The latest AFSIA report has revealed solar market trends in C&I, large-scale, storage and green hydrogen projects in 2024.
AFSIA reports continued growth in the C&I segment in Africa, driven by both captive generation and wheeling projects. In 2024, nearly 6 GW of captive C&I projects and 1.7 GW of wheeling projects were announced, with South Africa leading in wheeling projects and the majority of captive projects located outside South Africa. The 3-year rolling pipeline saw a 15 percent increase this year, signaling robust development.
The large-scale solar segment, severely impacted during COVID-19, has made a remarkable recovery. In 2024, large-scale projects accounted for 72 percent of newly installed capacity, up from 32.4 percent in 2023. This represents a 350 percent growth in installed capacity, with 1,783 MW added this year compared to 521 MW last year. The segment now dominates the development pipeline, excluding green hydrogen projects, and is expected to drive future growth with 81 GW of planned capacity across the continent.
Green hydrogen projects slowed in 2024, with only 1,180 MW of new announcements compared to nearly 100 GW in prior years. However, progress includes the operation of two green hydrogen plants, including a modular ammonia system in Kenya powered by solar and battery storage. The focus has shifted to delivering existing projects, with ongoing momentum from key global players.
Storage solutions have experienced exponential growth, with capacity increasing tenfold in 2024 after tripling in 2023. This expansion reflects advancements in lithium battery technology, reduced costs due to economies of scale, and global competition. With 18 GWh of projects in development, storage is poised to play a crucial role in meeting Africa’s energy needs.
Baburajan Kizhakedath