NAIROBI, Kenya (AP) — Solar and wind installations combined with battery storage are becoming the dominant choice for Africa’s emerging power infrastructure, as nations and financial backers move away from coal plants and massive hydroelectric dams seeking more affordable, quicker-to-build and dependable electricity sources.
This transformation is evident in a $1.5 billion power deal between China and Zambia revealed in early May, featuring three distinct 300-megawatt developments covering solar, wind and coal-powered generation.
Although coal’s presence highlights the continent’s ongoing requirement for steady baseline power, African nations confronting increased fuel import costs due to the Iran war, unstable electrical grids and expanding industrial needs are progressively embracing renewable power developments that can be constructed more rapidly and economically than conventional facilities.
Among the 322 power projects unveiled throughout Africa in 2025, 173 involved solar installations, with hydropower following at 46, wind at 34, gas at 22 and combined energy developments at 14, based on data from energy research company Electron Intelligence.
“Africa is not on the periphery of the global energy transition, it is sitting at its center,” said Mugwe Manga, climate finance lead at FSD Kenya. “The continent holds the world’s best renewable resources, and the economics have now decisively turned in favor of clean energy.”
According to Olamide Niyi-Afuye, CEO of the Africa Minigrid Developers Association (AMDA), the continent is undergoing a broader strategic shift in how energy infrastructure is being developed, with an emphasis on systems that can be deployed faster and expanded gradually with flexible financing.
Niyi-Afuye pointed to the growing role of solar within mini-grid systems.
According to the International Renewable Energy Agency, Africa added a record 11.3 gigawatts of renewable energy capacity in 2025, triple the previous year. South Africa, Egypt and Ethiopia accounted for much of the growth.
Declining technology prices are providing assistance. Large-scale solar energy expenses have plummeted by almost 90% worldwide since 2010, while land-based wind expenses have decreased approximately 70%, establishing renewables as the most economical option for fresh electricity production in numerous African regions.
“Renewable energy is now unequivocally the fastest, cheapest, and most bankable way to connect people, companies and economies to the megawatts they need to grow,” said Matt Tilleard, CEO of CrossBoundary Energy, which invests in renewable energy in Africa.
A significant portion of the expansion occurs through decentralized solar and battery installations placed directly at mining operations, manufacturing facilities, telecommunications towers and residential properties.
“Most official statistics still measure the energy transition the old way, by counting megawatts connected to national grids,” he said. “But solar and batteries don’t need central utilities.”
Information from the Africa Solar Industry Association reveals 23.4 gigawatts of functioning solar developments had been documented throughout Africa by 2025’s conclusion. However, Chinese shipping data shows 58.1 gigawatts of solar panels have been delivered to African nations since 2017, indicating solar implementation may be advancing much more rapidly than government records reflect.
Financial backers increasingly prefer renewable developments because they can produce profits more quickly and with reduced vulnerability to international fuel price fluctuations.
“Solar and wind projects are especially attractive at this moment because they combine strong commercial fundamentals with relatively lower investment risk,” Niyi-Afuye said.
At the Kamoa-Kakula copper complex in the Democratic Republic of Congo, CrossBoundary Energy is developing a 233-megawatt solar and battery project to supply one of Africa’s largest copper mines. Tilleard said the project moved from signing to more than 80% completion within a year. Coal-fired plants can take up to 12 years to complete, while major hydropower projects often require a decade or more.
“Investors deploy capital and see assets generating revenue within 18 months,” Tilleard said.
The continent’s renewable push is also being accelerated by policy changes. Ethiopia was the first country to ban imports of internal combustion engine vehicles, spurring faster adoption of electric vehicles. In South Africa, relaxing limits on private power generation has opened the door to a surge in industrial renewable energy projects.
Nevertheless, significant challenges persist. Numerous African power companies face financial difficulties. Consequently, lenders remain cautious about extended power purchasing contracts. Funding expenses for renewable developments in Africa reach up to three times those in developed nations due to perceived national risk, according to the International Energy Agency.
Development finance institutions, including the African Development Bank and the International Finance Corporation, are helping bridge the gap with concessional loans, guarantees and risk-sharing structures.
“What remains is not a question of technology or cost,” Manga said. “It is a question of finance, political will and preparing bankable projects that will drive demand for power on the continent.”
