Solar energy in Africa… huge potential hampered by financing and political challenges

Africa, with 54 countries, has more hours of sunshine than any other continent, and has the highest levels of solar radiation – the amount of solar energy per square meter – in the world, with an “almost unlimited” potential for solar energy, according to the African Development Bank. Solar energy has been described as the ideal solution to provide clean energy to millions of people who live without electricity.

However, the continent’s installed solar capacity will not exceed 21.5 gigawatts in 2024, according to the International Energy Agency. By comparison, China, the world leader in solar energy, produced 198 gigawatts between January and May of this year, that is, in just five months.

Problems

“The problem facing many African countries is the presence of scattered and low-density population centres,” said Bruno Edini, an analyst at the International Energy Agency.

Problems vary from country to country, but national power grids often face difficulties in expanding outside cities, due to high infrastructure costs, regulatory hurdles, ambiguity in government policies, and sometimes conflict and unrest. When it comes to solar energy, these issues are compounded by the high upfront costs of large-scale farms. Multinational projects aim to address these challenges, such as the “Mission 300” initiative, in which 29 countries pledged policy changes in an effort to improve energy access in the region, connecting 30 million people so far.

Disturbances

One of the most ambitious projects is the “Transforming the Desert into Energy” initiative of the African Development Bank, which was launched in 2018. It aims to provide 10 gigawatts of solar energy to 11 countries in the Sahel region: Burkina Faso, Chad, Djibouti, Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal, and Sudan, by 2030, which could benefit… 250 million people.

However, more than halfway through the project’s scheduled duration, only a fraction of its solar capacity has been funded, and the project’s progress has been hampered by political turmoil, including five coups over three years, with the World Bank listing six of the 11 countries participating in the project as conflict-affected by 2024.

Global investment

Over the past two decades, Africa has received only 2% of global investment in renewable energy sources, despite its vast untapped renewable resources.

The International Energy Agency estimates that providing electricity to the entire population on the continent by 2030 will cost $25 billion annually. While investment in renewable energy sources is increasing in Africa, especially in the private sector, it is still less than what is needed to achieve renewable energy goals.

While utility-scale solar still dominates the sector, distributed solar is expected to account for 42% of solar PV expansion in the next five years, according to the International Energy Agency.

“Temporary bridge”

IEA senior renewable energy markets analyst and lead author of the agency’s report on renewables, Himi Bahar, said home solar systems and mini-grids could serve as a “temporary bridge” waiting for the grid.

Bahar added that lower costs make solar energy an obvious choice compared to running diesel generators for many families.

Bahar stressed that the initial capital required for solar energy is still an obstacle, as estimates indicate that only 22% of families who do not have electricity can afford the cost of solar energy from the “first level” group, which is equivalent to four hours of electricity per day, so government policies, investment capital, and initial financing environments play crucial roles in promoting the adoption of solar energy.

“If there is no help from the government in terms of financing or dedicated financing systems, it will be very difficult to pay the bills for many people in Africa,” he said. About the Guardian

• Africa’s installed solar energy capacity reached 21.5 GW in 2024, while China produced 198 GW in 5 months.

• Providing electricity to all of Africa’s population by 2030 will cost $25 billion annually.