webvic-c

twitter Facebook Linkedin acp Contact Us

Energy

Africa is strengthening its energy regulation (Image source: Adobe Stock)

Senegal and Kenya have topped the list of Africa’s leading electricity regulators in a new report highlighting rising standards

The two countries claimed the top spots in the African Development Bank’s (AfDB) 2024 Electricity Regulatory Index (ERI), which evaluates regulatory frameworks across 43 African states.

Uganda, Liberia and Niger round out the top five performers.

Niger registered one of the biggest gains, underlining the strong impact of sustained reforms and political commitment to power sector development, the AfDB noted in a statement.

“The 2024 ERI shows that Africa’s regulators are stepping up,” said Dr Kevin Kariuki, AfDB vice-president for power, energy, climate and green growth.

“We are now seeing stronger institutions delivering real results for utilities and consumers. This shift is critical if we are to achieve Mission 300 and connect 300 million people to electricity by 2030.”

The ERI index evaluates three dimensions: regulatory governance, regulatory substance, and regulatory outcomes (ROI).

The latter category, ROI, which tracks service delivery and utility performance, recorded the most substantial improvements across the continent.

“Now in its seventh edition, the ERI shows strong momentum toward more effective, transparent and impactful regulation, with real-world results beginning to emerge,” the AfDB noted.

The report highlights “standout progress” in Kenya and Senegal in areas such as tariff reform, regulatory outcomes and utility performance.

Crucially, progress is being recorded across the continent with average scores drifting upwards in recent years, and even the lowest-ranked countries seeing imporced scores.

The ROI surged from roughly 0.40 in 2022 to 0.62 in 2024, showing that reforms are delivering tangible service improvements on the ground, the AfDB noted.

Priority areas for enhancing regulatory effectiveness include areas such as strengthening regulatory independence, enhancing accountability mechanisms, promoting transparency and predictability and improving stakeholder participation.

Wale Shonibare, director for energy financial solutions, policy and regulation at the AfDB said the ERI 2024 index tells a hopeful story.

“African countries are not just passing laws — they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence. However, challenges related to independence, financing, and enforcement persist.”

Launched in 2018, the ERI is a diagnostic and policy tool used by governments, regulators and development partners to identify gaps, track progress, and prioritise reform efforts.

Read more:

South Africa's power shift begins

Mission 300 electrification drive nets US$8bn cash boost

JUWI and JA Solar sign major supply deal for two 220MW utility-scale projects. (Image source: JUWI Renewable Energies)

JUWI Renewable Energies, a global leader in clean energy development, has signed two major solar module supply agreements with JA Solar, a top-tier global manufacturer of high-performance photovoltaic (PV) products

The agreements cover nearly 420,000 solar panels for two large-scale utility projects with a combined capacity of 220MW, supporting some of South Africa’s biggest industrial power users including Glencore, Sasol and Air Liquide.

The projects include the 100MW Sonvanger Solar Plant, being developed for Glencore in partnership with Pele Green Energy, and the 120MW Paarde Valley PV2 Project for Sasol and Air Liquide, delivered with TotalEnergies, Mulilo and Reatile Group. These developments are scheduled to go live by late 2026 and will use enough solar panels to cover more than 160 rugby fields in area.

This agreement is part of JUWI’s broader construction initiative announced earlier this year, representing more than ZAR 6 billion (US$320mn) in new-build solar PV projects. Once completed, these installations will contribute roughly 5% to South Africa’s existing solar PV capacity.

“We’re proud to work with global technology leaders like JA Solar, energy-intensive industries and independent power producers to advance South Africa’s energy transition,” said Richard Doyle, managing director of JUWI Renewable Energies.

“With the country targeting nearly 30 gigawatts of new wind and solar by 2030, and 11 GW of coal capacity scheduled for decommissioning in the near future, we need to ramp up renewable energy deployment faster than ever before if we’re going to keep the lights on. These large-scale projects also bring real carbon savings to the country’s hard-to-abate sectors, while reducing electricity costs for energy users and easing pressure on the grid.”

