African Review - Energy

Energy

Africa’s energy future requires bold action

Edith Kikonyogo, managing director, Aggreko Africa. (Image source: Aggreko)

Africa stands at a critical juncture in its energy evolution. With rapid economic growth, a burgeoning population, and vast natural resources, the continent has immense potential, as stated by Edith Kikonyogo, managing director, Aggreko Africa

However, these opportunities are accompanied by significant energy challenges, including unreliable power access, environmental concerns, and the need for equitable energy distribution. According to Kikonyogo, these challenges require leadership grounded in innovation, collaboration, and a comprehensive understanding of the energy trilemma—the delicate balance of energy security, environmental sustainability, and energy access.

The energy trilemma involves three key dimensions:

Energy security: Ensuring a reliable, affordable, and uninterrupted energy supply.
Environmental sustainability: Reducing environmental harm and combating climate change.
Energy access: Ensuring fair and inclusive availability of energy.

For Africa, resolving this trilemma is not just a goal but a necessity. The continent’s energy landscape is diverse, with aging infrastructure in urban areas, vast rural regions lacking grid access, and varied regional needs. However, these challenges also provide an opportunity to redefine Africa’s energy future.

Reconciling energy security with sustainability

Looking to the future, Africa faces significant challenges, with electricity demand expected to grow at 4% annually through 2026 (IEA). This growth, driven by urbanisation and a rapidly expanding population, outpaces the global average and presents both great potential and substantial challenges. However, Africa’s continued reliance on fossil fuels complicates the situation, requiring a delicate balance between addressing immediate energy needs and committing to sustainability.

This challenge is underscored by the African Union’s ambitious goal of reaching 300GW of renewable energy by 2030 (Nairobi Declaration). This target represents more than just a statistic; it is a transformative vision requiring an additional 32.6GW of renewable capacity each year—four times the current deployment rate. Overcoming barriers such as fragmented regulations, financing gaps, and lengthy permitting processes—which can delay projects by 12 to 18 months—is essential for progress.

To navigate these challenges and realise this vision, innovative solutions and collaborative efforts are critical. One of the key hurdles to overcome is the long time-to-market for energy projects. Delays often result from regulatory complexity, underdeveloped infrastructure, and investor risk aversion. Extending centralised grids to remote areas remains financially and logistically prohibitive, and renewable energy projects often face bureaucratic bottlenecks.

Advancing sustainability without hindering growth

While addressing these challenges, it is crucial to remember that advancing sustainability must not happen in isolation. Despite contributing less than 4% of global emissions, Africa is disproportionately affected by climate change. This stark reality necessitates pragmatic solutions, such as hybrid energy systems that combine renewable energy with transitional fuels. These systems not only provide reliable power for critical services such as healthcare and education but also reduce dependence on carbon-intensive sources, bridging the gap between development and decarbonisation.

In addition to enhancing energy security and reducing emissions, ensuring equitable and sustainable energy access is paramount. With over 600 million Africans lacking electricity, the need for solutions that provide equitable energy access is urgent. Decentralised solutions, like microgrids, are especially important in regions where extending the grid is not feasible.

However, achieving sustainable energy access requires more than just infrastructure. It requires a concerted effort to build local capacity and engage in inclusive planning. Global technology providers have a crucial role to play in removing barriers to energy access, providing tailored support to accelerate project viability and ensure operational success.

Kenya on track for 2030 universal electricity access

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Kenya is on track to reach universal electricity access by 2030. (Image source: Adobe Stock)

Kenya is on track to achieve universal electricity access within five years, according to the International Energy Agency (IEA)

It follows ambitious implementation plans and electrification using clean energy technologies that have positioned the country as a leader in the region, according to the IEA’s new Energy Policy Review of the country.

Electricity access rates rose from 37% in 2013 to 79% in 2023, with urban areas already achieving full access, the report notes.

The Last Mile Connectivity Project (LMCP), launched in 2015, has played a pivotal role in bringing electricity to 9 million people in rural areas and reducing the number of people without access by nearly half in just under a decade.

Ongoing initiatives aim to connect an additional 280,000 households across the country by the end of 2025.

The IEA report also highlights Kenya’s leadership in off-grid solar, with the country accounting for nearly three-quarters of all solar home system sales in East Africa in 2023.

These off-grid solutions have become a key part of Kenya’s electrification strategy, particularly in remote and underserved communities.

Currently, one in five households uses solar-powered mini-grids or standalone systems.

