92
N. Kidunduhu
plant and purchasing all the fuel that it will consume over its lifetime.
76
Even after considering the infrastructure costs of fossil-fueled systems,
the aggregate cost of research, development, resource mapping, collection of geospatial and economic information, exploration, installation,
construction and retooling of energy infrastructure to use variable and
unreliable clean energy systems is still higher than that of fossil-fueled
systems.
77
Additionally, the cost of deploying clean energy systems is determined
by the cost of financing. Financing institutions generally impose higher
interest rates for projects in African countries since the continent is
considered high risk because of the rife legal and regulatory uncertainties.
These costs are compounded further by the fact that because most
African countries are locked in fossil fuel subsidy schemes originally
distributed to eradicate energy poverty and promote economic development by facilitating access to affordable modern energy. Persistence of
these subsidies hinders clean energy systems from being competitive.
78
Intermittency of renewables also imposes additional costs on clean
energy systems necessary for smoothening the variability of the resources
such as storage costs or in the case of renewably generated electricity—
profile costs, balancing costs and grid costs.
79 The aggregate amount of
all these costs thus acts as a barrier for developing African countries to
participate in the transition.
3.3.7 Policy Related Challenges
Even though most African countries, in the last decade, have put in
place climate mitigation strategies and policies, their legal and regulatory frameworks are still sketchy and incongruous with their climate
76 David Timmons et al., ‘The Economics of Renewable Energy’(2014) Global Development
and Environment Institute.
77 Doug Hoffman, ‘Switching to Renewable Energy Is Prohibitively Expensive’, Global Warming
(Introducing Issues With Opposing Viewpoints) (Greenhaven Press, 2012).
78 Michael Jakob et al., ‘Development Incentives for Fossil Fuel Subsidy Reform’ (2015) Vol 5
Nature Climate Change
79 Falko Ueckerdt et al., ‘System LCOE: What Are the Costs of Variable Renewables?’ (2013)
Vol 63 Energy, 63.
N. Kidunduhu
plant and purchasing all the fuel that it will consume over its lifetime.
76
Even after considering the infrastructure costs of fossil-fueled systems,
the aggregate cost of research, development, resource mapping, collection of geospatial and economic information, exploration, installation,
construction and retooling of energy infrastructure to use variable and
unreliable clean energy systems is still higher than that of fossil-fueled
systems.
77
Additionally, the cost of deploying clean energy systems is determined
by the cost of financing. Financing institutions generally impose higher
interest rates for projects in African countries since the continent is
considered high risk because of the rife legal and regulatory uncertainties.
These costs are compounded further by the fact that because most
African countries are locked in fossil fuel subsidy schemes originally
distributed to eradicate energy poverty and promote economic development by facilitating access to affordable modern energy. Persistence of
these subsidies hinders clean energy systems from being competitive.
78
Intermittency of renewables also imposes additional costs on clean
energy systems necessary for smoothening the variability of the resources
such as storage costs or in the case of renewably generated electricity—
profile costs, balancing costs and grid costs.
79 The aggregate amount of
all these costs thus acts as a barrier for developing African countries to
participate in the transition.
3.3.7 Policy Related Challenges
Even though most African countries, in the last decade, have put in
place climate mitigation strategies and policies, their legal and regulatory frameworks are still sketchy and incongruous with their climate
76 David Timmons et al., ‘The Economics of Renewable Energy’(2014) Global Development
and Environment Institute.
77 Doug Hoffman, ‘Switching to Renewable Energy Is Prohibitively Expensive’, Global Warming
(Introducing Issues With Opposing Viewpoints) (Greenhaven Press, 2012).
78 Michael Jakob et al., ‘Development Incentives for Fossil Fuel Subsidy Reform’ (2015) Vol 5
Nature Climate Change
79 Falko Ueckerdt et al., ‘System LCOE: What Are the Costs of Variable Renewables?’ (2013)
Vol 63 Energy, 63.