Annual Solar OUTLOOK 2023: A Country-By-Country Review of The Status of Solar Energy in Africa
Annual Solar OUTLOOK 2023: A Country-By-Country Review of The Status of Solar Energy in Africa
Annual Solar OUTLOOK 2023: A Country-By-Country Review of The Status of Solar Energy in Africa
OUTLOOK 2023
A country-by-country review of the
status of solar energy in Africa.
3
WORDS OF
GRATITUDE
For the 3rd year in a row, I am delighted to present to you AFSIA’s
Annual Solar Outlook report. Since the 1st edition, many of you have let
me know how instrumental this report has been in their daily work,
being the ideal “desk companion” for any small detail or major piece
of information about anything solar across the continent. These
gestures of appreciation of AFSIA’s work mean a lot to me, and I would
like in return to share my sincere thanks to the individuals and
companies who have contributed to what I believe is one of the best
reports of the African solar industry.
5
This year’s report is an even more collective effort than ever
before as we have invited the best experts globally to share
their insights and knowledge.
In 2022, the world has added an estimated 220-260 GW of new solar PV installations.
No official figures are available yet and this range is based on the estimations of
various sources. This brings the total global solar installed capacity at a whopping 1.15
TWp, a symbolic threshold which we indicated would be crossed in AFSIA’s 2022
Annual Outlook report.
This 2022 capacity addition is equivalent to 24%-29% of all the solar PV that had been
installed historically. In comparison, in 2021, 191 GW were added globally, which at that
time represented 27% of all historically installed capacity.
8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Annual Installed 41.6 32.3 30.1 37 39 47.7 71.9 94.9 94.2 101.3 126 191 240
Y-O-Y Growth -22% -7% 23% 5% 22% 51% 32% -1% 8% 24% 52% 26%
Cumulative 41.6 73.9 104 141 180 227.7 299.6 394.5 488.7 590 716 907 1147
Growth Vs History 78% 41% 36% 28% 27% 32% 32% 24% 21% 21% 27% 26%
9
While being an excellent year, 2022 however shows a little slow-
down in year-on-year growth compared to 2021. At end of 2021,
IRENA identified the total global installed capacity at 907 GW,
with an addition of 191 GW during that year. That was a 52% y-
o-y growth of installed capacity compared to 2020 and the
best year of global solar ever.
10
GLOBAL ANNUAL INSTALLED CAPACITY
300
250
200
150
100
50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
11
AFRICA HAS ADDED 0.9 GW,
AND AFSIA HAS MANAGED TO
UNIQUELY TRACE 10 GW OF
PROJECTS
If we zoom in on Africa, we notice that 2022 has been slightly less
exceptional than at global level, but it has been a good year for solar
nevertheless.
As highlighted in last year’s report, AFSIA’s figures differ slightly from IRENA’s
figures when it comes to Africa. This is mostly based on a different
methodology to track installed capacity (importation figures for IRENA vs.
documented actual projects for AFSIA). While AFSIA’s figures are of course
underestimating the real total installed capacity across Africa (not all
projects are documented and we do not track residential installations), our
data offers an alternative look at the solar reality in Africa with more
granularity and more info on specific projects when available.
12
As a result, the global trend is fairly similar but variations may be
identified for specific years between IRENA’s and AFSIA’s records.
In total, a gap of 2 GW still needs to be filled between our
respective databases (12.4 GW total for IRENA vs. 10.5 GW total for
AFSIA), while 1.8 GW worth of confirmed operational projects still
need to be assigned to a specific year of commissioning in the
AFSIA database.
13
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Annual Installed (IRENA) 0.09 0.08 0.31 1.01 0.53 1.14 1.8 2.9 1.3 1.2 0.8 0.9
Y-O-Y Growth -11% 288% 226% -48% 115% 58% 61% -55% -8% -31% -14%
Cumulative 0.2 0.3 0.4 0.7 1.7 2.3 3.4 5.2 8.1 9.4 10.6 11.4 12.4
Growth Vs History 38% 24% 76% 140% 31% 50% 53% 56% 16% 13% 8% 8%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Annual Installed (AFSIA) 0.0 0.0 0.0 0.8 0.2 0.7 0.8 1.5 2.1 0.8 0.8 0.95
Y-O-Y Growth -62% 4% 4803% -79% 283% 19% 85% 40% -64% 10% 14%
Cumulative 0.0 0.1 0.1 0.1 1.0 1.1 1.8 2.6 4.1 6.2 7.0 7.8 8.7
14
AFRICA ANNUAL INSTALLED CAPACITY
3.5
2.5
1.5
0.5
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
15
SOLAR SPREADS ACROSS THE
CONTINENT
Solar in Africa has historically been driven by a limited number of “hot spots” such
as South Africa, Morocco and more recently Egypt. While these countries continue
leading the charge with important solar initiatives being launched and developed,
it is interesting to note that more and more other countries are now also adopting
solar.
This means not only that more people across the continent have now access to
clean and reliable power, but also that the industry as a whole gets a wider
territory to expand its presence in, develop projects and partnerships, and grow its
business footprint. This is a very positive trend for the industry, which will inevitably
lead to economies of scale through network effects, as well as allow local
companies and technicians to further specialize in solar, grow their business and
hire more.
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In 2022, if we take into account installations for large-scale, C&I, mini-grids
and SHS (hence not accounting for residential installations)
And the winner for 2022 in terms of installed capacity is… Angola! Angola has indeed commissioned 2 major large-scale projects this
year, namely the 188 MW Biópio solar plant and the 96 MW Baía Farta solar plant, both developed by the consortium MCA Group, Sun
Africa LLC, Hitachi ABB. This is quite an impressive achievement for companies with relatively limited track record in the African solar
space.
The top 5 is further composed of South Africa (111.8 MW), Egypt (80 MW), Ghana (71.3 MW) and Mozambique (41.9 MW).
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Row Labels C&I large scale mini-grid SHS wheeling Grand Total
18
Row Labels C&I large scale mini-grid SHS wheeling Grand Total
19
Row Labels C&I large scale mini-grid SHS wheeling Grand Total
20
The growing footprint of solar becomes even more impressive if we look at
projects under development. If we take into consideration projects which
have been announced in 2022, then 49 African countries are considered to
be working on at least 1 MW of solar and 29 on more than 100 MW.
21
Country MWp Population Wp/capita
22
C&I DOMINATES 2022,
MINI-GRIDS REGRESS
Out of the total 948 MW which AFSIA managed to identify as
being commissioned in 2022, the breakdown is as follows:
23
While large-scale still contributes for the largest share of installed capacity, it
is interesting to note that C&I now already represents almost 30% of all
installations across the continent (a trend which we announced in the first
edition of AFSIA’s Annual Outlook report).
The y-o-y growth of C&I is particularly noteworthy (+61.5%). And with the
recent multiple announcements of large-ticket financing deals for C&I
projects and M&A activity in the segment, it is easy to imagine that this trend
is set to continue.
C&I will play an extremely important role in South Africa particularly. Looking
at data for projects under development, we notice that announcements for
C&I projects only represent 4.8% of potential future capacity across Africa
(but we know that many large-scale projects unfortunately never see the
daylight, and this figure is potentially also biased by a group of super large
green hydrogen projects announced, more about this later).
Yet, if we zoom in on South Africa, we notice that 22.2% of all projects currently
announced are already related to C&I (including wheeling projects). This
should not come as a surprise though when taking into account the need for
companies for take their power supply into their own hands given the failure
of ESKOM and the simplified procedure to supply up to 100 MW of capacity for
own consumption.
24
PROJECTS UNDER DEVELOPMENT
(2021 & 2022 ANNOUNCEMENTS)
25
Continent-wide data also indicate that mini-grids have had a
difficult year in 2022, with a regression of 18% y-o-y in terms of
installed capacity (only 5 MW installed in 2022). This segment is still
very dependent on grants and subsidies while it tries to identify
solutions that will lead to pure commercial bankability. As a result,
its progress is also limited by the availability of support programs
and initiatives (or the lack thereof).
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NOT GREAT WHEN COMPARED
TO THE REST OF THE WORLD,
BUT GREAT PROSPECTS AHEAD
Yet, Africa offers lots of opportunities when it comes to solar and these
opportunities can be very different than in other parts of the world.
