African Development Bank’s SEFA Provides $7.88 Million Grant for AETC Programme

The African Development Bank Group’s Board of Directors has approved a $7.88 million grant from the Sustainable Energy Fund for Africa (SEFA) for the Africa Energy Transition Catalyst Programme, which aims to increase renewable energy generation across the continent.

The AETC Programme

The Africa Energy Transition Catalyst Programme, also known as AETC, is a program by the Bank that supports Africa’s transition to a cleaner and more sustainable energy system. It aims to make sure this transition is fair, and inclusive, and provides good job opportunities for everyone.

The program works at both national and regional levels to help bring more renewable energy into the energy mix. It focuses on six specific projects that will be implemented in two phases.

The AETC program has several goals. One of them is to conduct a study that will help export renewable energy from Botswana and Namibia as part of a 2-5 GW Mega Solar power initiative. Another goal is to advance the ZiZaBoNa regional transmission interconnector development by updating studies on its feasibility and environmental impact, while also providing support for structuring the project. The Mega Solar initiative is the biggest solar power program in Southern Africa and the first of its kind on the continent.

Mega Solar Initiative

The initial stage of the Mega Solar initiative focuses on the competitive acquisition of 300-500 MW of solar power in Namibia and Botswana. This phase will be followed by the construction of regional transmission lines, which will facilitate the procurement of additional generation capacity. These expanded resources will enable the supply of affordable renewable energy to neighbouring countries.

The Mega Solar initiative represents a collaborative effort between Power Africa, the governments of Botswana and Namibia, the African Development Bank, the African Union Development Agency (AUDA-NEPAD), the International Bank for Reconstruction and Development, and the International Finance Corporation. This joint commitment aims to promote large-scale solar development and foster cooperation among the involved stakeholders.

AETC for Energy Transition Across Africa

The AETC is actively engaged in collaborating with the African Energy Commission to create a comprehensive Energy Transition Framework and Roadmap for the continent. Additionally, the program will play a crucial role in facilitating the execution of Tunisia’s JET Strategy (2035) by financing feasibility studies for an offshore wind project with integrated energy storage, ranging from 250 to 500 MW. Potential sites have been identified in two coastal areas: Cap Bon and the centre-east region of Tunisia.

Furthermore, the AETC aims to assist Senegal in achieving a just energy transition. To accomplish this, the organization is working on developing an investment plan specifically tailored to support a fair and equitable energy transition in Senegal. This plan will be complemented by essential preparatory studies and capacity-building initiatives. The specific details of this support are currently being discussed and finalized.

African Development Bank Director for Renewable Energy and Energy Efficiency, Dr Daniel Schroth, commented: “The AETC provides critical upstream support on energy transition in terms of planning and project preparation with a view of mobilising the required downstream investments. AETC further underscores the Sustainable Energy Fund for Africa’s role as Africa’s leading energy transition facility.”

Renewable energy finds a virgin playing ground in Africa, thanks to the continent’s overall poor grid connectivity, as well as low rates of energy access among many of the countries. That means an opportunity to start off many with clean energy, and building a grid that is not just modern, but resilient enough to withstand the vicissitudes of renewable energy.  With the continent set to power growth in the next few decades in terms of population as well as economic, getting it right in Africa will make all the difference to broader climate goal targets.