The countries of North Africa – Algeria, Egypt, Libya, Morocco, Sudan, Tunisia and Western Sahara – face the dual challenges of meeting rising energy demand while also reducing greenhouse gas emissions. As one of the hottest regions in the world, North Africa is already experiencing the impacts of climate change. At the same time, its economies are developing rapidly, driving up energy consumption.
Finding ways to sustainably meet energy needs while curbing carbon emissions will be critical for North Africa. The energy sector accounts for around two-thirds of the region’s greenhouse gas output. Transitioning to renewable energy and enhancing energy efficiency can help chart a lower-carbon path.
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The Need for Cleaner Energy in North Africa
North Africa has tremendous potential for renewable energy, especially solar and wind. The region has some of the highest solar radiation levels globally. Leveraging renewables can help North Africa meet energy goals while lowering its carbon footprint.
Most North African countries still depend heavily on fossil fuels for electricity generation. Natural gas is the dominant fuel, providing around half of generating capacity. Coal’s share is also rising. Here is an overview of the current electricity generation mix across North Africa:
| Country | Natural Gas | Coal | Oil | Hydro | Solar | Wind |
|---|---|---|---|---|---|---|
| Algeria | 93% | 0% | 1% | 2% | 4% | 0.2% |
| Egypt | 78% | 4% | 11% | 8% | 1% | 1% |
| Libya | 37% | 0% | 63% | 0% | 0% | 0% |
| Morocco | 37% | 8% | 1% | 0.4% | 2% | 34% |
| Sudan | 21% | 0% | 79% | 0% | 0% | 0% |
| Tunisia | 99% | 0% | 1% | 0% | 0% | 0% |
Algeria and Libya rely heavily on natural gas for power generation, while Egypt uses a mix of natural gas and oil. Countries like Morocco and Egypt have started harnessing solar and wind energy, but their contributions are still minor compared to fossil fuels.
Shifting more electricity generation to renewable sources can help slash North African countries’ carbon footprints. Solar and wind plants produce virtually zero direct emissions during operation. They can displace fossil fuel plants and avoid huge amounts of carbon emissions over time.
The International Renewable Energy Agency (IRENA) estimates North Africa could supply over a quarter of its projected electricity demand from renewables by 2030. Realizing this potential would cut regional power sector emissions by up to 70% compared to business-as-usual scenarios.
Expanding Renewable Energy Deployment in North Africa
So how can North African countries transition more of their energy mix to clean sources? Here are some key steps that can accelerate renewable energy adoption:
1. Set ambitious renewable energy targets: Clear goals help drive policy action and send market signals to attract investment. Most North African countries have already established renewable energy targets. For example, Egypt aims to generate 42% of its electricity from renewables by 2035. Raising ambitions even further will spur faster growth.
2. Reform renewable energy policies: Supportive policies are vital to catalyze investments. North African countries have introduced mechanisms like feed-in tariffs and auctions to boost renewables. Regularly reviewing and updating policies can help scale renewables efficiently. Measures like streamlining permitting procedures also enable faster project development.
3. Leverage regional cooperation: Cross-border grid integration and trading renewable energy across borders can enhance flexibility and increase access to clean power. The Arab Maghreb Union countries – Algeria, Libya, Mauritania, Morocco and Tunisia – have huge potential to share renewable resources. Regional cooperation forums like the League of Arab States can also promote renewables development.
4. Attract private investments: The scale of investments required makes private financing essential. Governments can facilitate this by ensuring transparent, predictable policies that reduce risks for investors. Bodies like Morocco’s MASEN have successively drawn major renewable energy investors through competitive tenders. Fiscal incentives like tax breaks can further stimulate investment.
5. Upgrade grid infrastructure: Renewable growth requires modernizing power grids to handle fluctuating generation. Smart grids, demand-side management and energy storage solutions can balance supply and demand. Algeria, Egypt and Morocco are among countries making grid upgrades to manage higher renewable energy inflows.
6. Develop local supply chains: Building domestic manufacturing capacity reduces project costs and creates jobs. Egypt requires a percentage of local content for its wind and solar programs. Joint ventures can promote technology transfer – like the Moroccan-German JV that produced turbines for Africa’s largest wind farm.
7. Embrace emerging technologies: Advances like floating solar PV, concentrated solar power with storage and offshore wind can unlock vast new renewable resources. Supporting demonstration projects accelerates commercial deployment. Tunisia inaugurated a floating PV plant in 2019, while Morocco will host Africa’s first CSP tower with storage.
Improving Energy Efficiency
Another key piece of North Africa’s low-carbon transition is aggressively improving energy efficiency across all sectors. More efficient energy use directly lowers fuel consumption and emissions. North African economies have huge potential to adopt efficiency measures, as they are among the most energy-intensive globally.
Some strategies to enhance North Africa’s energy efficiency include:
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Tightening standards: Minimum energy performance standards for appliances, lighting, motors and buildings drive adoption of efficient technologies. Egypt requires air conditioners to meet certain efficiency levels before they can be imported or sold locally.
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Retrofitting programs: Old, inefficient building stock and industries offer major potential for upgrades. Tunisia provides subsidized loans to SMEs for energy efficiency retrofits. Algeria’s RETEX program has helped textile factories reduce energy usage over 15%.
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Energy audits and monitoring: Detailed energy use data allows identifying efficiency opportunities. Morocco made energy audits mandatory for large energy consumers and provides 75% funding support. Smart meters enable better tracking of consumption.
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Public transit expansion: North Africa’s rapid urbanization requires developing more sustainable transport options. Egypt added metro lines serving over 2 million riders daily. Algeria plans high-speed rail lines connecting major cities.
