Excerpt from energycapitalpower.com
Abundantly blessed with a variety of natural resources, the African continent is eager to tap into its significant renewable energy potential in a bid to expand energy access, meet rising global demand, and drive economic growth, while at the same time addressing the fundamental challenges of climate change. Accordingly, Africa has risen to the forefront of the global investment agenda, with several overarching reasons motivating green investment across the continent.
Africa is considered the most opportune market for renewable energy, with current estimates placing solar at 10TW; hydro at 350GW; and wind at 110GW. Despite the significant progress made by some countries to expand green energy utilization – Mozambique for example is considered one of the greenest countries in the world, deriving 81% of its electricity from hydropower – much of Africa’s resources remain largely untapped, offering lucrative opportunities for investors.
Ethiopia, for example, has the potential to generate upwards of 60,000MW from hydropower and solar while South Africa has an estimated wind power potential of 6,7000GW. Accordingly, Africa’s multi-sector opportunities have and continue to capture the interest of global players.
DEMONSTRATED POLITICAL WILL
Recognizing the role that renewable energy will play in mitigating climate change while boosting socioeconomic growth, many African countries have put in place clear green energy development targets. Notably, Ghana aims to increase the proportion of its national energy generation mix from 42.5MW to 1,363MW by 2030; Angola aims for 70% renewable capacity by 2025; and Senegal aims to increase the share of renewables in the country’s energy mix to 30% by 2030. These targets demonstrate both the political will and opportunities present in African markets.