Southern Africa Renewable Energy Market - Growth, Trends, and Forecasts (2023-2028)

Key Highlights

• The increasing power demand and efforts to electrify the majority of the population in countries like Madagascar, Zambia, and Zimbabwe are long-term drivers of the market for renewable energy in the forecast period.
• On the other hand, lack of acceptance in countries like Malawi, Madagascar, and Botswana and high installation costs for renewable energy projects are a few restraining factors for the market's growth.
• Upcoming projects in countries like South Africa and Mozambique are expected to create significant opportunities for renewable energy companies.

Southern Africa Renewable Energy Market Trends

Solar Energy is Expected to Drive the Market

• Due to favorable conditions of land and climate, solar energy is expected to continue its dominance in the renewable market of Southern Africa. Several projects are under construction, which is expected to be operational in the forecast period.
• In 2022, Mozambique Energy Regulatory Authority (ARENE) launched two tenders to develop 30 MW of solar power plants in the country as a part of the Promotion of Renewable Energy Auction Programme (PROLER).
• In 2022, Zambia's electric utility ZESCO launched a tender for developing and constructing 50 MW of PV plants in the Southern, Western, and Luapula provinces of Zambia. Zambia is endorsing solar power through two of its initiatives, namely the Scaling Solar Program and Zambian's Renewable Energy Feed-in Tariff (REFiT) Strategy.
• Likewise, Angola is targeting to expand the total installed capacity of solar PV to 100 MW by 2025. Solar energy is further expected to be promoted by the country through feed-in-tariff and portfolio standards.
• In 2022, South Africa entered into a power purchase agreement for 273 MW of solar projects with an Independent Power Producer under the government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which is going to increase the solar power generation in South Africa in coming years.
• Southern Africa has tremendous potential for solar energy due to its geographical advantage. With a gradual increase in interest from different nations, solar power is expected to dominate the market in the future.

South Africa to Dominate the Market

• South Africa's government expects to install 14.4GW of new wind power capacity between 2022 and 2030 under its final Integrated Resource Plan (IRP). By 2030, wind energy is estimated to contribute 17.8% of annual energy generation in South Africa.
• With the Integrated Resource Plan (IRP), South Africa aims to achieve 42% of the share of renewable energy by 2030. The IRP is expected to create significant future opportunities for the renewable market.
• The Department of Energy of South Africa is planning to allocate a gigawatt of solar per year in 2023, 2025, and 2028-30. With this, net solar capacity is expected to reach more than 8 GW by 2030.
• South Africa has witnessed considerable growth in renewable energy generation in recent years. In 2021, the renewable energy generation in South Africa was 16.5 TWh, which was an increase of 5% from 2020. It is expected to increase further due to the rise in the deployment of clean energy projects in the country.
• In 2022, the government of South Africa has sanctioned USD 8.5 Billion package to expedite country's transition to deploy renewable energy sources. South Africa has added approximately 6,000 MW in renewable energy sources to the grid between 2012 and 2022.
• Considering the investments, government initiatives and gorwth in renewable energy generation, South Africa will likely to domate the renewable energy segment among Southern African countries.

Southern Africa Renewable Energy Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
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