IEA Forecasts Faster Renewable Power Growth as African Energy Investments Expand

Egypt secured a financing package of up to $566 million in October 2026 for a 1.2-gigawatt solar plant in Minya, developed by Infinity Power and HAU Energy.

The project includes 600 megawatt-hours of battery storage and a 25-year electricity purchase agreement with the Egyptian Electricity Transmission Company.

The European Bank for Reconstruction and Development (EBRD) arranged up to $265 million of the financing. Construction and grid connection remain necessary before the facility can begin supplying electricity.

Nigeria launched a $188 million blended-finance facility in May to support 191 megawatts of distributed solar projects across 12 lots involving nine developers.

The programme, under the Rural Electrification Agency’s DARES initiative, targets electricity connections for approximately 230,000 households in communities with limited access to reliable power. The financing is intended to support project development and installation rather than capacity already in operation.

The International Energy Agency’s (IEA) November 6 Renewables 2026 report raised its forecast for sub-Saharan Africa’s renewable capacity growth by 54%.

The agency expects renewable capacity additions across Africa, Southeast Asia and the Middle East collectively to nearly triple during 2026–2031 compared with the preceding six years.

Solar power accounts for most of the projected expansion, with new developments advancing through financing and construction in several markets.

African Solar Developers Secure Financing for New Power Projects

South Africa’s Lyra Energy reached financial close in March 2026 for the 255-megawatt Thakadu solar plant, with construction beginning on its first phase.

The development requires approximately R4 billion in debt and shareholder equity, with Standard Bank as senior lender. Scatec’s joint venture has secured private-sector electricity buyers, and construction of the second phase was scheduled to begin in the second half of 2026.

Scatec and Toyota Tsusho subsidiary Aeolus each own 50% of Tunisia’s 120-megawatt Sidi Bouzid II solar development. Financing of €96 million was secured in June from lenders including the European Bank for Reconstruction and Development and European Investment Bank, supported by European Union grants and guarantees.

The plant is expected to generate 276 gigawatt-hours annually after commercial operations begin, currently scheduled for the second half of 2027.

In Chad, the first financing disbursement for Qair’s Gassi and Lamadji solar projects was completed in September. The €37.9 million financing package supports 30 megawatts of solar generation and eight megawatt-hours of battery storage.

The African Development Bank and Proparco are among the lenders, while an €8 million partial risk guarantee supports payments under a 20-year electricity purchase agreement with Tchadelec.

Globeleq’s 40-megawatt Kafue solar development became the first project under Zambia’s GET FiT programme to reach financial close in September.

The programme, supported by Germany’s KfW, is intended to procure 120 megawatts of privately developed solar generation for national utility ZESCO. The Kafue transaction covers the initial project, with financing for the remaining developments still outstanding.

African Grid Investments Face Renewable Power Connection Deadlines

South Africa is preparing to bring private investors into electricity transmission through its Independent Transmission Projects Programme.

An October 1, 2026 government update confirmed progress on the first procurement phase and preparations for additional projects intended to expand network capacity for new electricity generation. The update did not confirm financing agreements or construction contracts for the initial developments.

Tunisia secured €43 million from the European Bank for Reconstruction and Development in January 2026 for transmission infrastructure associated with the ELMED electricity interconnection.

The financing covers approximately 85 kilometres of 400-kilovolt transmission lines between Grombalia and Kondar, including connections to a new substation. The investment supports Tunisia’s domestic transmission network and its planned electricity connection with Italy.

A separate development at Tataouine includes a 50-megawatt solar plant, a substation and approximately eight kilometres of 225-kilovolt transmission lines.

Financing proposals include up to €30 million from the European Bank for Reconstruction and Development and €20 million from the Clean Technology Fund. An October procurement notice identified the grid infrastructure required for the development, with construction contracts still to be awarded.

The International Energy Agency reported in November that approximately 3,000 gigawatts of advanced renewable and storage projects were awaiting grid connections worldwide, 60% more than a year earlier.

Its Renewables 2026 assessment identified transmission investment and grid-connection procedures among the constraints affecting renewable deployment.

African Industries Invest in Solar Power and Battery Storage

Scatec is developing a solar and battery project worth more than $290 million in Egypt’s Qena governorate to supply aluminium producer EgyptAlum.

The Dandara facility has a 25-year electricity purchase agreement, with power delivered through the national grid. The African Development Bank signed a $66 million financing agreement in November 2026, while the European Investment Bank committed up to $90 million.

The first phase comprises approximately 500 megawatts of solar generation and 100 megawatt-hours of battery storage, with operations scheduled for early 2028.

At the Kamoa-Kakula copper complex in the Democratic Republic of Congo, two solar and battery installations reached full operation during the third quarter of 2026.

CrossBoundary Energy and Green World Energie financed and operate the facilities, which have a combined 433 megawatts of peak solar capacity and 1,107 megawatt-hours of storage.

Ivanhoe Mines reported in November that the installations were supplying 60 megawatts of continuous electricity. Agreements covering two additional facilities target a doubling of the mine’s firm renewable supply within 18 months.

Senegalese developer Afreenergy Solar secured $12 million in senior debt from the Camco-managed Renewable Energy Performance Platform 2 in October.

The financing will refinance existing installations and support rooftop solar and battery projects for retail, food-processing and agricultural businesses.

Afreenergy plans to increase its portfolio from 2.7 to 14.9 megawatts, with 5.7 megawatt-hours of storage. PIDG’s InfraCo has also committed $4.3 million in equity to the expansion, which will supply commercial customers under long-term electricity contracts.

The ZE-Gen initiative announced trials involving 11 companies in Nigeria and Uganda in September, targeting more than 2,000 solar and battery installations and approximately £1.4 million in private investment.

The programme is testing rental and other payment arrangements for businesses seeking alternatives to petrol and diesel generators. The proposed installations and investment targets have yet to be completed.

African Power Projects Approach 2027 Delivery Milestones

Africa Finance Corporation reached financial close in April 2026 for Côte d’Ivoire’s 66-megawatt Poro Power solar plant near Korhogo. The institution disbursed €43 million through a €65 million dual-currency green bond to finance construction. Commercial operations are scheduled for 2027, with the generating facility still awaiting completion and commissioning.

South Africa’s NOA Group expects its 349-megawatt Khauta South solar plant to begin commercial operations in the first quarter of 2027.

The project secured financing in 2025 with support from Standard Bank and will supply corporate electricity buyers through Eskom’s network. Construction includes an overhead transmission line connecting the plant to the Leander substation, which is required for electricity delivery.

In Mauritania, Istithmar Green Energy is seeking financing for the first phase of its Toujounine renewable power complex. The International Finance Corporation has scheduled consideration of the proposed investment for November 30, 2026.

The development includes 168 megawatts of solar generation, 370 megawatt-hours of battery storage, a substation and a 225-kilovolt connection to the national grid.

The financing decision remains outstanding, while the two projects scheduled for 2027 must complete construction and grid-connection requirements before commercial electricity deliveries can begin.