Africa’s solar market is projected to grow by 42% by 2025, with electricity access rates expected to rise by 6% annually, according to a report from BonelliErede. The continent, which is rich in solar resources, is seeing an increase in renewable energy projects and investments to address its energy challenges. For more insights, you can also check the Africa solar growth sector surge.
Solar Energy and Africa solar market growth: The Key to the Continent’s Energy Future
Africa has the world’s highest average solar radiation, making solar energy a vital solution to its energy challenges. However, despite its vast potential, the continent has only installed 8.6 gigawatts (GW) of solar capacity, representing just 0.7% of the global total. The International Renewable Energy Agency (IRENA) estimates that Africa’s solar potential could range from 660,000 to 730,000 terawatt-hours (TWh) annually.
The report identifies Morocco, Egypt, and South Africa as the leading countries in solar capacity, with Algeria, Tunisia, Kenya, and Nigeria also showing significant growth. Morocco is expected to reach 2 GW of solar capacity by the end of 2024, driven by the Noor Midelt project. Egypt is set to expand its solar capacity to 4.6 GW by 2028, and South Africa is projected to add 4.3 GW of solar capacity by 2026.
Challenges and Opportunities Driving Africa solar market growth
Despite the promising growth, Africa’s solar market faces several challenges, including insufficient infrastructure, policy weaknesses, and security issues. The report highlights that political and economic instability in certain regions, such as South Africa and the Democratic Republic of the Congo, could hinder the growth of solar energy.
However, the report also emphasizes the potential of the African Continental Free Trade Area (AfCFTA) in stimulating the solar market. By eliminating tariffs and non-tariff barriers, the AfCFTA could lower the cost of solar panels and equipment, making solar energy more affordable. The agreement could also promote cross-border collaboration on solar projects, with countries like Egypt exporting solar energy to Europe and Morocco exporting to Spain.
The Role of International Support in Accelerating Africa solar market growth
The report underscores the importance of international cooperation in supporting Africa’s solar expansion. It calls for increased investment in renewable energy infrastructure, capacity building, and technology transfer to help African countries meet their energy goals.
The report concludes that while Africa’s solar market has immense potential, achieving its goals will require overcoming significant challenges. With the right policies and international support, solar energy could play a crucial role in providing clean and affordable energy to millions of Africans, thereby fostering economic growth and improving living standards.
For further reading on solar developments in specific regions, you might explore the Ha Ramarothole Solar PV Park launch in Lesotho and the Kenya Solar Panel Manufacturing Report.