Africa: Investment in renewables at an “alarming” level

Investment in renewables in Africa is at an "alarming" level despite the continent's enormous potential.

Share:

Investment in renewables in Africa is at an “alarming” level despite the
huge potential of the continent, and are trailing at an 11-year low in 2021, according to a BloombergNEF (BNEF) report released Wednesday during COP27.

“Only $2.6 billion in capital was deployed for wind, solar, geothermal and other renewable energy projects in 2021, the lowest in 11 years,” said the report, released on the occasion of the UN climate conference in Sharm el-Sheikh, promoted as an “African COP” by the Egyptian presidency.

Investment in renewables worldwide climbed 9% year-on-year to its highest level ever last year.

Meanwhile, they have fallen by 35% in Africa, which accounts for only 0.6% of the $434 billion invested in renewables worldwide.

The continent, whose electricity production still relies heavily on polluting and costly fossil fuels, is falling behind “despite Africa’s exceptional natural resources, rapidly growing demand for electricity and an improving policy framework,” notes the consultancy BNEF.

Africa has an obvious potential in solar energy but only has 1.3% of the world’s solar energy capacity.

The report also highlights the high concentration of investments in a few countries: South Africa, Egypt, Kenya and Morocco, which since 2010 have accounted for nearly three-quarters of the total.

“Investment in clean energy in Africa is at an alarmingly low level,” lamented Michael Bloomberg, UN Special Envoy for Climate Action.

“Changing this requires new levels of collaboration to identify viable clean energy projects and bring them more private financing and public support – to turn Africa’s potential as a global clean energy leader into reality,” added the former New York City mayor.

The authors identified “barriers” that limit the deployment of these energies in Africa, such as the lack of knowledge of the opportunities in the sector on the part of national investors or poor planning to promote the expansion of electricity networks.

The report suggests looking to countries that have successfully addressed these barriers, highlighting, for example, the successful bidding process in Brazil or the mobilization of Mexico’s national development bank.

Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.