Grid tariffs subsidy cuts unlock renewables investment

June 01, 2025

Dear subscriber, this is a prototype. Please help us with feedback and tips. Just press reply.

Angola has one of Africa's lowest electricity tariffs for businesses, at just $0.016/kWh, roughly 14 times cheaper than Kenya's. This low price is due to heavy government subsidies, which are set to end by late 2025 as the government aims for cost-reflective tariffs to attract independent power producers (IPPs). Now they’re coming.

  • Construction has officially begun on the 80 MW Quilemba Solar project, set to become Angola's largest privately-owned solar plant. It will be built by a joint venture led by TotalEnergies. The first phase will have an installed capacity of 35 MW and is expected to be operational by the first half of 2026. The second phase will add 45 MW.

  • Across Africa, the private sector's role in power generation is becoming increasingly vital as countries target universal electrification goals, some as early as 2030.

  • Our take: Governments must maintain their market role, ensuring regulatory oversight to balance investor returns with consumer affordability and public interest… Read more (2 min)

Nigeria has one of the worst electricity grids in Africa, facing significant challenges in power generation, transmission and distribution. This week, Renewables Rising sat down with Patrick Olaitan, CEO of Oltech Solar and a resident of Akure, Nigeria. Local challenges made his decision to switch to solar power an easy one.

  • “My foremost reason was to gain peace of mind,” Patrick explains. “Solar power means no more generator noise, no constant worry about purchasing fuel, and no unexpected power cuts. That calmness is invaluable.”

  • Like many Nigerians, Patrick grew weary of the constant fuel hunt and the instability of the national grid. Switching to solar brought not only relief but also a dependable source of energy for his home.

  • Access our full conversation here… Read more (2 min)

Power purchase agreements for solar serving commercial & industrial customers may have lower prices than grid power, but because they are often charged in foreign currency local inflation erodes hurts more with time. Yet, demand for self-generated power continues to rise, Eng Julius Dzah, Head of Projects for Infra Futura in Ghana, told Renewables Rising this week.

  • Eng Julius Dzah has worked in the solar industry for eight years, starting as a solar design engineer and is now managing solar projects. His proudest moment is winning the Africa Energy Camp competition, where his team designed an innovative solar cold room powered by ice batteries.

  • Julius believes that grid challenges will incentivise the C&I sector to adopt solar, and he foresees a growing demand for integrated battery storage solutions.

  • Click here to read more… Read more (2 min)

Nigeria’s Minister of Power, Chief Adebayo Adelabu, commissions a 2.5 MW solar hybrid plant at the Nigerian Defence Academy.

Events

🗓️ Participate in a webinar on green hydrogen in emerging markets (Jun 5)

🗓️ Learn how to design smarter with Web Solar (Jun 7)

🗓️ Attend the 10th Solar Kenya 2025 event (Jun 26)

Jobs

🚧 Become CrossBoundary’s Construction Manager (Sierra Leon)

🦺 Join Scatec Solar as a Project Technical Manager (South Africa)

🔌 Spearhead tender management at Schneider Electric (Egypt)

Various 

⚡️ Egypt’s 100 MW KarmSolar solar project approved

🤝🏻 South Africa and Germany are partnering on energy storage

♻️ U-Recycle Initiative targets plastic waste in Nigerian universities

🟢 Sidi Ould Tah becomes the 9th president of the AfDB

Seen on LinkedIn 

Rebecca Nnungu at Deloitte says, “The sun gives more energy in 1 hour than the world uses in a year. Yes, you read that right. That tells you the race to invest in renewable energy is worth it.”