Solar energy, although the least expensive renewable source, remains underutilized in Africa. Despite immense potential, current investments are insufficient for large-scale deployment.
Solar plants : Advantageous renewable project
Once viewed as a barrier to economic growth due to high costs, renewable energies, particularly solar, are gaining competitiveness. This green resource also has the potential to boost the economy beyond merely providing electricity.
High competitiveness and affordable costs
Solar energy is an ideal solution for reducing greenhouse gas emissions in Africa while supporting economic development, in line with global climate priorities. This resource is economically accessible. Between 2010 and 2021, the prices of solar equipment fell, and the cost of electricity production from large-scale solar installations decreased by 88 %.
Solar is the most affordable resource for producing clean energy compared to thermal solutions. Photovoltaic plants offer remarkable operational simplicity and rapid construction. Easy to deploy and suitable for large-scale use, this technology is ideal for rural electrification and remote areas. Solar energy can operate independently of transmission and distribution networks, thus avoiding the complex and costly deployment of high-voltage lines.
Market strongly supported by donors
The decline in solar technology costs should encourage investments in this energy sector. Public policies, tax incentives, and innovative financing models also play a key role in developing this market.
Moreover, multilateral development banks (MDBs) and development finance institutions (DFIs) continue to actively support energy projects in sub-Saharan Africa. Private investment is also progressing, albeit unevenly. International lending mechanisms, including blended finance, provide new funding sources for solar projects.
High-potential locations for solar energy investment
The number of solar plants built in Africa remains low, representing barely 1 % of the continent’s total energy production. The International Energy Agency (IEA) highlights that the continent has 60 % of the world’s best solar resources.
South Africa : Leading producer
In 2023, 38 African countries are implementing solar installations with a capacity of over 1 megawatt (MW). However, South Africa and Egypt remain the leaders in this field. The South African government, in particular, is proactively exploiting its solar potential, with many major projects already completed.
Among the extensive list is a 20-year agreement between Eskom and the Norwegian company Scatec, leading to the creation of one of the largest solar-battery hybrid plants in the world. Located in Kenhardt, this facility combines 540 MW of solar power with 225 MW of battery storage, offering a total potential of 1,140 MWh.
West Africa : Very high sunshine levels
The exceptionally high sunshine levels in West Africa provide a unique opportunity for solar energy exploitation. The decline in photovoltaic technology costs is expected to stimulate this industry, but the region has yet to attract sufficient investment to ensure its development. However, efforts are underway to attract more investors.
The Economic Community of West African States (ECOWAS) is implementing its regional renewable energy policy (PANER). However, the lack of follow-up during the implementation phase has led to significant delays in promoting solar energy. Despite this, several countries, including Senegal, Togo, Burkina Faso, Nigeria, and Mali, are making notable progress in developing solar energy, both on-grid and off-grid.
Why not install solar panels in the Sahara ?
With an area of about 9 million km², more than 3,000 hours of sunshine per year, and almost nonexistent rainfall, the Sahara Desert seems to be an ideal place for installing giant solar farms. This is supported by the « LUT Optimized Cost Model » report. Additionally, the world’s largest desert is rich in silicon, an essential component for manufacturing solar cells. Its strategic geographic location allows easy access to the European clean energy market.
NASA data indicates that each square meter of the Sahara receives between 2,000 and 3,000 kWh of solar energy and an estimated potential of 22 billion GWh per year. However, a study conducted by Professors Zhengyao Lu from Lund University and Benjamin Smith from Western Sydney warns about the negative climate impacts of installing a giant solar farm in this desert.
Indeed, solar panels convert only 15 to 20 % of light into electricity, with the rest being reflected into the environment as heat. This excess thermal output can increase air humidity and disrupt atmospheric currents, leading to :
- Precipitation within the desert
- Climate change in other regions
- Greater impacts on polar regions
A safer and more interesting alternative could be agro-voltaic, multi-level cultivation in the same area, combining photovoltaic and agricultural electricity production. Coexistence implies a sharing of light, thus allowing optimal use of space while minimizing environmental impacts.
Development of solar energy : Issues and difficulties
Financial constraints faced by governments and consumers hinder the profitability of solar projects. Some startups are skeptical about the effectiveness of development finance institutions in supporting solar projects in Africa, especially in poor countries.
Intermittent solar production : Major challenge
The intermittency of solar production, due to weather variations such as cloudy periods, poses a challenge for integrating solar energy into African electrical grids. To overcome this intermittency, several solutions are proposed, such as :
- Storing excess energy from sunny periods
- Combining solar energy with other renewable sources like wind
- Optimizing energy distribution based on availability and demand
Lack of consumer understanding
Consumers’ lack of understanding about solar energy storage and integration creates unjustified concerns. Energy companies face losses due to illegal connections and degraded infrastructure, limiting investments. The lack of skilled labor and quality standards also affects consumer confidence.
