With its rapidly growing population, Africa is poised to double by 2050, reaching over two billion people. This surge in population will be met by the demand for cost-efficient and reliable energy, a crucial factor in powering the continent’s socioeconomic development. To meet this energy demand sustainably, Africa must harness its abundant renewable energy resources, which not only bridge the energy gap but also pave the way for the continent to achieve its climate goals, inspiring a future of sustainable development.

By focusing on renewable energy African nations have a unique opportunity to leapfrog dependence on traditional fossil fuel-based development. For businesses and investors seeking to be at the forefront of this energy revolution, Africa’s emerging renewable energy sector presents both a strategic opportunity and a pathway to meaningful impact. – Oghogho Makinde, Partner, Aluko & Oyebode (ALN firm in Nigeria)

Many countries are at a greater advantage as they possess most of the clean energy resources and can create an energy mix that balances and increases the use of resource efficiency.

Countries Leading the Charge

Several African countries are spearheading the transition to green energy, showcasing their commitment to sustainability and seizing the economic benefits. These nations are shaping their energy futures and setting the stage for broader continental integration and cooperation. Among these leaders are:

South Africa

With its Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), South Africa has established itself as a hub for renewable energy. The program has attracted significant international investment and laid the groundwork for major wind and solar projects. Businesses interested in large-scale energy production will find South Africa’s environment conducive to growth.

Kenya

Renowned for its geothermal energy potential, Kenya has made impressive strides in harnessing this renewable resource. The country’s Geothermal Development Company has been instrumental in developing geothermal power plants, contributing to Kenya’s ambition to achieve universal electricity access. The country also boasts a good energy mix of renewable sources, including hydro, which has been in use for a long time, and more recently, wind and solar energy, which have a positive impact on expanding energy access and transmission.

Morocco

The North African country is home to massive wind and energy resources, positioning Morocco as a potential powerhouse in renewable energy. With the world’s largest concentrated solar power plant, Morocco is a shining example of solar energy innovation. The Noor Ouarzazate Solar Complex demonstrates Morocco’s commitment to renewable energy and has positioned the country as a regional leader in solar power generation. Morocco’s proximity to the EU market also gives it a massive advantage due to the region’s demand for green energy.

Ethiopia

Blessed with abundant hydropower potential, Ethiopia has embarked on ambitious dam projects such as the Grand Ethiopian Renaissance Dam (GERD). Hydropower plays a vital role in Ethiopia’s energy mix, providing electricity to millions of households and supporting industrial development. The USD 4.7 billion project is also expected to have a generation capacity of 6,000 MW, creating an energy surplus. As a result, Ethiopia expects to export power to its neighbours, including Kenya, South Sudan, Djibouti, Sudan and Eritrea.

Opportunities in Africa’s Energy Mix

According to the Africa Development Bank, over 640 million people have no access to energy, corresponding to an electricity access rate for African countries of just over 40 percent, the lowest in the world. Africa’s diverse geographical landscape provides a rich canvas for various renewable energy sources.

By integrating solar, wind, hydro, geothermal, and bioenergy, countries can build a resilient energy mix that reduces reliance on fossil fuels and enhances energy security. While renewable energy will be prioritised fossil fuels will remain integral to the overall energy mix. – Amyn Mussa, Partner, Anjarwalla & Khanna (ALN firm in Kenya)

This strategic diversification presents opportunities for businesses and investors to engage in various projects tailored to specific regions. By understanding each region’s unique strengths, different stakeholders can create a comprehensive strategy for engaging with Africa’s renewable energy sector.

Unlocking Africa’s Green Hydrogen Potential

According to Forbes Africa, the current global hydrogen market is over USD 130 billion, and this is estimated to have an annual growth of 9 percent as predicted by the World Bank. Produced by electrolysing water using renewable electricity, green hydrogen offers a versatile and sustainable energy carrier with applications ranging from transportation to industrial processes.

Africa’s vast renewable resources, particularly solar and wind, position the continent as an ideal hub for green hydrogen production. By investing in electrolysis infrastructure and fostering international partnerships, African countries can capitalise on the growing demand for green hydrogen and establish themselves as key players in the global hydrogen economy. – Safia Fassi-Fihri, Founding Partner, ADNA, (ALN firm in Algeria, Côte d’Ivoire, Guinea, and Morocco)

According to the United Nations, Namibia recently announced plans to develop a large-scale green hydrogen plant estimated to be worth USD 9.4 billion. The plant will enter production in 2026. Once complete, the project will generate approximately 2 GW of renewable energy, which will be available for both regional and global markets.

South Africa’s existing renewable infrastructure provides a solid foundation for expansion into green hydrogen production. It recently announced plans to support a pipeline of green hydrogen projects worth about USD 17.8 billion over the next decade. Namibia and South Africa oversee green hydrogen development. Similarly, Kenya, Morocco, and Nigeria are at various stages of developing plans to integrate green hydrogen into their energy mixes.

A Strategic Vision for the Region’s Clean Energy Future

Africa’s journey toward renewable energy is a compelling story of innovation and resilience. According to the International Energy Agency, the region will require over USD 190 billion annually from 2026 to 2030, with two-thirds allocated to clean energy projects. To finance these projects, the continent should use its abundant resources and formulate strategic plans and partnerships that will attract foreign investment from global players to shape the energy landscape. Businesses can drive economic and environmental impact by investing in its vast renewable energy resources.

As the world seeks solutions for sustainable energy to mitigate the impact of climate change, Africa’s leadership in renewable energy can serve as a model for global progress that will deliver lasting benefits not just for the continent but for the entire world

Sources

International Energy Agency | McKinsey & Company | United Nations | Forbes Africa | NEPAD