Global Transition To Renewable Energy To Accelerate Rapidly

By Soko Directory Team / November 18, 2020 | 3:00 pm



Gas

PwC’s Africa Oil and Gas Review 2020 anticipates that the global transition to renewable energy will accelerate rapidly throughout the coming decade, causing exponential disruption as well as opportunities in Africa and beyond.

The tenth edition of PwC’s Africa Oil and Gas Review provides updated insights into the African oil and gas industry but expands the focus to include the unprecedented disruption caused by the COVID-19 global pandemic as well as the biggest global theme for this decade: the renewable energy transition.

The decade of the 2020s will be recorded in history as a pivotal period for the planet, the global economy, and the energy and power landscape. As we approach the end of 2020 and review the estimated pandemic-induced damage, The Oil and Gas Review reports significant delays affecting investment and projects, an estimated decrease in oil production of 19% for the top five African producers for 2020, and a depressed market outlook in general. In addition to COVID-19 induced market disruptions, African countries, many of which are very reliant on oil and gas revenues, have had to divert fiscal resources to supporting healthcare and welfare responses to the pandemic.

In the 2019 Africa Oil and Gas review, many of the industry trend lines were heading towards positive territory for the first time in several years. COVID-19 has reversed most of these gains as the global economy experienced the biggest oil demand slump in history, at nearly 40 times worse than the global financial crisis of 2007-2008. The pandemic has accelerated the global energy transition with many countries using renewable energy projects to anchor economic stimulus packages and drive economic diversification. With global oil demand now estimated to never again exceed 2019 demand levels, the global energy markets have truly reached a tipping point – with significant implications for Africa’s oil and gas industry.

Isaac Otolo, PwC’s Transactions Advisory Services Leader in the East Africa Region, commented:

“Over the past decade, we have witnessed a phenomenal global transition towards cleaner energy sources which are environmentally friendly. In Kenya, this is evidenced by increased investments from both public and private sector players in renewable energy projects.

“Renewable energy’s contribution to Kenya’s total generation capacity has grown from 59% in 2012 to 69% in 2019. By 2030, we expect renewable energy to account for more than 75% of total installed capacity largely due to the Government’s ongoing commitment to diversify the country’s generation mix, which is already one of the most impressive in Africa. “Accelerated adoption of renewable energy is already an economic game-changer in Kenya.”

Joseph Githaiga, PwC Kenya’s Regulatory Compliance and Advisory Leader, commented: “Kenya has proven to be an attractive destination for investment in renewable energy projects. However, it’s very important for investors and other stakeholders to understand the regulatory landscape in order to set up and manage successful renewable energy operations in Kenya.

These considerations include the legal and regulatory framework governing these projects, the role and function of the regulator, and clearances for the operation of renewable energy entities in Kenya as well as certain tax considerations.”





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (234)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950