Africa Renewable Energy Market Outlook
According to the report by Expert Market Research (EMR), the Africa renewable energy market size reached a value of nearly 2,923.94 gigawatts in 2024. Driven by increasing energy demand, environmental concerns, and technological advancements, the market is projected to grow at a compound annual growth rate (CAGR) of 6% from 2025 to 2034.
The renewable energy sector in Africa is experiencing rapid growth, supported by the continent's vast renewable resources, including solar, wind, hydro, and geothermal energy. Africa’s energy transition is being shaped by a combination of factors such as rising energy access needs, the increasing affordability of renewable technologies, and supportive government policies. This shift toward cleaner energy solutions is expected to address the region's energy challenges, improve energy security, and contribute to sustainable economic development.
Key Market Drivers
One of the major drivers of the Africa renewable energy market is the growing energy demand across the continent. Africa, with its rapidly expanding population and economic development, faces an increasing need for reliable and affordable electricity. According to the International Energy Agency (IEA), over 600 million people in Africa still lack access to electricity, and the demand for energy is expected to double by 2040. Renewable energy sources, particularly solar and wind power, are being seen as essential solutions to bridge this gap, offering sustainable and decentralized power generation options for both rural and urban areas.
The affordability and scalability of renewable energy technologies have also played a key role in driving the Africa renewable energy market growth. Solar photovoltaic (PV) technology, for example, has become significantly cheaper over the past decade, making it more accessible to both large-scale projects and small-scale distributed systems. Wind energy technologies are similarly becoming more cost-competitive, particularly in regions with favorable wind conditions, such as in North and East Africa. Furthermore, advancements in battery storage technologies are addressing the intermittency challenges associated with renewable energy sources, allowing for more reliable and continuous power supply.
Government policies and international partnerships have also been crucial in promoting renewable energy across Africa. Many African countries have introduced renewable energy targets and incentives, such as feed-in tariffs and tax exemptions, to encourage investment in clean energy. For example, Morocco, Egypt, and South Africa have been at the forefront of developing large-scale solar and wind projects. The African Union’s Agenda 2063 also emphasizes the importance of renewable energy in driving sustainable development, further stimulating growth in the sector. Additionally, partnerships with international financial institutions, such as the World Bank and African Development Bank, have provided much-needed funding and technical expertise to accelerate renewable energy projects.
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Africa Renewable Energy Market Segmentation
The market can be divided based on energy type, and region.
Breakup by Renewable Energy Type
- Hydropower
- Wind
- Solar
- Bioenergy
- Solid Biofuels
- Bagasse
- Geothermal
Breakup by Region
- South Africa
- Egypt
- Ethiopia
- Kenya
- Others
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Goldwind
- Sustainable Power Solutions
- Scatec ASA
- Others
Challenges and Opportunities
While the Africa renewable energy market presents immense opportunities, it also faces several challenges that need to be addressed to ensure sustainable growth. One of the key challenges is the lack of adequate infrastructure and investment in the energy sector. In many parts of Africa, outdated power grids, limited transmission and distribution infrastructure, and inadequate storage capacity hinder the widespread adoption of renewable energy.
Additionally, political instability, regulatory challenges, and financing constraints in certain countries may also impede the implementation of renewable energy projects. Despite these obstacles, the renewable energy market presents a wealth of opportunities for investors, developers, and governments to drive sustainable economic growth and energy access across the continent.
To overcome these challenges, African governments, international organizations, and the private sector must collaborate to create conducive policy environments, improve energy infrastructure, and provide financing mechanisms that support the development of renewable energy projects. The growing interest in green financing, including renewable energy bonds and climate finance initiatives, offers an opportunity to scale up investments in the sector.
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