91% of new renewables projects beat fossil fuel alternatives

July 23, 2025

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Renewables are be the most cost-competitive choice for new electricity generation going forward. A report released this week by IRENA, titled Renewable Power Generation Costs in 2024, states that 91% of all global newly commissioned utility-scale renewable capacity now delivers power at a lower cost than the cheapest new fossil fuel.

  • Falling costs combined with Africa's vast wind, solar and water resources position the continent to undertake big-scale projects and accelerate renewable energy adoption.

  • The report by IRENA, the International Renewable Energy Agency, says new utility-scale onshore wind projects are the cheapest, with a global average Levelised Cost of Electricity (LCOE) of $0.034/kWh. New solar PV is at $0.043/kWh and new hydropower at $0.057/kWh.

  • Our take: The economics of African renewables are clear now, so investors will follow…? Read more (2 min)

Kenyan electric bus company BasiGo has launched its first inter-city electric mass transport pilot. In partnership with two bus operators, the company is testing 16- and 19-seater e-vans on two routes outside the capital Nairobi. The vans have a range of 300 km and can be fully charged in 1.5 hours. BasiGo has also installed DC fast chargers along the pilot routes.

  • Vans are the most common form of public transport across Africa. Cracking this market would give electrification a significant boost. Toyota fuel vans currently dominate in Kenya. 

  • Electric vans are quicker and cheaper to assemble than EV buses, making them ideal for fast deployment. But they'll need to overcome concerns regarding vehicle prices, limited range and infrastructure.

  • Our take: Fuel vans create pollution across Africa, and electric versions could be part of the solution… Read more (2 min)

The African Development Bank (AfDB) has approved a $40 million investment in equity platform Zafiri to accelerate renewable energy access across Africa. The fund – jointly developed with the World Bank – aims to address the critical shortage of patient, longer-term equity capital needed to de-risk and scale decentralised renewable energy (DRE) solutions in Africa.

  • DRE are best suited to connect Africa's dispersed rural populations due to its modular and scalable business model. More than half of all new electricity connections by 2030 are expected to come from DRE.

  • Zafiri is structured as a permanent capital vehicle. This allows it to invest in DRE projects that might take a long time to mature and generate consistent returns, without the pressure of forced exits.

  • Our take: Zafiri can serve as a catalyst by de-risking and attracting more private capital in the sector… Read more (2 min)

Energy professionals visit a solar minigrid in Kaduna State, Nigeria

 

Events

🗓️ Learn about digital & tech-driven opportunities in clean energy access (Jul 29)

🗓️ Participate in Kenya’s Clean Energy Australia-Africa Conference (Jul 31)

🗓️ Register for a conference on hybrid power systems and renewables (Aug 2)

Jobs

🛠️ Become Scatec’s Warehouse Supervisor (South Africa)

👨🏻‍💻 Spearhead SunCulture’s marketing operations (Kenya)

💼 Apply for WTS Energy’s Construction Delivery Manager role (Nigeria)

Various 

⚡ AIC completes 5 MW solar plant in Gambia

💰 Existing shareholders inject $24 million into Candi Solar

🟢 Mozambique prepares tender for 400 MW solar plant in Tete

🔌 Discovery Green seals 10-year PPA with Southern Sun

Seen on LinkedIn 

Mary Njuguna, Production Sync Engineer at Savanna Circuit, says, “Working in renewable energy for post-harvest use has taught me more about people than about power systems. The technology matters. But the real work begins after installation, when systems meet community realities. That’s where assumptions get tested and progress gets personal.”