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Waste-to-energy: Converting organic waste into electricity or heat is an emerging opportunity. A 129 MW waste-to-energy plant recently came online in Egypt. Tunisia aims to meet 7% of its energy demand from municipal solid waste.
Ramping up energy efficiency improvements across industries, buildings and transport can curb North Africa’s emissions while yielding cost savings. Adopting targeted policies, incentives and financing tools will be key to unlocking this potential.
Comparison of Renewable Energy Progress
North African countries find themselves in different stages of renewable energy deployment:
| Country | Opportunities | Challenges |
|---|---|---|
| Morocco | – Generated over 35% of electricity from renewables in 2019, with goals to reach over 50% by 2030.- Big solar and wind pipeline – will add 12 GW capacity from projects under construction.- Recently inaugurated Noor solar complex, one of the world’s largest.- Strong policy frameworks and institutions like MASEN driving development. | – Ambitious targets require rapid scaling of grid integration capabilities.- Attracting continuing private investment as subsidies phased out.- New large-scale storage solutions will be needed. |
| Egypt | – Solar and wind accounted for about 3% of generation in 2019.- Targets to reach 42% renewable electricity by 2035 and 20% of overall energy by 2022.- Recent projects like Benban solar park spurring large-scale deployment.- Holds renewable energy auctions annually to add capacity.- Privatization opening power market to IPPs and foreign investors. | – Must accelerate deployment rates to meet targets.- Bureaucratic and grid connectivity issues hampering growth.- Risk of oversupply as demand growth slower than expected.- Attracting investors given high fossil fuel subsidies. |
| Algeria | – Renewables contributed around 4% of power in 2019, mostly hydropower.- Targets to install 22 GW solar, wind and other renewables by 2030.- New renewable energy law seeks to spur investments.- Good solar and wind potential in southern regions.- Recently approved several utility-scale solar projects. | – Gas dominates power mix – 90% generation in 2019.- Renewables growth to date very limited despite potential.- Financial and structural challenges for utility Sonelgaz.- Bureaucratic hurdles hampering project development. |
| Tunisia | – Solar PV tenders led to multiple large projects.- Wind supplied 1% of power in 2019, plans for 500 MW wind park.- Target to expand renewables to 30% power mix by 2030.- New 2022 electricity law prioritizes clean energy.- Piloting emerging technologies like floating PV. | – Limited progress on renewables growth thus far.- Grid and land constraints for large projects.- Wind deployment hampered by administrative complexities.- Private renewable investments constrained by finances of utility STEG. |
| Libya | – No renewable energy currently – depends entirely on oil and gas.- Severe political instability and conflict hampering development.- Huge untapped potential for solar and wind energy.- New government aims to expand renewables but policies uncertain.- Lack of modern grid infrastructure also a barrier. | – No clear legal framework or policies for renewables.- Conflict and divisions obstructing infrastructure investment.- Financial constraints limit scope for projects.- Technical capacity to integrate renewables remains very low. |
While Morocco has made the most renewable energy progress to date, countries like Egypt and Algeria are also ramping up efforts. Others such as Libya and Tunisia have seen slower growth but are starting to establish supporting frameworks. Continued regional cooperation and policy improvements can help scale up renewables across North Africa.
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FAQ
What are the benefits of transitioning to renewable energy in North Africa?
Some key benefits include:
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Lower greenhouse gas emissions – As renewables displace fossil fuel generation, they reduce carbon dioxide and air pollutant emissions. This mitigates climate change and health impacts.
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Energy security – Expanding domestic renewables reduces reliance on imported fossil fuels vulnerable to price swings. This enhances energy security.
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Cost savings – In many cases, renewables are now the lowest-cost option for new power generation capacity. Their costs continue to fall.
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Employment – Constructing and operating renewable plants creates many direct and indirect jobs locally.
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Sustainable development – Renewables enable economic growth with environmental benefits. They expand energy access to remote areas.
How much investment is required to scale up renewables in North Africa?
IRENA estimates meeting North Africa’s renewable energy potential by 2030 would require investment exceeding $100 billion. The bulk is needed for large-scale wind and solar projects. Attracting this scale of private finance requires stable policy frameworks and risk mitigation instruments. Overseas development assistance can catalyze early-stage investments.
What are the main barriers hindering renewable energy growth in North Africa?
Some key challenges faced are:
- Subsidies for fossil fuels that discourage renewables
- Weak grid infrastructure and need for modernization
- Lack of robust legal and policy frameworks in some countries
- Permitting and administrative hurdles that delay projects
- Financing constraints, especially for smaller-scale distributed generation
- Local technical capacity limitations
Targeted policy reforms and technical assistance are needed to address these barriers.
How can North African countries build local renewable energy industries?
Measures that can spur local industry growth include:
- Local content requirements for projects
- Fiscal incentives for renewable energy manufacturing
- Skill development and training programs
- Technology transfer through joint ventures
- Support for R&D and knowledge sharing
- Funding for incubators and entrepreneurs
- Export promotion agencies to access regional markets
Building domestic expertise and supply chains accelerates sustainable, inclusive renewable energy development.
What role can regional cooperation play in advancing North Africa’s energy transition?
Regional coordination can help overcome constraints faced by individual countries. Approaches include:
- Grid interconnection to share electricity across vast geographies
- Joint infrastructure projects to enable larger-scale development
- Harmonizing policies to create consistent frameworks for investors
- Sharing best practices and project learnings
- Capacity building programs to develop regional technical expertise
- Unified databases and sharing of resources like solar irradiance data
International forums like the League of Arab States provide platforms to strengthen regional collaboration.
