Solar power: A bright spot in Africa’s energy landscape

Africa, often hailed as the “sun continent,” basks in an abundance of radiant sunshine, outshining other global regions. According to the International Renewable Energy Agency (IRENA), the continent enjoys an annual average solar irradiation of 2,119 kilowatt hours per square meter (kWh/m²). Remarkably, most countries across North, West, and Southern Africa receive an average exceeding 2,100 kWh/m² annually. These theoretical reserves coalesce into a staggering 60,000,000 terawatt-hours per year (TWh/year)—equivalent to nearly 40% of the global total, as affirmed by the Global Energy Interconnection.

Solar power presents a unique opportunity for Africa to deliver affordable, reliable, and sustainable electricity to a significant portion of its population, particularly in rural and remote areas where grid access remains limited or nonexistent. Furthermore, embracing solar energy can contribute to reducing reliance on fossil fuels, which currently constitute 79% of Africa’s electricity generation, while also addressing greenhouse gas emissions and climate change concerns.

Various technologies enable the capture and conversion of solar energy into electricity, including photovoltaic (PV) panels that directly convert sunlight into electrical power, concentrated solar power (CSP) plants that utilize mirrors or lenses to concentrate sunlight to heat a fluid that drives turbines, and solar home systems (SHS) that provide essential electricity services to households, including lighting, phone charging, and radio.

Solar power: A growing but uneven market in Africa
Despite its immense potential, solar power in Africa remains a nascent and uneven market. According to the International Energy Agency (IEA), Africa boasts 60% of the world’s best solar resources, yet its solar generation capacity stands at a mere 1%. In 2020, the installed solar capacity across Africa reached approximately 10.4 gigawatts (GW), with 9.4 GW solar PV attributed to photovoltaic (PV) systems and 1 GW to concentrated solar power (CSP). These figures represent a paltry 2% of the global solar capacity and less than 1% of Africa’s total electricity capacity.

The solar market in Africa exhibits significant concentration, primarily within a handful of countries, notably in North Africa and South Africa. In that year, Egypt, Morocco, and South Africa collectively accounted for 80% of Africa’s total solar capacity. These nations have successfully implemented supportive policies and attracted substantial investments for solar initiatives especially by courting private capital into public-private partnerships. Notable projects include the Benban Solar Park in Egypt, the Noor Ouarzazate complex in Morocco, and the Renewable Energy Independent Power Producer Procurement Programme in South Africa.

However, the remaining regions of Africa, particularly sub-Saharan Africa, face challenges in fully harnessing their solar potential. Barriers include limited financing, high initial costs, low electricity tariffs, underdeveloped grid infrastructure, regulatory uncertainties, and a shortage of technical expertise. In sub-Saharan Africa, the solar market predominantly relies on off-grid and mini-grid solutions, catering to the energy needs of millions who lack access to electricity. These solutions encompass solar home systems (SHS), solar lanterns, solar water pumps, and solar mini-grids, providing essential electricity services to communities and businesses.

Solar power: A promising future for Africa
The outlook for solar power in Africa is bright. According to the International Energy Agency (IEA), solar power has the potential to contribute 15% of Africa’s electricity by 2030 and an impressive 30% by 2040 under the Africa Case scenario. This scenario assumes the successful implementation of the African Union’s Agenda 2063 and the United Nations’ Sustainable Development Goals.

To realize this vision, Africa must address challenges and capitalize on solar power opportunities. Key drivers for solar expansion on the continent include:

1. Cost Reduction and Efficiency: Falling costs and improved efficiency of solar technologies make solar power increasingly competitive and appealing to both consumers and investors.

2. Growing Electricity Demand: Population growth, urbanization, industrialization, and digitalization drive an escalating demand for electricity, creating new markets and openings for solar energy – especially via new business models such as embedded power or wheeling arrangements.

3. Climate Awareness and Commitment: A heightened awareness of climate change and environmental issues incentivizes the shift toward cleaner, greener energy sources.

4. Innovation and Entrepreneurship: Pioneering solutions, such as pay-as-you-go models, mobile money platforms, blockchain applications, and smart metering systems, foster solar power development and deployment.

However, realizing these goals hinges on supportive policies and frameworks, including:

1. Regulatory certainty: Clear and consistent regulations and standards for solar power reduce uncertainty and risk for investors and operators.

2. Financial support: Adequate and affordable financing, along with incentives, is essential to lower barriers to entry and scale up the solar market.

3. Robust grid infrastructure: A reliable grid infrastructure and seamless integration enhance the stability and security of the power system and enable the transmission and distribution of solar power.

4. Capacity building and skills development: Fostering human resources through capacity building and skills development is vital. This step ensures a skilled workforce capable of driving solar power initiatives forward.

Public-Private Partnership: An opportunity to unlock Africa’s clean energy potential
As Morocco, South Africa and Egypt demonstrated, incentivizing private sector participation in the sector is critical to unlocking capital. Countries with successful public-private partnership (PPP) frameworks are better able to channel investments into energy infrastructure, including renewable energy generation. This is ever more important as bigger investors seek to make a play on the continent.

Last year for instance, Masdar, a UAE-based clean energy firm with a footprint across 22 African countries, forged a memorandum of understanding (MoU) with Africa50, a pan-African infrastructure investment platform. Their shared mission? To identify, expedite, and amplify clean energy projects throughout the continent.

This strategic partnership aims to mobilize both public and private financing—a critical step in bridging the infrastructure funding gap that has hindered the growth of Africa’s clean energy sector.

“We welcome this important partnership with Africa50 which brings a key stakeholder to the table for an inclusive, equitable and just energy transition,” UAE’s Minister of Industry & Advanced Technology, and Chairman of Masdar and COP28 President-Designate, HE Dr Sultan Al Jaber, said in an official statement released on the side-lines of the Africa Climate Summit last year.

“We need the public and private sectors to work together to deliver clean energy access across Africa – a key mission and objective of Africa50. This can be accelerated in countries with robust regulatory frameworks, clear transition strategies and a real commitment to developing grid structure.”

Looking ahead
Africa’s solar power provides a beacon of hope in the continent’s pursuit to illuminate lives. Despite millions still grappling with energy poverty, Africa possesses a formidable asset: abundant, untapped clean energy. By harnessing this potential, Africa can vault toward a prosperous and sustainable future – a leap that transcends mere illumination.

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