An analysis of energy diversification and transition trends in Africa

Abstract

Unlike energy security, energy diversification, which is an essential precursor for energy security and sustainability transitions, has not received much scholarly attention, especially in Africa. Applying the Energy Mix Concentration Index method (a modified version of the Herfindahl-Hirschman Index), this study examined energy diversification and transition trends in Africa's top ten economies over an 18-year period, from 2000 to 2017. Data were obtained in July 2020 from the African Union Energy Commission's data portal. Overall, energy diversification was found to be occurring at a very slow pace. Kenya and Morocco emerged as the two most energy diversified countries (with indices of 0.34 and 0.37, respectively), while Algeria (0.98) and Ethiopia (0.87) were the least diversified countries as at 2017. The energy transition trend is consistent with the multiple fuel use/energy stacking model rather than the energy ladder hypothesis. "Balance" (the share of each energy source in the energy mix) was found to significantly influence energy diversification. Contrary to past assertions, this study finds that higher "variety" (the number of energy sources in the energy mix) does not signify greater diversity. A weak negative linear relationship was found between gross domestic product growth and Energy Mix Concentration Indices for most countries, suggesting that as gross domestic product grows, the energy mix becomes more diversified. However, this relationship was statistically insignificant. Policy makers need to increase investments in renewable energies, and diversify their economies (especially in oil-dependent countries) to facilitate energy diversification and sustainable energy transitions.

Designing diversified renewable energy systems to balance multisector performance

“…We used bioenergy in our study because the Ghanaian authorities have identified it as the main renewable, dispatchable and spatially distributed technology available in the country, and it can use the residues from various stages of agricultural and forestry activities, mainly from crop harvesting, wood logging, and from municipal wastes and other commercial and domestic activities 37 . Our results are consistent with previous studies highlighting the importance of a diversified expansion of renewable technologies to reduce energy system vulnerabilities 49 . The proposed framework enables pragmatic and detailed spatial designs of how the river basin and energy networks should best be connected, expanded, and their operations synergized.…”

Does Energy Diversification Cause an Economic Slowdown? Evidence from a Newly Constructed Energy Diversification Index

“…Our analysis deviates from Rubio-Varas and Muñoz-Delgado (2019) and Akrofi (2021) and contributes to the current literature in various ways. First, we focus on 64 developing and developed countries in all regions rather than specific countries in one region, such as Africa or Europe.…”

“…The variety of energy sources has increased since the 1990s. However, this issue does not automatically imply that all the countries follow similar energy diversification patterns or use similar energy sources (Akrofi, 2021). Therefore, we introduce a comparable index to measure energy mixes (portfolio) and analyze the diversification pattern in different countries over decades.…”

“…Then, they show that small economies experience quicker energy transitions in the long run. Using the same index (EMCI), Akrofi (2021) compares the energy diversification pattern in 10 African economies from 2000 to 2017.…”

Food-energy-water security in sub-Saharan Africa: Quantitative and spatial assessments using an indicator-based approach

“…According to International Energy Agency (IEA) urbanisation and population growth with a lack of proportional investment in the energy sector is also another factor undermining energy security in SSA (IEA, 2019). Although renewable energy diversification is an essential precursor for energy security and sustainability (Akrofi, 2021), a lack of efficient and economically sustainable power systems, coupled with costly infrastructure investments currently constrain the penetration of those resources in the electricity mix in SSA (Pistelli, 2020). Energy insecurity pushes many households in SSA to rely on unsafe sources of energy including open fires for cooking, and lighting, with severe health implications such as acute respiratory infections and lung cancer (Boateng et al, 2020).…”