Africa’s power market still relies on a combination of thermal power and large-scale hydropower projects to cater to most of its demand. However, the region’s energy transition is gaining pace as countries increasingly capitalize on the falling cost of producing renewable energy. Meanwhile, increasing policy support is causing hydrogen, CCUS and electric vehicles to gain traction.
Africa’s power market still relies on a combination of thermal power and large-scale hydropower projects to cater to most of its demand. However, the region’s energy transition is gaining pace as countries increasingly capitalize on the falling cost of producing renewable energy and the region’s rich renewable resources. Onshore wind and solar PV are expected to experience a strong growth in capacity in the run up to 2035, experiencing a CAGR of 8% and 8.3%, respectively. The active and pipeline capacity of Africa’s hydrogen market is also expected to exceed 21 mtpa by 2030. However, electric vehicles will continue to struggle for traction within Africa’s light vehicle market, with low rates of ownership and the tendency to import used internal combustion engine vehicles compounding issues of affordability and reliable charging infrastructure for many consumers. Meanwhile, there has been a significant uptick in activity related to carbon capture, storage and utilization technology, with 6 projects scheduled to come online before 2030, the majority of which will be commercial projects.
Policies supporting energy transition
Active and upcoming CCUS projects
Hydrogen market analysis
Develop market insight of current, in development and announced capacity and latest trends of each of the sectors.
Understand the potential market growth and policy support for renewable power, hydrogen, renewable refineries, CCS, EVs.
Facilitate the understanding on where the market is growing as energy transition is positioned as one of the main topics of the international agenda.
Africa’s power market still relies on a combination of thermal power and large-scale hydropower projects to cater to most of its demand. However, the region’s energy transition is gaining pace as countries increasingly capitalize on the falling cost of producing renewable energy and the region’s rich renewable resources. Onshore wind and solar PV are expected to experience a strong growth in capacity in the run up to 2035, experiencing a CAGR of 8% and 8.3%, respectively. The active and pipeline capacity of Africa’s hydrogen market is also expected to exceed 21 mtpa by 2030. However, electric vehicles will continue to struggle for traction within Africa’s light vehicle market, with low rates of ownership and the tendency to import used internal combustion engine vehicles compounding issues of affordability and reliable charging infrastructure for many consumers. Meanwhile, there has been a significant uptick in activity related to carbon capture, storage and utilization technology, with 6 projects scheduled to come online before 2030, the majority of which will be commercial projects.
Key Highlights
- Many countries in Africa are working to bring grid access to all segments of the population, with transmission investment reaching $7.2 billion for the region in 2023. This, coupled with a fast-growing population, means that total generation is expected to increase by 47% between 2023-2035.
- Morocco, South Africa and Tanzania will experience some of the strongest growth in renewable generation between 2022 and 2035, chiefly due to the build out of large scale solar PV and wind projects.
- 28 countries in Africa now have emissions standards for used vehicles. It is likely that the environmental credential of used vehicles will come under closer scrutiny in years to come.
- Despite having no active capacity, the region has 3.8 mtpa of pipeline CCUS capacity. However, the region will for now remain a minority player in the global CCUS market, with current global active CCUS capacity standing at 51 mtpa.
- This growth trend will also be reflected in Africa’s hydrogen market, where active and pipeline capacity is forecast to exceed 21 mtpa in 2030, which represents a CAGR of 139% across the same period.
Scope
Regional Energy Transition in AfricaPolicies supporting energy transition
- Power renewable capacity and generation by 2035 and thermal decommissioning capacity
Active and upcoming CCUS projects
Hydrogen market analysis
Reasons to Buy
Identify the last trends, policies and leaders in energy transition technologies.Develop market insight of current, in development and announced capacity and latest trends of each of the sectors.
Understand the potential market growth and policy support for renewable power, hydrogen, renewable refineries, CCS, EVs.
Facilitate the understanding on where the market is growing as energy transition is positioned as one of the main topics of the international agenda.
