African nations maintained a brisk tempo of solar energy set up final 12 months and the sector appears set to continue to grow in 2025, based on a brand new trade report.
The International Photo voltaic Council estimated that the continent added 2.4GW of photo voltaic era capability in 2024, barely lower than the 12 months earlier than, which it blamed on the slackening charge of installations in South Africa after a bumper 12 months in 2023.
The trade foyer group, in a report printed on Wednesday, predicted 42% development in new installations in 2025, partly as a result of it expects a number of necessary tasks that have been delayed in 2024 to be introduced on-line this 12 months.
“Africa is predicted to cumulatively set up 23GW of recent photo voltaic capability between 2025 to 2028, greater than doubling its 2024 cumulative put in capability in solely 4 years,” it stated, arguing that gas value swings and dear electrical energy make photo voltaic possibility for the area.
Whereas South Africa and Egypt are the biggest markets, there’s additionally been fast development in West Africa, with Ghana practically quadrupling its installations to 94MW of solar energy. Burkina Faso grew its photo voltaic by greater than 120% final 12 months to 87MW, whereas Nigeria put in about 73MW, based on the council.
“Many African nations proceed to face electrical energy shortages and frequent energy outages, pushing companies and households in the direction of photo voltaic as a dependable various,” it famous.
Capital prices
Analysts individually stated that US President Donald Trump’s withdrawal from local weather motion, together with pulling out of a serious initiative to spur the transition to inexperienced power in nations together with South Africa, gained’t derail billions of {dollars} of local weather tasks.
Even so, Africa’s photo voltaic growth is being held again by capital prices which are about seven occasions greater than in developed nations. Africa nonetheless accounts for simply 3% of worldwide power funding, the GSC report discovered.
Learn: Photo voltaic-powered Tesla criss-crossing South Africa – pix
“Many tasks are struggling to safe financing due to excessive rates of interest, forex dangers and lack of ensures,” stated Léo Echard, coverage officer at GSC and lead creator on the report. “If we are able to scale back the price of capital, Africa may change into one of many fastest-growing photo voltaic markets on the planet.” — Ruth Olurounbi, (c) 2025 Bloomberg LP
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