Renewable energy is overtaking traditional power projects across Africa, according to industry leaders. A shift towards solar, wind and battery storage is being driven by governments and investors seeking cheaper, faster and more reliable electricity, moving away from coal and large hydropower dams.
A $1.5 billion energy agreement between China and Zambia announced in early May includes three 300-megawatt projects spanning solar, wind and coal-fired power. While coal remains part of the mix, rising fuel import bills due to the Iran war, unreliable grids and growing industrial demand are pushing African countries towards renewables that can be deployed faster and more cheaply.
Of the 322 energy projects announced across Africa in 2025, 173 were solar, followed by hydropower (46), wind (34), gas (22) and hybrid (14), according to energy research firm Electron Intelligence. Africa added a record 11.3 gigawatts of renewable capacity in 2025, triple the previous year, led by South Africa, Egypt and Ethiopia.
Utility-scale solar costs have dropped nearly 90% globally since 2010, and onshore wind costs around 70%, making renewables the cheapest source of new electricity in many African markets. Distributed solar and battery systems installed directly in mines, factories and homes are growing rapidly, with Chinese export data suggesting solar adoption may be far higher than official figures capture.
Investors favour renewable projects for faster returns and lower exposure to fuel price shocks. At the Kamoa-Kakula copper complex in the Democratic Republic of Congo, a 233-megawatt solar and battery project reached over 80% completion within a year, compared to up to 12 years for coal plants. Policy changes, such as Ethiopia’s ban on internal combustion engine vehicle imports and South Africa’s relaxation of private power generation limits, are accelerating the shift.
However, obstacles remain. Many African utilities are financially troubled, making lenders wary of long-term power purchase agreements. Financing costs for renewable projects in Africa can be up to triple those in developed markets, according to the International Renewable Energy Agency.
