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An analysis of energy diversification and transition trends in Africa
#MMPMIDC7685961
Akrofi MM
ä-/-ä 2021[]; 5
(1
): 1-12
PMIDC7685961
show ga
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. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this
article (10.1007/s42108-020-00101-5) contains supplementary material, which is
available to authorized users.
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