While there is the possibility of a promising future in the development of African renewable energy development, the continent still needs to balance its current dominant reliance on fossil fuels and the need to rapidly develop industries and manufacturing capabilities to boost economies and job creation.
The African continent today has the largest population of young people and is also the most rapidly growing population for any continent globally. This positions Africa well for economic growth, if electrification and other infrastructure developments are expedited in time.
Top Priority in Africa Must be Development
According to NJ Ayuk, Executive Chairman, of the African Energy Chamber , in order to achieve a carbon neutral future, African nations must have the underlying infrastructure and industry to make the dominance of renewables possible.
As things currently stand, most African states lack said infrastructure and industry, and the most feasible and expedient way for them to achieve both is through leveraging the abundant oil and gas resources that so many of them possess and then to progress onto renewable developments.
Ayuk comments that “As I have said before, Africa will eventually rely primarily on renewable energy, as much of the rest of the world strives to, but on its own timetable, not that of Western countries who have benefited for centuries from the exploitation of fossil fuels.
2025 Report on the State of African Energy Highlights
- Fossil fuels account for 72% of Africa’s power generation. South Africa and Egypt are Africa’s leading producers, and their dominance will continue into the next decade.
- Renewables account for over 27% of Africa’s power generation and are projected to increase to 43% by the end of this decade.
- Africa accounts for 3.3% of the global power generation, with a total power generation of over 980 terawatt hours.
- 13 GW of utility-scale solar PV and wind projects are under construction – South Africa, Egypt, Morocco, Ethiopia and Algeria account for over 75% of this capacity.
No Electricity at All
The report points out that there are also significant challenges facing Africa’s energy sectors.
The most pressing of those challenges is the fact that many rural areas across Africa are underserved and lack the necessary power infrastructure to access any electricity at all. In fact, of the 685 million people worldwide living without access to electricity, 590 million (86%) live in Africa.
Conversely, even in well-served areas electricity is not cheap and reliable, as population and urbanization growth have outpaced the growth of power infrastructure, placing additional strain on the existing power systems. Many African households still rely on alternative, less efficient energy sources such as biomass, kerosene, etc., for heating and cooking.
Western Investments Required for Change.
Western investments that can providing both funds and technology, has the potential to help expand Africa’s existing infrastructure into underserved areas and harness their natural resources, that will go a long way toward improving economic conditions across the continent. This will in turn improve energy affordability for many Africans as it becomes both more widely available and cheaper to access.
But Where and in What Should the West Invest?
The report found that most North African countries see 90% access rates for electricity and are looking to enhance their power sectors while reducing reliance on fossil fuels.
The bulk of renewable power share increases by the end of the decade will almost certainly be seated in this region.
In contrast, sub-Saharan countries will continue to fight low electricity access for some time. They have been able to increase access to around 55% currently, up from 38.3% in 2010. These countries should be key destinations for energy investments, focused on expanding energy grids and energy production infrastructure.
Hydro Power a Major Energy Contributor
Hydropower continues to dominate the East African area, which has some of the largest water containment infrastructure in the world and where 19% of Africa’s overall power generation is generated, providing up to 90% of the available power for countries such as Ethiopia and the Democratic Republic of Congo.
Africa’s largest hydroelectric project, the Grand Ethiopian Renaissance Dam (GERD) is nearing completion and is expected to generate 15,760 GWh annually once fully operational.
The project is of such importance to the region that it has sparked diplomatic cooperation between the Nile-bound countries of Ethiopia, Egypt, and Sudan in an effort to ensure equitable sharing of the river’s precious waters.
Other currently ongoing projects such as Ethiopia’s Gibe III Dam (1870 MW), Zambia and Zimbabwe’s Kariba Dam (1830 MW) and Ghana’s Akosombo Dam (1020 MW) also speak to promising future growth and development opportunities for those investors willing to get their feet wet in the central and eastern parts of the continent along the Congo and Nile rivers, where nearly 90% of the continent’s hydroelectric potential remains untapped.
Geothermal Energy Not Growing
Geothermal power in Africa is currently dominated by Kenya, which to date is the seventh largest producer of geothermal power. Kenya’s estimated geothermal power potential is roughly 10 GW, but current operation capacity only allows 1 GW to be harnessed.
International investment is what launched Kenya’s geothermal power in the first place, with the United Nation’s development program providing the requisite research and funds in 1972 to establish the country’s first geothermal plant by the 1980s. Since then, Kenya has expanded independently, creating the state-owned Geothermal Development Company (GDC) in 2008 to both speed up geothermal advancements and lower the initial investment risk for foreign investment.
Solar Power Still in ts Infancy in Africa
Solar power offers a vast opportunity given Africa’s high irradiance levels, with almost 80% of the continent receiving more than 2 MWh per square meter. This amounts to a solar PV potential of 1 million terawatt hours per year and a solar thermal potential of over 500,000 terawatt hours (for reference, a single terawatt hour is enough to light over 1 million homes for a year). Yet to date, Africa only generates over 35 TWh and 3.3 TWh from solar PV and solar thermal, respectively. Over 13 GW of utility-scale solar PV and wind projects are currently under construction, with hundreds more GW of capacity in the concept phase..
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