Floating solar finds footing in Africa’s energy mix

From the newsletter

Floating solar photovoltaic (FPV) projects are rarely mentioned when it comes to renewables projects in Africa. But this month marked a shift, with two FPV projects securing funding. Afreximbank provided $4.4 million for feasibility studies for the 1 GW project in Zimbabwe, and Qair secured $5.7 million to develop a 5.8 MW floating solar project in Seychelles.

• Pioneering projects in Ghana and South Africa have demonstrated the technological synergy with existing hydropower infrastructure. Although these completed projects were small, they’ll be followed by utility-scale developments.

• When integrated effectively, hydropower and floating solar can power the next generation of pumped hydropower storage plants. This would ensure smooth electricity generation, even during periods of severe drought.

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• The Seychelles project will be built, developed, operated, and maintained by independent renewable energy company Qair. It will supply electricity under a 25-year Power Purchase Agreement (PPA) and is part of the island nation’s strategy to have renewables contribute 15% of its energy mix by 2030.

• The Zimbabwean project, which is set to be the largest floating solar plant in Africa, will be developed on Lake Kariba in two phases of 500 MW each. Power from the first phase will be sold to the Energy Intensive Users Group, a consortium of leading industrial and mining companies, under a 20-year “take-or-pay” PPA at a cost-reflective tariff. 

• Floating solar is gaining importance as it provides a strategic way to meet Africa’s growing energy demand without competing for valuable land. Many of the continent’s reservoirs and lakes, particularly those linked to hydropower plants, provide ideal locations. This co-location is highly beneficial as it allows the use of existing grid infrastructure, reducing connection costs and avoiding the need for new transmission lines.

• Beyond financial considerations, floating solar also reduces water evaporation from reservoirs and lakes. The technology avoids land-use conflicts often associated with large-scale renewable projects, freeing up land for agriculture, conservation, and housing.

• Several African countries are beginning to harness this potential. Agricultural farms with irrigation reservoirs are leading in small-scale, self-generation projects. In South Africa, a 60 kW floating solar system operates on a fruit farm in the Western Cape. In Kenya, a 69 kW plant powers Rift Valley Roses flower farm. At the utility scale, Ghana operates a 5 MW plant at the Bui hydropower facility, the first in West Africa, with plans to expand capacity to 250 MW by 2030. Mozambique is planning a 100 MW project at the Chicamba reservoir, funded by the AfDB, while Kenya is developing a 42.5 MW floating solar plant.

• The potential for floating solar in Africa is vast. Countries with large reservoirs, especially those with hydropower infrastructure such as Ethiopia, the Democratic Republic of Congo, and Nigeria, are particularly well-positioned. At least 1.5 GW of floating solar projects are currently under development across the continent. Research suggests that utilising just 1% of Africa’s total freshwater reservoirs could generate around 100 GW of solar capacity, more than the continent’s current installed solar power capacity.

Our take

• Investors will need confidence to fund gigawatt-scale plants. Governments and development banks should expand guarantee facilities and blended finance instruments to lower project risks and attract private capital.

• African energy strategies also need to explicitly include floating solar. Countries should update their national renewable energy plans to prioritise FPV projects, particularly in regions with large water reservoirs and in areas where land scarcity or high land-use conflict exists.

• The agricultural sector represents a significant market for floating solar, especially on large-scale irrigation farms. Farmers are directly incentivised by rising electricity costs and the need for reliable power for irrigation, while also benefiting from reduced water evaporation from reservoirs.