Less than 10 GW of pre-construction coal projects exist in sub-Saharan Africa and they face significant financial and other headwinds, signalling a potential pivot towards renewables, according to Global Energy Monitor’s* ninth annual survey of the coal plant pipeline.

The report finds South Africa is home to about one fifth of the region’s preconstruction projects (1.6 GW) and half of the projects under construction (1.6 GW). Outside South Africa, there are nearly 50 coal-fired units under development in the region. Of these, 17 are in Zimbabwe, the most of any country in Africa and the fifth most globally. However, the operational capacity in Zimbabwe has remained almost unchanged in 30 years, notes the study.

‘Due in large part to China’s announced exit from funding overseas coal projects, the stalled coal pipeline could be reoriented towards renewables along the example of South Africa, which secured $8.5bn in international climate finance to support both power sector decarbonisation and economic diversification,’ says Global Energy Monitor. ‘If replicated elsewhere, ageing coal infrastructure has great potential to be decommissioned and repurposed as a significant tool for an equitable renewable energy transition in sub-Saharan Africa.’

Global impact
Globally, the amount of operating and planned coal power plants fell both in developed and developing countries excluding China in 2022, as existing plants were retired and planned projects cancelled. But the pace of retirements needs to move four and half times faster – and new coal plants must stop being built – in order to put the world on track to phase out coal power by 2040, as required to meet the goals of the Paris Climate Agreement, states the report.

To stay on track, all existing coal plants must be retired by 2030 in the world’s richest countries, and by 2040 everywhere – there is no room for any new coal plants to come online, it continues. While newly proposed coal power capacity has declined significantly, the world is not retiring existing coal plants fast enough, it adds.

Phasing out operating coal power by 2040 would require an average of 117 GW of retirements per year, or four and a half times the capacity retired last year, suggests the study. An average of 60 GW must come offline in OECD countries each year to meet their 2030 coal phase-out deadline, and for non-OECD countries, 91 GW each year for their 2040 deadline. Accounting for coal plants under construction and in consideration (537 GW) would require even steeper cuts, notes Global Energy Monitor.

In many developing countries, especially those heavily dependent on coal, a 2040 coal exit translates to a ‘transition at record speed’ and brings up important equity considerations. The report notes that the international community must support these countries in moving away from coal through the provision of public and private clean energy finance, support to develop flexible grid infrastructure, and technical and capacity assistance to bolster regulatory and policy frameworks that accelerate the transition from coal to clean energy.

‘The more new coal projects come online, the steeper the cuts and commitments need to be in the future,’ comments Flora Champenois, lead author of the report and Project Manager for Global Energy Monitor’s Global Coal Plant Tracker. ‘At this rate, the transition away from existing and new coal isn’t happening fast enough to avoid climate chaos.’

African opportunity
‘The reliance on coal in countries like South Africa, Zimbabwe and Nigeria has had a devastating impact on Africa, from health problems caused by air pollution to the destruction of natural habitats and displacement of communities,’ notes Charity Migwi, Regional Campaigner with 350Africa.org

She continues: ‘Coal is not only unsustainable, but also contributes significantly to worsening climate impacts. Africa’s abundance of renewable energy resources, including solar and wind, presents a unique opportunity for the continent to shift away from polluting fossil fuels such as coal and transition into community-centred renewable energy while creating green jobs, promoting economic growth, improving the well-being of her people and mitigating the impacts of climate change.’

‘As extreme weather events increase in frequency and intensity, there’s an urgent need to not only phase-out fossil fuels, but also invest heavily in a sustainable and resilient energy system built on renewables,’ Migwi concludes.

Africa’s largest wind farm 
Acting on this call for a future built on renewables, the European Bank for Reconstruction and Development (EBRD) and Green Climate Fund are lending $100mn to Red Sea Wind Energy for a new wind farm in the Gulf of Suez area. Reported to be the largest wind farm in Africa, at 500 MW, the onshore wind project is expected to reduce CO₂ emissions by some 1mn t/y.

The loan is co-financed by the Japan Bank for International Cooperation and private commercial banks insured by Nippon Export and Investment Insurance. It is the EBRD’s first project to be co-financed by those Japanese institutions.

Red Sea Wind Energy is a joint venture including Engie, Orascom Construction, Toyota Tsusho Corporation and Eurus Energy.

This will be Egypt’s third private wind farm and the energy generated will be sold to the Egyptian Electricity Transmission Company (EETC) over a period of 25 years.

This wind farm is one of the first to be built under the energy pillar of the Egyptian government’s Nexus on Water, Food and Energy (NWFE) programme, announced at COP27, which aims to retire 5 GW of inefficient fossil-fuel capacity by 2025, invest in a just transition and accelerate Egypt’s renewable development, including at least 10 GW of solar and wind energy by 2028. Alongside the COP27 announcement, the Egyptian government also confirmed plans to accelerate its deployment of renewable energy, delivering clean, affordable and reliable power for its citizens by bringing forward its 42% renewable electricity target from 2035 to 2030.

New solar PV plant in Eritrea
Elsewhere in Africa, the African Development Bank has approved a $49.92mn grant to build a 30 MW grid-connected solar photovoltaic (PV) power plant with a 15 MW/30 MWh battery back-up system in Dekemhare, Eritrea.

Part of the grant will also be allocated to technical assistance and capacity building to improve the operational performance of the grid and ensure the sustainability and overall development of the Eritrean power sector.

The project is expected to improve access to electricity, reduce electricity costs, increase economic opportunities and create jobs, while increasing the share of renewable energy in Eritrea’s energy mix from 3% to 23%, reports the Bank.

*In addition to Global Energy Monitor, the report’s co-authors are the Centre for Research on Energy and Clean Air, E3G, Reclaim Finance, Sierra Club, Solutions for Our Climate, Kiko Network, Climate Action Network Europe, Bangladesh Poribesh Andolon, Waterkeepers Bangladesh, Alliance for Climate Justice and Clean Energy, and Chile Sustentable.