The first such opportunity lies in the C&I segment. As previously mentioned,
this segment already represents 28% of the 2022 new capacity installed,
with a y-o-y growth of 60%+. And this exponential growth is set to continue
as more than 5 GW of C&I projects under development have already been
advertised in one way or another. This represents almost 50% of the total
installed capacity across the continent to date. Out of this 5.3 GW under
development, 3.4 GW is based in South Africa alone.
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C&I is not unique to Africa. But C&I in Africa comes with additional layers of
interest. From a technical point of view, C&I in Africa often requires a higher
level of technicity because it needs to integrate unstable grids, storage and
alternative power supply such as diesel generators. But also in terms of
impact, C&I encompasses much more than “just” procuring cheaper
electricity. Thanks to solar, companies and industries in Africa can enjoy a
more stable electricity supply, which in turn allows them to operate in a
smoother and more predictable way. This naturally leads to improved
business operations and more job creation. In a continent where
unemployment rate is already too high and 60% of the population is below
20 years old (hence soon coming to the job market), ensuring job creation
and economic inclusion is the #1 priority to ensure long-term stability. C&I
solar, indirectly, contributes to this.
28
While not all projects announced might come to fruition, these
announcements may not be as unrealistic as many may think. A
first 100 MW project was already commissioned in Q3 2022 in Egypt.
And for the remaining projects, the combination of attractive
economics of green hydrogen in Africa and developed economies
pushing for these projects to be developed so they can import
cheap green hydrogen for their own consumption back home, push
us to believe that green hydrogen in Africa is based on solid
fundamentals.
The third exciting trend we are seeing for solar in Africa is rather
indirect and is linked to the exponential growth of electric mobility
across the continent. Mobility in Africa is mainly driven by
motorbikes and recent technology now allows to drive an electric
motorbike (new or retrofitted) at a significantly lower costs than the
traditional ICE (internal combustion engine). These unbeatable
economics are already causing a boom in taxi moto drivers
switching to electric in markets where these motos are available.
And it is anticipated that the rest of Africa will soon follow.
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existing demand. You may find a dedicated article on this topic
further in this report. This article highlights why solar is the ideal
(and maybe only!) companion to support and enable the growth of
electric mobility in Africa. And the magnitude of the new solar
capacity required may surprise you. AFSIA’s info indicate that to
support commercial moto taxis to switch to electric, most African
countries might need to double or triple their existing installed
capacity. This will of course come with many challenges. But out of
all possible solutions, solar is the most adapted for this need and
this represents an amazing opportunity for all solar professionals
across the continent.
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PUE is a new segment in the solar eco-system which encompasses all
these solutions, mostly based on solar energy, which allow for some
kind of economic activity which was either already possible but at a
very high cost (relying on a diesel generator for example) or simply
not possible at all. PUE is at the intersection of SHS (complete stand-
alone kits with solar and device/machine) and C&I (because the
purpose of the kit is to run an economic activity, albeit small).
We are only at the very early days of PUE and yet there are already
millions of users of these solutions, and dozens of solutions are
already available on the market. Very little information currently exists
on this new solar segment and this is why PUE is not yet included in
our Annual Outlook report. But the AFSIA is currently compiling what
intends to be the most comprehensive catalog of PUE solutions to
share with the community in an effort to increase awareness and
understanding about these very exciting solutions. Stay tuned for this
new AFSIA report in March 2023!
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FOREWORD
I am delighted to share with you the 3rd edition of AFSIA’s Annual Solar
Outlook for solar energy in Africa.
2022 has again been a year of solid growth for solar in Africa, albeit at a
lower level than elsewhere across the globe. In light of the massive
challenges that have plagued the globe since 2020, this growth of solar in
Africa in 2022 remains commendable and highlights very strong
fundamentals.
PUE or productive use of energy solutions are also gaining in popularity and
should be watched closely in the near future. While very little is shared about
PUE in this annual report, the AFSIA team is preparing a dedicated report on
PUE to bring this nascent solar segment the attention it deserves.
The fact that these 2 segments have overperformed other segments comes
from their intrinsic value to the end-users: they address people and
companies who are already spending money on alternative, but less
convenient and/or more expensive solutions. In contrast, other solar
segments, as long as they continue relying on subsidies and development
aid, are at risk of continuing their dependency on external factors, as might
have been the case in 2022.
Looking forward, we anticipate a bright future for solar in Africa. This should
be driven by a continued exponential growth of C&I, the finalization of
gigantic green hydrogen projects, the rise of e-mobility which will
undeniably be supported by solar and the growing adaptation of PUE across
vast segments of the economy. Large-scale projects (probably combined
with large-scale storage) will of course continue to contribute to the growing
solar installed capacity across the continent, but as always in a very
punctual and somewhat difficult to predict manner.
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MEET THE TEAM
37
HOW TO GET THE MOST
OUT OF THIS REPORT
AFSIA’s Annual Solar Outlook report distinguishes itself from
other industry reports mainly through its format. Our approach
is to present a collection of concise yet information-rich
“country vignettes” summaries, containing all key information
about solar. A such, it aims at being the year-long reference
document for all solar decision-makers active in Africa. This
report intends to help solar professionals get fast access to
verified and sourced information and quickly identify business
opportunities.
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information and decide to collect complementary information
directly from the source. (We invite you to download the digital
version of this report for optimal use of the sources).
At the end of this report, the reader will also get a chance to view
the key data presented on each country vignette in summarized
and comparative tables. This will allow the reader to quickly
identify which countries apply a “0 import duty” policy or which
country has the highest electricity tariffs for commercial and
industrial customers, to cite just 2 examples. This should help the
reader quickly identify the next targets for international expansion
and/or business development efforts.
We hope you will enjoy AFSIA’s 3rd Annual Solar Outlook report
and look forward to your comments to make future reports better WEBSITE
and more useful. Please do not hesitate to share your suggestions AFSIASOLAR.COM
and remarks so that we can continue building a strong and
growing industry together.
EMAIL
INFO@AFSIASOLAR.COM
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COUNTRY OBJECTIVES
This section contains information on the objectives of
VIGNETTE EXPLAINED a country to include renewable energy in its energy
mix. Targets are set for the next 5 years, 10 years or
maybe more. (in a future edition, we will compare
objectives and achievements)
ELECTRIFICATION RATE
This shows the percentage of people in each country
that has access to the grid and/or electricity. It also
highlights electrification rate objectives in the near
future. Please keep in mind that different countries
count “electrification” differently. In some countries it
means “connected to the grid”, in some other it
means “has access to lighting, even through SHS”.
41
POLICY / REGULATION
Lists all applicable rules in terms of duties, taxes,
exemptions, net-metering, wheeling, feed-in tariffs or
any special government program that supports or
restricts the deployment of solar or renewables in
general in a country.
41
TOTAL PV INSTALLED
COUNTRY Displays figures of the currently installed capacity
NOTEWORTHY DEVELOPMENTS
Identifies bigger projects/programs that are either
under development, construction, tendering or any
other phase of development and which are
expected to significantly contribute to the solar
opportunity in a given country.
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TABLE OF CONTENTS / Country links
43
TABLE OF CONTENTS / Articles
Focus on Storage 98
ARTICLE PAGE N°
44
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ALGERIA
OBJECTIVES TOTAL PV INSTALLED
• 15000 MW of RE by 2035, with a growth rate of 1000 LARGE SCALE 344.10 MWp + 25 MWe CSP
MW/year link C&I 11.39 MWp
• 4GW of RE by 2024 link
MG 0 MWp
SHS & 0 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
46
ANGOLA
OBJECTIVES TOTAL PV INSTALLED
• 9.9 GW of installed generation capacity by 2025 link LARGE SCALE 284 MWp
• 500 solar villages by 2025 link
C&I 0.15 MWp
• RE to comprise of 70% of the energy mix by 2025 link
• 800MW of RE with 100MW of solar, 100MW by 2025 MG 0.03 MWp
link SHS & 0.035 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
47
BENIN
OBJECTIVES TOTAL PV INSTALLED
• Achieve 35% of RE in the energy mix by 2030 link LARGE SCALE 27.25 MWp
• More than 127 localities to be electrified via mini-
C&I 6.83 MWp
grids by June 2023 link
• 25% of RE in the national energy mix by 2025 link MG 0.14 MWp
• 25MW of solar in 2025 and another 25MW in 2030 SHS & 5.43 MWp
link RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
48
BOTSWANA
OBJECTIVES TOTAL PV INSTALLED
• Increase share of RE in the energy mix, 15% by 2030 LARGE SCALE 1.3 MWp
and to 50% by 2036 link
C&I 6.47 MWp
• 200 MW CSP by 2027, up to 795 MWp new generation
with 61% from RE by 2040 link MG 0.01 MWp
SHS & 0.05 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
49
BURKINA FASO
OBJECTIVES TOTAL PV INSTALLED
• No import duties and VAT applicable on solar • West African Power Pool (WAPP) developing 300 MWp solar
parks link
equipment link
• Sinohydro constructing 26.6 MWp Zina solar project link
• No feed-in tariff, no net-metering link • FMO supporting construction of 110 MWp across 4 projects
link
50
BURUNDI
OBJECTIVES TOTAL PV INSTALLED
• No VAT on Solar PV panels, batteries, inverters and • World bank supporting 17 MW “Soleil-Nyakiriza” project
through MGs link
some other equipment link
• No import duties on solar panels and 25% on the
rest link
• 3% withholding tax on solar equipment and 4% on
solar panels link
• No FiT, and no net-metering link
51
FOCUS ON C&I
BY ANDREA IARINA
ARTICLE RENZULLI CICEU
Programme Manager Policy Policy Officer
and Regulations
52
inherent in PPAs with financially strained public utilities and to
find new opportunities to access the market beyond public
tender programs; while end-customers benefit from a cheaper,
more reliable electricity supply. This business model proves very
advantageous in markets where the end-user tariffs on the main
grid are higher than possible CPPA tariffs or where outages and
grid unreliability oblige clients to rely on costly back-up solutions
or suffer a loss of output.
