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Africa Renewable Energy Market Size (2024 - 2029)

The renewable energy market in Africa is poised for substantial growth, driven by supportive government policies, rising power demand, and electrification efforts across the continent. Despite challenges posed by reliance on fossil fuels like coal, the market's expansion is bolstered by favorable conditions for solar energy and the untapped potential of offshore wind energy. South Africa stands out with its significant renewable energy capacity and is expected to maintain its dominance through upcoming projects and investments.

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Market Size of Africa Renewable Energy Industry

Africa Renewable Energy Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 8.00 %
Market Concentration Low

Major Players

Africa Renewable Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Renewable Energy Market Analysis

The renewable energy market in Africa is expected to grow at a CAGR of more than 8% during the forecast period of 2022-2027. Factors such as supportive government policies, the increasing power demand, and efforts to electrify most of the population in the countries are expected to drive the renewable energy market growth in Africa. However, the dependency on fossil fuels such as coal for power generation is expected to restrain the market growth during the forecast period.

  • Due to favourable land and climate conditions, solar energy is expected to continue to grow significantly in the African renewable energy market. Further, several projects are under construction and are expected to be operational during the forecast period.
  • The untapped offshore wind energy potential in Africa is likely to create ample opportunity for renewable energy players in the future.
  • South Africa, with more than 10.193 GW of installed renewable energy capacity in 2021, is a significant renewable energy market in Africa. Further, it is likely to dominate over the forecast period owing to the upcoming renewable energy projects and investments.

Africa Renewable Energy Industry Segmentation

The African renewable energy market includes:

Type
Solar
Wind
Hydropower
Others
Geography
South Africa
Egypt
Nigeria
Morocco
Algeria
Ethiopia
Rest of Africa
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Africa Renewable Energy Market Size Summary

The renewable energy sector in Africa is poised for significant expansion, driven by supportive government policies, increasing power demand, and efforts to electrify the continent. Despite challenges posed by reliance on fossil fuels like coal, the market is expected to experience robust growth. Solar energy, in particular, is anticipated to be a major driver of this growth due to Africa's favorable land and climate conditions. Numerous solar projects are underway, with countries like South Africa, Egypt, and Nigeria making substantial investments to harness solar power. These initiatives are part of broader efforts to meet ambitious renewable energy targets and reduce carbon emissions, with South Africa leading the charge through its Renewable Energy Independent Power Producer Procurement Programme.

South Africa stands out as a key player in the African renewable energy market, boasting significant installed capacity and a strong pipeline of projects. The country's strategic focus on increasing renewable energy capacity, coupled with its rich natural resources, positions it as a dominant force in the region. Initiatives such as the Integrated Resource Plan and the expansion of solar PV manufacturing capabilities further bolster South Africa's market position. The African renewable energy market is moderately fragmented, with major companies like Vestas Wind Systems, Juwi Holding, and ACWA Power playing pivotal roles. Recent acquisitions and investments, such as Infinity Group's purchase of Lekela Power and Eskom's multi-phase investment plan, underscore the growing interest and potential in Africa's renewable energy landscape.

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Africa Renewable Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Capacity and Forecast in MW, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Solar

      2. 2.1.2 Wind

      3. 2.1.3 Hydropower

      4. 2.1.4 Others

    2. 2.2 Geography

      1. 2.2.1 South Africa

      2. 2.2.2 Egypt

      3. 2.2.3 Nigeria

      4. 2.2.4 Morocco

      5. 2.2.5 Algeria

      6. 2.2.6 Ethiopia

      7. 2.2.7 Rest of Africa

Africa Renewable Energy Market Size FAQs

The Africa Renewable Energy Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Vestas Wind Systems A/S, Juwi Holding AG, ACWA Power, Enel Green Power S.p.A. and EDF Renewables are the major companies operating in the Africa Renewable Energy Market.

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Africa Renewable Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)