West Africa Renewable Energy Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 2.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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West Africa Renewable Energy Market Analysis
The West Africa Renewable Energy Market is expected to grow at a CAGR of more than 2.0% during the forecast period.
COVID-19 negatively impacted the market in 2020. Currently, the market has reached pre-pandemic levels.
- Over the long term, factors such as increased environmental awareness and regulations and decreased cost per kilowatt of electricity generated are expected to boost the market.
- On the other hand, the high price of renewable energy relative to fossil fuels is expected to restrain the market.
- However, new models of solar cells made of a thin film technology that uses narrow coatings of cadmium telluride in solar cells, which have higher efficiency and lower cost, may prove to be an opportunity in the sector.
- Nigeria is expected to have the largest share of renewable energy in the region due to the government's focus on decreasing dependence on imported fossil fuels.
West Africa Renewable Energy Market Trends
This section covers the major market trends shaping the West Africa Renewable Energy Market according to our research experts:
Hydropower Segment to Dominate the Market
- The hydropower segment is expected to dominate the market as dams have been built across West Africa. Most of the renewable hydro capacity has been constructed in Nigeria and Ghana.
- The hydropower segment includes different-sized reservoir dams that can be used to provide renewable energy. Hydropower is the most used renewable energy in West Africa.
- In November 2022, the Nigerian government approved the construction of a 1,650 MW hydropower plant at USD 3 billion. The project would be funded under a public-private partnership arrangement and located in the north-central state of Benue, Laolu Akande.
- In September 2021, the Souapiti hydropower plant in Guinea began commercial operation. The facility will produce 1,900 GWh of clean energy per year and increase production of the downstream Kaléta hydro scheme to 1,000 GWh/per year.
- Hydropower (including mixed plants) constitute almost 94.2%of the total renewable energy generated in the region, with nearly 5,513 MW of power being produced, in 2021.
- Therefore, vast reservoirs of dams providing renewable energy are expected to continue to dominate the market due to their large size relative to other renewable energy and an increase in investments.
Nigeria to Dominate the Market
- Nigeria is expected to have the largest share of renewable energy among the nations in the forecast period due to its significant consumption of electricity and government focus on decreasing dependence on imported fossil fuel.
- Nigeria is the most populous nation in West Africa. The country's high demand for electricity due to the high population is expected to promote growth in renewable energy. However, the high cost of renewable energy causes constraints to its growth.
- Most of the installed renewable capacity in the country comes from Hydropower projects. In 2021, Hydropower constituted 2111 MW of installed capacity, which is approximately 98% of all the renewable energy in the country. However, this scenario is expected to change during the forecast period owing to increasing investment in solar energy.
- In September 2022, Sterling & Wilson Renewable Energy bagged a USD 1.5-billion order from the government of Nigeria, along with its consortium partner Sun Africa, for setting up solar PV power plants aggregating 961 MW at five locations along with battery energy storage systems with a total installed capacity of 455 MW.
- Hence, Nigeria is expected to dominate the market due to its large size and increased renewable energy installed capacity in the forecast period.
West Africa Renewable Energy Industry Overview
West Africa Renewable Energy Market is moderately consolidated. Some of the key players in this market are (not in particular order) Power Construction Corporation of China Ltd, Energicity Corp, Wärtsilä Oyj Abp, China Civil Engineering Construction Corporation, and REDAVIA GmbH.
West Africa Renewable Energy Market Leaders
REDAVIA GmbH
China Civil Engineering Construction Corporation
Wärtsilä Oyj Abp
Energicity Corp
Power Construction Corporation of China
*Disclaimer: Major Players sorted in no particular order
West Africa Renewable Energy Market News
- November 2022: NEoT Offgrid Africa, an energy investment platform founded by France's EDF and Meridiam, announced that they were working with two other companies to develop a 1.7 megawatt (MW) solar power project in Benin. The mini-grid project will provide electricity in 12 rural localities, including 3 MWh of battery capacity to supply more than 5,000 homes and businesses with electricity.
- August 2022: the Volta River Authority's 13MW Solar Power Project at Kaleo was successfully commissioned in Ghana. The solar plant is the first phase of what will eventually be a 28MW plant at Kaleo. The Volta River Authority (VRA) will receive a further USD 16 million from German Development Bank (KfW) to construct the second phase of the Kaleo Solar Power Plant. That will add 15MW to the project by mid-2023.
West Africa Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Renewable Energy Installed Capacity Forecast in MW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Hydro
5.1.2 Solar
5.1.3 Wind
5.1.4 Others
5.2 Geography
5.2.1 Nigeria
5.2.2 Ghana
5.2.3 Others
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Power Construction Corporation of China
6.3.2 Energicity Corp
6.3.3 Wärtsilä Oyj Abp
6.3.4 China Civil Engineering Construction Corporation
6.3.5 REDAVIA GmbH
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
West Africa Renewable Energy Industry Segmentation
Renewable energy is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, water movement, and geothermal heat.
The West Africa Renewable Energy Market is segmented by type and geography. By type, the market is segmented into hydropower, solar, wind, and others. The report also covers the market size and forecasts for the renewable energy market in major countries across the region. For each segment, the market sizing and forecasts have been done based on installed capacity (GW).
| Type | |
| Hydro | |
| Solar | |
| Wind | |
| Others |
| Geography | |
| Nigeria | |
| Ghana | |
| Others |
West Africa Renewable Energy Market Research FAQs
What is the current West Africa Renewable Energy Market size?
The West Africa Renewable Energy Market is projected to register a CAGR of 2% during the forecast period (2024-2029)
Who are the key players in West Africa Renewable Energy Market?
REDAVIA GmbH, China Civil Engineering Construction Corporation, Wärtsilä Oyj Abp , Energicity Corp and Power Construction Corporation of China are the major companies operating in the West Africa Renewable Energy Market.
What years does this West Africa Renewable Energy Market cover?
The report covers the West Africa Renewable Energy Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the West Africa Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
West Africa Renewable Energy Industry Report
Statistics for the 2024 West Africa Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. West Africa Renewable Energy analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
