Africa’s electricity demand is projected to double in the next fifteen years while the continent faces a huge financing deficit in its efforts to develop renewable energy sources, according to a report launched by African Union Commission (AUC) and development partners on Friday.
The report published by the AU Development Agency AUDA-NEPAD, the European Union (EU), and the German Federal Ministry for Economic Cooperation and Development (BMZ) indicates that over 600 million Africans remain without access to electricity, accounting for nearly 85 percent of the global electrification deficit.
At the same time, electricity demand is expected to nearly double by 2040. Yet the continent also has enormous potential: Africa’s generation capacity could rise from 266 GW in 2023 to over 1,200 GW by 2040, with renewables projected to grow from 25 percent to nearly 64 percent of the mix, according to the report.
However, this transition requires massive financing. African leaders and international partners stress that without significant investment in renewable energy generation, transmission infrastructure, and regional integration, the continent risks falling short of its development and climate goals.
Kamugisha Kazaura (PhD), Director of infrastructure and Energy at the African Union Commission for infrastructure and energy, said,
“Africa’s energy future is built on vision, concrete roadmaps, and vast opportunities,” but he stressed the central role of partnerships and financing as crucial measures to deliver reliable and clean power for all.
Teresa Ribera, European Commission Vice President echoed this, highlighting African Single Electricity Market (AfSEM) as a “transformative step” but stressing the importance of removing investment barriers and strengthening regulatory frameworks.
The report highlighted AfSEM’s role in delivering universal access, accelerating integration, and driving green industrialization. Guided by the Continental Power Systems Master plan (CMP) — key elements of the AU Agenda 2063 designed to create a fully integrated, cross-border electricity market across all AU Member States — AfSEM targets the world’s largest interconnected power market by 2040, with competitive cross-border trade catalyzing the scale-up of Africa’s renewable resources.
Germany’s Parliamentary State Secretary Bärbel Kofler (PhD) called AfSEM a “game changer” for renewable investments, noting that a more integrated market would reduce risks and attract capital.
