Policy tracker: Seven African countries roll out new energy policies

From the newsletter

At least seven African countries have introduced or proposed major energy policy and regulatory changes in the past month. Among them are Liberia and Nigeria, which are advancing net-metering reforms that would allow rooftop solar owners and businesses to export excess power to the grid and earn credits on their electricity bills.

• According to our policy tracker, at least 47 policies and regulatory reforms have been initiated or implemented across 20 African countries since the start of the year, signalling a wave of action aimed at expanding renewables. 

• Nigeria has been the most active, with nine reforms at both national and state levels following the unbundling of its electricity sector. Kenya and South Africa follow, with seven reforms each.

More details

• Nigeria is leading the continent in policy momentum. Alongside the draft Net-Billing Regulation, the country is also proposing a pay-as-you-go electricity payment reform as it seeks to completely remove subsidies. At the same time, it has introduced a 5% fuel tax, effectively imposing a carbon tax at the pump that is expected to take effect in January 2026. This will deal a heavy blow to households and businesses relying on generators, as operating costs are set to rise sharply. The government has also made progress on implementing its National Energy Master Plan with the launch of an Implementation Committee to coordinate renewables rollouts.

• Kenya also recorded multiple developments. The introduced National Construction Authority (Amendment) Bill, 2025, seeks to make it mandatory for new buildings to set aside zones for solar installations. The energy sector also resolved a contentious issue with the tax authority after the High Court ruled that aluminium mounting systems for solar panels are exempt from a proposed 25% duty, a decision that keeps costs lower for developers and households. Meanwhile, the government is moving to lift its moratorium on new power purchase agreements, a critical step as electricity demand hits record highs.

• Neighbouring Ethiopia is preparing tariff revisions for off-grid and mini-grid solar. The goal is to clarify tariffs that have long discouraged investors, particularly in mini-grids, and pave the way for projects like the 400 MW solar park currently in design.

• In Liberia, the Ministry of Mines and Energy validated its draft Net-Metering Policy, which will allow consumers with rooftop solar to feed surplus power back into the grid and offset their bills. The policy is expected to attract private investment while reducing dependence on imported fossil fuels.

• South Africa is advancing consumer-level reforms. Eskom and the South African Bureau of Standards are finalising new rules that will allow certified electricians, not only professional engineers, to sign off on rooftop solar systems. This change could slash registration costs from R20,000 to R1,500, lowering barriers for households and small businesses seeking to install solar.

• On the islands, Zanzibar has unveiled its Energy Policy 2025 and Power Master Plan 2025–2040. The strategy aims to diversify energy sources into solar, wind, natural gas, and battery storage while reducing dependence on imported electricity from mainland Tanzania.

• In Libya, authorities introduced the country’s first Minimum Energy Performance Standards (MEPS) and labelling programme, initially covering refrigerators, air conditioners, and LED lamps. Backed by the EU and UNDP, this reform brings Libya in line with more than 120 other countries, aiming to phase out inefficient appliances, cut electricity consumption, and reduce emissions.

Our take

• The recent wave of policy developments is proof that Africa’s renewable energy momentum is not slowing down anytime soon; it is here to dominate. What must follow now is strict implementation to ensure countries fully benefit from the reforms already in place.

• Nigeria’s decision to introduce a 5% fuel tax is a bold step, especially coming after the complete removal of fuel subsidies. Given the country’s huge consumption levels, the levy could generate significant revenue that, if reinvested wisely, can support much-needed infrastructure projects, including energy expansion.

• For Kenya, it is high time the government lifted the moratorium on new power purchase agreements (PPAs). Demand has surged to record highs, exposing the grid to serious risks of blackouts. Lifting the ban would unlock new investment opportunities and ensure supply keeps pace with the country’s growing energy needs.