Johannesburg: Africa Energy Commission Executive Director, Rashid Ali Abdallah, has welcomed South Africa's proposal to establish an energy efficiency facility through the G20 Presidency legacy programme. Abdallah delivered his remarks on the sidelines of the third G20 Energy Transitions Working Group (ETWG) meeting in the North West this week.
According to South African Government News Agency, Abdallah emphasized that energy efficiency is central to the African Union's development agenda, as outlined in the African Energy Efficiency Strategy. The strategy aims to increase energy productivity over the next 25 years. Abdallah highlighted the need for sustainable finance and strong institutional coordination to achieve the African Energy Productivity target and contribute to the global doubling of energy efficiency by 2030. The proposal by the South African G20 Presidency to establish an energy efficiency legacy programme is seen as complementing the African Union's efforts and reinforcing the importance of energy efficiency in addressing energy security and equality challenges.
The United Nations Sustainable Development Group reports that approximately 600 million Africans still lack access to electricity. Abdallah noted that energy security and access are priorities for the South African government. He pointed out that over 70% of Africa's population lives in energy poverty, making access to renewable and affordable energy crucial for powering economies, essential services, and improving living standards.
Abdallah stressed the significance of energy efficiency across all sectors in Africa, noting that 40% of utility companies in African Union states report electricity losses exceeding 20%, compared to 6 to 10% in developed countries. By improving these deficiencies, Africa can save significant investments in generation and transmission infrastructure, supporting initiatives like the African Single Electricity Market and the Continental Power System Master Plan spearheaded by the African Union.
Savings will also benefit cash-strapped households. Market transformation of household appliances and equipment can save money and accelerate access to modern cooking solutions. Efficient lighting, modern transformers, and cooling appliances could potentially save African infrastructure investment equivalent to 40GW and more than US $20 billion by 2040.