By Abdullahi Lukman
Africa could save between $3 trillion and $5 trillion by 2050—an average of $150 billion annually—by transitioning to a fully renewable energy system, a new report has revealed.
This was launched on June 19, 2025, at the Bonn Climate Conference, the report highlights that a 100% renewable pathway would not only be the cheapest option but would also unlock millions of new jobs, enhance development, and dramatically improve energy access across the continent.
The report, African Energy Leadership: The Case for 100% Renewable Energy, was commissioned by Power Shift Africa, with technical modelling led by the Institute for Sustainable Futures at the University of Technology Sydney.
It finds that building a fully renewable energy system across the continent would result in fuel cost savings of over $8 trillion—more than twice the additional investment required—offering a rare alignment of climate, economic, and social goals.
To meet long-term energy needs and stay within the 1.5°C global warming limit, Africa would need to install about 3,500GW of renewable capacity by 2050, mostly from solar photovoltaics, with support from wind, storage, and modernised grids.
This would require less than 1% of Africa’s total landmass but would create 2.2 million more energy jobs than the current fossil fuel trajectory—5.4 million jobs compared to 3.2 million.
Currently, nearly half of all Africans—about 720 million people—live more than 10 kilometers from a power line, and many still rely on polluting fuels like charcoal and wood for cooking.
The report advocates for decentralised, off-grid renewable solutions and clean electric cooking technologies as faster, cheaper alternatives that can drive universal access and public health benefits.
Biomass, which now accounts for 70% of energy used in cooking, could be replaced with electric alternatives by 2050 through targeted policies and investment.
Despite the clear benefits, the report warns that structural barriers such as debt, lack of finance, and restricted access to technology could prevent this energy transition.
It also cautions against expanding fossil fuel infrastructure under the guise of development, which could lock Africa into stranded assets and deepen its dependence on volatile global markets.
Instead, the authors call for a people-focused approach that prioritises energy sovereignty, regional industrialisation, and the integration of energy into broader development strategies.
They urge global action to cancel unjust debt, reform financial systems, and scale up public climate finance to help Africa leapfrog directly to modern, decentralised renewable energy.
Mohamed Adow, Director of Power Shift Africa, described the transition as a “golden opportunity” for the continent to lead the clean energy revolution.
“Clean energy means reliable electricity for our communities, fewer power shortages for our industries, and a reduction in the environmental damage caused by fossil fuels,” he said.
Scientific lead Prof. Dr. Sven Teske added that renewable energy could reliably support all sectors of a growing African economy and facilitate its transition to middle-income status.
With solar potential exceeding 480,000GW and vast wind and geothermal resources, the report concludes that a fully renewable, affordable, and resilient energy future for Africa is not only possible—it is the most strategic path forward.
