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Location:Home > > Market Intelligence > Energy Storage | The Emerging Distributed Photovoltaic Energy Storage Market in Africa

Energy Storage | The Emerging Distributed Photovoltaic Energy Storage Market in Africa

Date:2024-09-09
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Keyword tags: Energy Storage ESS Africa

At the recent Forum on China-Africa Cooperation, China announced in a document that it will implement special projects for clean energy power supply, providing African countries with distributed photovoltaic energy storage systems and supporting enterprises in building large-scale clean energy power generation projects in Africa. Specifically, 30 clean energy projects will be implemented in Africa, and 30 joint laboratories will be established to help Africa achieve green development.



The African region has a unique geographical latitude and climate conditions that harbor abundant solar energy resources. However, the power grid infrastructure in most African countries is relatively weak, leading to insufficient grid coverage and unstable power supply in remote areas. Statistics show that the 1.3 billion people in the 54 countries of Africa have a huge daily demand for electricity, but Africa's electricity generation accounts for only 3% of the world's total, and there are still 600 million people in Africa without access to electricity.


Looking at the market demand for energy storage in major African countries, according to statistics from countries such as South Africa, Zambia, Morocco, and Egypt, South Africa has been experiencing power outages every day since 2023, with outages possibly exceeding 8 hours in a day. However, the overall market space for household energy storage in South Africa is relatively narrow and is already in a state of intense competition and saturation. East African countries represented by Uganda and Tanzania, and West African countries represented by Nigeria, have relatively backward economic development and incomplete basic electricity infrastructure, and there is a strong demand for distributed photovoltaic energy storage products, with humble quality requirements, which may provide market opportunities for emerging energy storage companies. North African countries with faster economic development, such as Egypt, have a lack of talent in power system construction, leading to certain deficiencies in local basic grid facilities, thus having a greater demand for distributed photovoltaic energy storage systems.

China has established a complete photovoltaic industry chain. China's aid of distributed photovoltaic energy storage systems to Africa can meet Africa's abundant solar energy resources and huge market demand, achieving mutual benefits for both parties.

According to a report released by the African Solar Industry Association, in 2023, Africa's newly added solar power installation capacity reached 3.74GW, a year-on-year increase of 19%, and the total installed capacity has reached 16.3GW. It is predicted that the African photovoltaic market will exceed 10GW, with an annual demand for the energy storage market close to 3GWh, mainly concentrated in South Africa.

In addition, countries such as Egypt, Morocco, Tunisia, and Niger have determined to vigorously develop clean energy such as solar power:

- Egypt: Approval of a total installed capacity of renewable energy power generation projects exceeding 12GW and will promote more solar and wind power and other renewable energy power generation projects to be implemented.
- Tunisia: Planning to build 8 solar photovoltaic power stations with a total installed capacity of 800MW and 8 wind power stations with a total installed capacity of 600MW between 2023 and 2025, striving to increase the proportion of renewable energy power generation in the total power generation to 24% by 2025.
- Niger: Planning to increase the country's power generation capacity to at least 5 times by 2030, reaching 2GW, with 30% of the electricity coming from renewable energy sources.

Compared to the more mature European and North American markets, Africa's energy storage market is still in the early stages of development but has high growth potential.