Solar projects in Africa – an overview
Solar projects in Africa have made headlines over recent years. With the global expansion of renewable energy sources, the African solar industry has experienced significant investments. In this article, we will examine what drives the industry, which challenges it is facing and which project opportunities are currently emerging for global suppliers.
Key industry drivers
The key drivers of the solar industry and solar projects in Africa come from supply and demand factors.
On the supply side, Africa has an enormous potential to generate solar energy. The continent receives more sunshine than any other on the planet. The sunlight Africa receives is also very intense due to the continent’s large flat areas and proximity to the equator.
Globally, a push towards renewable energy generates strong financial support, including for solar projects in Africa. Regional and global financiers such as the African Development Bank (AfDB), the International Finance Corporation (IFC), and the European Investment Bank (EIB) are among the leading players in the sector.
Demand side factors include a shortcoming in current electricity generation capacity, which creates an opening for new plants coming on-stream. Growing economies and populations in Africa are further expanding electricity demand, creating ample space for more future investments.
But demand does not only originate from the continent’s domestic buyers. As Europe’s industry is moving through its energy transition, it will need to import significant amounts of green hydrogen. This green hydrogen can be relatively cheaply produced from solar and other renewable energy sources in Africa. The geographical proximity between Europe and Africa further supports the business case.
Challenges
Nevertheless, solar projects in Africa are not without hurdles.
Despite international support, financing is notoriously difficult to obtain in many African countries. When targeting local electricity demand, limited purchasing power and issues around affordability pose a significant challenge for most electricity-related projects.
For large-scale solar projects in Africa to be successful, legislation and political stability are crucial. However, some projects suffer from political instability, excessive bureaucracy, and in some cases corruption.
Infrastructure shortcomings are also noteworthy. Without necessary grid infrastructure, power from large-scale projects cannot be transmitted or requires additional investments.
Nevertheless, there is an increasing number of smaller and larger solar projects in Africa.
Landscape of solar projects in Africa
There are currently approximately 260 large, utility-scale solar projects upcoming or ongoing on the African continent. Around half of these are already under construction, while the other half is in various stages of planning.
Southern Africa is the region with the highest number of solar projects in the pipeline. South Africa is the continent’s leading destination for solar projects. Economically smaller countries such as Zambia, Zimbabwe, Malawi, and Namibia also play relatively strong roles.
In Northern Africa, Morocco, Egypt, and Tunisia are all represented in the 10 of countries with the highest number of projects.
In West Africa, Nigeria is one of the main countries for utility-scale solar projects.
Top 10 largest solar projects in Africa
The top 10 largest solar projects in Africa are relatively well distributed between different countries.
G5 Sahel Desert to Power project
The G5 Sahel Desert to Power project is Africa’s largest solar project. The $10 billion master plan aims to add 10 GW of solar generating capacity across 11 countries in the Sahel area. The project is receiving financial support from the AfDB and the Green Climate Fund. It is currently in the feasibility study phase.
CET Solar Project
The CET Solar Project in Egypt plans to add 10 GW of solar generation capacity to Egypt’s national grid. The massive $8 billion project is developed by China Electric Power Equipment and Technology and the Egypt Electric Holding Company. It is currently in the feasibility stage.
Anglo-American Renewable Energy Project
In South Africa, the Anglo-American Renewable Energy Project is a $7 billion master plan project to construct various mainly solar and wind power plants, along with battery energy storage systems. The project is currently under construction.
Kebbi Solar IPP
Nigeria’s Kebbi State Government is the developer of the 5600 MW Kebbi Solar IPP project. The project is scheduled to start construction in late 2024.
Infinity Renewable Energy Project (Cameroon)
The Egyptian company Infinity Power Holding is the developer of two of Africa’s largest solar projects. The Infinity Renewable Energy Project in Cameroon is a $6 billion project to generate 4000 MW of electricity from wind, solar, and biomass.
Infinity Egypt Solar project
The Infinity Egypt Solar project aims to generate 4000 MW for Egypt’s electricity grid for the cost of $4.5 billion. Infinity is partnering with Hassan Allam Utilities on this project. It is currently in the feasibility stage with construction scheduled to start in 2026.
Tafouk 1 Solar project
The Tafouk 1 Solar project is a master plan project in Algeria. In two bidding rounds, the $3.6 billion project is planning to add a total of 4000 MW of electricity generation capacity for the national grid. Developers are the Algeria Ministry of Energy and Sonelgaz, a national utility company.
Leupane Energy Hub and Industrial Park
The Dutch company AAAS Energy, together with Botala Energy from Australia, are jointly developing the Leupane Energy Hub and Industrial Park for $2 billion. When completed, the project will produce about 700 MW of electricity from a mix of solar and gas power plants. The project is currently undergoing feasibility studies.
Masdar Solar Project (Tanzania)
The Abu Dhabi Future Energy Company is the developer of the Masdar Solar Project in Tanzania. For $2 billion, the project aims to create 600 MW of solar and wind energy capacity, with the option to scale it up further to 2000 MW. The current feasibility study is facing delays, but construction is scheduled to commence in 2025.
Masdar 2 GW Solar Project (Zambia)
Under the name Masdar 2 GW Solar Project, the Abu Dhabi Future Energy Company is developing various solar, wind, and hydropower projects to the costs of $2 billion. Implementation is delayed, though construction start is planned for 2025.
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