Nigeria Sustains Renewable Power Investment Amid Projected Rise In Africa’s Demand By 2050

Africa’s total power demand is expected to reach 2,291 TWh by 2050 more than double 2025 levels.

According to the African Energy Chamber’s (AEC) State of African Energy 2026 Outlook, economic development in industrial and commercial sectors will be the primary drivers of demand growth, underscoring the need for significant investment as countries industrialise and diversify.

Platforms such as African Energy Week – returning to Cape Town on October 12–16, 2026 – play an instrumental role in facilitating deals and partnerships, and in addressing challenges and opportunities across generation, transmission and distribution.

Nigeria has made progress toward a partially operational wholesale market, while several other countries – including South Africa, Senegal, Ghana, Tanzania, Mozambique and Angola – have also adopted Gas Master Plans to attract investment across the gas value chain, with Nigeria driving its “Decade of Gas” initiative.

In the coming years, Africa’s power demand will be shaped by new technologies such as electric vehicles (EVs) and rising digitalization. Residential and industrial sectors are expected to account for 32 per cent and 30 per cent of total consumption respectively.

The rapid rise of cloud infrastructure is also set to drive demand: South African data centers are projected to consume just over 16 TWh by 2030, while Kenyan centers will account for 5 TWh. EV adoption, however, will have a minimal short-term impact due to persistent challenges, including power shortages, high electricity costs and limited charging infrastructure.

Africa’s power sector features a diverse mix of supply technologies, with 313 GW of installed capacity to date. Fossil fuels dominate, with natural gas representing 40 per cent of the energy mix, followed by coal at 21 per cent.

For many countries, natural gas remains a critical enabler of electrification and industrialisation.

By 2050, gas-fired generating capacity is expected to reach 77 GW, though its share in the mix is set to remain at 40 per cent.

Amid the continent’s vast renewable potential, Africa is witnessing a steady transition toward cleaner power generation. Solar resources are estimated at 2,000–3,000 kWh/m²/year, while wind potential could support 1,300 GW of power and hydropower up to 1,100 GW.

The AEC Outlook indicates that by 2050, solar and wind will account for 41 per cent of the continent’s power mix, with geothermal and waste-to-energy also gaining momentum.

The private sector continues to lead this shift, securing 11 GW of capacity through private deals to date.

Africa’s nuclear sector, while nascent, is also advancing. South Africa hosts the continent’s only operational nuclear plant, but projects in Egypt, Ghana and Kenya are progressing.

Egypt’s plant has entered the construction phase, while Morocco and Uganda have signed agreements to explore nuclear cooperation. South Africa also plans to procure 10 GW of new nuclear capacity under its Integrated Resource Plan (2025).

“Africa cannot afford to choose between energy sources – we need every resource working for us if we are to power our growth. To meet rising demand and achieve universal access, we must attract bold, long-term investment across the entire energy value chain. The future of Africa’s power lies not in exclusion, but in integration,” stated the executive chairman, AEC, NJ Ayuk,.

To achieve universal electricity access, the International Energy Agency estimates that over $30 billion in annual investments will be required by 2030. Governments and development banks are increasingly turning to public-private partnerships, regulatory reforms and concessional finance to attract private capital and strengthen alignment between public policy and investor needs.