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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.

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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.

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Delivering up to 630W output and 23.3% efficiency, the module incorporates a low-voltage, high-string design, making it compatible with widely used inverters. (Image source: Trinasolar)

With more than 1 GW of solar technology delivered in South Africa over the past year, Trinasolar has reaffirmed its role as a key contributor to Africa’s clean energy movement by returning to the Africa Energy Forum (AEF)

At this year’s gathering in Cape Town, the company is showcasing its latest solar and battery storage solutions built to endure Africa’s environmental extremes and meet evolving grid challenges.

“As the energy crisis and climate volatility continue to impact South Africa and the broader African region, Trinasolar is focused on delivering real solutions that enable long-term energy security,” said Vincent Wu, global sales vice-president and MEA MU head at Trinasolar. “Our high-efficiency PV modules and advanced energy storage systems are engineered to meet the challenging realities on the ground. Through our presence at AEF, we’re reinforcing our commitment to supporting Africa’s transition to a greener, more stable energy future; one built on innovation, resilience, and strategic collaboration.”

The centrepiece of Trinasolar’s exhibition is the debut of the Vertex N 630W (NED19RC.20), an ultra-reliable solar module designed for Africa’s demanding conditions. Built with enhanced structural integrity, corrosion-resistant features, and dust protection, the module boasts an industry-leading 55 mm hail resistance rating, more than twice the standard. It is also certified for fire safety and engineered for performance in environments with high levels of salt, ammonia, and sand.

Delivering up to 630W output and 23.3% efficiency, the module incorporates a low-voltage, high-string design, making it compatible with widely used inverters. This configuration reduces system costs and simplifies installation—particularly valuable for commercial and utility-scale projects.

“We’re seeing strong momentum across the region, especially in the commercial, industrial, and utility-scale sectors where innovation and ease of installation matter,” said Zaheer Khan, regional director for South Africa, Trinasolar MEA. “Installers and partners are drawn to solutions like the Vertex N 630W, not just for its performance, but because it addresses real operational challenges in tough environments.

“In just the past year, Trinasolar has delivered over a gigawatt of technology solar equipment in South Africa alone,” Khan added. “It’s a milestone that reflects our growing footprint, trusted relationships, and long-term commitment to the region. And we’re just getting started.”

Trinasolar’s African offering includes solar modules, energy storage, floating PV solutions, and smart tracking systems—developed to meet diverse energy requirements with an emphasis on quality, adaptability, and system integration. With offices in Johannesburg and Cape Town and a Durban-based warehouse maintaining 10–20MW of stock for fast delivery, the company is well-equipped to support project deployment across the region. It is also expanding its commercial presence in key markets including Kenya, Nigeria, Morocco, and others.

Over the last ten years, Trinasolar has helped shape South Africa’s solar sector by supporting large-scale utilities, driving C&I adoption, and contributing to decentralisation and renewable energy growth. As the continent’s transition gathers pace, the company remains committed to scaling integrated systems, building local capacity, and partnering with governments, utilities, and private stakeholders to ensure lasting energy resilience.

Scatec scaling up on renewables

Power developer Scatec ASA is scaling up its presence in Egypt’s fast-growing renewables sector, with news on two major projects

The company has just achieved financial close on its 1.1GW Obelisk hybrid solar and battery storage project and has separately signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) to build a new 900MW wind farm in Ras Shukkeir.

The landmark 1.1GW solar plus 100MW/200MWh Obelisk scheme will now be constructed in two phases, with first electricity anticipated early next year.

“Reaching financial close for this project marks a major milestone for Scatec,” said CEO Terje Pilskog. “It proves our ability to deliver large-scale hybrid projects.”

The first phase of 561MW solar, plus 100 MW/200 MWh battery storage, is targeted to reach commercial operational in the first half of 2026.

The second phase of 564MW solar will be operational in the latter half of 2026, with energy sold under a US dollar-denominated 25-year power purchase agreement also with EETC, backed by a sovereign guarantee.

Obelisk’s non-recourse project financing comprises US$479.1mn from the European Bank for Reconstruction and Development, African Development Bank and British International Investment.

This corresponds to approximately 80% of the total estimated capex of US$590mn.

Scatec has previously signed equity bridge loans of around US$120mn, postponing project equity injections to the end of the construction period.

The company is currently in advanced talks with potential equity partners, which are expected to conclude in the next few months.

Scatec will also deliver engineering, procurement and construction (EPC), asset management (AM), and operations and maintenance (O&M) services for the project.

The proposed wind farm in Ras Shukeir, to be developed through its project company Shadwan Wind Power SAE, is at an earlier stage.

The signing of the PPA will now be followed by wind measurements on the site, which boasts some of the worlds’ best wind resources for onshore wind power, to be finalised in the first half of 2026 ahead of financial close and construction.

“This project is a testament to Scatec’s position as one of the leading renewables companies in Egypt,” said Pilskog.

“We are now advancing four major renewables projects in the country, with a diversified technology base.”

Read more:

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Egypt's largest solar plant now fully operational

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