Cape Town, South Africa: 8 December 2025 – Africa stands at a defining moment in its energy transition. With some of the world’s richest solar, wind and hydro resources, the continent is rapidly scaling up renewable energy generation. However, a critical bottleneck threatens to derail this progress: the lack of adequate, modern and interconnected power grid infrastructure to move electricity from generation sites to where it is needed most.
Across the continent, hundreds of renewable energy projects – from utility-scale solar farms in the Sahel to wind parks along Africa’s coastlines – are unable to connect to national or regional grids due to limited transmission capacity, outdated infrastructure and insufficient investment in new power corridors. This growing gap between power production and power delivery is now one of the most urgent challenges facing Africa’s clean energy ambitions.
According to global energy bodies, Africa currently accounts for less than 3% of global electricity grid length, despite being home to nearly 18% of the world’s population. At the same time, the continent will require over USD 200 billion in transmission and distribution investments by 2040 to support projected demand growth, integrate renewables and expand access to underserved regions.
“Renewable energy is only as powerful as the network that delivers it,” says a spokesperson for the Africa Energy Indaba. “We are seeing significant momentum in project development, but without grid expansion and reinforcement, these projects risk becoming stranded assets. This is an infrastructure challenge, but also an economic and social opportunity.”
Africa’s grid challenge goes far beyond technical constraints. It directly impacts:
- Energy access: Over 600 million Africans still lack reliable electricity
- Industrialisation: Manufacturing and beneficiation depend on stable power supply
- Job creation: Grid expansion is a major source of skilled and semi-skilled employment
- Regional trade: Cross-border transmission enables power pooling and energy security
- Climate targets: Grids are essential to integrate intermittent renewables at scale
In markets such as South Africa, Kenya, Morocco and Egypt, grid congestion has already led to project delays and curtailments, despite strong investor appetite for renewables. Meanwhile, several power utilities are struggling with aging infrastructure, technical losses (which can exceed 20% in some countries), and limited capital for upgrades.
The rise of new energy hubs, including green hydrogen valleys, EV manufacturing zones, data centres, battery storage sites and industrial corridors, is further intensifying the need for resilient and intelligent grids – including smart substations, HVDC transmission, microgrids, and digital monitoring systems.
The Africa Energy Indaba 2026, taking place from 3 – 5 March in Cape Town, will place a strong focus on this critical issue. A dedicated programme will spotlight:
- Transmission and distribution investment pipelines
- Grid financing and de-risking models
- Regional interconnectors and power pools
- Smart grids and digital technologies
- Public-private partnerships for infrastructure rollout
- The role of international partners and DFIs in funding grid expansion
Ministers, utilities, regulators, developers, EPCs, technology providers, financiers and multilateral institutions will converge to shape a coordinated response to Africa’s grid imperative.
“Grids are no longer just wires and substations – they are the backbone of Africa’s new economic future,” adds the spokesperson. “Without them, the energy transition will remain an ambition instead of a reality.”
The time for decisive investment is now. Building modern, flexible and interconnected grids is not just a power-sector priority – it is a foundational requirement for Africa’s industrial growth, climate leadership and inclusive development.
