W’Bank, AfDB move to boost renewable energy in Africa

World Bank, Africa Development Bank (AfDB) and other global financing institutes, yesterday, said despite projections of increasing renewable energy in Africa by 2030, a combination of regulatory, financial, and logistical challenges must be tackled to unlock the full potential.

The industry leaders, including Africa Regional Head for Multilateral Investment Guarantee Agency of the World Bank, Nkem Onwuamaegbu; Division Manager, Renewable & Sustainable Energy Funds, AfDB, João Cunha, along other experts called for governments to develop clearer policies and long-term targets to attract investment and accelerate the shift toward sustainable energy solutions.

Speaking at the Accelerated Partnership for Renewables in Africa (APRA) in Nairobi, Kenya, the stakeholders noted that scaling renewable energy in Africa required more than just funding, adding that robust policy frameworks were essential.

They stressed that while developers could easily learn to build solar or wind plants, the real gap lay in national governments lacking clear, long-term visions.

They noted that policy engagement had proven crucial in countries like Egypt, where the creation of a bankable Power Purchase Agreement (PPA) framework attracted significant international investment.

The experts emphasised that innovative business models, such as corporate PPAs and merchant power plants, were helping developers to bypass reliance on state utilities.

They also noted that hybrid solutions were gaining traction, including solar-hydro integration, where solar systems complement existing hydropower plants. According to them, half of Africa’s hydro plants needs rehabilitation and could be done by incorporating solar and modernising the plants to extend the lifespan and enhance energy output.

They also said mini-grids, clean cooking technologies, and electric mobility were also emerging as viable solutions. They noted that the World Bank and African Development Bank were driving progress through multi-phase approaches, using guarantees to encourage private sector participation.