- Sahara Power Group estimates 190 billion worth of investments annually to meet Africa’s energy goals.
- Africa would need about $2.64 trillion to rely entirely on renewable energy sources for the generation of electricity by 2050.
According to a Sahara Power Group forecast, between 2026 and 2030, Africa would need to invest roughly $190 billion annually to achieve its energy and climate goals and increase the socioeconomic prosperity of the region.
The Head, Capital Projects, Egbin Power Plc, a Sahara Power Group company, Seyi Sobogun, made the projection while delivering a paper titled, “Energy Mix – The Challenges with Funding and Deploying Commercially Viable Renewable Energy Solutions,” at the recently concluded West Africa Power Pool Conference in Dakar, Senegal.
Citing the International Energy Agency’s (IEA) Africa Energy Outlook for 2022, Sobogun said, “Achieving Africa’s energy and climate goals means more than doubling energy investment this decade. This would take it over $190 billion each year from 2026 to 2030, with two-thirds going to clean energy.”
He said Africa would need about $2.64 trillion, roughly the size of her Gross Domestic Product (GDP), to rely entirely on renewable energy sources for the generation of electricity by 2050, noting that natural gas would continue to be used in the continent’s energy production even though renewables were anticipated to grow from 21% of electricity generation in 2020 to 59% by 2030.
He claimed that the Lagos solar solution would benefit over 20,000 homes and have a significant beneficial influence on economic activity. Investments in renewable energy in Africa have received funding from both public and commercial sources, including foreign donors, banks, and development finance organizations.