Africa’s Solar Potential Underutilized as EU Mobilizes €15.5 Billion for Renewable Energy
Africa is home to 60% of the world’s best solar resources, yet it receives a mere 2% of global energy investment, highlighting a significant gap between potential and funding, according to the European Union. Despite its abundant solar wealth, the continent faces high capital costs, geographic barriers, limited investment, and supply chain challenges that slow the growth of renewable energy projects.
Currently, over 600 million Africans lack access to electricity, a figure expected to grow as the continent’s population doubles by 2050. Experts stress that unlocking Africa’s renewable energy potential is not only vital for economic development but also critical for achieving global climate goals.
In response, a collaborative campaign led by European Commission President Ursula von der Leyen and South African President Cyril Ramaphosa has mobilised €15.5 billion to accelerate Africa’s transition to clean energy. The initiative aims to expand electricity access, promote industrial decarbonization, and stimulate economic growth across the continent.
President von der Leyen emphasised the transformative potential of the investment, stating that millions more people could gain access to electricity, improving lives, supporting businesses, and creating new jobs. She described the funding as a “surge of opportunity” for both local communities and international partners, highlighting Europe’s commitment to supporting Africa’s energy future.
The funding, primarily sourced from the European Union and coordinated through Team Europe—including contributions from Germany, France, Italy, Denmark, the Netherlands, and Spain—will be supplemented by European development banks and African partners like the African Development Bank. The campaign is expected to deliver 26.8 GW of renewable energy and provide electricity access to 17.5 million households. Additional investments are projected to increase by €4 billion by 2030, strengthening Africa’s clean energy capacity and reducing dependence on fossil fuels.
source: Nairametrics