Hybrid power solutions for Africa

Edith Kikonyogo, managing director – Africa at Aggreko talks resources, energy instability and the growing need for sustainable solutions that lower costs and reduce downtime

The cost of electricity in sub-Saharan Africa is 3,188% of income per capita, making it the highest globally and nearly 3.5 times the cost of the next highest region, South Asia.

While precise continent-wide gross domestic product (GDP) loss figures aren’t universally agreed on, the World Bank and a variety of academic institutions agree that unreliable and expensive energy supply is a significant inhibitor of competitiveness and economic growth.

For industrial operators across mining, manufacturing and oil and gas, reliable and cost-effective energy is both a development challenge and a risk multiplier – manufacturing enterprises experience an average of 56 days a year in power outages.

Energy instability increases downtime, inflates costs, and reduces competitiveness, and with grid unreliability and fuel price volatility becoming the norm rather than the exception, companies want options that give them both a sustainable foothold and a strategic advantage.

Hybrid systems, as a result, have become increasingly popular. They combine solar energy, battery storage and thermal generation to deliver a flexible, reliable and cost-effective energy supply.

They allow companies to generate power independently of the grid while smoothing out the intermittency challenges often associated with renewables.

Solar energy provides near-zero marginal cost electricity once installed with batteries storing surplus generation while helping to balance the load. Diesel and gas generators then act as fast-response backup solutions in the event solar is not sufficient. Combined, these three solutions provide operators with the agility to manage costs and guarantee uptime in even the harshest or most remote environments.

According to the International Renewable Energy Agency (IRENA), the global weighted average levelised cost of electricity (LCOE) from utility-scale solar PV fell by approximately 90% between 2010 and 2023, with a further 12% drop in 2023 alone.

In high-irradiance African countries, recent studies and project data show that the LCOE for utility-scale solar PV can reach as low as $0.04 per kWh, particularly in regions with strong solar resources and favourable financing, such as northern Ghana and parts of Botswana and Namibia.

For industrial operators, the financial upside of a hybrid system reliant on solar and with stable backup is clear. Clients switching to solar-plus-battery configurations can potentially save fuel costs of up to 15%, depending on irradiance, contract length and generator runtime. When the solution is extended across a multi-site operation, those savings can represent hundreds of thousands of dollars a year.

Beyond fuel, hybrid systems also reduce maintenance costs and fewer generator hours mean less wear and tear, longer service intervals and a lower chance of unplanned outages.

Battery storage smooths power delivery which allows thermal units to run at optimal loads rather than inefficient partial loads. The payoff is lower operational expenditure, more predictable cost curves and significantly improved uptime.

Uptime is Africa’s real competitive advantage. Uptime equals revenue, whether this is pumping water, refining ore or processing crops – the difference between 98% and 85% uptime is significant.

Hybrid systems directly improve this percentage and energy resilience. During peak solar hours, battery charging maximises renewable usage. At night or in overcast conditions, stored energy is dispatched first with thermal generators providing final backup, providing a layered architecture that ensures power continuity even during generator failures or sudden weather shifts.

In the context of Africa’s often fragile grids which are prone to loadshedding and voltage dips, control over energy is a lifeline, and an asset.

The climate case for hybrid power is also strong. Africa contributes just 3.9% of global carbon emissions but is among the hardest hit by climate shocks. As companies face increased scrutiny over their Scope 1 and 2 emissions, hybrid solutions provide a tangible way of decarbonising without compromising operational goals.

Aggreko’s hybrid model ensures companies achieve measurable emissions reductions by replacing diesel with solar and implementing smart controls that optimise generator loading and avoid inefficient idling. Introducing systems-level thinking, Aggreko helps companies manage costs and climate responsibilities with solutions that are scalable, modular and adaptable to Africa’s varied terrain and operational requirements. Unlike pure renewables which can be vulnerable to intermittency, or standalone thermal which is exposed to fuel price shocks, hybrid systems offer a practical middle ground.

From mining in the Democratic Republic of Congo (DRC) to agriculture in Zambia, hybrid energy installations are helping African operators move away from reactive energy spending and towards forward-planned, performance-driven power systems. And while many providers support this shift, success depends on hardware, systems design, local experience and the ability to manage complex energy flows in real-time – and that’s where Aggreko’s expertise makes the difference.

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Solar panel sales to Africa are soaring (Image source: Adobe Stock)

Solar panel imports into Africa rose by 60% in the 12 months to June 2025, reflecting the positive momentum in the renewables segment

That is according to a new analysis of China’s solar panel exports data from energy think tank Ember.

“The take-off of solar in Africa is a pivotal moment,” said Dave Jones, Ember’s chief analyst.

