Africa could save $3-5 trillion (an average of $150 billion annually) by transitioning to a fully renewable energy system by 2050, new analysis has revealed. This shift would deliver not only the cheapest energy, but also unlock millions of new jobs, accelerate development, and dramatically improve energy access.
The research, “African Energy Leadership: The Case for 100% Renewable Energy”, was commissioned and led by Power Shift Africa, with the technical modelling led by the University of Technology Sydney’s Institute for Sustainable Futures (UTS-ISF).
The report was launched on Thursday, June 19, 2025, at the Bonn Climate Conference (SB62).
It models a 100% renewable energy scenario across the continent, and shows that building a fully renewable energy system would cost significantly less than continuing with fossil fuels, saving $3-5 trillion by 2050, and producing fuel cost savings of over $8 trillion – more than double (2.2x) the additional investment required to go 100% renewable – offering a rare alignment of climate, economic, and development goals.
Africa’s renewable energy potential, particularly in solar and wind, is more than sufficient to meet the continent’s long-term energy needs. Achieving 100% renewable energy and making Africa’s contribution to keep warming below the 1.5°C temperature limit would require about 3,500GW of installed renewable energy capacity by mid-century, or less than 1% of Africa’s vast renewables potential. Most of this 3,500GW would come from solar photovoltaics, supported by wind, energy storage, and modernised power grids.
The shift to clean energy would not only reduce reliance on expensive fossil fuel imports, which trap the continent in a vicious debt cycle, but also create 2.2 million more energy sector jobs than the business-as-usual scenario. A 100% renewable energy pathway would support 5.4 million energy jobs by 2050, compared to just 3.2 million under current fossil fuel focused trajectories. Crucially, it would do so while achieving universal access to modern, affordable energy, and supporting sustainable industrialisation.
Yet, this future is not guaranteed. Structural barriers such as debt burdens and limited access to grants, finance, and sharing of technology and patents, are holding Africa back. The report warns against false solutions, especially the push for expanded fossil fuel infrastructure under the guise of development, noting that these short-term fixes could lock the continent into stranded fossil fuel assets and deepen its dependence on volatile global markets.
Instead, the report calls for a people-centred approach to development that prioritises energy sovereignty and regional industrialisation. It urges international action to cancel unjust debt and overhaul the global financial system, alongside scaled-up public climate and development finance. It also advises African leaders to embrace decentralised energy systems and embed energy planning into broader government development agendas.
Mohamed Adow, Founder and Director, Power Shift Africa, says: “Africa has a golden opportunity to lead the world in the clean energy revolution. Our continent is blessed with abundant natural resources in the form of endless sunshine, strong winds, vast hydropower potential, and rich geothermal reserves. Embracing a 100% renewable energy system is not just about tackling climate change; but building a resilient, self- sufficient Africa. 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.”
Prof. Dr. Sven Teske of UTS-ISF and scientific lead for the research, says: “Africa has great untapped potential to provide energy for everyone and to supply the required energy for its transition to a middle-income continent. Renewable energy can provide reliable and secure energy demand for all the industries of a growing economy, from heavy industries to services; from residential to commercial buildings; and can supply electricity for transport and food production.”
Currently, nearly half of all Africans, or 720 million of them, live more than 10km from a power line, with many relying on polluting, inefficient fuels like charcoal and wood for cooking. The report argues that expanding decentralised, off-grid renewable energy solutions, such as stand-alone grids and electric cooking technologies, can provide a faster, cheaper route to universal energy access.
Electric cooking, for example, has emerged as a viable and transformative alternative to traditional biomass, which currently accounts for around 70% of Africa’s energy used in cooking and heating. Transitioning to clean electric cooking by 2050 would yield massive health, environmental, and economic benefits, but it will require targeted policies, consumer incentives, and infrastructure investment.
The researchers note that Africa leapfrogging the fossil fuel era and jumping straight to clean energy is not only possible, but also strategically advantageous. The continent has a minimal amount of fossil infrastructure, meaning it can skip the dirty energy systems of the past and move straight to modern, decentralised renewables. Solar alone has a theoretical potential of over 480,000GW.
By 2050, a 100% renewable energy system would require only 2,615GW of installed solar PV and 625GW of wind power, just a sliver of what’s technically available. And this transition would use less than 1% of Africa’s total landmass, despite the huge uptick in electrification and energy use that development will bring.
The findings confirm that a clean energy future is not just technically feasible, but is also the cheapest, healthiest, and fairest route for Africa’s development. Renewables like solar and wind are fast to deploy, increasingly modular, and now the most cost-effective forms of power generation.
The report also presents highlights from more detailed energy transition pathways which were modelled for six African countries (Kenya, Rwanda, Uganda, Senegal, Malawi, and Tunisia). Further, the report outlines the key principles for a new African energy vision, including African ownership of energy strategies, integration of energy into broader development planning, and a clear policy focus on phasing out fossil fuels in favour of renewables.
Ali Mohamed, Kenya’s Specia Envoy for Climate Change: “A renewable energy revolution in Africa will create millions of jobs, empower local economies, and ensure energy access for every African, including those in the most remote areas. Climate change disproportionately affects Africa, even though we contribute the least to global emissions. By switching to renewables, we protect our lands, secure our future, and become a beacon of sustainable development for the world. This transition is not only necessary, but it is also Africa’s chance to define its own energy destiny and emerge as a leader in the fight against climate change.”
Fatuma Hussein, Deputy Director, Power Shift Africa: “The report confirms what many of us in the continent believe in; that a just transition to a 100% renewable energy future for Africa is not only technically achievable, but also economically and socially transformative. By harnessing our abundant wind and solar potential, we can rapidly close the energy access gap for over 600 million Africans, create millions of decent jobs, and drive a new model of people-centred and climate compatible development. This is about more than clean energy; it’s about transforming Africa’s future and reclaiming our power, our economic prosperity, our resources, and our narrative.”
Find the full report here.