Sub-Saharan Africa’s Energy Future: Maximising Hydrocarbon and Renewable power production with HxGN EAM

Sub-Saharan Africa stands on the precipice of transformation, where its energy decisions will define its journey toward a sustainable future. With a staggering 600 million people lacking access to grid-connected electricity, according to a report from the International Energy Agency (IEA), the region’s quest for clean and affordable energy is paramount. Amid challenges exacerbated by the COVID-19 pandemic – including heightened inflation, energy and food crises, and soaring public debt – Africa’s energy sector remains underfunded, receiving only about 3% of global energy investment as noted in the Financing Clean Energy in Africa report.

In this article, we delve into the complexities facing Sub-Saharan Africa as it navigates toward sustainable energy solutions and explore how TouchstoneEnergy can support vital infrastructure in the region using Enterprise Asset Management software (EAM), HxGN EAM.

Sub-Saharan Africa is the world’s least electrified region, with only 48% of its population connected to electricity grids, according to Climate Analytics. A reliance on traditional biomass and fossil fuels persists constituting almost half of the region’s energy mix. Despite strides towards economic diversification, major oil-producing nations such as Nigeria, Angola, Congo, and Gabon cling to hydrocarbons as the backbone of their economies. However, renewables are gradually gaining traction, albeit modestly, accounting for nearly one-fifth of Sub-Saharan Africa’s primary energy mix, with solar, wind, hydro and geothermal energy playing a minor, but expanding, role. Accelerating the adoption of clean energy technologies is not just an environmental imperative; it’s a catalyst for improved access, better health outcomes, and sustainable economic growth across Sub-Saharan Africa.

Expediting energy access in Sub-Saharan Africa is not just about local development; it’s about global progress. Achieving the UN’s Sustainable Development Goal 7 (SDG7) and combatting global challenges like climate change, resilience, and fragility hinge on providing universal electricity access by 2030. However, current electrification rates are far from sufficient. Without tripling the pace of electrification, over 300 million people in Eastern and Southern Africa will continue to live in darkness, perpetuating a cycle of underdevelopment and vulnerability.

Addressing the energy access gap in Sub-Saharan Africa requires a multifaceted approach, combining grid extension and densification with the scaling up of distributed renewable energy (DRE) systems. Technology advances have significantly reduced the costs of solar energy and battery storage, making modular DRE systems a compelling complement to centralised grids.

Countries like Rwanda, Kenya, and Ethiopia are pioneering electrification by integrating grid expansion with DRE technologies. These nations are becoming innovation hubs in energy access planning, business models, and financing, revolutionising energy provision and setting benchmarks for the region.

National grid expansions remain crucial for energy access solutions, yet technological advancements in renewable energy, particularly solar, wind and hydro dramatically expand the options for reaching underserved populations. Recent projects in solar and wind technologies across Africa offers hope in potentially leapfrogging traditional fossil-fuel-dependent power generation. The traditional concept of electricity access being solely grid-based is evolving into a more flexible ‘lego’ design, where a variety of options each play a crucial role in the overall energy strategy. This diversified approach is essential for achieving universal energy access and driving sustainable development across Sub-Saharan Africa.

The disparity in renewable energy investment paints a stark picture of inequality. While over half of the world’s population, mainly in developing nations, received a mere 15% of global investments in 2020, Sub-Saharan Africa languished securing less than 1.5% of global funding between 2000 and 2020, according to the Global Landscape of Renewable Energy Finance report. In 2021, this gap widened further, with investment per capita in Europe towering 41 times higher than in Sub-Saharan Africa, and 57 times greater in North America.

Such discrepancies urgently call for a re-evaluation of lending practices toward developing countries venturing into renewable energy deployment. Public financing must step up not only to mitigate investment risks but also to provide substantial financial backing. With limited public funds available in these regions, robust international collaboration becomes imperative.

Amidst these challenges lies Africa’s immense untapped energy potential, positioning the continent as a pivotal player in the global energy transition. By addressing investment disparities and fostering international cooperation, Africa can drive technological advancements, spur employment opportunities, and pave the way for a sustainable energy future both for Africa and the world.

As Sub-Saharan Africa strides toward a more sustainable energy landscape, a pivotal question arises: How can energy industries uphold existing infrastructure while facilitating future growth? TouchstoneEnergy addresses this challenge by raising awareness among energy companies in the region about the benefits of prolonging asset lifespan through data-driven maintenance using a CMMS system (Computerised Maintenance Management System). By implementing EAM software such as HxGN EAM, TouchstoneEnergy ensures the efficient upkeep of critical infrastructure such as wind, solar, and hydro power generation facilities. This cutting-edge solution schedules regular maintenance, predicts failures, and minimises downtime, thus extending the lifespan of operating assets. By optimising resource utilisation, HxGN EAM reduces asset failure and maximises asset output, whilst also managing procurement processes, inventories, and critical spares across diverse energy facilities.

Moreover, the software empowers operators with detailed analytics and insights, facilitating data-driven decisions that enhance productivity and operational efficiency. Committed to local empowerment, TouchstoneEnergy offers software implementation and training services, which fosters job creation and nurtures a proficient workforce capable of managing energy projects. The scalability of HxGN EAM allows it to flexibly adapt to the region’s expanding energy demands, seamlessly integrating and managing new projects.

Through impactful partnerships like the one with Serengeti Energy, TouchstoneEnergy demonstrates how advanced asset management systems help drive the energy sector forward, setting benchmarks for performance optimisation. By offering HxGN EAM, TouchstoneEnergy ensures that Sub-Saharan Africa sustains its energy infrastructure effectively while laying the groundwork for sustainable and scalable growth for the future.

TouchstoneEnergy provides enterprise class business software and IT consultancy services, focusing on asset-intensive industries. We specialise in the supply of automated Enterprise Asset Management, Accounting and Finance, and Business Intelligence solutions.

Our team leverages their combined 350 years of experience, knowledge, and skills to offer consultative and solution-driven support that helps our clients overcome many day-to-day business challenges.

We use these qualities in conjunction with highly capable and proven software from world class software authors such as Infor and Hexagon, and emerging software house Sysynkt to improve efficiency, and deliver real business value for our growing client base.

Interested in how our dedicated team can support clients in the Oil & Gas and Renewable energy sectors with implementing Hexagon’s Enterprise Asset Management software? Reach out to the TouchstoneEnergy team today at +44 (0) 207 121 4703 or email us at [email protected].