54
part to their simplicity from a regulatory and commercial point
view, as they do not rely on any intermediary between generators
and end-customers. Sleeved CPPAs are more complex, requiring
multiple contracts between the involved parties (IPP, end-
customer and grid operator) and are subject to wheeling costs .
As a consequence these contracts are primarily confined to
more developed markets like South Africa. In the absence of more
sophisticated electricity market designs, virtual PPAs are notably
absent.
55
CAMEROON
OBJECTIVES TOTAL PV INSTALLED
• No VAT on solar equipment link • Maroua 14.52 MWp and Guider 15.78 MWp under
construction link
• Reduced customs duties on imported RE products
• Government to develop 120 MWp in the northern region link
link • Four thermal plants being hybridized with solar link
• Import tax is 30% on pico solar products link
• No FiT link
• FER (Rural Energy Fund) provides subsidies up to
80% of the feasibility and up to 70% of the
infrastructure costs link
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CAPE VERDE
OBJECTIVES TOTAL PV INSTALLED
• Having at least one of the islands using 100% of RE LARGE SCALE 33.82 MWp
by 2030 link C&I 0.29 MWp
• Target reviewed to 30% by 2025 and 50% by 2030 MG 0.13 MWp
link SHS & 0 MWp
• Invest 250 MW in renewable production by 2030 link RESIDENTIAL
• 40 MW of solar and wind will be completed in 2023 SOURCE AFSIA GOGLA IRENA
link
• 23% import duties on batteries link • Tender going on with two 5 MW projects in total link
• No VAT on imports of solar panels and storage link
• Solar panels are VAT exempted, 2% on inverters and
10%-30% on other equipment link
• No net metering applications but regulatory
framework exists link
• FiT is in the law but legislation to operationalize it
remain enacted link
57
CENTRAL AFRICAN REPUBLIC
OBJECTIVES TOTAL PV INSTALLED
• Import duties and VAT on solar equipment range • Danzi solar park to be extended to 40 MWp with the World
bank support link
between 5%-30% link
• World bank supporting development of 5 mini-grids with
• No FiT, no net-metering link 10 MW combined capacity link
58
CHAD
OBJECTIVES TOTAL PV INSTALLED
• Import tax exemptions for RE equipment link • Savannah Energy to build 400 MW projects link
• Innovent installing 5 MWp in Abéché link
• No VAT on solar equipment link
• Merl Solar Technologies constructing 2*50 MWp hybrid
projects link
• Aldwych progressing with Djermaya 60 MWp project link
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COMOROS
OBJECTIVES TOTAL PV INSTALLED
• Increase the share of RE to 55% by 2033 link LARGE SCALE 4.18 MWp
• 40% increase in RE by 2030 C&I 0 MWp
MG 0 MWp
SHS & 0.05 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No custom duties on PV materials link • Comoros Solar Energy Access Project (CSEAP) to add 4
• No VAT on RE equipment link components with 9MW + 19MWh link
• No net-metering link
• No FiT link
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COTE D’IVOIRE
OBJECTIVES TOTAL PV INSTALLED
• No import duties on solar panels, 5% if already • Tender launched for 20 MW floating solar link
assembled and 20% on batteries link • Five projects with 253.5 MW under construction and/or
• 9% VAT on solar equipment link late stage of development link
• No FiT, no net-metering link • 37.5 MW +10 MWh Boundiali solar in late stage of
construction link
61
FOCUS ON DIGITAL SOLUTIONS
BY SVET
ARTICLE BAJLEKOV
Co-founder / CEO
62
instance by UniFii for residential and C&I solar installations. This
service simplifies the analysis of the energy consumption profile
and automates calculations of energy and financial savings
coming from the solar system. This will be an important driver of
scale in the sector. At the same time, financing is often tied to
credit risk assessments, which can introduce considerable
friction. Tools like Nithio now exist to streamline this for the SHS
space with among others tools to standardize credit risk
assessment as well as portfolio performance analytics to enable
more financing at scale. We anticipate similar tools serving the
C&I segment specifically will also enter the scene soon.
• No import duties on equipment intended for electricity • Amea Power plans 100 MW project in the country link
• Nuru building 3.7 MWp mini-grid in Goma link
production link
• 180 MW to be deployed under Scaling Mini-Grid (SMG)
• VAT exemption on RE equipment link program link
• No FiT, no net-metering link • Kinshasa Solar City to bring 1 GW of PV in 2 phases link
• InfraCo supporting development of 4 mini-grids link
• Orange and Bboxx partner to construct 24 mini-grids by
2024 link
65
DJIBOUTI
OBJECTIVES TOTAL PV INSTALLED
• Import duties and VAT on solar equipment range • AMEA Power to develop 30 MW solar park link
between 10%-26% link
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EGYPT
OBJECTIVES TOTAL PV INSTALLED
• Targets 42% from RE in the energy mix by 2035 link LARGE SCALE 2,037.91 MWp PV + 20 MWe CSP
• Plans to generate 10 GW from RE by 2023 link C&I 173.1 MWp
• 31000 MW of solar and 12000 MW of CSP by 2035 MG 0.14 MWp
link SHS & 19.56 MWp
• Plans to boost green investments to 50% of total RESIDENTIAL
public investments by 2024/2025 link SOURCE AFSIA GOGLA IRENA
• 5% import duties on solar link • AMEA Power to build 560 MW Abydos PV facility link
• State can authorize reduced rates or total VAT • Lumika Renewables to build 50 MW for Ain Al-Sokhna
exemption depending on the nature of activities of cement plant link
investors link • OneraSystems to implement 25 projects with 10 MW total
• Net-metering exists link capacity link
• A $0.084/kWh FiT is awarded to the Benban solar • Intro Power and Utilities to set up 20 MWp to Suez
projects link Cement of companies link
67
EQUATORIAL GUINEA
OBJECTIVES TOTAL PV INSTALLED
69
ERITREA
OBJECTIVES TOTAL PV INSTALLED
• No specific incentives for the energy sector link • Government of the state to set up 25 MW project with the
• No FiT, no net-metering link grant support from AfDB link
70
ESWATINI
OBJECTIVES TOTAL PV INSTALLED
• 0% import duties on solar panels and batteries link • Globeleq and Sturdee Energy developing two 15 MW projects link
• Standard VAT of 15 % is applicable link • Frazium Energy to build 100 MW Edwaleni power plant link
• ESERA launched tender on 40 MWp project link
• Authorities launched the Africa Minigrids Program (AMP) to
benefit 500 emaSwati link
71
FOCUS ON MARKET DRIVERS
BY TERJE
ARTICLE OSMUNDSEN
Founder and CEO
72
to 43,2 GW by 2027. Is this turn-around realistic, or is the
continent at risk of becoming the world’s fossil “outlier”?
