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Home » Energy » Africa’s Power Generation Expanded in 2025, but the Structural Gaps Persisted
Energy

Africa’s Power Generation Expanded in 2025, but the Structural Gaps Persisted

by Oluebube Elechi February 5, 2026
written by Oluebube Elechi February 5, 2026
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LAGOS, Feb 5 – Africa’s electricity sector recorded steady growth in 2025, reflecting rising demand, new capacity additions and continued investment in generation. Output increased across several markets, yet the pace of expansion remained insufficient to close long standing gaps in access and reliability, particularly across sub Saharan Africa.

Electricity generation on the continent has remained below 1,000 terawatt hours in recent years, with medium term outlooks projecting a gradual rise toward about 1,400 terawatt hours by 2030 under existing policy settings.

Against that backdrop, 2025 represented incremental progress rather than a decisive shift in Africa’s power balance. Demand continued to grow faster than in advanced economies, driven by population growth, urbanisation and industrial activity, while supply expansion struggled to keep pace.

Power generation remained highly concentrated. South Africa retained its position as the continent’s largest producer, generating about 235,000 gigawatt hours despite ongoing operational challenges in its coal dependent system. Egypt followed with output exceeding 208,000 gigawatt hours, supported by gas fired capacity and grid expansion. Algeria produced more than 90,000 gigawatt hours, while Nigeria and Morocco generated between 37,000 and 43,000 gigawatt hours each. These figures reinforced the dominance of North Africa and South Africa in continental electricity output, underpinned by relatively stronger infrastructure and investment flows.

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Fossil fuels continued to anchor Africa’s power mix throughout the year. Coal and natural gas accounted for most grid connected generation, particularly in South Africa, North Africa and parts of West Africa. Gas to power projects advanced in countries with domestic reserves, including Nigeria, Egypt and Algeria. Hydropower remained a key source in parts of East and Southern Africa, although variable rainfall again highlighted exposure to climate risks.

Renewable energy advanced from a small base, led by solar. Industry estimates pointed to solar capacity growth of about 42% in 2025, with South Africa and Egypt at the forefront. Wind power expanded more slowly and remained concentrated in a few markets. Limited transmission capacity and slow grid upgrades constrained the integration of new renewable projects.

By year end, access gaps remained pronounced. An estimated 600 million people in sub Saharan Africa still lacked reliable electricity, while outages and congestion persisted even in connected areas. Investment in the energy sector rose to about $43 billion in 2025, reflecting recognition of electricity’s role in economic growth. Even so, Africa’s power sector closed the year marked by progress, not transformation.

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