Electric cars to make up over 40% of global market by 2030

Electric vehicles (EVs) are poised to represent more than 40% of global car sales by 2030 as prices continue to fall and adoption expands across markets, according to the International Energy Agency’s latest Global EV Outlook

The report highlights that, despite economic uncertainties, EV sales have maintained strong momentum worldwide, surpassing key milestones and reshaping the automotive industry.

Global electric car sales are on course to exceed 20 million in 2025, accounting for more than a quarter of all cars sold. In 2024, EV sales reached over 17 million, pushing their global market share above 20% for the first time, as previously forecasted by the IEA. In the first quarter of 2025 alone, sales rose 35% year-on-year, with major and emerging markets recording record-breaking performances.

China remains the global leader, with electric cars comprising nearly half of all new car sales in 2024. The country sold more than 11 million electric cars, equal to the worldwide total in 2022. Other fast-growing markets include Asia and Latin America, where sales surged over 60% in 2024.

In the United States, EV sales rose by around 10%, with battery-powered models making up over one in ten new cars. Meanwhile, Europe’s growth plateaued due to the phaseout of subsidies and support schemes, although the region’s EV market share remained stable at around 20%.

Affordability is key

“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry,” said IEA executive director Fatih Birol. “This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.”

According to the report, affordability remains a key driver of adoption. The global average price of a battery electric vehicle (BEV) declined in 2024 due to increased competition and falling battery costs. In China, two-thirds of EVs sold were cheaper than their petrol or diesel counterparts, even without subsidies. However, the price gap persists elsewhere, BEVs were on average 20% more expensive than conventional vehicles in Germany and 30% higher in the United States.

Operating costs, however, continue to favour EVs. Even if oil prices dropped to US$40 per barrel, charging an electric car at home in Europe would still cost about half as much as fuelling a petrol or diesel car, based on current energy prices.

The report notes that nearly one-fifth of electric cars sold globally are imported, with China exporting around 1.25 million units in 2024, many to emerging markets where these imports have driven down retail prices.

A special section of the report focuses on electric trucks, which saw global sales rise by 80% last year, reaching nearly 2% of total truck sales. This growth was led by China, where cost-competitive heavy-duty electric trucks are gaining traction thanks to lower lifetime operating costs, despite higher upfront prices.

Agreement supports solar PV, grid upgrades, and commercial energy access in Nigeria

Konexa, a UK-based energy developer and investor, along with Climate Fund Managers (CFM), a climate-focused investment manager, and Norfund, the Norwegian development finance institution, have entered into a Development Funding Agreement (DFA) to support the expansion of Konexa's renewable energy projects in Nigeria

The partnership will fund the creation of a solar photovoltaic (PV) plant and the enhancement of grid infrastructure to connect two Nigerian Breweries Plc (NBPlc) locations in Lagos and Enugu State to renewable energy.

This initiative will also facilitate the further rollout of Konexa's private renewable energy trading platform, which will benefit a broader base of commercial and industrial (C&I) clients while improving the distribution grids around their sites to provide power to wider communities. Once fully operational, the project is projected to reduce CO₂ emissions by around 30,000 tonnes annually, create 100 construction jobs, and provide 35 permanent employment opportunities.

The partners will collectively invest US$3.6mn, with CFM’s EU-supported Climate Investor One (CIO) financing 50%, while Norfund and Konexa will each contribute 25%. This initial investment is anticipated to unlock an additional US$80mn in investments for construction when financial closure occurs in the second half of 2025.

Scaling renewable energy process

Nigeria's energy sector has long faced a shortage of investment in renewable energy generation and grid infrastructure. As a result, many businesses rely on costly and polluting diesel and gas generators. In line with the government's Vision 30:30:30, which aims to have renewable energy comprise 30% of total electricity generation by 2030, this project represents a significant step toward improving Nigeria’s energy landscape.

Darron Johnson, regional head of Africa at Climate Fund Managers, stated, "This agreement is a key milestone in scaling the renewable energy platform we’ve established with Konexa. The EU’s initial backing helped mobilise private capital for the first project phase, and we expect Norfund’s catalytic funding to play a similar role in the upcoming stages. It showcases how blended finance can have large-scale impact in emerging markets like Nigeria, where reliable electricity access is still a major challenge."

Birgit Edlefsen, senior vice-president for renewable energy at Norfund, commented, "This partnership highlights Norfund’s commitment to scaling renewable energy infrastructure in Nigeria, contributing to sustainable, social, and economic progress. We view Konexa’s model as both innovative and impactful in addressing Nigeria’s sector challenges. We’re excited to collaborate with Konexa and CFM."

Pradeep Pursnani, CEO of Konexa, remarked, "We are thankful for CFM’s continued support and excited to welcome Norfund to our partnership. This agreement represents years of effort in building a scalable and bankable renewable energy model for Nigeria, with potential to replicate across Sub-Saharan Africa. With this funding, Konexa has now secured over US$100mn to scale our efforts and bring reliable, affordable power to the commercial sector, helping decarbonize and showcasing how the private sector can address Nigeria’s power challenges."