The analysis shows that Africa’s solar panel imports set a new record in the 12 months to June 2025, reaching 15,032 MW — it marks a 60% increase on the 9,379 MW imported in the preceding 12 months.

The last time imports surged was in 2023, when South Africa solar imports picked up as the nation's power crisis hit its peak.

However, this time is different, according to Ember.

“Much of the pick-up in the last 12 months happened outside of South Africa,” it noted in a statement timed with the release of the analysis.

Key highlights include:

20 countries set a new record for the imports of solar panels in the 12 months to June 2025.

25 countries imported at least 100 MW, up from 15 countries 12 months before.

Growth markets

The analysis also shows the growth in individual markets, with some countries, notably Nigeria, seeing dynamic growth.

In the last 12 months to June 2025, Nigeria overtook Egypt to become the second-largest importer with 1,721 MW of solar panel imports in the past year, while Algeria ranked third with 1,199 MW.

Some countries recorded very high growth rates.

Algeria’s imports rose 33-fold, Zambia eightfold, Botswana sevenfold, and Sudan sixfold, while Liberia, Democratic Republic of Congo (DRC), Benin, Angola and Ethiopia all more than tripled their imports.

The analysis finds that recent imports could make a major contribution to electricity generation in many African countries.

If fully installed, imports in Sierra Leone in the last 12 months could generate electricity equivalent to 61% of reported electricity generation in 2023, while in Chad the figure is 49%.

Liberia, Somalia, Eritrea, Togo and Benin could see generation rise by more than 10% of reported 2023 generation. In total, 16 countries could see an increase of over 5%.

Impact on diesel imports

The report also describes how solar panel imports may actually reduce overall imports.

The savings from avoiding diesel can repay the cost of a solar panel within six months in Nigeria, and even less in other countries, it notes.

In nine of the top 10 solar panel importers, the import value of refined petroleum eclipses the import value of solar panels by a factor of between 30 to 107.

However, more data and evidence needed to unlock this potential.

Despite the record imports of solar panels, there is no data to know how many have yet been installed.

“Bottom-up energy transitions fuelled by cheap solar are no longer a choice, they’re our future,” said Muhammad Mustafa Amjad, program director at Renewables First.

“Tracking these additions is what makes the difference between a messy shift and an organised, accelerated one.”

Amjad added: “When you don’t track, you lose time and opportunities. Pakistan’s experience shows this clearly. Africa’s transition will happen regardless, but with timely data it can be more equitable, planned and inclusive.”

Further evidence is urgently needed, Ember added, to understand the rapid rise in solar across Africa and its potential to expand electricity systems. “No single data source captures the full picture, and much more research and reporting are required."

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Eskom introduces its first Renewable Energy Offtake Programme, enabling businesses to secure clean power through long-term PPAs. (Image source: Eskom)

Eskom has launched its first Renewable Energy Offtake Programme, marking a key milestone in its strategy to build a 'competitive future energy industry' and increase the share of clean power in South Africa’s national grid

The utility said it is shifting its generation mix from being largely coal-based to a more balanced portfolio, with clean energy expected to take up a growing share by 2040.

Through a newly issued Request for Proposal (RFP), Eskom is inviting large power users to procure 291MW of solar photovoltaic (PV) capacity under long-term Power Purchase Agreements (PPAs) from Eskom-owned renewable projects.

This initiative follows a successful Expression of Interest (EOI) and extensive discussions with commercial and industrial customers, which confirmed strong demand for long-term PPAs. These contracts allow businesses to meet international sustainability targets, cut carbon emissions, and green their supply chains, boosting competitiveness.

The RFP is designed to provide tailored solutions that meet customer needs while supporting South Africa’s wider decarbonisation objectives. Winning bidders will enter PPAs ranging from 5 to 25 years, with renewable supply delivered in stages from several Eskom projects. The first project is expected to be commercially operational by December 2027.

Eskom group CEO, Dan Marokane, described the programme as a critical part of the company’s transformation:

"This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives.

"We have seen strong interest in Eskom's capabilities in green energy supply, which this programme demonstrates. Just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach," remarked Marokane.

Agnes Mlambo, Eskom distribution acting group executive, said the initiative reflected Eskom’s drive to create a resilient energy future.

"This programme demonstrates Eskom's commitment to innovation and building a cleaner, more resilient energy future. By offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply, through customer-centred solutions," continued Mlambo.

She noted that structured collaboration with the private sector would further accelerate Eskom’s clean energy integration into the grid.

The company added that it is pursuing a balanced energy mix, combining coal, nuclear, gas, renewables, and energy storage technologies such as Battery Energy Storage Systems and pumped hydro. Eskom also confirmed that a dedicated renewable energy business will fast-track green projects, with 2GW of construction-ready capacity targeted by 2026 and scaling up to 32GW, including Green Hydrogen developments, by 2040.

