Over 100 million urban dwellers worldwide lack access to electricity, with over 90% of these individuals residing in Sub-Saharan Africa, the fastest-urbanizing region globally.
Cities globally contribute approximately 75% of total energy consumption and 70% of greenhouse gas emissions, with projections indicating a further increase in these figures.
Urbanization has been a significant driver, with nearly 10% of the global rise in emissions since 2015 attributed to this trend.
According to the International Energy Agency’s (IEA) report for the G7, titled “Empowering Urban Energy Transitions: Smart Cities and Smart Grids,” there is reason for optimism. The report suggests that cities present a unique opportunity to address the energy access gap.
Cities have the potential to utilize public procurement strategies to achieve economies of scale, thereby reducing the costs associated with adopting clean energy technologies.
Over 60% of public investment is made at the subnational level, with a significant portion allocated to transportation systems. This underscores the importance of cities investing in sustainable and resilient urban infrastructure.
While African countries are striving to meet Sustainable Development Goal 7 (SDG7) related to universal energy access, cities are already encountering significant challenges.
For example, Lagos anticipates a staggering 400% increase in peak electricity demand by 2040, highlighting the urgent need for proactive measures to address energy demands in urban areas.
Experts project the demand for electricity for cooling purposes, including fans and air conditioning, to skyrocket by 400% in Africa within the span of this decade.
For instance, in Morocco, researchers expect the adoption of cooling devices in residential areas to surge from 9% in 2015 to nearly 50% by the year 2030.
The challenges faced by grids in African cities are manifold and pressing.
Despite Africa being home to approximately one-fifth of the global population, the continent receives less than 2% of the total global expenditure on clean energy initiatives.
In order to achieve universal access to reliable electricity across Africa by the year 2030, it is imperative that 20 million people in urban areas gain access to electricity annually, commencing from 2022.
To meet the energy development and climate objectives set for 2030, Africa must substantially increase its energy investments, more than doubling the current $90 billion. Moreover, at least two-thirds of this investment must be directed towards clean energy initiatives.
Moreover, there is a pressing need to ramp up spending on energy efficiency, which should see a sevenfold increase by 2030. This encompasses investments in green and efficient buildings as well as consumer appliances.
Simultaneously, the unprecedented growth of Africa’s urban centers demands significant investments in urban infrastructure.
The Smart Cities Smart Grids report projects that African cities will require investment equivalent to approximately 5.5% of their annual GDP, totaling around $140 billion per year, to adequately develop their urban infrastructure.
By the year 2030, people will need to construct approximately 70 million new homes to accommodate the rapidly growing urban population.
This represents a quarter of the current residential building stock across the entire continent.
Furthermore, cities will need to substantially expand transport infrastructure to meet the escalating demand for road mobility, which report anticipates will surge by two-thirds by 2030.
An analysis by the Coalition for Urban Transitions highlights the potential benefits of implementing compact, connected, and clean urban development in 35 major cities across Ethiopia, Kenya, and South Africa. The estimated value of these benefits by 2050 amounts to a substantial $1.1 trillion.
To accelerate this process, the African Development Bank (AfDB) has announced plans to provide project lending of approximately $2 billion to cities and municipalities. Additionally, the AfDB will allocate $50 million from its Urban and Municipal Development Fund (UMDF) for the period 2023-2027.
These funds will support urban project preparation, urban planning, and improve municipal access to financial support systems.