Avoiding the Lure of Fossil Fuels Along Senegal’s Energy Transition Pathway
Developing countries that rely on traditional energy sources face a daunting challenge to power their electricity, industrial and agricultural activities. Central to this challenge is the lack of access to adequate financial resources for facilitating energy transitions and achieving climate objectives in these countries. The climate finance issue was emphasized during the 26th United Nations Climate Change Conference in Glasgow (COP26), resulting in the formation of the Just Energy Transition Partnership (JETP). This initiative emerged following a commitment of $8.5 billion by France, Germany, the United Kingdom, the United States, and the European Union to assist South Africa in phasing out coal. JETP functions as a collaborative financing mechanism aimed at aiding coal-dependent countries in transitioning to renewable energy sources while concurrently fostering clean energy employment opportunities and sustainable practices.
The participation of additional countries, including India, Indonesia, Vietnam, and Senegal, underscores the growing demand for foreign assistance to support economic development in the context of climate change. All member countries of the JETP are major coal producers worldwide (Ijaz, 2023), except for Senegal, which is poised to become an oil and gas producer soon. Historically, Senegal has much lower domestic coal production than the other JETP countries, consistently remaining below 25,000 TJ from 2005–2020 (Figure 1). While countries like India and Indonesia exhibit significant growth in coal production, Senegal's output remains relatively constant. This pattern suggests that coal plays a limited role in Senegal's energy sector compared to its counterparts, likely due to factors such as smaller reserves and alternative energy sources.
Figure 1: Coal production in JETP member countries, 2000–2021. Source: IEA (2021).
Senegal's inclusion in JETP has faced considerable criticism (Pelz, 2022; Wettengel, 2022). In fact, Senegal's integration into JETP is motivated by the Senegalese government’s aspirations to increase the proportion of renewable energy in its energy mix, aligning climate action with economic development objectives. To expedite the adoption of renewable energy sources, international partners and multilateral development banks have pledged 2.5 billion euros in additional funding over an initial 3 to 5-year period commencing in 2023 (European Commission, 2023; IMF, 2023). Despite notable move towards incorporating renewable energy sources, Senegal continues to exhibit a substantial dependence on fossil fuels (see Figure 2), resulting in higher electricity generation costs relative to other African countries. While the cost of generating electricity ranges from US 34 to 38 cents per kilowatt hour, consumers are charged approximately 24 cents per kilowatt hour, with governmental subsidies bridging the gap. In contrast, electricity generation costs are much lower in major West African countries such as Côte d’Ivoire at 11 cents per kilowatt hour, Ghana at 9 cents, and Nigeria at 6 cents (US International Trade Administration, 2023).
Decades of dependence on imported oil have been a defining feature of Senegal's energy landscape, significantly impacting the country's electricity costs. However, a notable shift is on the horizon with the impending exploitation of substantial oil and gas reserves discovered since 2014. This development is positioned to catalyze a transformative shift, potentially resulting in lower electricity expenses for consumers in Senegal. The transition towards utilizing domestic fossil fuel sources represents a significant departure from the status quo and holds the promise of alleviating the financial burden associated with imported energy. By utilizing its own oil and gas reservoirs, Senegal can secure greater control over its energy supply, potentially stabilizing prices and enhancing energy security in the long term.
Figure 2: Electricity generation sources in Senegal, 2000–2021. Source: IEA (2021).
However, in addition to not being a major coal producer, this shift towards reliance on domestic fossil fuel supply also raises significant questions about Senegal's membership in JETP, which claims to tackle climate change by assisting developing countries in fostering the deployment of renewable energies. Senegal's stated desire to exploit its oil and gas resources means its electricity sector will continue to have large GHG emissions–those two fuels currently averaging 93.2% of emissions from electricity generation (Figure 3).
Interestingly, key supporters of Senegal’s energy transition and economic development, such as European Union, are turning to Senegal's oil and gas reserves for their own energy supply. Germany and Poland have entered into agreements to support oil and gas extraction in Senegal (Zea, 2023), while TotalEnergies, a French company, has already secured an offshore drilling contract with Senegal (TotalEnergies, 2017).
Figure 3: Emissions from electricity generation by source in Senegal, 2000–2021. Source: IEA (2021).
If climate truly matters to Germany, France, and Poland, they should prioritize aligning with the partnership's goals by backing environmentally friendly projects. Despite decreasing their reliance on fossil fuels (IEA, 2021), these countries are still seeking additional energy sources to reduce dependence on Russian energy supplies.
It is crucial for the credibility of JETP and its stakeholders to demonstrate to other countries that renewable energies can serve as a viable alternative for energy security. However, investing in renewable energy projects and supporting fossil fuels extraction in Senegal could undermine the goal of JETP. The primary challenge for developing countries like Senegal is addressing energy poverty by adopting clean, affordable, reliable, and modern energy sources.
Senegal, with a promise of 2.5 billion euros to accelerate the adoption of renewable energies, is actively formulating its investment plan. This plan aims to strategically outline pathways towards achieving a 40% share of renewable energies in the national energy mix by 2030. The completion of this investment plan, scheduled for June 2024, marks a crucial step towards realizing Senegal's renewable energy ambitions (Diene and Scurfield, 2023; Senegal Ministry of Energies and Petroleum, 2023). To implement these renewable energy projects effectively, Senegal could focus on the following strategies:
1. Empowering Senegal's energy transition through comprehensive supply chain integration
While supporting renewable energy projects is essential, merely doing so without integrating the entire supply chain, particularly technological and knowledge transfer, offers limited assistance to Senegal. This approach would only increase its dependence on international markets, thereby undermining energy security and hindering economic development. The transition towards a sustainable energy future requires a multifaceted approach to address the challenges and harness the opportunities within the renewable energy supply chain. This necessitates a concerted effort to identify key areas for improvement and innovation (Foxon et al., 2005). A comprehensive renewable energy supply chain would empower Senegal to undergo an independent energy transition within the electricity sector. It would align with the country's energy policy mix, aimed at reducing dependency on fossil fuels and transitioning towards a more sustainable energy future. By investing in renewable energy infrastructure and fostering technological innovation, Senegal can increase the share of renewable energy in its electricity sector. This transition not only contributes to environmental sustainability but also addresses economic concerns by reducing electricity costs and enhancing energy independence.