Aiqing Yang, executive president of JA Solar, stated, “We’re proud to partner with JUWI on these flagship projects, which reflect our shared commitment to advancing clean energy in South Africa. By supplying high-efficiency modules built for performance and reliability, we’re helping to power a more sustainable industrial future.”

Together, the two projects will produce around 672,000 megawatt-hours (MWh) of clean electricity every year. This output is expected to reduce approximately 625,000 tonnes of CO₂ annually, the equivalent of removing more than 130,000 cars from the road, while lowering power costs for industrial users and easing strain on the national grid.

Off-grid power a thriving market in Africa

While Africa’s off-grid and captive power sector thrives, highlighting the continued failings in the continent’s energy systems, it also indicates an enticing opportunity for investors, as well as unmet demand, according to a new report

In its State of Africa’s Infrastructure Report 2025, Africa Finance Corporation sees potential for long-term investment and opportunity for those companies keen to offer innovative, clean-based energy solutions.

“Rather than an ideal outcome, the boom in self-generation should be viewed as a market signal — a clear indication of suppressed demand, investment potential and the urgency of expanding reliable grid access,” the report notes.

It calls Africa’s huge demand for off-grid and captive power a “symptom of unmet demand” as well as a missed investment opportunity.

The report points to a growing share of generation that is now occurring outside the grid system — through off-grid, embedded and captive power systems — particularly in Africa’s largest economies, Nigeria and South Africa.

These developments reflect not only market innovation but also the continued inability of centralised systems to meet rising urban and industrial demand.

“In Nigeria, unreliable public supply has pushed millions of households and firms to rely on petrol and diesel generators,” the report states.

“Captive generation is especially widespread among industrial and commercial users, with large enterprises investing in dedicated diesel and gas-fired power plants.”

It highlights recent spatial data studies by SEforALL that suggest off-grid generation capacity in Lagos State alone could exceed 19 GW — surpassing Nigeria’s entire grid-connected generation capacity.

In South Africa meanwhile, a wave of decentralised investment followed the government’s 2022 decision to lift licensing requirements for embedded generation projects.

Registered capacity rose dramatically — from just 23 MW in 2019 to 4.5 GW by the end of 2023.

“Much of this has been driven by the private sector, including utility-scale along with behind-the-meter installations by commercial and industrial users,” the report notes.

“Estimates from local industry groups suggest that more than 1 GW of private solar capacity was added in 2024 alone.”

Despite their scale and significance, these trends remain poorly captured in official statistics, the report adds.

Global data often focuses on off-grid renewables, largely solar rooftops, while thermal generation, a large component of industrial self-generation, is rarely tracked.

“Yet thermal installations matter: captive plants serving mines, cement factories, or industrial parks can range from 20 MW to 200 MW or more per site, representing substantial capacity additions,” the report states.

Importantly, the rise of off-grid and captive power underscores a deeper systemic failure, it adds.

“Going off-grid is not always a low-cost solution — it is a last resort.”

A 2019 study by the Energy for Growth Hub found that, once reliability is factored in, self-generated power costs roughly twice as much as grid electricity in Nigeria and South Africa, and up to four times more in Ethiopia.

“These high costs erode industrial competitiveness and highlight the economic penalty of inadequate grid investment,” the report notes.

However, it also underscores pent-up demand for power where investors are able to meet the needs of buyers.

Read more:

Rolls-Royce opens Johannesburg power HQ

AED pilots energy storage concept in Lagos

EWIA to unlock on-site solar in Nigeria, Cameroon

JA Solar and ARTsolar localise DeepBlue 4.0 Pro module production for Hydra project

JA Solar, a leading global player in the photovoltaic (PV) industry and currently the top solar module provider across Africa, has commenced local manufacturing of its high-efficiency DeepBlue 4.0 Pro modules in South Africa

The initial set of modules produced domestically has been delivered exclusively for the 216MW Hydra solar project, a development led by TotalEnergies and constructed by Powerchina Huadong Engineering Corporation Limited (HDEC).

This achievement marks a major step for South Africa’s renewable energy landscape, representing the first-ever local production of n-type PV modules. It underscores a pivotal advancement in the country's photovoltaic manufacturing capacity and reinforces JA Solar’s enduring support for South Africa’s renewable energy development and broader socio-economic progress.

