Africa, home to some of the world’s most abundant solar and wind resources, is accelerating its shift toward renewable energy in 2026, with solar capacity surging and green hydrogen projects attracting billions in investment pledges.
Yet the continent, where more than 600 million people still lack reliable electricity, continues to attract only a small fraction of global clean energy capital, hampered by high financing costs, outdated grids and regulatory hurdles.
Africa added significant solar installations in 2025, pushing operational capacity well beyond 20 gigawatts from tens of thousands of projects. Analysts project annual solar additions could rise sharply in 2026, with the continent on track to more than double its current solar base by the end of the decade.
This momentum positions Africa as one of the fastest-growing solar markets globally, driven by plummeting technology costs, large-scale imports of affordable panels and batteries, and policy reforms in key countries.
Solar Leads the Charge
Solar photovoltaic projects dominate the renewable expansion, accounting for the majority of recent clean energy investments on the continent.
Egypt continues to advance large-scale developments in pursuit of its target of 42 percent renewable energy in its power mix by 2030. South Africa remains a leader in utility-scale solar and wind, with ongoing auctions and private-sector involvement helping to integrate renewables into the national grid despite persistent challenges from the state utility.
Battery energy storage systems are playing an increasingly critical role, with deployments growing rapidly to address intermittency and support higher renewable penetration.
Wind and Hybrid Developments
Wind power complements solar in several markets. Kenya hosts one of Africa’s largest wind farms, demonstrating strong performance in high-wind zones.
Hybrid solar-wind systems are gaining traction in countries such as Morocco and Ethiopia, helping to diversify the renewable mix beyond traditional hydropower, which remains vulnerable to drought.
Green Hydrogen Emerges as Export Opportunity
Africa’s vast renewable potential is positioning it as a future supplier of green hydrogen and derivatives to Europe and Asia.
Namibia, Mauritania, South Africa and Morocco are among the leaders, with projects targeting production for export and domestic industrial use.
Several flagship initiatives could see Africa produce millions of tonnes of green hydrogen annually by the mid-2030s, capitalizing on low-cost solar and wind for electrolysis.
Investment Flows and Key Players
Clean energy investment in Africa has grown steadily in recent years, though the continent still captures only a small percentage of global green capital flows.
Multilateral institutions, alongside private developers from Europe, the Middle East and Asia, drive much of the activity. However, the cost of capital for African projects often remains significantly higher than in developed markets due to perceived risks.
Development finance continues to play an essential role in de-risking projects, while private capital grows in more mature markets such as South Africa and Egypt.
Major Challenges Persist
Grid infrastructure constraints limit the integration of variable renewables in many countries, with high transmission losses and limited cross-border connectivity.
Financing gaps remain acute. Public and concessional funding for African energy has been inconsistent in recent years, and private investors frequently cite regulatory uncertainty, payment risks from utilities and political factors as deterrents.
High capital costs and debt burdens in several nations further complicate project bankability.
The “just transition” remains a priority, particularly in coal-dependent South Africa, where efforts to retrain workers and repurpose sites continue amid implementation delays.
Africa’s historically low contribution to global emissions underscores the equity argument for increased international climate finance, which the continent receives disproportionately little of for both adaptation and mitigation.
Looking Ahead
Analysts see 2026 as a potential inflection point, with falling costs, policy maturation and rising demand for critical minerals — where Africa holds significant reserves of cobalt, lithium and copper — integrating the continent more deeply into global clean energy supply chains.
Projections indicate renewable energy could become the dominant global electricity source between 2026 and 2030.
Success will depend on addressing infrastructure bottlenecks, unlocking affordable finance and ensuring equitable benefits.
Africa offers long-term opportunities for clean energy investment, but realizing them requires coordinated action from governments, investors and international partners.