Powering change in South Africa's renewable energy space (Image source: Adobe Stock)

Power shift: Reimagining South Africa’s energy sector through inclusive leadership, by Kirsten Francis, coach at the Hasso Plattner d-school Afrika at UCT and co-founder of Jade-Sky Holdings

South Africa is transitioning from fossil fuels toward renewable energy, as the government aims to add at least 19 GW of renewable capacity by 2030 and as much as 190 GW by 2050. These targets are critical for climate resilience and energy security. Yet, the social design of this transition is dangerously overlooked.

More than 40% of South Africans still live in energy poverty, and women make up just 14% of the renewable energy workforce, with ownership and procurement remaining concentrated and locked in by structural inequality. To meet South Africa’s energy future with resilience and innovation, this transition must actively include diverse voices — especially women — if we want to design and drive solutions that serve all communities.

From wild idea to 1,414 MW portfolio

My sister and I entered this sector with no background in engineering or finance. We had no roadmap, only a wild idea: to own a wind turbine. That idea was so wild, I only shared it with her. But we believed it was easier to ground a wild idea in reality than turn a boring one into something exciting.

This belief stems from the Design Thinking mindset I teach: “Yes, and?” Instead of overanalysing or discounting bold ideas, we kept saying yes and looking for opportunities that would get us closer to that one turbine. Using our roles managing Windaba, Africa's largest wind conference, we incrementally built networks and sector knowledge. We researched, learned and positioned ourselves strategically. When policy shifted in 2020 to require women-led business participation in procurement, we were ready — not by accident, but because we had been designing our way into the industry for years.

Our journey from that single wild idea now encompasses equity in 1,414 MW of solar PV and onshore wind projects. This scale demonstrates that non-traditional pathways can achieve transformational impact when strategic positioning meets opportunity for policy shifts.

The strategic value of inclusion

As a women-led family business, we understand that energy sits at the nexus of everything. Access to energy drives economic growth, which is why our 20-year operational view focuses on early childhood development, healthcare, and sport in host communities. This isn't corporate social responsibility, it's an investment in the ecosystems where our projects operate.

The necessity for women to participate actively in the sector allows us to be strategic about investments and partnerships, always revisiting our core values. Inclusion isn't just ethical; it's a business imperative creating competitive advantages through diverse perspectives and community-rooted approaches.

Breaking down the barriers

The sector's greatest barriers aren't technical — they're cultural and institutional. We've been consistently underestimated with our communication science, political science, gender advocacy, and project management qualifications often dismissed in favour of traditional hard skills.

The industry uses jargon as gatekeeping, creating artificial barriers that shut out capable contributors. We've had to overcome imposter syndrome by embracing authenticity. It's okay to admit you don't know something — people want to help if you ask genuinely. This authenticity has opened doors that credentials alone might not have.

For women and entrepreneurs from non-traditional backgrounds, success requires surrounding yourself with willing mentors, building values-aligned networks, and committing doggedly to learning. The sector offers multiple entry points but requires confidence in understanding all the moving parts.

Design Thinking as a navigation tool

Design Thinking is more than a methodology for us — it's how we navigate uncertainty in a world demanding certainty. While traditional business operates with rigid mindsets, Design Thinking provides frameworks for embracing ambiguity and turning it into a competitive advantage.

This approach allowed us to identify real needs in the energy sector and remain agile through the complex Broad-Based Black Economic Empowerment investment landscape. We constantly iterate on who we are as a business, diversifying our role from project managers to equity holders while maintaining our values-based foundation.

Change requires new mindsets to support new policies

South Africa’s energy future will not be shaped by individual success stories alone. It depends on how we rethink the systems that determine access, ownership, and participation. While steps like the 2021 procurement requirements for women-led businesses have opened doors, broader transformation is still needed.

Progress comes from equipping more people across sectors and backgrounds with the mindsets to challenge the status quo, design inclusive solutions, and build systems that reflect the needs of all South Africans.

Lighting the way forward

Entrepreneurship is often a lonely, long road. But understanding your responsibility to craft pathways for others helps you push through challenges. Leadership requires constant revisiting of first principles; interrogating your why, iterating through complexity, and designing solutions that work for everyone.

As the country accelerates its energy transition, we must move beyond asking how much power we can generate to asking who we generate it for, and with. The success of our transition depends not just on technical capacity, but on whether we design it to serve all South Africans.

It takes audacity to dream big, but tenacity to remain at the table. The future of South Africa's energy sector — and the communities it serves — depends on both.

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