Let’s take a look at the actual numbers: The addition of new solar
PV in Africa fell from 1,8 GW in 2019 to only 0,7 GW in 2021. The
numbers from 2022 are not yet confirmed, but AFSIA (Africa Solar
Industry Association) estimates that only about 0,9 MW of solar
PV was installed in Africa in 2022, compared to 260 GW globally
according to IEAs latest estimate. In other words: Africa’s share of
new solar PV capacity in the world dropped further, to about 0,35
percent in 2022.
The table shows that Egypt and South Africa has attracted
approximately 60% of all solar PV installed in Africa so far. This is
mainly the result of the large renewable energy program (REIPP) in
South Africa and the big Ben-Ban solar PV park in Aswan in Egypt, both
sponsored by the host country governments and benefitting from a
large amount of international competitive financing.
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The next five years, IEA estimates that Egypt, Morocco, Nigeria,
Kenya, Ethiopia and South Africa will grow its solar PV capacity
from 5 to 20 MW. The remaining 12 GW of solar PV will come in the
other 49 countries who currently has very little PV installed.
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has therefore no or very limited capability to issue such payment
guarantees.
This situation has now become worse, as Egypt and sub-Saharan
Africa are among the hardest hit by the global debt crisis following
the pandemic-induced recession, the Ukraine-war, the rise in
interest rates and the dramatic fall in local currency values against
the dollar. The World Bank estimates that the majority of countries in
Africa will suffer from a 30-40 percent increase in yearly debt
servicing payments, “The increased liquidity pressures go hand in
hand with solvency challenges” warns David Malpass, World Bank
president.
• The currency crisis: In 2022, the financial position of private and
public off takers as well as governments has been further
exacerbated by the sharp appreciation of the dollar against most
currencies. Among the worst hit are the Egyptian Pound that has
depreciated almost 60 % against the USD this year, and the
Ghanaian Cedi that fell 110 percent! In Nigeria, the cost of dollar in
the parallel market has risen from about 550 to 800 Naira since the
beginning of the year.
Whereas richer countries can tap into local funding for renewable
investments, Africa is still mostly dependent on foreign investments.
International investors generally require revenues in USD or EUR to
de-risk their investments, otherwise the cost of capital will be
prohibitive. On the other side, energy users hesitate to make long-
term commitments pegged hard currencies in fear of a prolonged
currency crisis. The result is an effective halt to many renewable
investments in Africa.
76
• Regulation and subsidies: According to IEA, the fastest-growing
solar PV segments globally are the C & I (Commercial and
Industrial) and residential sectors. In view of the challenges
facing the government-owned utility sector, the private PV
market should be seen as the largest untapped potential for
scaling solar in Africa. And if governments are willing to
implement the necessary reforms, this market could grow larger
than the 4 GW projected by IEA in 2027.
For example, commercial and industrial energy-users across
Africa – except in Kenya, Nigeria, South Africa and a few other
countries - are generally prohibited buying solar energy from
private providers in the form of Power Purchase Agreements.
(PPAs). Other contractual arrangements, for example
equipment-lease, are of course permitted, but these do
generally not provide the same form of flexibility as PPAs do.
A second disincentive is the absence of net-metering. In most
parts of the world, energy-users producing their own electricity
have net-metering contracts with the local distribution
company. This means that in periods when their solar power
plant is generating more electricity than needed by the user, the
user can “sell” surplus electricity back to the local utility
company. Except for South Africa, net-metering has not yet
been implemented in Africa, although many countries have
made laws and regulations that prescribes net-metering.
Finally, several governments in Africa continue to subsidize
77
electricity tariffs and fossil fuels, disincentivizing investments in solar
and batteries. The cost of diesel in Egypt, for example, is only 7,2 EGP,
equal 0,3 USD which is about 20 % of the price in Europe. A light
“subsidy” on solar and batteries, in the form of a carbon tax or carbon
credit, could be an efficient incentive especially for industrial off-grid
energy users and microgrids to further reduce their reliance on diesel
gensets, replacing them with solar-powered batteries. I would also
make it make it attractive for micro-grids and off-grid industrial
energy users to look at locally produced green hydrogen and fuel cells
to meet the fast-growing electricity needs of manufacturers, mines
and commercial farms in Africa.
78
ETHIOPIA
OBJECTIVES TOTAL PV INSTALLED
• Most SAS products are exempted from import • World bank supporting development of 200 mini-grids link
duty link • Aqua Power to build 2 of the 14 solar power plants planned
• 15% VAT and 3% withholding tax are applicable on for next ten years link
solar products link • 29 solar projects under construction and/or development
• Mini-grid license requirements for (<50 KW, >50 KW in the country by EEU link
to 200 KW< and >200 KW up to 10 MW) link • 10 mini-grids supplying rural smallholder farmers’
• No net-metering link irrigation, with expansion plan up to 100 mini-grids
• Existing FiT link supported by GEAPP
79
GABON
OBJECTIVES TOTAL PV INSTALLED
• Import duties applicable between 5%-30% link • SOLEN constructing 30 MWp hybrid project in Ayémé
• 18% VAT applies link and planning more 90 MWp link
• No net-metering link • AMEA Power to build 50 MWp in Oyem link
• No FiT link • Desiba Energy developing 20 MW Mouila project
link
80
GHANA
OBJECTIVES TOTAL PV INSTALLED
• Increase renewable energy share in the energy mix LARGE SCALE 113 MWp
by 10% 2030 link C&I 57.95 MWp
MG 0.33 MWp
SHS & 3.99 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties on solar panels but 5% import • Bui Power Authority to build 50 MWp Yendi project link
duties applies on SHS & 20 % on batteries link • 35 MGs being developed through African Development
• An import tax exemption for solar PV system is fund and government of Switzerland support link
being implemented link • KfW supporting construction of 15 MWp Kaleo Solar phase
• Solar panels and all off-grid solar components are two link
VAT exempted link • G8 to install 65 MW floating solar system at BUI Hydro
• Net-metering exists link Dam facility link
• FiT for solar PV is $0.041/kWh link • LMI – IFC building 16.8-MWp rooftop solar plant
link
81
GUINEA
OBJECTIVES TOTAL PV INSTALLED
• Target 90% of RE from all new capacities by 2030 LARGE SCALE 0 MWP
link C&I 33.8 MWp
• Installation of up to 2,600MW by 2025 from the MG 0 MWp
current 658MW link SHS & 0.76 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• VAT and duty exemptions can be granted to • Results to be announced for 137 MGs tender by ANIES link
projects on a case by-case basis link • More than 150 MW large scale projects under development by
• No FiT and no net-metering link various companies
82
GUINEA BISSAU
OBJECTIVES TOTAL PV INSTALLED
• Solar panels are exempted of VAT but other • The country to benefit from PPIPS program being
components of a solar kit are not link supported by BOAD and GCF link
• No FiT, no net-metering link • Telectrinf to install 1505 kW on the Bolama island link
83
FOCUS ON PRODUCTIVE USE
BY GILLIAN-ALEXANDRE
ARTICLE HUART
CEO
84
Productive uses of energy are the catalyst of the socio-economic
development of underserved communities. They allow existent
businesses and new entrepreneurs to increase employment rate,
reduce poverty and create new income streams.
We believe that this is the way for Africa to keep pushing forward.
