Africa’s Renewable Energy Rise: Powering Growth and a Low-Carbon Future—Report

Africa is at a pivotal point in its energy development, facing both great challenges and opportunities as its population grows rapidly. By 2050, the continent’s population is expected to reach 2.4 billion, accompanied by a projected tripling of GDP to $7.8 trillion. This economic and demographic growth will drive a sharp increase in demand for electricity, gas, and refined oil products. At the same time, Africa is making a strong shift toward renewable energy, aiming to use its abundant natural resources to address electricity shortages and support a low-carbon future.

The continent has already started investing heavily in clean energy. Between 2020 and 2025, Africa invested around $34 billion in renewable technologies, with solar power receiving 52 percent of the total and wind energy 25 percent. By 2024, governments across Africa had procured roughly 25 gigawatts of renewable capacity, while an additional 11 gigawatts have been secured through private sector agreements. Private investment is increasing rapidly as companies seek reliable energy sources and predictable costs, filling gaps left by slower government-led projects.

Solar energy is becoming a key focus for Africa’s renewable ambitions. The continent receives between 2,000 and 3,000 kWh per square meter of solar irradiation every year, yet only a small portion of this potential is used. Countries such as South Africa, Morocco, and Egypt are taking the lead with clear policies and investment incentives. Innovative approaches like off-grid and pay-as-you-go solar systems are helping expand access to electricity, particularly in remote areas. In 2023 alone, the off-grid solar sector raised about $425 million, much of which was directed toward African projects, showing strong private sector engagement.

Wind energy also has enormous untapped potential. Africa is estimated to have 1,300 gigawatts of high-wind capacity, particularly in North, East, and Southern Africa. Together, solar and wind currently account for only 9 percent of the continent’s installed capacity, but this share is expected to rise to 41 percent by 2050. Falling costs for solar and wind power, which are now cheaper than coal and gas in countries like Nigeria, Egypt, and South Africa, are helping to accelerate this growth.

Beyond traditional renewable generation, Africa is positioning itself as a potential global hub for green hydrogen. Its abundant solar and wind resources could make the continent competitive in producing low-carbon hydrogen and derivatives such as green ammonia. International regulations like the European Union’s Carbon Border Adjustment Mechanism and new maritime emission rules are expected to boost global demand for these green fuels. This provides Africa with an opportunity to decarbonize its industries and become a major exporter to global markets.

Despite these positive developments, challenges remain. Solar and wind power are intermittent, requiring reliable backup solutions such as battery storage or baseload generation. Although battery technology is improving, costs remain high, ranging from $150 to $300 per megawatt-hour in Africa. Additionally, achieving universal electricity access by 2030 will require an estimated $30 billion annually, far above the current investment level of $3.7 billion per year.

Even with these hurdles, Africa’s long-term energy outlook is promising. The continent contributes only 5 percent of global energy-related emissions while hosting nearly 20 percent of the world’s population. By investing in solar, wind, hydrogen, regional power networks, and regulatory reforms, Africa is gradually transforming its energy landscape. The continent is not only addressing its own electricity needs but also emerging as one of the world’s most dynamic markets for renewable energy, paving the way for a sustainable and low-carbon future.

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