Africa pushes for energy integration, single market

DAR ES SALAAM: THE African Union Commission (AUC), in partnership with Auda NEPAD and other stakeholders, is actively pursuing large-scale energy infrastructure projects aimed at attracting investment and overcoming barriers to energy integration across Africa.

During a panel discussion at the Africa Energy Summit that opened at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam yesterday, Commissioner for Infrastructure and Energy at the African Union Commission, Dr Amani Abou Zeid underlined the strategic importance of the African Continental Masterplan (CMP) and the African Single Electricity Market (AfSEM) in advancing Africa’s energy goals.

Dr Zeid noted the ambitious timeline for AfSEM’s full operationalisation by 2040, pointing to ongoing efforts to develop regulatory frameworks, tariff mechanisms and market rules to facilitate electricity trading across regions.

“Africa’s energy landscape is undergoing a significant transformation,” Dr Zeid said.

“The African Continental Masterplan and the African Single Electricity Market are at the forefront of our efforts to integrate and modernise the continent’s energy infrastructure.”

He added, “These initiatives are critical in supporting the objectives of Agenda 2063, our framework for sustainable development across Africa.”

The panel also featured insights from key partners, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the Global Energy Alliance for People and Planet (GEAPP) and the World Bank Group.

These stakeholders underscored the need for strategic collaboration to meet Africa’s growing energy demands. The African Single Electricity Market aims to create one of the world’s largest electricity markets, incorporating all African countries.

The goal is to establish an integrated, competitive and harmonised electricity market that will accelerate energy access, foster regional cooperation and drive economic development.

Dr Zeid noted that the AUC’s efforts are complemented by regional regulators and power pools working together to build the infrastructure and framework necessary for cross-border energy trade.

He also insisted the importance of private sector engagement to ensure the longterm sustainability of these energy initiatives.

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International partners are providing significant support for Africa’s energy vision. Secretary of State for BMZ Jochen Flasbarth, shared details about a 16.5 million Euro project designed to strengthen key Pan-African actors and support AfSEM and the CMP.

“This funding will bolster the capacity of African Union institutions and regional power pools, facilitating energy integration across the continent,” he said.

Flasbarth also drew parallels between Africa’s energy integration and Europe’s success with the European Single Electricity Market, stressing the importance of cross-border collaboration for achieving carbon neutrality and ensuring affordable, sustainable energy.

“Without the creation of a single European electricity market, our energy system would not be as advanced as it is now,” Flasbarth explained.

“This integration is essential for reaching carbon neutrality and ensuring affordable, sustainable energy for all.”

The panel also discussed the challenges and opportunities in achieving the objectives of the CMP and AfSEM, Vice-President of the Global Energy Alliance for People and Planet (GEAPP), Joseph Nganga emphasised the role of regional integration in optimising Africa’s energy resources.

“Regional integration is crucial to maximising Africa’s energy potential,” Nganga said. “By working together, we will provide affordable and reliable energy across the continent.”

Regional Vice-President for Eastern and Southern Africa at the World Bank Group, Dr Victoria Kwakwa, outlined the substantial financial needs for infrastructure development, pointing out that an estimated 1.3 trillion US dollars will be required by 2040 for generation and cross-border transmission infrastructure.

“We must leverage concessional funding to catalyse private sector investment. Both public and private resources are necessary to meet the immense funding needs of this vision,” Dr Kwakwa said.

The panel also touched on Mission 300; an initiative aimed at providing universal energy access to all Africans by 2030.

This mission aligns with the broader goals of the CMP and AfSEM, which prioritise affordable, sustainable and renewable energy sources.

“By focusing on regional integration, private sector involvement and innovative financing models, stakeholders are confident that these ambitious goals can be achieved,” they agreed.

The panel insisted the importance of preparing earlystage projects and de-risking investments to ensure smooth progress, ensuring that countries producing the cheapest and most stable power would support those unable to generate sufficient energy, guaranteeing equitable access across the continent.

The collective efforts of the AUC, regional regulators, international partners and the private sector are driving Africa toward an integrated and sustainable energy future.

As Africa works toward operationalising AfSEM and the CMP, the partnerships formed during the summit are expected to play a critical role in ensuring the continent’s energy transformation.

With continued collaboration and a clear focus on regional integration, Africa is well-positioned to overcome its energy challenges and create a unified energy market that will benefit all its people for generations to come.