The project builds on an earlier US$18mn investment announced in March 2024, which was co-funded by CFM, the EU, and Microsoft’s Climate Innovation Fund. This phase initiated Konexa's renewable energy trading platform and supplied renewable energy to two NBPlc sites in Kaduna State. The upcoming phase will enhance grid and storage systems to fully support power delivery to these sites under the existing Power Purchase Agreement.

African Development Bank backs €26.5m (appox. US$29mn) Sokodé solar plant to boost Togo’s renewable energy capacity. (Image source: African Development Bank)

The African Development Bank Group’s Board of Directors has approved a financing package of €26.5 million (appox. US$29mn) to support the construction of a 62 MW peak greenfield solar photovoltaic power plant in Sokodé, Togo

This funding comprises a loan of up to €18.5 million (approx. US$20.3mn) from the African Development Bank and a concessional loan of up to €8 million (approximately US$8.8 million) from the Bank-managed Sustainable Energy Fund for Africa (SEFA). Additionally, PROPACO, the French development finance agency dedicated to fostering private sector growth in emerging markets, will provide co-financing, making the €61 million (approx. US$67mn) project a prime example of effective public-private partnership.

The project is vital to Togo’s ambition of installing 200 MWp of renewable energy capacity by 2030. It will accelerate the nation’s transition away from expensive and polluting thermal power generation, strengthening energy security and reliability, and speeding progress toward universal electricity access by 2030.

Kevin Kariuki, vice-president for power, energy, climate, and green growth at the African Development Bank, said, “The Sokodé solar project is a landmark achievement that highlights Togo’s strong commitment to the transition to renewable energy in line with the Togo M300 energy compact under preparation, and the Bank’s long-standing commitment to supporting clean energy projects across the continent.” He emphasised that the project will not only advance Togo’s renewable energy goals but also stimulate local economic growth and improve the country’s energy security and reliability.

The project, developed by Meridiam and the French multinational utility Électricité de France, includes the design, construction, and operation of the greenfield solar plant along with an 11 km transmission line in Sokodé. Once operational, the plant is expected to generate 87 gigawatt-hours of electricity annually, providing clean, reliable, and affordable power to local communities while addressing energy shortages. It will also reduce annual CO₂ emissions by approximately 13,600 tons, supporting Togo’s climate commitments under the Paris Agreement.

SEFA’s involvement in the Sokodé Solar PV Project underscores the economic viability of renewable energy and is expected to encourage further investments in clean energy across the region.

This initiative also aligns with Togo's M300 energy compact by promoting least-cost power generation through competitive bidding and increasing private sector participation. It supports the African Development Bank Group’s “Light Up and Power Africa” agenda to deliver sustainable and inclusive energy solutions continent-wide.

Minister Mohamed Ould Khaled announces shift to privatised power generation model at Invest in African Energy Forum. (Image source: Energy Capital & Power)

Mauritania is pushing ahead with plans to fully privatise its power generation sector, with bids expected in the next two to three weeks for a new independent power plant linked to the Greater Tortue Ahmeyim (GTA) gas project

The announcement was made by Mohamed Ould Khaled, minister of petroleum and energy, at the Invest in African Energy 2025 Forum in Paris.

“All new power generation projects in Mauritania will be private. State-owned companies will no longer be involved in power generation,” said the minister. He added that two IPP (independent power producer) projects currently underway, both fuelled by domestic gas, will supply a combined 550 MW to the national grid within the next few years.

This shift is part of a wider effort to tap into the country’s gas and renewable energy potential to drive industrial growth, improve access to electricity, and support inclusive economic development.

“We want to develop large-scale natural gas and renewable energy resources. We want to expand affordable, clean power access to our people and industries and power inclusive economic growth, especially to unleash our mining potential.”

Mauritania currently has 57% energy access and aims to reach full national coverage by 2030. According to the Minister, the GTA gas project – developed jointly with Senegal – will play a major role, fuelling a 250 MW combined-cycle power plant in each country as part of its first phase.

The Minister said Mauritania is well-positioned to become a leader in Africa’s energy space and beyond, thanks to its mix of gas, solar and wind resources, and proximity to Europe. He also highlighted the country’s leadership in green hydrogen, backed by updated regulatory frameworks.

“Mauritania holds the largest pipeline of green hydrogen projects in Africa, which are designed not only to export molecules, but to catalyse industrialisation in Mauritania and decarbonize hard-to-abate sectors. We have the potential to produce 12 million tons of green hydrogen production per year, with wind speeds of 10 metres per second and amazing solar.”

“To support this transformation, we have completely modernised our framework,” the minister continued. “We have opened up the electricity sector to private investments, introduced a new local content policy, and implemented new PPP and investment codes. Additionally, we have launched Africa’s first green hydrogen code, which provides clarity and long-term stability for investors.”

Looking forward, Mauritania’s broader energy roadmap includes further development of the BirAllah gas field – another major deepwater discovery – expansion of the GTA project to reach 10 million tons of LNG annually, increased regional electricity trade, and continued investment in the mining sector.

As reported by Energy Capital & Power, these developments mark a pivotal moment in Mauritania’s energy journey.