The International Solar Alliance (ISA) believes that Africa holds the greatest opportunities for the next wave of solar installations. Despite China’s dominance in solar production, the ISA predicts that Africa will become a major hub for solar energy in the coming years. The cost of solar energy has decreased by 90% over the past decade, making it the least costly option for two-thirds of countries. The ISA’s Director General, Ashish Khanna, states that solar energy is not only replacing fossil fuel-powered electricity generation but also bringing power stability to communities that lack access.
The African continent has immense solar potential, with 60% of the world’s solar resources. However, it currently receives only 1% of total global solar investment. To address this, the ISA has created the Africa Solar Facility, a risk mitigation platform designed to unlock capital and accelerate solar deployment across the continent. The facility has already mobilized $74 million of a $200-million fund.
Nigeria, Africa’s most populous nation, has also taken the lead in promoting solar energy with the creation of a $500-million fund to develop and finance distributed renewable energy projects. The ISA has also set up a centralized e-procurement platform for small island and developing countries, which will offer greater collective procurement power for smaller buyers of solar equipment.
The industry is also addressing the softer challenges of deploying solar at scale, including the need for financing, people, and regulation. The ISA has set up centers of excellence providing training, and is using the latest advances in artificial intelligence (AI) to manage the challenge of scattered energy consumers and producers. AI is expected to change the fundamentals of energy utilities, enabling the efficient management of grids with millions of consumers.
The growth of solar energy in Africa is expected to surge, with the continent predicted to install an additional 23 GW of solar capacity by 2028. This growth will be driven by the decreasing cost of solar energy, as well as the increasing demand for agricultural solar solutions. The ISA believes that solar energy has the potential to transform the lives of millions of people in Africa, and is working to unlock the continent’s immense solar potential. With the right investment and support, Africa could become a major player in the global solar energy market, and help to drive a cleaner, more sustainable energy future.