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Energy demand is constantly on the increase, be it electricity/gas for household use or petroleum/diesel products for transport and manufacturing. Power demand is estimated to increase by more than 3 100 terawatt hours by 2040, an average annual growth of nearly 6%. Present power generation capacity only stands at around 124 gigawatts and will have to increase to almost 700 gigawatts by 2040 if demand is to be met.
Fortunately Africa has abundant energy resources in oil, gas, coal and especially hydropower,. These resources are unevenly distributed across the continent, often going unexploited.
The vision for the PIDA energy sector is an efficient, reliable, cost-effective and environmentally friendly infrastructure, to promote the physical integration of the continent and enhance access to modern energy services for all Africans.
The PIDA energy priorities focus on major hydro-electric projects, the interconnection of regional power pools, including regional petroleum and gas pipelines to meet these drastically increasing demands.
Through these projects, Africa will save $30 billion on electricity production costs and access to power will rise to nearly 70% by 2040, benefitting more than 800 million people.
PIDA will achieve this by developing energy projects, oil refineries as well as oil and gas pipeline projects. 15 energy priority projects as identified by African Heads of State and Government will be implemented by 2020.
These projects include nine power generation projects (all hydro), four power transmission corridors, and one gas and oil pipeline. The four transmission corridors will ensure that African countries are well connected and energy moves across their borders to promote regional trade in energy.
One of the main electricity corridors is the North-South Corridor linking Egypt all the way to South Africa through Sudan, Ethiopia, Kenya, Tanzania, Malawi, Mozambique, Zambia and South Africa.