Energy

Time to accelerate off-grid renewables (IMAGE SOURCE: Adobe Stock)

Expanding off-grid renewables will be essential to bring electricity to remote homes across sub-Saharan Africa, says the International Renewable Energy Agency (Irena)

In an update — timed to concede with SADC Sustainable Energy Week in Botswana this week — Irena called last year’s COP28 UAE consensus a ‘turning point’ in the global energy transition, committing to triple installed renewable energy capacity to 11.2 terawatts and double the global rate of energy efficiency improvements by 2030.

It noted that off-grid renewables will be integral to this goal, especially in developing regions of Africa.

“They not only contribute to renewable energy capacity and enhance energy efficiency at the local level, but are also uniquely positioned to expand electricity access and advance the Sustainable Development Goals (SDGs) in rural and remote communities,” the update stated.

In the global context, this will be essential to sub-Saharan Africa especially.

While the number of people that lack access to electricity dropped from 1 billion in 2014 to 685 million in 2022, Irena noted that the gains in global electricity access has almost flatlined since 2018, particularly in remote and rural areas of sub-Saharan Africa.

This has led the region to now account for 83% of the global access deficit — a “concerning” increase from 50% in 2010.

“This is where off-grid renewables can play a significant role,” it noted.

“Off-grid renewable energy solutions like solar home systems and mini-grids have emerged as lifelines for remote, last-mile communities, bringing electricity access to low-income households in underserved areas. These systems have enabled essential services and powering rural economies, benefiting 155 million people in 2023.”

Although small in scale, their socioeconomic and environmental impacts can be profound, Irena added, unlocking socio-economic benefits and contributing to multiple SDGs.

Benefits include improved healthcare delivery, increased access to clean water and sanitation, and education, allowing students in remote areas to extend study hours because of better lighting and electricity.

The Abu Dhabi-based agency called for an acceleration in efforts to roll-out off-grid renewables across the continent.

“Given the role they play in climate and development goals in rural areas, off-grid renewables deployment efforts in developing countries should be accelerated, underpinned by strong international cooperation and multi-stakeholder partnerships, which Irena has been advocating for,” it stated.

It identified key ways to do this such as integrating off-grid renewables into national and regional electrification strategies and plans, introducing supportive policies and regulations, and nurturing the development of local manufacturing and assembling supply chains.

In support of the scale-up of off-grid renewables, Irena provides technical platforms, establishes multilateral partnerships and facilitates knowledge-sharing — including through its biennial International Off-grid Renewable Energy Conference (IOREC), which is timed this year with SADC Sustainable Energy Week, taking place from 24-28 February 2025.

This year’s IOREC in Botswana explores ways to scale up off-grid solutions to advance sustainable growth and development in Africa and beyond.

The Africa Energy Indaba 2025 will unite leaders to address Africa’s escalating energy crisis, fostering sustainable and resilient solutions. (Image source: Adobe Stock)

The recent escalation to Stage 6 load shedding in South Africa, alongside severe power outages in neighbouring nations, highlights Africa’s pressing energy challenges

The upcoming Africa Energy Indaba, scheduled for March 4–6, 2025, at the Cape Town International Convention Centre (CTICC), presents a crucial platform for addressing these issues.

The economic impact of load shedding

Frequent power outages severely disrupt industrial and commercial activities, leading to productivity losses, revenue declines, and increased operational costs as businesses turn to alternative energy sources. Small and medium-sized enterprises (SMEs) are especially vulnerable, often lacking resources to mitigate these disruptions.

On a macroeconomic level, prolonged power shortages hamper foreign investment, slow economic growth, and drive unemployment. The unpredictability of the energy supply undermines investor confidence, stalling long-term development. Additionally, households face rising costs and reduced disposable income, impacting consumer spending and economic activity.

Regional energy challenges

South Africa is not alone in facing energy instability. Zimbabwe endures up to 19-hour daily blackouts due to challenges at Hwange Power Station, while Zambia faces 21-hour power cuts as drought conditions deplete Lake Kariba’s hydroelectric output.

These interconnected crises emphasize the urgent need for sustainable, resilient energy infrastructure across the continent. The Africa Energy Indaba will bring together industry leaders, policymakers, investors, and innovators to explore viable energy solutions.

Key Features of Africa Energy Indaba 2025

• High-Level Panels & Keynotes – Focused on energy security, diversification, and resilient power infrastructure.
• Technology Exhibition – Showcasing renewable energy innovations, energy storage, and grid management solutions from global leaders.
• Strategic Networking Opportunities – Enabling partnerships to boost investment and energy sector development in Africa.
• Policy & Regulation Discussions – Engaging governments and regulators to advance sustainable energy policies.

As African nations grapple with energy insecurity, the Africa Energy Indaba 2025 will serve as a collaborative forum to forge a sustainable and resilient energy future for the continent.

