Africa’s solar market is entering a new investment phase in 2026 as developers move from conventional photovoltaic plants toward gigawatt-scale solar, battery storage, industrial PPAs and dispatchable renewable power.
Africa installed a record 4.5 GW of solar PV in 2025, up 54 percent, while South Africa has emerged as the continent’s largest solar market and Egypt is rapidly developing some of Africa’s biggest solar-plus-storage projects. Battery imports are also rising as utilities seek to make variable solar generation more useful to electricity grids.
The projects attracting the most attention are therefore no longer necessarily those with the most solar panels. Investment, battery capacity, annual generation, PPAs, grid connectivity and financing determine their commercial importance.
Scatec Obelisk: 1.1 GW Solar and US$590 Million Investment
Egypt has become the centre of Africa’s solar-plus-storage expansion.
Scatec completed its Obelisk project in August 2026, combining 1.1 GW of solar PV with a 100 MW/200 MWh battery energy storage system.
The development was constructed in two phases: 561 MW plus the entire battery system followed by another 564 MW. Electricity is sold to the Egyptian Electricity Transmission Company under a 25-year PPA. Scatec’s Obelisk project is expected to generate more than 3,000 GWh annually.
Total project cost is estimated at US$590 million. Approximately US$479 million of financing was assembled with support from institutions including the African Development Bank, EBRD and British International Investment.
Scatec Plans 1.95 GW Solar and 3.9 GWh Battery Project
An even larger Egyptian project is emerging.
In January 2026, Scatec signed a PPA with the Egyptian Electricity Transmission Company covering 1.95 GW of solar and 3.9 GWh of battery storage.
The development will include an integrated solar-BESS system designed to supply round-the-clock renewable baseload electricity, together with two standalone battery projects providing grid services.
Scatec describes it as the largest solar and BESS development in Africa and the largest investment in the company’s history. The facilities are expected to produce approximately 6 TWh annually.
The project illustrates the direction of Africa’s largest renewable investments: combining generation with enough storage to turn daytime solar electricity into a more predictable power product.
Abydos II: US$750 Million for 1 GW Solar and 600 MWh Storage
AMEA Power is also expanding Egypt’s hybrid renewable infrastructure.
Abydos II in Aswan Governorate combines 1 GW of solar PV with 600 MWh of battery storage and operates under a 25-year PPA.
Estimated investment is around US$750 million, supported by an IFC-led financing package of approximately US$572 million.
The plant is expected to generate more than 3 million MWh annually, while the battery will allow renewable electricity to be dispatched during evening and peak-demand periods.
Abydos II therefore provides another example of how Egypt is moving beyond conventional solar farms toward large-scale dispatchable renewable infrastructure.
Kenhardt: US$1 Billion Dispatchable Solar Project
South Africa provides one of Africa’s strongest examples of storage-backed solar.
Scatec’s Kenhardt complex combines 540 MW of solar PV with 225 MW/1,140 MWh of battery storage.
The approximately US$1 billion project is designed to provide 150 MW of dispatchable renewable electricity between 5 a.m. and 9:30 p.m. under a 20-year PPA with Eskom.
Kenhardt demonstrates why investment per solar MW can be misleading. Much of the project’s value comes from its large battery system and ability to provide electricity according to a contracted delivery profile rather than only when the sun is available.
Thakadu Adds US$240 Million Private-Offtake Model
Another major South African development entered construction in 2026.
Scatec joint venture Lyra Energy reached financial close for the 255 MW Thakadu solar project in March. Total capital expenditure is approximately ZAR4 billion, or US$240 million, with financing structured through project debt and equity and targeted leverage of 80 percent.
Unlike traditional utility-backed projects, Thakadu has contracted private-sector offtake, demonstrating the growing role of corporate electricity buyers in South Africa.
Scatec’s Thakadu project is being constructed in two phases.
Dandara Links 500 MW Solar to Aluminium Production
Egypt’s Dandara project demonstrates another emerging model: using solar electricity to decarbonize energy-intensive industry.
The first phase combines 500 MW of solar PV with 100 MWh of battery storage in Qena Governorate.
Total investment exceeds US$290 million, while the African Development Bank approved financing of up to US$66 million.
The Aluminium Company of Egypt will purchase the electricity under a 25-year PPA.
According to the African Development Bank’s Dandara project announcement, the project should generate around 1,373 GWh annually and avoid approximately 500,000 tonnes of CO2 emissions per year. Commercial operation is targeted for early 2028.
Morocco Retains One of Africa’s Largest Solar Platforms
Morocco remains an important solar-investment market.
The Noor Ouarzazate complex has around 580 MW of solar capacity, combining concentrated solar power and photovoltaic technologies.
The larger Noor Midelt program was designed to take the model further. Phase I envisaged two hybrid solar plants with combined capacity of up to 800 MW and an estimated project cost of approximately €2.05 billion.
The design combines photovoltaic generation with CSP and thermal storage, allowing electricity production to extend beyond daylight hours.
Morocco’s experience shows that Africa’s storage-backed solar story began before the current wave of lithium-ion BESS investment.
Angola Launches 500 MW Solar Program
Angola is emerging as another utility-scale market.
Masdar signed a PPA in January 2026 for the 150 MW Quipungo Solar PV project in Huíla Province.
Quipungo represents the first contracted site under Project Royal Sable, a planned 500 MW solar program across three locations designed to strengthen Angola’s southern electricity grid.
The PPA with state-owned transmission company RNT provides an important commercial foundation for the project. Masdar’s Quipungo solar project also represents Masdar’s first PPA in Angola.
Storage Is Changing African Solar Economics
The comparison reveals a significant change in African renewable investment.
Conventional solar remains important, but some of the largest projects are differentiated by storage duration and deliverability. Kenhardt pairs 540 MW of PV with 1,140 MWh of batteries, while Scatec’s planned Egyptian project would combine 1.95 GW of solar with an extraordinary 3.9 GWh of storage.
This reflects a broader global transition from simply adding renewable generation toward integrating that generation through batteries, transmission and grid-management infrastructure.
Africa’s next solar leaders will therefore be judged not simply by installed megawatts. The stronger projects will combine competitive solar generation, storage, grid access, long-term PPAs, credible offtakers and bankable financing.
Egypt is currently setting the pace for gigawatt-scale solar-plus-storage, South Africa is demonstrating dispatchable and private-offtake models, Morocco has established large hybrid solar infrastructure, and Angola is opening another utility-scale market.
The next phase of Africa’s solar boom will be defined by how effectively developers turn abundant sunshine into financed, contracted and reliably delivered electricity.
SHAFANA FAZAL