Table of Contents
- Executive Summary
- Sector Readiness and Leaders
- Global Context
- Impact of Climate Change on Africa
- Population Driving Energy Demand
- Renewable Energy: Policies & Economics
- Power Capacity Outlook Share
- Share of Power & Renewable Generation
- Largest Economies - Renewable Share
- Thermal Power Decommissioning & Emissions
- Major players: Solar Vs Wind Owners, Manufactures and EPCs
- Electric Light Vehicle Production Outlook
- Policies
- CCS/CCU Projects
- Global Hydrogen Market Outlook
- Key players in Africa’s hydrogen market
- Africa’s largest upcoming hydrogen projects
- Hydrogen Policies and initiatives
- Sector readiness and leaders
- Renewable energy policies and strategies
- Leading solar EPCs and manufacturers
- Leading wind EPCs and manufacturers
- EV Policies
- CCUS Projects
- Largest upcoming hydrogen plants in Africa
- Percentage change in GDP per capita growth with two degrees of warming scenario
- Africa LCOE, 2010 - 2025
- Africa power capacity share, 2015 - 2035
- Power generation share, 2015 - 2035
- Renewable generation by type, 2015 - 2035
- Renewable share for the top 10 African countries (including large hydropower), 2022 - 2035
- Decommissioning and upcoming thermal capacity, 2024 - 2035
- Africa’s emissions from thermal power, 2018 - 2030
- Solar plant owners by capacity as of January 2024
- Wind plant owners by capacity as of January 2024
- Global EV production outlook, 2018 - 2035
- Africa’s hydrogen projects by development stage, 2024 - 2030
- Breakdown of Africa’s 2030 hydrogen capacity by type
- Africa’s low carbon hydrogen capacity scenarios, 2024 - 2030
- Top 10 countries in Africa by hydrogen production capacity, 2024 - 2030
- Sectors by capacity and number of plants
- Hydrogen partnerships and initiatives
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ACME Cleantech Solutions Pvt Ltd
- Egyptian Electricity Transmission Co
- New and Renewable Energy Authority
- BP Plc
- British International Investment plc
- Norfund
- CWP Global
- Jearrard Energy Resources Ltd
- Conjuncta GmbH
- Infinity Energy SAE
- Mubadala Investment Co
- Chariot Oil and Gas Ltd
- Eren Groupe SA
- TotalEnergies SA
- Falcon Capital
- Hydrogene de France
- Itochu Corp
- Sasol Ltd
- Xlinks Ltd
- TuNur Ltd
- Energias de Portugal SA
- Abu Dhabi Power Corp
- Engie SA
- Al Nowais Investments LLC
- Egyptian Electricity Holding Co
- Acwa Power Co
- Aker ASA
- Electricite de France SA
- Hassan Allam Utilities
- Ethiopian Electric Power Corp
- Shapoorji Pallonji & Co Pvt Ltd
- China Energy Engineering Group Co Ltd
- Power Construction Corporation of China
- Urban Green Technologies LLC
- Scatec ASA
- TSK Group
- East China Survey and Design Institute Co Ltd
- China Energy Construction International Corp Ltd
- SENER Grupo de Ingenieria SA
- Energy China International Group
- JinkoSolar Holding Co Ltd
- JA Solar Technology Co Ltd
- Siemens Energy AG
- Canadian Solar Inc
- LONGi Green Energy Technology Co Ltd
- Yingli Green Energy Holding Co Ltd
- Hanwha Corp
- BYD Co Ltd
- Sustainable Equities Group
- Enel SpA
- Siemens AG
- Vestas Wind Systems AS
- Nordex SE
- Envision Energy Ltd
- Terra Global Energy Developers
- ORIX Corp
- Longyuan Engineering South Africa (Pty) Ltd
- Goldwind Science & Technology Co Ltd
- General Electric Co
- Enercon GmbH
- Guodian United Power Technology Co Ltd
- Suzlon Energy Ltd
- Sany Group Co Ltd
- Equinor ASA
- Sonatrach SpA
- Egyptian Petroleum Corp
- Eni SpA
- Energean Plc
- National Oil Corp
- Empresa Nacional de Hidrocarbonetos EP
- TCRK Ltd
