Africa’s renewable energy market is expected to grow at an annual rate of 8% between 2022 and 2027, driven by supportive government policies and incentives, growing electricity demand and efforts to increase energy access for local consumers. As the market expands, several recently operational projects, as well as those under construction, enhance the attractiveness of Africa’s renewable energy market and demonstrate the potential for clean energy financing to international investors.
South Africa
South Africa’s renewable energy market is expected to see significant growth, with energy market intelligence firm Mordor Intelligence predicting that installed renewable energy capacity will reach 16.58 GW in 2024 and 28 GW by 2029. The country expects more than 5.5 GW of renewable energy projects to come into commercial operation within the next three years. These included the Kenhardt project, which includes 540MW of solar capacity and ranks among the world’s largest hybrid solar and battery storage facilities. Last week, Seriti Resources began construction of the 155MW wind farm, which will form part of a larger 900MW project – South Africa’s largest wind energy initiative to date.
In the past year, South Africa has signed agreements for large-scale renewable energy projects such as the Oya Energy Hybrid Facility and the Umoylanga Energy Solar Park Project. Meanwhile, the country Hydrogen society road map outlines South Africa’s potential to become a market leader in green hydrogen. Led by energy and chemicals group Sasol, the Sasolburg Green Hydrogen Production Hub produced the first hydrogen last June and aims for consistent production once fully operational within this year. Several other hydrogen initiatives, including the Boegoebaai Green Hydrogen Development Program and the Atlanthia Green Hydrogen Project, are also underway, with operational timelines pending confirmation.
Egypt
Home to both high solar radiation and wind speeds, Egypt plans to increase its renewable energy capacity to 50.5 GW by 2029 and 62.6 GW by 2034. The country plans to generate 42% of its total electricity from renewable sources by 2035 and 60% by 2040, with a focus on engaging independent power producers (IPPs). Key projects boosting Egypt’s renewable energy capacity include the Benban Solar Park – Africa’s largest solar park – which opened in 2019 and has a capacity of 1.8 GW. Ongoing projects include the 500 MW Gulf of Suez II wind farm – owned and operated by Red Sea Wind Energy SAE and due for completion by 2025 – and the 200 MW Kom Ombo Solar PV Plant – developed by IPP ACWA Power and is scheduled to start operations in Q1 2024.
Mauritania
Mauritania is leading the way in clean energy development through several large-scale green hydrogen initiatives. The AMAN project, led by renewable energy developer CWP Global and the Mauritanian government, aims to build 30 GW of hybrid wind and solar powerproducing 1.7 million tonnes of renewable hydrogen per year by 2029. Another is the 10 GW Nour Project, developed by energy company Chariot and Total Eren, which is set to produce 1.2 million tonnes of hydrogen per year by 2030.
In addition, German project developer Conjuncta, Egyptian renewable energy provider Infinity Power, UAE’s Masdar and the government of Mauritania are developing a green ammonia project, which will initially develop 400 MW, with plans to expand to 10 GW electrolyte, producing 8 million tonnes of renewable ammonia by 2028/2030. Clean energy company AMEA Power also signed two Memoranda of Understanding during COP28 for a 100 MW wind farm and 100 MW solar PV plant, with plans to create a 1 GW green hydrogen project.
Morocco
Morocco’s renewable energy sector is expected to see significant growth in 2024, driven by strong government support and ambitious project developments. On the back of the 7.5GW Amun solar PV facility – due to come on stream in stages for 2030, 2034 and 2036 – the nation plans to increase its share of renewable energy to over 52% by 2030 .Initiatives such as Masen’s Noor Midelt III project – currently in its third phase and featuring 400 MW of solar PV capacity and a battery energy storage system – underscore Morocco’s commitment to expanding renewable energy.
In addition, independent power company TAQA Morocco has invested $27.2 billion in a green hydrogen project, aiming to generate 6,000 MW of renewable energy for green hydrogen production by 2030 and accelerate the country’s energy transition in the process.