Africa's transition to clean energy is entering a new phase, with a growing emphasis on strengthening institutions to deploy renewable energy at scale, according to experts. This marks a shift from demonstrating the viability of clean energy technologies to addressing the systemic obstacles hindering their widespread adoption.
Globally, renewable energy reached a significant milestone in 2025, generating 34% of the world's electricity and surpassing coal's 33% share. By 2030, renewables, along with nuclear power, are projected to account for half of global electricity generation. As demand for energy rises due to industrialization, artificial intelligence, and electrification, the primary constraint on the energy transition is increasingly seen as the supporting systems rather than the technology itself.
Addressing these systemic challenges is crucial for providing electricity access to the approximately 600 million people in Africa who currently lack it. Michael R. Bloomberg, the U.N. Secretary-General’s Special Envoy on Climate Ambition and Solutions, highlighted that while clean energy is now cost-competitive globally, "fixable obstacles" continue to slow deployment. He announced a $285 million initiative by Bloomberg Philanthropies aimed at bolstering clean energy industries in emerging and developing economies.
This initiative will prioritize investments in market design, regulatory capacity, technical expertise, and industry institutions, areas deemed essential for attracting private investment and accelerating renewable energy uptake. This approach reflects a broader understanding that Africa possesses abundant renewable resources and viable technologies, but often lacks the institutional framework to translate these advantages into tangible projects and grid-connected electricity.
Numerous renewable energy projects in Africa have faced delays attributed to weak market structures, inadequate grid planning, protracted permitting processes, and fragmented regulatory environments. Saliem Fakir, executive director of the African Climate Foundation, stated that the missing element has been "the institutional infrastructure and capabilities to unlock" Africa's energy potential. He emphasized that philanthropic efforts directly targeting these gaps can significantly alter the continent's energy trajectory.
Despite a sharp decline in renewable energy costs and increasing investor interest across Africa, policy uncertainty, slow permitting, and limited regulatory capacity remain significant impediments to project development. Wangari Muchiri, founder and chief executive of RE.Think Energy, noted that the current phase of the energy transition is focused on "removing the barriers preventing it from scaling fast enough."
The Bloomberg initiative aims to support projects in attracting long-term investments and integrating them into national power grids. Muchiri concluded that "the next chapter of Africa's renewable energy story will not be only by the projects it builds, but the institutions that make these projects possible."