“Kenya is showing how the strategic deployment of clean energy technologies and electrification in end-use sectors can significantly improve the lives of millions of the most vulnerable people in the world,” said Mary Burce Warlick, the IEA’s deputy executive director, who launched the report with minister of energy and petroleum J Opiyo Wandayi.

The report coincides with the Kenyan government’s review of its own National Energy Policy.

According to Wandayi, the Draft National Energy Policy 2025-2034 seeks to address remaining challenges associated with energy access, affordability and security, whilst promoting clean energy solutions to cut dependence on fossil fuels and driving green industrialisation.

Low-emissions technologies now form the cornerstone of Kenya’s electricity mix, with geothermal, hydro, wind and solar sources accounting for nearly 90% of power generation.

Kenya is also home to the Lake Turkana Wind Project, the largest wind farm on the African continent, and has some of the lowest cost geothermal projects in the world.

The country has long been a pioneer in Africa for geothermal energy, which accounts for almost one-third of total electricity generation capacity.

The IEA report also underscores Kenya’s efforts to modernise and expand its electricity grid.

New regulations in 2024 open transmission and distribution networks to private investment, aiming to increase competition, reduce costs and improve efficiency.

Kenya’s power networks, however, still face high losses – estimated at 23 per cent in 2023 – due to technical issues, theft and billing problems.

Smart grid solutions and better management systems are under consideration to address these losses, the report notes.

A milestone in Kenya's energy transition

Solar mini-grids could power 8.5 million Zambians by 2030

Zambia, with global partners, accelerates off-grid solar projects to provide reliable, clean electricity for rural communities. (Image source: Adobe Stock)

Zambia has made significant strides in improving electricity access, with the percentage of the population connected rising from 30% in 2017 to nearly 50% today

However, half of the population still lacks access, and innovative energy solutions will be needed to bridge this gap. While hydropower currently accounts for 80% of Zambia’s electricity generation, recent droughts have highlighted the vulnerabilities of relying on this single source.

To address this, the Zambian government, in partnership with the World Bank, the Common Market for Eastern and Southern Africa (COMESA), the Africa Minigrid Development Association (AMDA), and other collaborators, is intensifying its efforts to expand off-grid solar energy across the nation.

"Our target is to have at least 200 solar mini-grids operational by 2030, ensuring that every rural district in Zambia has access to clean, affordable, and reliable electricity,” said Makozo Chikote, Zambia's minister of energy.

Solar home systems, which consist of rooftop panels offering power for lighting, phone charging, and essential appliances, alongside mini-grids providing electricity to entire villages, hold great potential to serve the 8.5 million Zambians still without electricity. These systems are the most cost-effective and practical solution for connecting remote communities, but developers are facing financial and technical challenges.

To address these issues, the World Bank’s Energy Sector Management Assistance Program (ESMAP), COMESA, and AMDA are hosting a conference from April 1st to 3rd in Lusaka. The event brings together mini-grid developers, financiers, government officials, and development partners to review progress in mini-grid technology and discuss the barriers hindering their rapid deployment.

“Energy access changes people’s lives. It improves health and quality of life and helps create jobs and livelihoods that lift people out of poverty. The World Bank Group is partnering with the African Development Bank and other partners on Mission 300, an ambitious initiative to connect 300 million people to electricity in Sub-Saharan Africa by 2030 and accelerate development and poverty reduction. In Zambia, Mission 300 includes supporting an acceleration of the deployment of distributed renewable energy,” remarked Achim Fock, World Bank Country Manager for Zambia.

Zambia’s relatively low population density of 24 inhabitants per square kilometer makes extending the national electricity grid costly and challenging. To address these challenges, the World Bank supports Zambia’s electricity access initiatives, such as the Electricity Services Access Project (ESAP) and the Zambia-Tanzania Interconnector Project (ZTIP), both of which aim to expand affordable, sustainable energy access.

New hybrid industrial power plant for Nigeria

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Husk Energy to power rice farm operations. (Image source: Adobe Stock)

Husk Power has announced a commercial and industrial (C&I) solar power project in Nigeria’s rice-producing region with foods group Olam Agri

Under the partnership, Husk will deploy a 1.3 MWp solar photovoltaic (PV) system, integrated with an 860 kWh battery energy storage system (BESS), at Olam Agri’s rice operations in Rukubi, Nasarawa State.

The shift to solar power represents a step in Olam Agri’s efforts to cut diesel consumption and will continue the transition of agriculture to more sustainable energy infrastructure.