Teraco partners with NOA to integrate wind energy, complementing its solar programme and advancing towards 100% renewable energy goals. (Image source: Adobe Stock)

Teraco, a Digital Realty company and leading provider of interconnection platforms and vendor-neutral colocation data centres, has signed a power purchase agreement (PPA) with South African energy aggregator NOA to supply wind-generated renewable energy to its data centres

Building on its commitment to sustainability, Teraco previously announced the construction of a 120MW solar PV plant in the Free State. This new PPA complements its renewable energy programme by incorporating wind power, ensuring a balanced energy mix. The agreement allows both Teraco and NOA to scale renewable energy offtake as demand increases.

Wind energy plays a crucial role in powering data centres that operate around the clock. In South Africa, wind energy generation peaks at night and in the early morning, making it a natural complement to solar, which produces power during daylight hours. By combining these two sources, Teraco enhances its renewable energy coverage.

Bryce Allan, head of sustainability at Teraco, stated, “The conclusion of this PPA supports our sustainable growth pathway. We appreciate NOA’s unique and collaborative approach in complementing Teraco’s renewable energy supply and look forward to a long partnership as we journey towards our 100% renewable energy goal.”

Karel Cornelissen, CEO of NOA, added, “NOA is proud to deliver our suite of renewable energy products to support Africa’s largest data centre operator’s ambitious renewable energy goals. Teraco is an industry leader and continues to set the bar high for renewable energy initiatives across South Africa’s data centre industry. By aggregating renewable energy from our fleet of generation facilities and third-party IPPs, we are well positioned to provide tailored and flexible solutions to help companies, like Teraco, reduce their carbon footprint.”

Renewable Energy Wheeling

Under the agreement, NOA will wheel wind-generated renewable energy from various projects to Teraco’s data centres. This energy will work alongside Teraco’s solar programme to maximise renewable energy use. The projects will gradually scale up, with the first power expected to be delivered in 2026.

Wheeling renewable energy through existing electrical grids allows power generated in high-yield areas to be transmitted to urban end-users. This approach enhances renewable energy deployment and optimises generation potential.

Jan Hnizdo, CEO at Teraco, concluded, “This is an exciting time for Teraco as we take another significant step towards meeting our 100% renewable energy ambitions and those of our clients. We’re looking forward to these new wind generation facilities coming online and adding much-needed new renewable energy production to South Africa’s grid.”

Also read: Is liquid cooling the future of data centres?

More financing is finding its way into Africa's solar power sector (IMAGE SOURCE: Adobe Stock)

SolarAfrica has achieved financial close on the first 114 MW phase of its utility-scale SunCentral solar project after securing R1.8 billion (US$98mn) in investment alongside funding partners Investec and RMB

SunCentral is a large-scale solar photovoltaic (PV) plant between Hanover and De Aar in South Africa’s Northern Cape province, to be developed over three phases.

In a statement, SolarAfrica said the investment into SunCentral marks the start of the project’s rollout in South Africa.

Phase 1, consisting of 342 MW, will be delivered through a staged roll-out of three 114 MW facilities and will deliver renewable energy to a diverse range of off-takers by wheeling it through South Africa’s power grid. Phase 2 and 3 will increase SunCentral’s capacity to 1 GW.

Unlike similarly sized projects that offer wheeling on a one-to-one basis (with one generation plant supplying one off-taker), SolarAfrica’s project will offer wheeling on a one-to-many basis, making it available to a wider pool of businesses in South Africa.

“Reaching financial close on the first 114 MW of our utility-scale wheeling development and main transmission substation (MTS) investment marks a significant milestone in our commitment to advancing sustainable energy solutions for our customers in the commercial and industrial sectors,” said SolarAfrica’s chief investment officer Charl Alheit.

He said that the size of SunCentral will unlock access to cheaper, greener power for even more businesses across the country.

“We are excited to see this project move forward as we continue contributing to the energy transition while delivering long-term value to our customers."

SolarAfrica is part of the greater Starsight Energy Africa Group. It wants the success of SunCentral to act as a blueprint for similar off-site generation projects in other African markets in which the Starsight Energy Africa Group companies operate.

“The construction of SolarAfrica’s SunCentral is a critical step in our journey to expand clean energy adoption across sub-Saharan Africa, noted Paul van Zijl, group CEO of Starsight Energy Africa Group.

“We are excited to move this project forward and continue delivering long-term value to our customers,” he said.

SolarAfrica is supported by investors African Infrastructure Investment Managers (AIIM) and Helios Investment Partners.

Thor Corry, investment director at AIIM, said reaching financial close on the first 114 MW on SunCentral marked a big milestone for SolarAfrica.

“The modular approach to construct the MTS and plug in subsequent 114 MW modules provides a superb platform for SolarAfrica to scale at pace to meet the needs of the C&I customers in South Africa who want to secure price certainty and cost efficiencies while furthering South Africa’s Just Energy Transition,” he said.

“With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like this are crucial.”

Read more: Starsight Energy merges with SolarAfrica to form largest C&I solar developer in Africa