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, rising power demand and efforts to increase energy access for local consumers. Ahead of market expansion, several newly operational projects, as well as those currently under construction, are bolstering the attractiveness of Africa’s renewable market and proving the bankability of clean energy for international investors.
South Africa
South Africa’s renewables market is expected to record significant growth, with energy market intelligence firm Mordor Intelligence predicting installed renewable capacity to reach 16.58 GW in 2024 and 28 GW by 2029. The country anticipates over 5.5 GW of renewable projects to enter commercial operation within the next three years. These included the Kenhardt project, which encompasses 540 MW of solar capacity and ranks among the largest hybrid solar and battery storage facilities globally. Last week, Seriti Resources began construction on its 155 MW wind power generation facility, which will form part of a larger 900 MW project – the largest wind energy initiative in South Africa to date.
In the past year, South Africa has inked deals for large-scale renewable projects like the Oya Energy Hybrid Facility and Umoyilanga Energy Solar Park Project. Meanwhile, the country’s Hydrogen Society Roadmap 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 first hydrogen last June and aims for consistent production once fully operational later this year. Several other hydrogen initiatives, including the Boegoebaai Green Hydrogen Development Program and Atlanthia Green Hydrogen Project, are also in development, with operational timelines pending confirmation.
Egypt
Home to both high solar irradiance and wind speeds, Egypt aims to increase its renewable energy capacity to 50.5 GW by 2029 and 62.6 GW by 2034. The country intends 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 capacity include the Benban Solar Park – Africa’s largest solar park – inaugurated in 2019 and featuring 1.8 GW of capacity. Projects currently underway include the 500 MW Gulf of Suez II wind farm – owned and operated by Red Sea Wind Energy S.A.E and set for completion by 2025 – and the 200 MW Kom Ombo Solar PV Plant – developed by IPP ACWA Power and set to commence operations in Q1 2024.
Mauritania
Mauritania is spearheading 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 capacity, producing 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 and set to generate 1.2 million tonnes of hydrogen per year by 2030.
In addition, German project developer Conjuncta, Egyptian renewable provider Infinity Power, the UAE’s Masdar and the Mauritanian Government are developing a green ammonia project, which will initially deploy 400 MW, with plans to expand to 10 GW of electrolyser capacity, producing 8 million tonnes of renewable ammonia by 2028/2030. Clean energy firm 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 establish a 1 GW green hydrogen project.
Morocco
Morocco’s renewable energy sector is set for significant growth in 2024, propelled by strong government support and ambitious project developments. On the back of its 7.5 GW Amun solar PV facility – expected to come online in stages set for 2030, 2034 and 2036 – the nation plans to increase its renewable energy share to over 52% by 2030. Initiatives like 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 – highlight Morocco’s commitment to renewable energy expansion.
Additionally, independent power producer TAQA Morocco has invested $27.2 billion in a green hydrogen project, aiming to produce 6,000 MW of renewable energy for green hydrogen production by 2030 and accelerate the nation’s energy transition in the process.