Renewable energy is overtaking traditional power projects across Africa, industry leaders say
NAIROBI, Kenya (AP) — Africa’s power landscape is undergoing a fundamental shift. The continent’s latest wave of energy projects is leaning heavily on solar, wind, and battery storage, with governments and investors moving away from coal and large hydroelectric dams in favor of more affordable, quicker-to-deploy, and dependable electricity sources.
The changing priorities are reflected in a $1.5 billion energy deal between China and Zambia announced in early May. The agreement includes three separate 300-megawatt projects covering solar, wind, and coal-fired power—a mix that highlights both the continent's persistent need for stable baseload electricity and its growing appetite for renewables.
African countries grappling with rising fuel import costs—exacerbated by geopolitical tensions such as the Iran war—along with unreliable grids and surging industrial demand, are increasingly turning to renewable projects that can be rolled out faster and more cheaply than traditional power plants. This trend is reshaping the energy development pipeline across the region.
According to energy research firm Electron Intelligence, of the 322 energy projects announced across Africa in 2025, 173 were solar projects. Hydropower accounted for 46, wind for 34, gas for 22, and hybrid energy projects for 14. The numbers underscore a decisive tilt toward renewables, with solar alone representing more than half of all new projects.
“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.”
Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers Association (AMDA), described the shift as a broader strategic rethinking of how energy infrastructure is built. He emphasized systems that can be deployed rapidly and expanded gradually with flexible financing, pointing to the growing role of solar within mini-grid networks.
Data from the International Renewable Energy Agency shows Africa added a record 11.3 gigawatts of renewable energy capacity in 2025—triple the previous year. South Africa, Egypt, and Ethiopia led the growth, reflecting each country's distinct policy drivers and resource endowments.
Falling technology costs are a major catalyst. Utility-scale solar power has dropped by nearly 90% globally since 2010, and onshore wind costs have fallen around 70%, making renewables the cheapest source of new electricity generation in many African markets. This cost advantage is transforming investment decisions.
“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, a firm investing in African renewable projects.
A significant portion of this growth is happening off the grid—through distributed solar and battery systems installed directly at mines, factories, telecom towers, and homes. Tilleard noted that official statistics still tend to measure the energy transition by counting megawatts connected to national grids, but solar and batteries don’t require central utilities. The reality on the ground is outpacing the data.
The Africa Solar Industry Association tracked 23.4 gigawatts of operational solar projects across the continent by the end of 2025. Yet Chinese export figures indicate that 58.1 gigawatts of solar panels have been shipped to African countries since 2017, suggesting actual solar adoption may be far higher than official records capture.
Investors are increasingly drawn to renewable projects because they generate returns faster and are less exposed to global fuel price volatility. “Solar and wind projects are especially attractive at this moment because they combine strong commercial fundamentals with relatively lower investment risk,” Niyi-Afuye said.
A notable example is the Kamoa-Kakula copper complex in the Democratic Republic of Congo, where CrossBoundary Energy is developing a 233-megawatt solar and battery project to power one of Africa’s largest copper mines. Tilleard said the project moved from signing to more than 80% completion within a year. For comparison, coal-fired plants can take up to 12 years to finish, and major hydropower dams often require a decade or more. “Investors deploy capital and see assets generating revenue within 18 months,” he added.
Policy changes are accelerating the renewable push. Ethiopia became the first country to ban imports of internal combustion engine vehicles, boosting electric vehicle adoption. In South Africa, relaxing limits on private power generation has unleashed a surge in industrial renewable projects.
Despite the momentum, major obstacles persist. Many African utilities are financially strained, making lenders wary of long-term power purchase agreements. Financing costs for renewable projects in Africa can be up to three times higher than in advanced economies due to perceived country risk, according to the International Energy Agency. Development finance institutions—including the African Development Bank and the International Finance Corporation—are stepping in with concessional loans, guarantees, and risk-sharing structures to bridge the gap.
“What remains is not a question of technology or cost,” Manga concluded. “It is a question of finance, political will and preparing bankable projects that will drive demand for power on the continent.”
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