Africa’s installed capacity of renewable energy, which stood at 12.6 gigawatt (GW) in 2019, is set for consecutive years of growth, a Rystad Energy analysis shows. The continent’s capacity is forecast to reach 16.8 GW in 2020, add another 5.5 GW in 2021, and further climb to 51.2 GW in 2025, led by growth in solar and wind projects in Egypt, Algeria, Tunisia, Morocco and Ethiopia.
Nearly 40 out of 50 African countries have installed – or plan to install – wind or solar projects. And although the learning curve may be steep for first-time market entrants with sizable development pipelines, inexperienced players will be able to leverage the lessons learned in Egypt, South Africa and Morocco and implement this knowledge into development plans.
The cost of renewables is at an all-time low now, and as larger markets such as China, India and Europe are on track to reach installation targets, wind and solar components will become ever cheaper and more easily accessed, creating a conducive environment for investment also in Africa.