“The partnership with Olam Agri aligns with Husk’s broader goal of installing hundreds of MWs of C&I solar capacity in Nigeria and other regions of sub-Saharan Africa over the next five years,” said Olu Aruike, Husk’s country director.

Besides being the market leader in Nigeria’s community solar mini-grid industry, Husk is committed to partnering with commercial & industrial (C&I) businesses to decarbonise key sectors of Nigeria’s economy, including agriculture.”

Husk will supply power to Olam Agri under a 10-year power purchase agreement (PPA).

The solar-battery hybrid system will enhance voltage stability, ensuring a reliable power supply while delivering fuel cost savings and substantially reducing carbon emissions.

This latest initiative builds on Olam Agri’s broader commitment to integrating sustainable energy across its operations in Nigeria and elsewhere.

In 2024, the Olam Agri rice farm introduced a solar farm to power its mill operations.

Beyond solar, the company is implementing additional energy-saving initiatives, including improving energy efficiency across its factories, adopting cleaner-burning fuels, and optimising production processes to minimise waste and emissions.

“Sustainability is at the heart of Olam Agri’s operations, and this partnership with Husk Power is a significant step towards reducing our carbon footprint while ensuring a stable and cost-effective energy supply,” said Anil Nair of Olam Agri in Nigeria.

“By transitioning to solar power, we are improving the efficiency of our rice production in Rukubi and contributing to Nigeria’s broader renewable energy goals. By implementing renewable energy solutions in Nigeria, Olam Agri is not just meeting its own needs but inspiring others to follow suit and help drive sustainability in the agricultural sector across Africa and beyond.”

The companies said in a statement that Nigeria’s government policies and regulations further support the partnership, encouraging private-sector investment in renewable energy and solar adoption in the industrial and agricultural sectors.

Nigeria’s C&I solar market is expanding, with over 550MW of new solar capacity set to be added between 2025 and 2029.

Husk to utilise new funding to expand solar minigrids in Africa

Africa Sunshot initiative to scale Africa's minigrid industry

Off-grid solar surge powers Africa’s energy future

Mission 300 initiative advances off-grid solar access, aiming to connect 300 million Africans to electricity by 2030. (Image source: Adobe Stock)

Dar es Salaam, Tanzania — A new push to expand off-grid solar solutions is gaining momentum following the recent Mission 300 Africa Energy Summit, where African Heads of State, private sector leaders, development partners, and civil society gathered to align on universal electricity access

Spearheaded by the World Bank Group and African Development Bank, Mission 300 aims to connect 300 million people across Sub-Saharan Africa to electricity by 2030.

At the heart of this initiative lies off-grid solar—positioned as the most cost-effective solution to deliver nearly half of the connections required to meet Mission 300 targets. With over 560 million people already benefiting from off-grid solar globally, and the majority in Africa, the model is proving its adaptability and transformative impact across households, institutions, and micro-enterprises.

The summit underscored that off-grid energy access not only enhances resilience and productivity but also presents a US$5.6bn opportunity in household savings and new income generation. Furthermore, off-grid solar is poised to energise two million micro-enterprises and create thousands of jobs in an industry already supporting more than 120,000 formal and informal workers continent-wide.

Financing off-grid growth

To accelerate deployment, the World Bank and its partners are calling for stronger financial commitments. Public funding, including subsidies and grants, is essential to de-risk investment in fragile and remote regions—home to 82% of Africa’s unelectrified population. Evidence from Nigeria’s National Electrification Program demonstrated rapid uptake when subsidies reduced the cost of solar home systems, connecting 5.5 million people in just two years.

Alongside public finance, private investment—through both debt and equity—remains a critical pillar. Platforms like Zafiri, which aim to mobilise US$1bn in patient equity, are unlocking new capital and bridging the funding gap for distributed renewable energy (DRE) companies. Innovative financing mechanisms, including local currency instruments and climate-linked finance, are also gaining traction.

Governments are central to this ecosystem. By embedding off-grid solar into national electrification plans, offering tax and tariff relief, and phasing out fossil fuel subsidies in favour of DRE investments, governments can catalyse a thriving off-grid industry. Kenya’s experience stands as a beacon—tax exemptions have enabled the country’s off-grid market to power more than 10% of its population, while also fostering solar adoption in agriculture and ICT sectors.

As Africa accelerates its energy transition, Mission 300 provides a timely and ambitious blueprint. With bold partnerships and continued innovation, distributed solar technologies can deliver on the promise of energy for all—ensuring no one is left behind.