KEY POINTS
- Africa produces 70% of the world’s cobalt and 16% of its copper.
- Global electricity demand is growing twice as fast as total energy demand.
- Investment in grids and storage must increase to support clean energy.
As the world’s energy system enters the “Age of Electricity,” the International Energy Agency (IEA) has emphasised the importance of Africa is in supplying vital minerals that enable electrification, including electric vehicles.
Global electricity demand accelerates as world enters ‘Age of Electricity’
The transition to electricity was highlighted by IEA Executive Director Fatih Birol in its World Energy Outlook 2024 report. “The Age of Oil and the Age of Coal are over, and we are now swiftly moving into the Age of Electricity, which will depend more and more on clean energy sources,” Birol stated.
According to the report, the electricity demand is already increasing twice as quickly as the demand for energy in general.
Current regulations predict that electricity demand will increase annually by an amount equal to Japan’s total consumption.
Experts expect coal, oil, and gas demand to peak by the end of this decade, while low-emissions sources will generate more than half of the world’s electricity by 2030.
Another important factor in lowering the oil demand is the growth of electric vehicles or EVs. About 20% of new cars sold globally are already electric vehicles (EVs); if that percentage rises to 50% by 2030, it might lower the need for oil by 6 million barrels per day. Global oil consumption would still be flattened by slower adoption, though.
Investment needed in grids and storage to support clean energy growth
According to a report by miningweekly, the IEA emphasised the need for increased investment in energy storage and electrical networks to expedite the shift to clean electricity. According to the paper, “60 cents of every dollar spent on renewable power goes to grids and storage, but this infrastructure is not keeping pace with clean energy growth.”
The IEA cautions about possible shortages of vital minerals like copper, lithium, nickel, and cobalt, particularly by 2035, even if it anticipates plenty of capacity to produce sustainable energy.
In this area, Africa has “upside potential.” 16% of the world’s copper and 70% of its cobalt are already produced on the continent. In 2022, mining generated roughly $20 billion a year, accounting for over 30% of all exports from 23 African nations.
The IEA predicts that investments in mineral exploration in Africa will increase the output of copper, lithium, and graphite by 2030.