86
KENYA
OBJECTIVES TOTAL PV INSTALLED
• Solar panels & inverters are import duties free and • 10 MW Samburu project construction ongoing link
between 0%-25% to the rest of solar products link • NTPC GE Power Services Limited (NGSL) to develop Floating Solar
• VAT exempted on all RE products link Projects in Lake Region link
• Solar products are Withholding taxes free link • Devki Steel Mills and BAT eying 5.4 MWp in total link
• FiT is $0.12/kWh since 2008 link • Malindi solar project to be expanded to 104 MWp and add
• EPRA releases a draft regulation for the introduction storage link
of a net-metering applied to PV systems up to 1 MW • Tender launched for 2 MW at Kenyatta
link university link
• 50% tax relief on initial investment for off grid power
firms link
87
LESOTHO
OBJECTIVES TOTAL PV INSTALLED
• All PV components are subject to a reduced VAT • EDFI ElectriFI and REPP supporting development of 11 MGs link
rate of 5% link • 70 MW Mafeteng solar power plant under construction link
• FiT and net-metering planned to be developed link • The Lesotho Renewable Energy and Energy Access
Project(LRREEAP) to provide electricity to 30 villages link
89
LIBERIA
OBJECTIVES TOTAL PV INSTALLED
• Targets 80% renewal energy base by 2026 link LARGE SCALE 0 MWp
• Installation of at least 150 MW of RE generation - C&I 0.29 MWp
excluding large hydro by 2030 link MG 0 MWp
• 60 MW of solar on the National Grid by 60 MW by SHS & 0.91 MWp
2030 link RESIDENTIAL
• Targets 250.000 solar lamps sales by 2030 link SOURCE AFSIA GOGLA IRENA
• No import tariffs on off-grid system components • 9000 households to get electricity trough Beyond the Grid
related to RE development link Fund for Africa (BGFA) link
• No FiT, no net-metering link • 20 of 44 MWp Mount Coffee solar park to be implemented
soon link
• Escotel to solarize Orange telecom towers link
• UNDP solarizing 12 health centers through MG link
90
LIBYA
OBJECTIVES TOTAL PV INSTALLED
• There is no VAT in Libya link • Total Energies to develop 500 MWp project link
• No net-metering and no FiT policy link • EG Energies to build 200 MWp Ghadames solar project link
• Construction progressing with 100 MW Kufra solar plant link
• W Solar Investment planning to build 2GW solar PV plants link
91
MADAGASCAR
OBJECTIVES TOTAL PV INSTALLED
• Double total installed capacity to reach 800 MW by LARGE SCALE 61.02 MWp
2023 link C&I 1.21 MWp
• 85% of RE in the power generation by 2030 link MG 0.25 MWp
• Solar to represent 5% of energy mix by 2030 link SHS & 3.5 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties or VAT on solar panels or lithium • CrossBoundary installing 2.6MWp to Molo graphite mine and
batteries link looking to connect 8 MWp to Tôlagnaro mine link
• FiT and net-metering are included in the country’s • Enerdeal to develop 7.5 MW solar power plants in 5 cities link
legal frameworks link • 68 MGs under development by different stakeholders
92
MALAWI
OBJECTIVES TOTAL PV INSTALLED
• Solar products are import duty free while VAT • Quantel Renewable Energy working on 50
remains at 16.5% link MWp Bwengu solar park link
• FiT exists since 2012 for solar projects without • Elsewedy Electric to build 50 MW project link
storage sized 500kW-10MW at $0.10/kWh and • Solarcentury and RESA to develop 50 MWp
$0.20/kWh for projects with storage link khoma Deka plant link
• No net-metering link • TATA to develop 30 MWp project to Blantyre
Water Board link
• AMEA Power to start 50 MW project link
• Construction progressing with 21 MW
Nkhotakota Solar phase 1 link
93
FOCUS ON STORAGE
BY JEAN-PHILIPPE KATHLEEN
ARTICLE SEYA JEAN-PIERRE
Senior Project Development Chief Operating
Manager Officer
97
For example, utilities seeking grid scale BESS prioritize having
have the most energy readily available to balance frequency
and ensure available energy distribution. For this use case,
sodium-ion BESS technology can be a good match, as this
battery capacity optimizes for energy capacity and has a
relatively good lifetime.
Facilities that can successfully identify how BESS will save their
business money – whether through reducing the cost of
specific fuel consumption or improving power quality
management – are best-positioned to receive the most
competitive, practical BESS quotes. The suite of commercially
available BESS technologies is always changing, but this variety
means energy service providers can offer clients many ways to
balance technological and commercial trade-offs.
98
FOCUS ON STORAGE
BY LÉANDRE
ARTICLE BERWA
co-founder
OPPORTUNITIES OF SECOND-LIFE
BATTERIES IN THE RENEWABLE AND
ENERGY STORAGE INDUSTRIES
With the advent of renewable energy and electric mobility, the
concern for battery waste is becoming an increasingly
concerning issue. Many countries still lack afterlife management
plans or processing capacity for retired batteries, yet these
batteries retain storage capacity at their retirement. This creates a
huge environmental and health hazard, but also a market and
impact opportunity that companies like SLS Energy, which
operates in Rwanda, are leveraging by providing energy storage
services using batteries retired from electric vehicles or salvaged
from the electronic waste stream. These repurposed batteries are
also known as "second-life" batteries.
100
Second-life batteries are suited for multiple applications
101
economics played in their favor. This is comparable to how grid-
connected users are concerned about the reliability of their
supply and not about the ownership of the generation and
transmission systems. If these batteries are owned and
managed by a central operator, their economics, lifetime, and
performance can be easily optimized, and they can be used in
their most suitable applications at different stages of their
usable capacity. SLS Energy is currently pursuing energy storage
as a service model for telecommunication towers.
• No import duty and VAT on solar products link • Abu Dhabi Fund for Development supporting construction of 31
• No net-metering, no FiT MGs link
• Scatec constructing 33 MWp Segou project link
• 70+ MW for mining activity under construction or development
• NTPC awarded PMC contract to set up 500 MW solar
project link
• Orange Mali to install 25MW/30MWh solar
power station link
103
MAURITANIA
OBJECTIVES TOTAL PV INSTALLED
• Targets to increase the share of renewables in the LARGE SCALE 69.3 MWp
electricity mix to 50% by 2030 link C&I 1.61 MWp
MG 15.05 MWp
SHS & 0.14 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• Duties range between 9% - 18% link • Voltalia constructing 42 MWp/18 MWh project link
• ADER provides subsidies of 60-80% for some of the • Kinross to build 34 MWp+18 MWh storage system at
isolated grids link Tasiast mine link
• No net-metering, no FiT link
104
MAURITIUS
OBJECTIVES TOTAL PV INSTALLED
• 35% of RE in the electricity mix by 2025 link LARGE SCALE 98.8 MWp
• 60% of RE in its electricity mix by 2030 link C&I 2.59 MWp
MG 0 MWp
SHS & 0.05 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• Solar PV projects are VAT exempt link • 140 MW project with storage in tender by CEB link
• Net-metering available to individual generation • Green Yellow to build 13.6 MW Arsenal project link
capacity of up to 5 kW link • 8 MW Tamarind Falls project under tender link
• Prosumers registered under the CEB net-metering • UNDP to build 25 MW power to local communities
scheme get FiT (scheme closed in 2015 after target on Agalega Island link
was reached) link • Green Rock Ltd to implement 10 MW at Petite-
• Green energy scheme for SMEs: 2,000 2 kWp Retraite link
systems installed free of charge link • 2 MWp floating solar at Tamarind Falls Reservoir
under tender by TCIL link
105
MOROCCO
OBJECTIVES TOTAL PV INSTALLED
• 52% RE in the energy mix by 2030, 70% by 2040 and LARGE SCALE 323 MWp PV + 534 MWe CSP
80% by 2050 link C&I 10.55 MWp
• Target to add 10 GW of RE between 2018 and 2030, MG 0 MWp
with 4560 MW of solar link SHS & 79.28 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• 10% import duties on solar panels but exempted for • 333 MW PV in 400 MW NOOR II tender allocated to
water heaters link private companies link
• Exemption for solar water pumps for agricultural • Tender launched for 260 MW Noor Atlas projects link
use link • Xlinks to construct 7 GW of solar in Morocco-UK
• 20% import VAT and 20% VAT apply on water Power Project link
heaters and solar panels link • 34 MWp GPM1 project under construction by Amea
• Net metering available link Power link
• No FiT link • Noor Midelt I on hold link
• The "Noor Tafilalet" project to add 120 MW link
106
MOZAMBIQUE
OBJECTIVES TOTAL PV INSTALLED
• Target 20% integration of RE in the grid by 2030 link LARGE SCALE 107 MWp
• Installed capacity of 600 MW, including 200 MW of C&I 0.25 MWp
RE by 2030 link MG 0.65 MWp
SHS & 1.9 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• Solar products are charged an import duty of 7.5% • Solarcentury to build 120 MWp Chimuara Solar Project link
and 17% VAT on all RE products link • 20 MW Mecufi project tender launched link
• FiT was approved in 2014 but no implementation • 11.25MWp+8.5MWh Balama Mine project under construction link
guidelines in place yet link • Total Eren developing 40 MW Dondo project link
• Ncondezi developing 300 MW at tete site link
• Tender launched for 2*30 MW projects link
107
NAMIBIA
OBJECTIVES TOTAL PV INSTALLED
• RE to represent 70% of country’s energy mix by 2030 LARGE SCALE 254.57 MWp
link C&I 36.4 MWp
• Expecting to increase the installed capacity to 1,138 MG 0.36 MWp
MW by 2030 link SHS & 0.04 MWp
• Target to have 229 MW of solar PV and 250 MW of RESIDENTIAL
CSP by 2035 link SOURCE AFSIA GOGLA IRENA
• Import duties are not levied on RE, except solar • Emesco developing 125 MW Karasburg solar park for
thermal energy for households link export to Southern African Power Pool link
• 15% VAT on importation of goods is levied link • ANIREP constructing 18.5 MWp Kokerboom solar plant
• Net-metering exists for less than <500kVA link link
• FiT available for systems <5MW link • NamPower constructing 20 MWp Khan solar plant link
• Wheeling system in place link • Development Bank of Namibia supporting construction
of 5.4 MW p at Rosh Pinah mine link
• 90 MWp to power the first green hydrogen plant
in the country link
• NamPower eyeing at 135 MW Arandis
CSP project link
108
FOCUS ON YOUTH EMPLOYMENT
BY AASHNA
ARTICLE AGGARWAL
Partnerships and
Development Manager
109
efforts toward achieving universal and sustainable energy access by
quickly providing renewable electricity to the 733 million people trapped
in energy poverty. This however requires a skilled, engaged workforce.
