Africa’s renewable energy sector is expected to expand rapidly over the next five years, with renewable energy capacity projected to grow at a compound annual growth rate of 15.62% between 2026 and 2031.

According to a market analysis by Mordor Intelligence, Africa’s renewable energy installed capacity is expected to rise from about 86.95 GW in 2026 to 179.66 GW by 2031.

Solar is expected to lead that growth. The technology is projected to record a 27.84% CAGR through 2031, reflecting the growing role of solar power in meeting Africa’s electricity needs. Hydropower, however, remained the continent’s largest renewable source by installed capacity in 2025.

The growth points to a major opportunity for Africa, where millions of people still lack reliable access to electricity. Falling technology costs, rising demand for power and the expansion of distributed energy solutions are creating more room for renewable projects across both grid-connected and off-grid markets.

But capacity growth alone will not solve Africa’s energy challenge. The continent will also need stronger transmission networks, energy storage, investment and policies that can turn planned projects into operating power plants.

For countries such as Nigeria, the opportunity goes beyond adding more solar panels. Building local capacity around manufacturing, installation, financing, storage and maintenance could help ensure that the renewable energy boom creates lasting economic value.

Africa’s renewable energy future is growing quickly. The bigger question is whether the continent can build the infrastructure and investment environment needed to turn that growth into reliable electricity.