To align with the Department of Mineral Resources and Energy’s local content mandates under the Risk Mitigation Independent Power Producer Procurement Programme (REIPPPP), JA Solar entered into a strategic collaboration with ARTsolar, South Africa’s leading manufacturer of PV modules. This alliance successfully merged JA Solar’s advanced n-type PV technology with ARTsolar’s local production experience to enable the domestic manufacturing of DeepBlue 4.0 Pro modules.

Establishing local production for these sophisticated modules involved a significant upgrade of ARTsolar’s facility into a modern 340MW production line. The effort required both companies to navigate complex challenges—modifying manufacturing equipment and processes, training skilled personnel, obtaining essential product certifications, and setting up rigorous quality assurance and logistics frameworks. The transition demanded notable investment, coordination, and determination.

“This is more than a manufacturing achievement—it’s a strategic step forward for South Africa’s energy independence,” stated Aiqing Yang, executive president of JA Solar. “We are proud that the Hydra project will be powered by JA Solar modules made on South African soil. This successful localisation effort shows our commitment to combining global innovation with local action, supporting the country’s clean energy goals and industrial growth.”

Beyond supplying the Hydra project, this initiative contributes to strengthening South Africa’s solar manufacturing sector by reducing reliance on imports and increasing domestic production capacity. Through partnerships with local academic institutions, ARTsolar has invested in technical training and workforce development, resulting in the creation of 150 permanent jobs so far, with further employment opportunities anticipated as operations expand.

With projections positioning South Africa among the world’s top ten solar markets by 2030, JA Solar’s move into local production confirms its intention to be a long-term contributor to the region’s energy transition. The collaboration brings together China’s advanced solar technologies and Africa’s sustainability objectives, laying the foundation for a more energy-secure and environmentally responsible future powered by homegrown solar solutions.

Rolls-Royce investing Africa's long-term power future. (Image source: Rolls-Royce)

Rolls-Royce has officially opened a new headquarters and training facility in Johannesburg, South Africa, to support its Power Systems division

The new facility will support the growing fleet of Power Systems’ mtu mobile and stationary power solutions across critical sectors such as energy, technology, mining, transportation and oil and gas.

“As we approach our 25 year in South Africa, this new facility is a clear signal of our confidence in Africa’s growth and our commitment to being closer to our customers,” said Cobus Van Schalkwyk, director global mining and managing director, Rolls-Royce Solutions Africa.

Located in a specially adapted facility spanning approximately 6,000 sq m, the new site consolidates core functions into a central hub, including service coordination, spare parts storage, logistics and technical training.

It complements Rolls-Royce’s existing footprint in South Africa, with mtu engine rebuild capability, and finance and logistics functions located in Cape Town.

“By bringing support services, technical training and parts availability together under one roof, we’re building the capabilities that matter most to our partners across the continent,” said an Schalkwyk.

“This investment also supports our strategy to further localise operations, reduce lead times, and strengthen supply chain resilience — critical advantages for customers operating in remote or fast-paced environments.”

The new training centre is designed to support between 100 and 150 trainees annually with a wide range of training engines, including mtu 2000 and 4000 series, used for power generation, mining and rail applications.

Trainees will benefit from access to advanced tooling and use simulation equipment for electronic training.

The centre will deliver certified practical and theoretical training, equipping customers and partners from across Africa with the knowledge and hands-on experience required to support a wide range of applications and industries.

The new facility, operated by Rolls-Royce Solutions Africa, also features dedicated capacity for the engineering and assembly of repower modules, enabling the replacement of engines in mining haul trucks and excavators with more suitable mtu power solutions.

This will allow customers to select upgrade options tailored to specific operational needs, the company added in a statement.

“With a strong focus on system resilience, the regional subsidiary Rolls-Royce Solutions Africa is committed to delivering robust, fit-for-purpose solutions designed to perform in the demanding and often harsh operating environments across the continent,” the statement noted.

Read more: 

Schneider Electric opens Africa's first innovation hub in Johannesburg

Africa's first rice straw MDF production facility powered by mtu gas gensets

Rolls-Royce and SMH give new life to retired Kenya Railways locomotives

More Articles …

Most Read

Latest news