I believe that the clean energy sector is one field where active solidarity
between established energy leaders and the emerging young workforce
has the potential to make a massive impact in accelerating the
transition to a sustainable energy future.
110
By providing youth with opportunity, education, and training to
allow them to fully participate in politics and society, which is
critical for economic growth and stability, we can solve two
problems at once.
111
“There are thousands of young people around the world who are deeply
passionate about a just energy transition and have the
potential to become leaders in the clean energy sector,” The Youth Expert
at Sustainable Energy for All, Akil Callender said. “However, accessible
programs are not responding fast enough or the training opportunities do
not always translate to jobs.”
112
communities, Power for All, a campaign to end energy poverty
through accelerated deployment of decentralized renewable
energy (DRE), has launched a coordinated global effort to
develop a DRE-specific human capital pipeline to meet the needs
of this rapidly growing sector.
The data in the census shows the resilience of the sector despite
the global pandemic. Structural barriers (foreign exchange
shortages, conflict, etc.) have hindered employment growth in
countries like Uganda and Ethiopia, but DRE is recovering faster
than the broader economy.
The report finds that women’s participation in the DRE sector has improved in all
focus countries but India. More specifically, women’s participation nearly doubled
in Kenya and increased by 10 percent in Nigeria. But India saw a largely
pandemic-driven reduction of 9 percent. In other promising findings, the gender
wage gap is smaller than the national wage gap for all focus countries, with the
exception of Ethiopia.
114
The benefits of DRE are significant. The Powering Jobs Census
shows it is making a significant impact on developing economies.
It is estimated the DRE will create up to half a million jobs by 2030
in Africa alone. This is on top of the broader economic and societal
benefits of off-grid electrification.
A just transition will look different for all economies but job
creation might be the one common denominator. The re-skilling
and up-skilling of the clean energy workforce is critical for the DRE
market to be able to reach its full potential of alleviating energy
poverty and providing secure meaningful work. To continue to
reap the benefits, education institutions, technical and vocational
education, and training (TVET) companies, DRE companies, and
non-profit organizations must collaborate in developing skills
training modules, standardized curricula, and a workforce pipeline
to allow more young people to enter the clean energy space.
115
NIGER
OBJECTIVES TOTAL PV INSTALLED
• The government aim to source 30% of its power LARGE SCALE 7 MWp
from renewables by 2035 link C&I 0.15 MWp
• RE to reach 57% of the electricity mix by 2030 link MG 0.14 MWp
SHS & 0.44 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties on RE equipment link • 16 MW+15 MWh Dasa Uranium project under
• Import tax and VAT exempted on all RE equipment development link
link • 50 MWp Gorou Banda project tender going on link
• No net-metering, no FiT link • Africa GreenTec developing 50 MGs link
• 150 MW being developed by West African Power
Pool link
• Sterling & Wilson building 18.9 MW + 11.5 MWh
Agadez hybrid link
• NTPC secured contract to set up 50 MW solar
capacity link
• World bank to develop 50 MW as part
of scaling solar program link
116
NIGERIA
OBJECTIVES TOTAL PV INSTALLED
• Targets 30GW by 2030 with 30% renewable energy LARGE SCALE 8.25 MWp
link C&I 89.34 MWp
• Solar energy to contribute 19% to electricity mix by MG 7.33 MWp
2030 link SHS & 24.3 MWp
• 500 MW of PV by 2025 link RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• 0% import duty on solar panels, 5% on SHS and 20% • 961 MWp+455 MWh under development by Sterling
for other components link and Wilson link
• 5% VAT applies on solar components link • 100 MGs under development in by Engie link
• Solar Nigeria Programme (NSP) supporting the • Gombo State looking to generate 250 MW link
market for off-grid solar link • University of Abuja to get 3.1 MWp+2.03 MWh link
• Updating the Mini-Grid Regulation to raise cap for • Husk Power planning 500 MGs in the country link
licensing from 1MW to 5MW link • CrossBoundary developing 6.337 MWp
• FiT for projects up to 5 MW link for Nigerian Breweries link
• Net-metering for projects below 1MW link
117
REPUBLIC OF THE CONGO
OBJECTIVES TOTAL PV INSTALLED
• All RE components are subject to import duties and • Cash Congo to build 66 MWp hybrid solar power plant link
VAT link • Copasol and Green Corp to establish more than 150 MW
• Country has no implemented legislation intended solar power plants in various parts of the country link
to incentivize the development of renewable
energy projects link
118
RWANDA
OBJECTIVES TOTAL PV INSTALLED
• Rwanda eyes to reach 512MW of total installed LARGE SCALE 8.8 MWp
capacity by 2024 link C&I 5.73 MWp
• 30% households to be electrified through off-grid MG 0.55 MWp
solutions by 2024 link SHS & 9.6 MWp
• The government target 60% of renewable resources RESIDENTIAL
by 2030 link SOURCE AFSIA GOGLA IRENA
• No import duties on solar panels and a range of • Equatorial Power to develop 4 MGs in the south-east region with
0%-25% to other solar products link InfraCo Africa support link
• VAT exemption on solar equipment and 5% • KfW and Green Climate Fund supporting green city Kigali
withholding taxe link project link
• $15M subsidy + $20M guarantee program for SHS
launched in 2020 link
• No permit required for systems <50kWp
• No net-metering and no FiT
119
SAO TOME & PRINCIPE
OBJECTIVES TOTAL PV INSTALLED
• 50% RE in the energy mix by 2030 link LARGE SCALE 0.55 MWp
• Increasing RE production from 26 MW to 49 MW by C&I 0.01 MWp
2030 link MG 0 MWp
SHS & 0 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No existing VAT framework, activities in the energy • Tender launched for the construction of 1.5 MWp
sector are subject to a 5% tax rate link project link
• No net-metering, no FIT • 1.4 MWp under construction at two airports link
• Solo Solar Energy and CISAN planning four projects
of 15 to 10 MW link
• EDP Renewables planning 4.75 MWp/3.5 MWh project
on Principe island link
• 22 MW additional total capacity being developed by
various companies
120
SENEGAL
OBJECTIVES TOTAL PV INSTALLED
• 32% RE contribution in energy mix by 2030 link LARGE SCALE 209.5 MWp
• 15% RE in the energy mix by 2025 link C&I 12.14 MWp
• 22% renewable energy by 2025 link MG 3.33 MWp
SHS & 5.15 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties on solar panels but 5% applies for • 2 MWp under development at Abdoulaye Wade stadium link
SHS link • 30 MW Niakhar hybrid plant under construction link
• No VAT for PV equipment link • CrossBoundary to build 13 MW hybrid plant for Grande Côte
• Hybrid form of net-metering and FiT introduced in Operations link
2018 link • 300 mini-grids to be built across the country link
121
FOCUS ON E-MOBILITY
BY JOHN WARREN
ARTICLE VAN ZUYLEN ONDAJE
CEO – Africa Solar Industry Managing Director –
Association Association for Electric Mobility
& Development in Africa
But for Africa to fully embrace its e-mobility potential, solar will
undeniably play a central role. We believe this is the case because
a) e-mobility should only be powered by renewable energy, b) the
transition to electric bikes in Africa will happen very fast and c)
solar is the only renewable power technology that can be
deployed quickly and flexibly to follow the expected e-mobility
boom in Africa.
