities, and establish secure, seamless digital pathways that connect Africa’s economies with the rest of the world.

Peter De Caluwe,…

Read More
Business Economy

Gwandu Urges African Countries to Unite for 600MHz Mobile Spectrum Allocations

post-image

Dr. Bashir Gwandu, former Acting Executive Vice Chairman and CEO, Nigerian Communications Commission (NCC) and former EVC/CEO, National Agency for Science and Engineering Infrastructure (NASENI), has urged African countries to unite and work  together to secure 600 megahertz (MHz) band mobile spectrum allocations.

 The independent telecom expert stated this at the just concluded 9th Sub-Sahara Spectrum Management Conference 2024, held in Nairobi, Kenya on 6-7 November, organised by Forum Global on the third theme: “From WRC-23 to WRC-27- Emerging Landscapes  & Technologies and the Path Ahead.”

Dr. Gwandu who held various chairmanship positions at the both the ITU and Commonwealth including the ITU Radiocommunications Advisory Group (the RAG), The Joint Task Group, and Commonwealth ITU Group (CIG), made the call during his opening remarks on the 600MHz spectrum discussions.

While making a presentation on the session: “The shape of Post-WRC spectrum ecosystems”, he called for…

Read More
Announcements Business Featured International Opinion Society

Moppets Baby Food Achieves HACCP Certification, Setting New Standards in Food Safety

post-image

 

In a significant milestone for Moppets Baby Food, Engr. Roberta Edu, CEO of the popular children’s food brand, recently announced their achievement of HACCP certification—a globally recognized food safety standard. Moppets, a subsidiary of Frills by Roberta, achieved this certification after rigorous assessments and audits, underscoring their commitment to quality and safety.

Edu shared the journey behind this accomplishment: “If you follow our Moppet Foods story closely, one thing you’re going to take away is how daring we’ve been over the years and how committed we are to excellence.” She recalled that upon learning the brand needed HACCP certification to supply to a specific NGO, the challenge initially appeared daunting. However, her determination turned that challenge into a goal, setting the company on a path toward stringent safety compliance.

 

Moppet Foods undertook comprehensive audits…

Read More