Renewable energy is overtaking traditional power projects across Africa,
industry leaders say
[May 27, 2026] ALLAN
OLINGO
NAIROBI, Kenya (AP) — Africa’s next generation of power projects is
increasingly being built around solar and wind power and battery
storage, as governments and investors shift away from coal and large
hydropower dams in search of cheaper, faster and more reliable
electricity.
The shift is visible in a $1.5 billion energy agreement between China
and Zambia announced in early May that includes three separate
300-megawatt projects spanning solar, wind and coal-fired power.
While the inclusion of coal underscores the continent’s continuing need
for stable baseload electricity, African countries facing rising fuel
import bills as a result of the Iran war, unreliable grids and growing
industrial demand are increasingly turning to renewable energy projects
that can be deployed faster and more cheaply than traditional plants.
Solar and wind power are gaining
Of the 322 energy projects announced across Africa in 2025, 173 were
solar projects, followed by hydropower at 46, wind at 34, gas at 22 and
hybrid energy projects at 14, according to the energy research firm
Electron Intelligence.
“Africa is not on the periphery of the global energy transition, it is
sitting at its center,” said Mugwe Manga, climate finance lead at FSD
Kenya. “The continent holds the world’s best renewable resources, and
the economics have now decisively turned in favor of clean energy.”
According to Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers
Association (AMDA), the continent is undergoing a broader strategic
shift in how energy infrastructure is being developed, with an emphasis
on systems that can be deployed faster and expanded gradually with
flexible financing.
Niyi-Afuye pointed to the growing role of solar within mini-grid
systems.
According to the International Renewable Energy Agency, Africa added a
record 11.3 gigawatts of renewable energy capacity in 2025, triple the
previous year. South Africa, Egypt and Ethiopia accounted for much of
the growth.
Lower costs are a major factor
Increasingly affordable technology is helping. Utility-scale solar power
costs have dropped by nearly 90% globally since 2010, while onshore wind
costs have fallen around 70%, making renewables the cheapest source of
new electricity generation in many African markets.
“Renewable energy is now unequivocally the fastest, cheapest, and most
bankable way to connect people, companies and economies to the megawatts
they need to grow,” said Matt Tilleard, CEO of CrossBoundary Energy,
which invests in renewable energy in Africa.
Much of the growth is through distributed solar and battery systems
installed directly in mines, factories, telecom towers and homes.
“Most official statistics still measure the energy transition the old
way, by counting megawatts connected to national grids,” he said. “But
solar and batteries don’t need central utilities.”
[to top of second column] |
A shepherd watches livestock near Khi Solar One, a solar thermal
plant that converts the sun's light energy into electricity, outside
Upington, South Africa, in the Northern Cape province, Aug. 29,
2025. (AP Photo/Themba Hadebe, File)
 Data from the Africa Solar Industry
Association shows 23.4 gigawatts of operational solar projects had
been tracked across Africa by the end of 2025. But Chinese export
figures indicate 58.1 gigawatts of solar panels have been shipped to
African countries since 2017, suggesting solar adoption may be
growing far faster than official figures capture.
Renewables bring faster returns
Investors increasingly favor renewable projects because they can
generate returns faster and with less exposure to global fuel price
shocks.
“Solar and wind projects are especially attractive at this moment
because they combine strong commercial fundamentals with relatively
lower investment risk,” Niyi-Afuye said.
At the Kamoa-Kakula copper complex in the Democratic Republic of
Congo, CrossBoundary Energy is developing a 233-megawatt solar and
battery project to supply one of Africa’s largest copper mines.
Tilleard said the project moved from signing to more than 80%
completion within a year. Coal-fired plants can take up to 12 years
to complete, while major hydropower projects often require a decade
or more.
“Investors deploy capital and see assets generating revenue within
18 months,” Tilleard said.
Policy changes help but challenges remain
The continent’s renewable push is also being accelerated by policy
changes. Ethiopia was the first country to ban imports of internal
combustion engine vehicles, spurring faster adoption of electric
vehicles. In South Africa, relaxing limits on private power
generation has opened the door to a surge in industrial renewable
energy projects.
Still, major obstacles remain. Many African utilities are in
financial trouble. So lenders are wary of long-term power purchase
agreements. Financing costs for renewable projects in Africa are up
to triple those in advanced economies because of perceived country
risk, according to the International Energy Agency.
Development finance institutions, including the African Development
Bank and the International Finance Corporation, are helping bridge
the gap with concessional loans, guarantees and risk-sharing
structures.
“What remains is not a question of technology or cost,” Manga said.
“It is a question of finance, political will and preparing bankable
projects that will drive demand for power on the continent.”
All contents © copyright 2026 Associated Press. All rights reserved |