124
First, it is important to note that switching from ICE (internal
combustion engines) vehicles to electric ones only make sense
if the electricity consumed is from renewable source. Countries
where we currently see a good uptake of electric vehicles but
which are predominantly relying on fossil fuels for their
electricity generation are only displacing the problem from the
gas station to the power plant. But the net impact unfortunately
is close to zero.
127
SEYCHELLES
OBJECTIVES TOTAL PV INSTALLED
• 15% RE in the energy mix by 2030 link LARGE SCALE 12.26 MWp
C&I 2.46 MWp
MG 2.88 MWp
SHS & 0.32 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No GST on RE energy equipment link • 1.5 MWp under development at Indian Ocean Tuna
• SEEREP provides loan facility open to households (IOT) processing facility link
to acquire solar systems link • Construction of 5.8 MW Providence floating solar
• Rebate scheme residential and small commercial plant is moving forward link
installations link • Results to be announced for Seychelles Trading
• Net-metering for residential and commercial company tender link
users since 2013 link
128
SIERRA LEONE
OBJECTIVES TOTAL PV INSTALLED
• RE to represent 84% in the energy mix by 2030 link LARGE SCALE 5 MWp
• increase renewables capacity to 1,000MW link C&I 0.51 MWp
• Increase off-grid mini-grid and solar stand-alone MG 4.22 MWp
systems by 27% and 10%, respectively, in 2030 link SHS & 3.82 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• All SHS are exempted from import duties and GST • Sunon Asogli to build 50 MWp Freetown solar park link
link • The country to benefit from the West Africa power project
• PV equipment and low energy or energy-efficient being financed by the World Bank link
appliances that meet IEC global standards are
exempt from GST link
• The Electricity and Water Regulatory Commission
(EWRC) plans to develop FiT for solar schemes
irrespective of their size link
129
SOMALIA
OBJECTIVES TOTAL PV INSTALLED
• Commits to reduce and avoid emissions 30% by LARGE SCALE 10.4 MWp
2030 link C&I 1.82 MWp
MG 1.64 MWp
SHS & 5.6 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• Target to achieve universal access by 2030 link MIN. $ 0.5 $ 0.5 $ 0.5
MAX. $1 $1 $1
• Taxes are not standardized. Different states, ports • BECO to build second phase of Mogadishu solar
compete in respect of duty rates in order to secure with 92 MW of capacity link
import traffic, rates varying from around 10%-15% • Abu Dhabi fund for development financing
link construction of 7 MWp Bosaso solar plant link
• No national electrification policy in place waiving
taxes on PV products
• No FiT and no net-metering
130
SOMALILAND
OBJECTIVES TOTAL PV INSTALLED
MIN.
NO RELIABLE DATA
MAX.
• n/a • n/a
131
SOUTH AFRICA
OBJECTIVES TOTAL PV INSTALLED
• 25% of RE in national energy mix by 2030 link LARGE SCALE 2,864.78 MWp PV + 500 MWe CSP
• Targets the addition of 6.5GW of solar by 2030 link C&I 483.34 MWp
MG 0.74 MWp
SHS & 5.18 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties link • Tender issued on 2.6 GW, first round of 6.8 GW
• License required for self consumption over 100 MW procurement link
link • 41 Western Cape schools to get 25.87 MWp link
• Possible for companies to write off 100% solar • The city of Ekurhuleni to start building 700 MW solar
investment in year 1 link plant link
• Cape Town to introduce FiT soon for C&I and • AMEA Power to build 120 MWp Doornhoek project link
residential customers link • 7 MW Atlantis solar PV construction in tender link
• Net-metering available in some municipalities link • Venetia diamond mine to get 100 MWp link
• Total Eren to build 40 MWp for Tharisa
minerals link
132
SOUTH SUDAN
OBJECTIVES TOTAL PV INSTALLED
• Import duties range from 0%-25% on solar products • Aptech Africa to build a 12 MWp solar plant in Juba link
link
• VAT exempted and 4% withholding tax applies on
solar products link
• No FiT, no net-metering
133
FOCUS ON FLOATING SOLAR
BY SERGIO
ARTICLE MONTORO
134
But it also presents some very strong advantages, especially in the
African context where so many hydro resources are being exploited
to produce electricity.
Source1 Source 2
Imagen 1. Global installed FPV capacity and annual additions. SOURCE World Bank Group, ESMAP, and SERIS 2019.
If the same growth curve as that of ground-mounted photovoltaics is followed, Floating Solar
Photovoltaics infrastructure (FPV) could become a very significant part of the global solar industry in
just a few years. Although this segment is still very marginal globally, with a total installed capacity of
2,500 MW in 2020, current projections estimate its potential at 62 GW capacity worldwide by 2030.
To sum it up, The Floating Solar Photovoltaics (FPV) is shown as an achievable solution to the energy
needs and the growing/challenging scarcity of water in Africa, using existing resources such as an
excellent solar potential and a great hydroelectric potential infrastructure.
136
SUDAN
OBJECTIVES TOTAL PV INSTALLED
• No import duty and VAT on PV components link • TAQA Arabia to develop several solar plants in the country link
• Amendments made on the Electricity Act to allow
private companies to work in the power generation
business as independent power producers (IPP)
• PPP Law approved and allows BOOT projects link
• Investment Law approved which provides
incentives to foreign investors link
• Net-metering regulations for small-scale solar
systems (less than 1 MW) link
• A feed-in tariff is under development with the
support of the UNDP link
137
TANZANIA
OBJECTIVES TOTAL PV INSTALLED
• No import duties on solar panels and a range of 0- • AFD supporting the development of the 150 MWp
25% for other solar equipment link Kishapu Solar Project link
• No VAT on several solar equipment link • Masdar and TANESCO to deploy PV plants with 600
• No license required for projects below 1 MW link MWp total capacity link
• FiT of $0.21/kWh for MG, FiT to systems connected to • Other upcoming projects include Zuzu, Dodoma
the national grid at $0.079/kWh in the dry season, (60 MW), Same (50 MW) & Next Gen-Kigoma
$0.059/kWh in the wet season link (5MW) link
• Net-metering in application since 2017 link
138
THE GAMBIA
OBJECTIVES TOTAL PV INSTALLED
• Exemptions on import duties link • FAO installing 34 solar-powered irrigation systems link
• An investment enterprise within priority categories • Government developing the 150 MW Regional Solar PV
is granted import VAT waiver link Project in Soma link
• No VAT for RE/solar projects link • 1,100 rural schools and health centers to be powered with
• Net-metering available for capacities below 20kW solar PV through EIB, EU and World Bank support link
link • Implementation of 20MW on-grid solar PV project
• There is a provision for a FiT in the RE Law of 2013, in progress with EIB and WB funding, to be
but FiT not in-force commissioned in 2023
• The government commits to $449 800 for
Accelerated Community Development (PACD) to
extend electrification to 7 villages link
139
TOGO
OBJECTIVES TOTAL PV INSTALLED
• 50% renewables in the national energy mix by 2030 LARGE SCALE 50 MWp
link C&I 4.3 MWp
• Adding 50MW of solar PV, 315 mini-grids and the MG 0.4 MWp
distribution of 550,000 solar kits link SHS & 3.56 MWp
• Increase of the share of RE to 40% in 2024 link RESIDENTIAL
• Target of 10% of PV in the energy by 2030 link SOURCE AFSIA GOGLA IRENA
• Target of 75% of electricity access by 2025 and 100% MIN. $ 0.101 $ 0.123 $ 0.117
by 2030 link
MAX. $ 0.192 $ 0.154 $ 0.149
• All RE components are exempt from import duties • BOAD supporting construction of 42 MWp Awandjelo solar park link
and VAT link • Tender launched for 50 MW Salimde solar park link
• CIZO Programme offers subsidies to households to • AfDB supporting implementation of 317 MGs link
cover the cost of off-grid PV systems link • Tender progressing with 1.8 MWp at Lome airport link
• A pilot project is being implemented at the • AMEA Power to expand Mohammed Bin Zayed PV from 50 to
Regional Center for Technical Education and 70 MW link
Vocational Training (CRETFP) for the net-metering
link
140
TUNISIA
OBJECTIVES TOTAL PV INSTALLED
