Renewable Energy: China and Central Europe Lead the African Market

Driven by the energy transition, electrification, and the goal of achieving energy diversification, the development of renewable energy on the African continent is accelerating. This trend is supported by declining technology costs globally and climate policy incentives. Africa is increasingly relying on renewable energy to meet its energy needs. According to data provided by the International Renewable Energy Agency (IRENA), in 2024, the new renewable energy capacity in Africa has exceeded 70 gigawatts (GW). However, this growth is entirely dependent on imported equipment - from solar panels, inverters, energy storage batteries to turbines and numerical control systems, Africa cannot produce these locally.

A report published by the South African non-profit organization "GreenCape" in 2024 shows that the imported equipment involved in large-scale renewable energy projects in Africa mainly focuses on photovoltaics, wind power, battery storage, and inverters. Where do these equipment and technologies come from? Who are the suppliers in Africa? Recently, the Economic and Financial Communications Service (ecofin) published an in-depth article analyzing who dominates the African renewable energy market.

China Dominates the Photovoltaic Market

Solar energy is now the most deployed renewable energy in Africa, but it completely depends on imports. According to the "Cost of Renewable Energy Power Generation 2024" report released by the International Renewable Energy Agency, in 2023, 85% to 90% of the photovoltaic modules installed in Africa came from China. Chinese manufacturers such as LONGi, JA Solar, Trina Solar, and Jinko Solar have dominated the African market with their vast industrial production capacity and highly competitive prices. Another manufacturer active in Africa, Canadian Solar, although headquartered in Canada, has its production in China and has long been among the top five global exporters. Most components transported to the African continent use high-performance high-temperature resistant N-type cell technology, which is one of the most advanced and promising battery technologies in the current photovoltaic industry, mainly produced by the above five industrial giants. Africa does not produce silicon wafers, cells, or complete modules. Currently, only a few countries like South Africa have a small number of assembly plants. India has made progress in the household solar sector in Kenya and Uganda, while the commercial presence of the European Union has greatly declined. According to the "Global PV Supply Chain" report released by the International Energy Agency (IEA) in 2023, the EU's share in the global market has dropped below 5%. This trend also reflects in the African market, where its influence is now negligible.

Wind Power Market: European Dominance and the Rise of China

However, unlike photovoltaics, the African wind power market is dominated by European manufacturers. According to data from the U.S. Wood Mackenzie consulting company and the Global Wind Energy Council, in 2024, European manufacturers still hold a dominant position in the global wind power installation market outside of China. The global wind power leader Vestas has installed over 10 gigawatts of wind power globally, followed closely by Siemens Gamesa and Nordex. According to multiple reports released between 2022 and 2024, these three companies remain the main suppliers in the North African (Morocco, Egypt) and South African wind power markets.

But China is catching up. According to data provided by the International Renewable Energy Agency, Chinese manufacturers such as Goldwind and Mingyang have delivered several recent projects in Kenya and Egypt through Chinese financing support.

Energy Storage: A Market Monopolized by China and South Korea

In the energy storage field, the African market is monopolized by Chinese and South Korean companies. In 2024, Asian companies provided more than 95% of the energy storage systems on the African continent. CATL holds 45% of the market share, LG Energy Solutions holds 25%, BYD holds 15%, and Samsung SDI and Panasonic split the remaining market share.

The other two companies actively operating in the African renewable energy sector are d.light and Bboxx. These are two innovative companies with global influence in the off-grid solar field. They mainly serve regions with weak power infrastructure such as Africa and South Asia, providing new energy solutions for people without electricity or with insufficient power through solar + energy storage + Internet of Things technology. They are leading enterprises in the "energy equity" movement and have received investments from the UK government (CDC Group), SoftBank, Goldman Sachs, and EDF. Although the cost of energy storage has dropped to $192 per kilowatt-hour, Africa has not yet established a local supply chain, and lithium batteries are completely imported.

Inverters: A Market Technologically Dominated by China

Inverters are key equipment that convert direct current from solar into alternating current. The African market completely relies on imports, and Asian suppliers, especially Chinese suppliers, dominate absolutely. Two Chinese manufacturers, Huawei and Sungrow, together account for about 55% of the global market share. Inverters are widely used in large-scale solar projects in Africa. Similarly, another Chinese company, Growatt, is continuously expanding its market share in the off-grid field, particularly in the home solar kit market. Compared to this, European manufacturers, especially German SMA and Austrian Fronius, two global leaders in photovoltaic inverters, have seen their global market share drop to 5%-7%, and their influence in Africa is now minimal, limited to projects requiring high-level financing or technical requirements.

With 600 million people still lacking access to electricity in Africa, mastering technology is key to ensuring Africa's energy security. Ten years ago, IRENA warned: Africa needs to establish a new energy industrial system, invest in the manufacturing of local solar and wind power components, to reduce costs, create jobs, and improve trade balance.

Original article: www.toutiao.com/article/1841849935216714/

Statement: This article represents the views of the author.