African countries have been challenged to leverage China’s technological expertise and investment capacity to fully explore their immense renewable energy potential.
African Development Bank (ADB) Group Vice-President for Power, Energy, Climate and Green Growth Mr. Kevin Kariuki says collaboration between Africa and China can drive sustainable development, alleviate energy poverty and stimulate economic activities across the continent.
According to China Daily, Kariuki, who spoke at the bank’s annual meeting in Nairobi, emphasised the need for Africa to tap into renewable energy for industrial growth.
“Investing in Africa’s renewable energy infrastructure can enable China to help build large-scale solar farms, wind farms and hydroelectric plants. These investments can provide reliable and affordable energy, crucial for economic growth,” said Kariuki.
He noted that the continent has not fully exploited its renewable energy sector, according to the State of Africa's Infrastructure Report 2024 by the Africa Finance Corporation. This underutilisation has hindered economic growth, particularly in the manufacturing sector.
African Development Bank Group President Akinwumi Adesina said the continent's inability to tap into the renewable energy sector continues to slow down its growth rate.
“Today, our continent harnesses only a fraction of its renewable energy resources, with just 1 per cent of its solar potential, 5 per cent of gas-to-power, 6 per cent of geothermal, 7 per cent of wind and 11 per cent of hydropower. Hence, we cannot compete with other regions,” said Adesina.
He urged for a renewable collaboration with China to unlock Africa's energy potential.
In recent years, China has expanded its investment in African renewable energy projects. For example, a Chinese-built solar power plant in Garissa County has significantly contributed to Kenya's energy grid, supporting local industries and communities, and reducing over 43,000 metric tonnes of carbon dioxide emissions annually, according to Kenya's Rural Electrification and Renewable Energy Corporation.
“China can share expertise and provide training to build local capacities for managing and sustaining renewable energy projects. This can be achieved through joint ventures, scholarships for African students in Chinese universities, and the establishment of research and development centres in Africa,” Adesina added.
Delegates at the meeting also called on African countries to develop regulatory frameworks that foster investments and partnerships in renewable energy.
“China can assist by sharing its experiences in creating effective renewable energy policies and regulatory frameworks. Collaborative efforts can also focus on developing regional energy markets and grid interconnections, enabling countries to share renewable energy resources more efficiently,” Kariuki said.
Paul Muthaura, CEO of the Africa Carbon Markets Initiative, identified financing as a major obstacle hindering renewable energy projects in Africa and highlighted China's potential to offer low-interest loans to support such initiatives across the continent.
Despite Africa's overall lag in renewable energy development, countries like Ethiopia, Ghana, Kenya, Nigeria, and South Africa are implementing ambitious renewable energy policies.