Africa's renewables projects beat deadlines

From the newsletter

Africa is witnessing an acceleration in renewable energy projects, with several key plants coming online ahead of schedule. Solar energy, in particular, dominates these projects, but wind power initiatives are also progressing faster than expected. This week, Egypt commissioned the 650 MW Red Sea Wind Energy project four months ahead of schedule.

• In our Renewables Rising project database, we have tracked at least 19 renewable energy projects that have been completed since the start of the year. These projects total more than 6,100 MW and 1,352 MWh in battery storage. Solar projects integrated with battery storage account for about 30% of the total capacity.

• Solar PV is advancing rapidly due to its lower cost and modular design, making it quick to deploy and easy to expand. Unlike traditional power plants, with long construction timelines, solar facilities can be built in phases. This allows for faster initial power generation and subsequent expansions.

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• The 650 MW plant was built by the multinational French energy company Engie and is currently the largest completed wind farm in Africa. The company targets the Middle East and North Africa as a priority region for future renewables growth, as permitting remains sluggish in Europe and US offshore wind leases have been frozen under President Trump.

• Egypt is at the forefront of renewable energy development, having completed four projects totalling 2,100 MW, with wind power accounting for 1,600 MW of that capacity. All these projects were finished ahead of schedule, some even six months early. Engie, a key developer, attributes this rapid progress in Egypt to several factors: rising economic development, an anticipated increase in power consumption, efficient administrative processes, and short project lead times. It is prioritising Egypt in its future development plans.

• South Africa follows with installations of four different projects totalling 1,622 MW, all completed within timelines. Zambia, which has been suffering from severe power cuts, added 100 MW, mainly from solar. The list of projects is spread across thirteen countries, including others like Zimbabwe, Ivory Coast, Ghana, and South Sudan, which completed its first grid-scale hybrid solar with battery storage.

• Several factors are contributing to this accelerated pace of renewable energy project completion across Africa. One key driver is the increasing political will and supportive regulatory frameworks being implemented by African governments. Countries are setting ambitious renewable energy targets, streamlining permitting processes, and offering incentives that create a more attractive and predictable investment climate for developers.

• The rising involvement of the private sector is another critical element. Private companies are bringing not only substantial investment but also efficient project management expertise and innovative technologies. This shift from reliance on state utilities to a more diversified pool of private investors is de-risking projects and enabling faster execution.

• On top, the declining costs of renewable energy technologies, particularly solar and wind, have made these projects economically more viable and competitive with traditional fossil fuels. This cost advantage encourages faster adoption and development, as investors and governments see clear financial benefits in transitioning to clean energy.

• Finally, the urgent need for energy access and security across the continent is driving governments to fast-track renewable energy initiatives. With millions still lacking access to reliable electricity, clean energy offers a rapid and sustainable solution, reducing dependence on volatile fossil fuel markets and providing a stable power supply for economic growth.

Our take

• Policy certainty is paramount for attracting investment. Engie's shift from Europe and the US to the Middle East and North Africa due to permitting issues clearly shows that predictable regulatory environments are highly valued by major developers. African countries that maintain stable and streamlined policies will secure significant capital and accelerate project delivery.

• Private sector leadership is also indispensable for achieving scale and efficiency. Governments must actively cultivate environments that attract and de-risk private investment. Their experience and financial muscle are essential for delivering projects rapidly and on schedule.

• The declining costs of renewables, coupled with Africa's abundant solar and wind resources, create a powerful economic incentive for adoption, making renewable projects more competitive than fossil fuels on economic grounds.