EU pledges $8.1 billion for energy transition

November 24, 2025

Dear subscriber,

When the US announced it would stop funding renewable energy projects in Africa, it seemed as though progress might stall. Instead, the EU and several Asian investors stepped in, so it seems.

– Sammy Jamar, Editor

The European Union has pledged a further $8.1 billion at the G20 Summit in South Africa to accelerate Africa’s transition to renewable energy. This brings total commitments under the Scaling Up Renewables in Africa campaign to $17.9 billion, with the EU contributing more than $17.4 billion as it expands its investment efforts across the continent.

  • The funding will support solar, wind and grid projects, add nearly 27 GW of clean power and provide electricity to 17.5 million households. 

  • While the pledge is significant, it covers only one-sixth of the investment Africa needs to meet its energy and climate goals by 2030. South Africa remains the EU's strongest and most active market.

  • Our take: The EU’s pledge could unlock a new wave of co-financing by drawing in cautious investors… Read more (2 min)

GuarantCo, a development finance company, is injecting a $50 million guarantee into Senelec’s $213 million securitised green bond, first launched in October. The backing strengthens Africa’s first utility-led green bond and will help deliver 585 MW of solar and 329 MW of battery storage, improving electricity reliability for 1.8 million people.

  • By stepping in, GuarantCo effectively de-risks the bond for new investors and improves the utility’s price competitiveness for future market issuances.

  • Green bonds are gaining traction among banks and energy players. Earlier this month, ZANACO announced plans for Zambia’s first sustainability bond, aiming to raise $100 million for renewable and climate-resilient investments.

  • Our take: DFIs are scaling up their support to enable utilities with weaker balance sheets to tap bond markets… Read more (2 min)

The month of October saw new project announcements totalling 2.5 GW and 1.6 GWh of battery storage. This was the lowest level of announced new capacity since the start of the year, although activity is expected to rise again. Further commitments are likely to follow after COP30 and the G20 summit, where more funding pledges are anticipated.

  • Egypt led monthly project announcements with 1,200 MW of solar and 720 MWh of battery storage awarded to local company Hassan Allam Utilities Energy in partnership with Infinity Power. 

  • Zambia, facing severe load shedding, gained a boost as GenVision, Tatanga Energy and AMDG Energy agreed to develop a 300 MW solar project with up to 800 MWh of storage in the Copperbelt region.

  • Our take: The slowdown is not worrying as funding continues to flow… Read more (2 min)

Solar-powered cold-chain manufacturer Drop Access Limited has signed an MoU for a new partnership that will unfold over the coming months in Kenya (Source: Norah Magero, CEO)

Events

🗓️ Sign up for the how BC Tech is redefining solar returns webinar (Nov 27)

🗓️ Be at the ESG, Impact Investing & Sustainable Finance Summit (Nov 27)

🗓️ Attend the 4th Edition of Burundi Renewable Energy Access Days (Nov 27)

🗓️ Join peers at the Renewable Energy Forum Africa (REFA) 2025 (Dec 3)

Jobs

👨🏻‍💼 Become Sanergy’s Legal Assistant (Kenya)

👷🏽‍♂️ Join Scatec Solar as QC Mechanical Supervisor (South Africa)

👷🏻‍♀️ Apply to Husk Power’s Senior Manager, Talent Acquisition role (Nigeria)

Various

⚡ West Africa successfully linked the electric grids of 15 nations

💵 Mission 300 has helped Africa secure $57 million for a just energy transition

💡 A renewables-only approach could save South Africa $14 million annually

Seen on LinkedIn 

Prince Naley Alobari, Strategic Business Analyst at National Electricity Systems Operators, says, “Africa often talks about generation, transmission, and policy, but very rarely do we talk about the last mile: the final stretch from the local transformer to the actual home or business. This is where the real struggle happens.”