• Imported energy equipment with no locally • Construction to start soon on 100 MW Kairouan plant link
produced equivalent are subject to minimum • Scatec to build 240MW, 60MW, and 60MW in Tatouine,
customs duties and are exempt from VAT link Tozeur and Sidi Bouzid link
• Net-metering and FiT possible link • Akuo Energy, HBG Holding and Nour Energy to build 10 MW
Gabès solar PV plant link
• Results to be announced on 70 MWp plants tender link
• ENGIE and NAREVA to build 120 MWp Gafsa solar
park link
141
UGANDA
OBJECTIVES TOTAL PV INSTALLED
• PV panels exempt from import duties and VAT link • Equatorial Power and GIZ to electrify 27 rural clinics link
• 0-25% import duties apply for other solar • RIC Energy constructing 23 MW Nkonge solar link
equipment link • TotalEnergies EP Uganda to develop 120 MW in six localities link
• Net-metering and FiT under development link • German government and EU supporting development
of 120 MGs across the country link
142
ZAMBIA
OBJECTIVES TOTAL PV INSTALLED
• Custom duty exemptions for most PV projects • Tender launched for the construction of 200MW Siavonga solar
components link park link
• No VAT on solar panels and batteries but 15% VAT • Power Corner Zambia to build 11 MGs with 1.1 MWp capacity link
applies to some solar equipment link • Construction progressing on 200 MWp Serenje PV plant link
• No permit required for systems <100kW link • Ilute Solar to build 25 MW in Sesheke link
• Energy Regulation Board publishes the draft net-
metering regulations link
• Existent wheeling system link
143
ZIMBABWE
OBJECTIVES TOTAL PV INSTALLED
• Targets 1,575MW for solar by 2030 link LARGE SCALE 13.5 MWp
• RE to contribute 1,100MW of total electricity supply C&I 28.34 MWp
by 2025, and 2,100MW by 2030 link MG 0.22 MWp
SHS & 0.9 MWp
RESIDENTIAL
SOURCE AFSIA GOGLA IRENA
• No import duties on solar equipment but 15% VAT • Skypower Global building 500 MWp solar station link
applies link • Belarus developing 100 MW Norton solar park link
• New Draft Renewable Energy Regulation looking at • Econet to solarize 499 telecom towers in the next 24
waiving licensing fees for installation and operation months link
of micro-grids and mini-grids with an installed • Mimosa mining to get 238 MWp link
capacity of less than 1 MW link • Evergreen Private to build 100 MW in Midlands link
• Net-metering threshold capacity extended from • 10 MGs in tender by UNDP link
100kW to 5MW • 36 MWp Bulawayo and Gwanda projects
• FiT regulation exist but not yet implemented link construction moving forward link
144
FOCUS ON MADE IN AFRICA
BY CLAIRE
ARTICLE LE STER
Operations Manager
While the solar market has been growing quickly in Africa, local
manufacturing of off-grid solar products is still limited. The vast
majority of equipment is imported from Asia where production is
centralized. Yet, it has been demonstrated that the development
of local value chains contributes not only to industrial
development, but also the wider economic and social
development of a country.
145
Localizing manufacturing offers many tangible benefits.
146
and last but not least it increased the users' pride in consuming
local products.
147
Some recommendations can be made to support the
development of local industrialization.
African manufacturers must obtain, for imported components
and spare parts, customs conditions that are at least
equivalent if not preferential to those for imported finished
products . Exoneration of taxes and duties on solar products
implemented by some African countries to promote the
development of renewable energies should apply for finished
solar products but also for components used for the local
manufacturing of solar products. Currently, it is difficult to
benefit from these exemptions when importing cables,
electronic components, screws, etc., and not a finished solar
product.
148
SPECIAL THANKS TO
OUR PEER REVIEWERS
One of the basic principles of AFSIA is to create
networks and knowledge-sharing platforms for all Adel Baba -Aissa Omar Abdelhamid
Investment Director Business Development Executive
solar stakeholders to get the quickest access
Meridiam Gridtech Infrastructure
possible to partners and information, and thereby
achieve better and more efficient business.
AFSIA is happy to put these individuals in the Apollinaire Niyirora Serge Stephane AOUELY
spotlight and warmly invites you to contact them Communication Officer Chief Commercial & Marketing
Burundi Renewable Energy Association LUMOS GLOBAL (Côte d'Ivoire Sub)
directly should you require further ad-hoc expert
insights on specific countries.
149
Michael Lappin Abdourahamane Keita Judicaël Graas Dr. Mohamed Alhaj Mikael Alemu
Country Manager - Africa Deputy General Director Operation Manager Founder & Managing Director General manager & Co-founder
SegenSolar Agence Guinéenne GoShop Energy Terra Energy 10 Green Gigawatt for Ethiopia
d’Electrification Rurale(AGER)
Laura Corcoran Yao Azoumah Herbert Friese Andrew Amadi Sire Abdoul Diallo
Chief Business Development Officer CEO & Founder General Manager Chief Executive Officer Sustainable Energy
Expert - Consultant
Aptech Africa KYA-Energy Group Dutch & Company Ltd Kenya Renewable Energy
Association
150
Ivie Ehanmo Lamya Abdel Hady Divin kouebatouka Greyson Onesmo Metili Babucarr Bittaye
Founder RE consultant Founder & Chairman Head of Africa Operations Principal Energy Officer
Electricity Lawyer Egypt Electricity Transmission GreenBox ENGIE Energy Access Ministry of Petroleum and
company Energy of The Gambia
151
SUMMARY TABLES / Duties & Taxes
152
SUMMARY TABLES / Duties & Taxes
Eritrea
153
SUMMARY TABLES / Duties & Taxes
eSwatini 0% import duties on solar panels and batteries Standard VAT of 15 % is applicable
Ethiopia Most SAS products are exempted from import 15% VAT is applicable on solar products
duty
Gabon Import duties applicable between 5%-30% 18% VAT on solar components
The Gambia No import duties No VAT for RE/solar projects
154
SUMMARY TABLES / Duties & Taxes
Morocco 10% import duties on solar panels but 20% import VAT applies 20% VAT applies on water heaters and solar
exempted for water heaters panels
Mozambique Solar products are subject to an import duty of 17% VAT on all RE products
7.5%
Namibia No import duties on thermal energy for 15% VAT on importation of goods is levied
households
155
SUMMARY TABLES / Duties & Taxes
Togo Renewable energy components are exempt Renewable energy components are exempt
from import duties from VAT
Tunisia Imported energy equipment with no locally VAT exemption on Imported energy
produced equivalent are subject to minimum equipment with no locally produced
customs duties equivalent
Uganda PV panels are exempted from import duties No VAT on PV panels
Zambia No import duties on PV components No VAT on solar panels and batteries but 15%
VAT applies to some solar equipment
Zimbabwe No import duties on solar equipment 15% VAT on solar equipment
157
SUMMARY TABLES / Electrification rate
&electricity tariff
ELECTRIFICATION RESIDENTIAL COMMERCIAL INDUSTRIAL SOURCE
COUNTRY RATE MIN MAX MIN MAX
MIN MAX
Burkina Faso 22.5% 0.120 0.221 0.102 0.264 0.086 0.224 Link
Cape Verde 94% 0.259 0.363 0.246 0.277 0.246 0.277 Link
Central African 14.3% 0.109 0.229 0.043 0.060 0.043 0.060 Link
Republic
10% 0.136 0.200 0.200 0.200 0.200 0.200
Chad Link
86.74% 0.324 0.332 0.236 0.289 0.236 0.289
Comoros Link
Cote d’Ivoire 80% 0.029 0.107 0.076 0.161 0.072 0.106 Link
The Gambia 62% 0.183 0.194 0.18 0.18 0.210 0.210 Link
Guinea Bissau 33.34% 0.205 0.392 0.163 0.205 0.206 0.258 Link
Sao Tome 76.56% 0.067 0.155 0.155 0.398 0.138 0.138 Link
and Principe
Senegal 70% 0.146 0.214 0.119 0.311 0.094 0.181 Link
Sierra Leone 26.2% 0.039 0.112 0.131 0.131 0.132 0.132 Link
Somaliland n/a 0.650 0.650 0.650 0.650 0.390 0.390 Local industry source
South Africa 84.39 0.039 0.299 0.038 0.296 0.035 0.0275 Link
South Sudan 7.2% 0.002 0.003 0.003 0.003 0.003 0.003 Link
Tanzania 37% 0.043 0.126 0.007 0.126 0.004 0.068 Link Link
Togo 54% 0.101 0.192 0.123 0.154 0.004 0.048 Link Link
Tunisia 100% 0.019 0.128 0.066 0.141 0.055 0.122 Link Link Link
163
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