The electrification of rural Africa through decentralized power generation systems such as solar home systems and mini-grids is essential to eradicating energy poverty, according to NJ Ayuk, Executive Chairman of the African Energy Chamber.
Africa, particularly sub-Saharan regions, remains the most energy-deficient continent, with nearly 600 million people lacking access to reliable electricity. This energy gap affects daily life, hinders economic development, and exacerbates social inequalities.
The African Energy Chamber’s State of African Energy 2025 Outlook highlights the urgent need to expand electricity access, ensure affordability, and reduce reliance on fossil fuels. Decentralized systems powered by renewable energy, especially solar and wind, are seen as the most viable solution for isolated rural areas.
Standalone systems and mini-grids using solar panels with battery storage are transforming rural electrification, with Africa now accounting for 16% of global decentralized renewable capacity. Solar energy, which comprises 80% of Africa’s decentralized capacity, has brought electricity to millions, with solar home systems and mini-grids rapidly expanding over the past decade.
Funding remains a critical challenge. Pay-as-you-go (PAYG) models and initiatives like the African Development Bank’s Desert-to-Power program aim to make solar systems more accessible. By 2030, the Desert-to-Power initiative targets installing 10 GW of solar energy across 11 countries, benefiting 250 million people.
The report underscores the need for collaborative efforts between governments, private entities, and development banks to ensure sustainable financing for large-scale decentralization projects. This approach, combined with policy reforms, is expected to secure Africa’s energy future and improve millions of lives across the continent.