Driving energy transformation: policy, investment, and global cooperation

In an exclusive interview with EGYPES News, Farrah Boularas, Middle East and North Africa Programme Manager at the International Energy Agency, highlights how energy policy in Africa and the Eastern Mediterranean is driven by the imperatives of energy security, sustainability, and affordability.

What key trends do you see shaping energy policy across Africa and the Eastern Mediterranean, and how is the IEA supporting these efforts?

Energy policy across Africa and the Eastern Mediterranean is undergoing a transformative shift, driven by the pressing imperatives of energy security, sustainability, and affordability. A key trend is the significant push towards renewable energy sources such as solar, with countries like Egypt setting ambitious targets to increase the share of clean electricity in their overall power mix. Additionally, efforts to increase access to energy are also driving the push for clean cooking, notably in Sub-Saharan Africa, with implications on health, gender equality, and environmental sustainability goals. The International Energy Agency (IEA) is involved in supporting countries across the continent in their efforts to reform their energy sectors, with a particular focus on access and equity. In this regard, it hosted the first major Summit for Clean Cooking in Africa in May 2024, where 130 delegations endorsed the Clean Cooking Declaration, helping to mobilise an unprecedented $2.2 billion for clean cooking access in new financing from government and private sector sources.

How can African and Eastern Mediterranean countries work together to bridge energy access gaps while pursuing decarbonisation?

The IEA has been tracking progress in energy access (electricity and clean cooking) for over two decades, helping to shine a light on one of the most acute issues across the world. The IEA’s analytical work charts a course for a robust pipeline of projects that hold the potential to significantly elevate clean energy investment and improve access across Africa. However, unlocking this promise hinges on securing substantial financing for new power generation and grid infrastructure—an endeavour complicated by persistently high borrowing costs. To address these challenges, the IEA has been working with national policymakers to help define strategies, in an effort to reduce systemic and project-specific risks. By harmonising their energy policies, African and East Mediterranean countries not only enhance the optimisation of their diverse energy resources but also position the regions to attract international investment by advancing coordinated, bankable projects. While small-scale or off-grid projects will play a major role in improving electricity access, collaborative frameworks, such as the Eastern Africa Power Pool and the Pan-Arab Electricity Market, offer a blueprint for facilitating cross-border energy trade, bolstering energy security, and driving down costs through shared infrastructure and regional cooperation.

What role does the IEA see for natural gas as a transitional or destination fuel in these regions?

The role of natural gas in Africa’s energy mix varies significantly across the continent. In North Africa, it meets around half of the region’s energy needs, whereas in sub-Saharan Africa, it accounts for a mere 5% of energy consumption, with its use expanding alongside large-scale export projects. On the supply side, Algeria, Egypt, and Nigeria dominate production, contributing approximately 80% of Africa’s total output. Looking ahead, one-quarter of the gas discovered in Africa over the past decade has already been approved for development, including major projects in Egypt, Mauritania, and Mozambique. While environmental costs remain a concern, the cumulative emissions from these projects would only modestly increase Africa’s historical share of global emissions—from 3% to approximately 3.5%. Nevertheless, reducing emissions intensity will be a critical strategy for producer economies. This approach will not only free up gas for domestic or export purposes—particularly by recovering volumes wasted through flaring and venting and redirecting those currently used within the energy sector—but also enhance global competitiveness by meeting increasingly stringent import standards expected in the future. The need for new gas developments depends on the pace of clean energy technology adoption. However, producers that implement strong and effective measures to reduce emissions—focused on decarbonising gas operations and mitigating methane emissions—can credibly argue that their resources are a preferable option compared to higher-emission alternatives.

At EGYPES 2025, what key industry issues do you want to see addressed?

EGYPES offers an excellent platform gathering global energy leaders, policymakers and industry experts to redefine energy systems with the objective to advance sustainable and secure energy transformations and address the several pivotal issues shaping its future. Chief among these is advancing the energy transition by accelerating renewable adoption and decarbonising fossil fuel operations. The spotlight should also fall on technological innovation, including breakthroughs in energy storage and digitalisation for example, which are critical to enhancing efficiency and sustainability. Regional cooperation will also be key, focused on initiatives offering pathways to strengthen cross-border trade and regulatory alignment. Finally, and perhaps equally important—if not more so—is financing the energy transition which requires mechanisms to attract investment, mitigate risks, and incentivise private sector financing.