2. Facilitating sustainable development through collaborative partnerships
Collaborative partnerships between renewable energy companies, research institutions, and policymakers are crucial to facilitate the exchange of expertise and best practices. Investing in workforce development programs tailored to the renewable energy industry can also ensure that skilled personnel are available to support the implementation of cutting-edge technologies (Stephens et al., 2013). Through strategic planning and partnerships, Senegal is well positioned to harness its abundant renewable energy resources, such as solar and wind, to power its development while mitigating the impacts of climate change.
3. Accelerating Senegal's transition to a greener economy through incentives and regulatory streamlining
Furthermore, incentivizing the adoption of renewable energy solutions and streamlining regulatory processes can accelerate the transition to a greener economy (Painuly, 2001). Ultimately, a coordinated approach that encompasses technological advancements, knowledge dissemination, and supportive policies is essential for driving progress in the renewable energy supply chain (Apeaning & Thollander, 2013). By leveraging renewable energy technologies and fostering a supportive regulatory environment, Senegal is poised to achieve a resilient and self-sufficient energy system.
Saidou Abdoulaye Sy is a Postdoctoral Scholar at the Climate Policy Lab at the Fletcher School, Tufts University.
References
Apeaning, R. W., & Thollander, P. (2013). Barriers to and driving forces for industrial energy efficiency improvements in African industries–a case study of Ghana's largest industrial area. Journal of Cleaner Production, 53, 204-213. https://doi.org/10.1016/j.jclepro.2013.04.003
European Union (2023). The EU and the International Partners Group announced a Just Energy Transition Partnership with Senegal combining climate and development goals. https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3448(accessed 22 March 2024).
Foxon, T. J., Gross, R., Chase, A., Howes, J., Arnall, A., & Anderson, D. (2005). UK innovation systems for new and renewable energy technologies: drivers, barriers, and systems failures. Energy policy, 33(16), 2123-2137. https://doi.org/10.1016/j.enpol.2004.04.011
Ijaz, S. (2023). 25 Largest Coal Producing Countries in the World. Yahoo! Finance. https://finance.yahoo.com/news/25-largest-coal-producing-countries-161852846.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAG88vG5nqi3Oss2GzCClInnR_nc94YIuA6wNLhbF0CGl3U3IxtfPASsZKcwJqfbz9T-m_1c7HaKltW7ZwtNq_DPU8wp77N2hPoFjmih2NXk0BNbALxlMrxZrtV6f3q-80MX20aUBhRFY_BFUACbOu0FhFvSpZV0641CB6ZNZlMJy(accessed 24 March 2024).
IMF (2023). Senegal first reviews under the extended fund, facility, the extended credit facility, and the resilience and sustainability facility arrangements, requests for modification of the quantitative performance criteria rephasing of access. https://www.imf.org/-/media/Files/Publications/CR/2023/English/1SENEA2023003.ashx(accessed 22 March 2024).
International Energy Agency (2021). Energy System of Europe. https://www.iea.org/regions/europe (accessed 5 April 2024).
International Energy Agency (2021). Senegal Energy System. https://www.iea.org/countries/senegal (accessed 24 March 2024).
Painuly, J. P. (2001). Barriers to renewable energy penetration; a framework for analysis. Renewable energy, 24(1), 73-89. https://doi.org/10.1016/S0960-1481(00)00186-5
Pelz, D. (2022). Germany-Senegal gas plan sparks outcry. https://www.dw.com/en/germany-senegal-gas-plan-sparks-outcry-from-environmentalists/a-62673733 (accessed 24 March 2024).
Stephens, J. C., Hernandez, M. E., Román, M., Graham, A. C., & Scholz, R. W. (2008). Higher education as a change agent for sustainability in different cultures and contexts. International journal of sustainability in higher education, 9(3), 317-338. https://doi.org/10.1108/14676370810885916
TotalEnergies (2017). Senegal: Total Signs Agreements to Explore the Country’s Deepwater potential. https://totalenergies.com/media/news/press-releases/senegal-total-signs-agreements-explore-countrys-deepwater-potential#:~:text=Paris%20%2D%20Total%20and%20the%20Republic,deep%20and%20ultra%2Ddeep%20offshore. (accessed 24 March 2024).
US International Trade Administration (2023). Senegal-Country commercial guide. https://www.trade.gov/country-commercial-guides/senegal-energy (accessed 24 March 2024).
Wettengel, J. (2022). German-Senegalese gas plans under fire for violating pledge to end fossil fuel support. https://www.cleanenergywire.org/news/german-senegalese-gas-plans-under-fire-violating-pledge-end-fossil-fuel-support(accessed 24 March 2024).
Zea, T. (2023). Europe looks to Senegal for new energy supply. But what’s in it for the Senegalese? https://theworld.org/stories/2023-07-25/europe-looks-senegal-new-energy-supply-what-s-it-senegalese(accessed 24 March 2024).