Solar Energy Development in Africa

MELODY ZEKEY

2023 was the best year for solar energy development in Africa, fully demonstrating the rapid growth in demand and development speed for solar energy in the region. South Africa, as the leader in installed solar capacity in Africa, sets an example for other countries. Commercial and industrial projects are also driving rapid progress in solar energy development in Africa. At the same time, the exponential growth of green hydrogen projects has brought more development opportunities to Africa, but it has also brought certain challenges. By strengthening cooperation and innovation, Africa can further advance the development of solar energy and green hydrogen and contribute to a sustainable energy future.
Global solar energy development reaches new heights.

2023 was rated as the best year for global solar energy development, with approximately 350 GW of solar installations installed globally, a year-on-year increase of 46%. This figure shows that solar energy has made a huge breakthrough in terms of new installed capacity. Not only that, Africa also broke a new record in 2023, with newly installed capacity reaching 3.7GWp (peak).
After experiencing stable development in 2022, Africa’s demand for solar energy will increase by 19% again in 2023, equivalent to an increase of 3.7GWp in new installed capacity. In 2023 alone, the continent will add installations equivalent to one-third of its total historical solar capacity. Currently, Africa has more than 16GWp of solar power generation capacity, and this number is constantly increasing.

South Africa leads Africa in installed solar capacity
According to the report, South Africa is the leader in installed solar capacity in Africa. In 2023, the installed solar capacity is expected to reach 7.8 GW (excluding residential installations), accounting for nearly 50% of the total installed capacity on the African continent. In 2023, 79% of South Africa’s newly installed capacity will be concentrated in the country, accounting for approximately 3GWp of the total installed capacity.
In fact, over the past two consecutive years, South Africa has experienced the largest growth in solar installations in African history. Other countries have also made progress in solar development, but the increases have been relatively small. According to the report data, only South Africa will have an installed solar capacity of more than 100MW in 2023, 17 countries will have an installed capacity of more than 10MW and less than 100MW, and 27 countries will have an installed capacity of more than 1MW and less than 10MW.
Commercial and industrial projects drive solar growth in Africa
In the past, solar energy development in Africa was mainly driven by national governments promoting large-scale grid-connected projects through support from international agencies. However, the latest data shows this has changed dramatically, with the majority of megawatt-scale solar installations now being installed through commercial and industrial (C&I) projects. These projects are installed directly in companies and businesses and are designed to provide a direct source of solar energy for the electricity they consume.

In 2023, C&I projects accounted for 65% of Africa’s new installed capacity, reaching 2.4GWp, more than twice that of large projects. This trend is supported by significant reductions in equipment prices and an increase in the availability of financing solutions that make it easier for businesses to autonomously produce electricity for their own energy consumption.
In addition, green hydrogen projects in African countries are also growing exponentially. Some African countries are ideally positioned to win the global race for green hydrogen production due to good solar radiation and advantages in international sea routes. Mauritania is one of them. The country plans to build 57 GW of green hydrogen projects, accounting for almost 60% of the total green hydrogen development in Africa. It also accounts for 30% of total current solar development across the continent.
Opportunities and challenges brought by the development of green hydrogen
Green hydrogen is considered one of the key technologies in the future energy field, enabling energy transformation and emission reduction. Mauritania’s ambitious plan shows that African countries have realized the huge potential of green hydrogen and are actively promoting this development. However, the implementation of green hydrogen projects still faces some challenges, such as high costs, technical difficulties, and infrastructure construction. In order to comprehensively promote the development of green hydrogen, African countries need to strengthen international cooperation and technological innovation to jointly solve these problems.