Solar and Wind Power Africa's Energy Transition Despite Lack of Investment
Renewable energy capacity on the continent has doubled over the past decade even though Africa accounts for less than 3% of total global investment in renewables.
NAIROBI, Kenya— Africa's shift to clean energy sources like solar and wind is rapidly gaining momentum despite a lack of adequate financing, according to a new report published Wednesday, writes Winston Mwale.
Renewable energy capacity on the continent has doubled over the past decade even though Africa accounts for less than 3% of total global investment in renewables.
Solar power is the fastest-growing renewable resource, with an 89% average annual growth rate from 2011-2021, the report by the Clean Energy Africa Initiative states.
"Africa holds 60% of the world's best solar resources, though it accounts for only around 1% of installed solar PV capacity," the report says.
"The technical potential for solar power on the continent is estimated to be 7,900 GW."
South Africa led Africa in 2021 with 5.3 gigawatts of solar capacity.
But a national electricity crisis caused by failures of the state-owned, coal-reliant utility Eskom has pushed South Africans to take matters into their own hands. Citizens imported over $1 billion worth of rooftop solar components from China in the first half of 2022 alone.
"The power generated at peak production from solar panel imports in 2023 matches the generation capacity of some of South Africa's coal-fired plants," the report says.
Morocco followed South Africa as the second-highest solar capacity with 2 GW in 2021, while Egypt had 1.3 GW.
Together those three countries accounted for 65% of total installed solar capacity on the continent last year.
On the wind energy front, South Africa also led with 41% of Africa's total wind capacity.
Morocco possessed 22% and Egypt 21%. At least 86 GW of new wind power is in the pipeline, meaning wind capacity is set to increase over 900% in coming years based on announced projects, the report predicts.
"Major planned wind farm developments in Egypt — including a 10 GW farm in the Gulf of Suez, which will be one of the world's largest — align with the country’s goal for renewables to account for 42% of its energy mix by 2030," the authors write.
Despite the positives, Africa is still falling behind on investment with only $11 billion flowing into renewables per year from 2015-2022.
That annual average constituted less than 3% of total global investment over the same period.
"Promisingly, this is only about 4% of global yearly investments needed in the energy transition to keep warming to 1.5°C — a small percentage given that Africa represents around one-fifth of the world’s population," the report states.
Bridging the financing gap will be crucial for countries to meet development goals and Paris Agreement emissions reduction targets.
The International Energy Agency and African Development Bank estimate Africa needs $200 billion in energy investment every year through 2030 to achieve universal access and carbon neutrality by mid-century.
That figure is more than double what the continent has received on average over the past decade.
"African governments, development finance institutions, private investors and donors will be pivotal in ensuring access to capital and identifying investable assets," the report recommends.