Overview of renewable energy and energy efficiency - unido

MODULE 1: OVERVIEW OF RENEWABLE ENERGY AND ENERGY EFFICIENCYpage 1.19LEARNING OUTCOMESKey points coveredThese are the most important points covered in this module: Africa has a vast range of new and renewable energy sources with significantpotential. However, in spite of the enormous potential, renewable energy onlycontributes about 1 per cent of the region’s modern energy supply. The rationale for promoting renewables and energy efficiency in nationalenergy policies is not well argued. Consequently, the large-scale conventionalenergy sector (i.e. electricity and petroleum), which serves a smaller proportionof the population receives the bulk of energy investments in mostcountries in the region. Renewable energy offers diversification in energy supply, thus strengtheningenergy security by broadening the energy generation portfolio used within acountry. The energy sector in numerous African countries is characterized by high oilimport bills, accounting for a significant proportion of export earnings. Energy efficiency measures can “shave off” peak loads in a power systemthereby minimizing the need for large supply investments to meet peakdemands which last for only a few hours in a day. Energy efficiency measures can significantly reduce the cost of energy supply. The high cost of energy in the industrial sector in sub-Saharan African countriesis eroding the competitiveness of their products in the local, regionaland international markets. Energy efficiency measures can therefore enhancethe region’s competitiveness. Although the environmental rationale for promoting renewables and energyefficiency in Africa is weak, there are strong energy security and socioeconomicreasons for promoting sustainable energy in Africa.