More Chinese energy investments in Africa are going to renewables, report finds
Solar and wind power make up 59 per cent of China’s energy projects on continent and it’s a key market for the technology, think tank says
China is increasingly channelling its energy investments in Africa into renewable projects, with solar and wind power now accounting for 59 per cent of its energy projects on the continent, according to a report by UK-based think tank ODI Global.
The report found one-fifth of China’s overall energy sector and also a fifth of renewable energy investment and construction activity had taken place in Africa, amounting to US$66 billion between 2010 and 2024.
The continent has also become a key market for Chinese solar and wind technology, with exports surging 153 per cent from 2020 to 2024. That growth is being fuelled by Africa’s rising energy demand and China’s dominance in solar panel production, where it manufactures over 80 per cent of the global supply.
The findings align with global trends showing China’s energy investment shifting from fossil fuels to renewables. In 2021, China committed to halting the funding of new coal-fired power plants overseas.
The ODI Global study noted that “African economies represent a smaller, but growing destination for Chinese wind and solar power technology”. This shift is expected to continue given rising demand for electricity generation and untapped renewable energy resources on the continent.
Elena Kiryakova, a research fellow in the Global Risks and Resilience programme at ODI Global, said Africa’s adoption of Chinese wind and solar tech was mainly due to its “global competitiveness” and Africa’s “growing energy needs”.
Kiryakova, the lead author of the report, said Chinese manufacturers “dominate global supply chains” and see African markets as key to addressing “domestic overcapacity and competition”.
China accounts for over 80 per cent of global solar panel manufacturing, according to the International Energy Agency.
“China’s industrial policies have also significantly reduced the cost,” Kiryakova said, adding that in “most African countries, there is no real cost-competitive alternative to Chinese solar panels – also seen as competitive on performance and reliability”.
Globally, nearly half of China’s exports of solar panels and wind turbines went to emerging and developing economies in 2024, amounting to about US$13.8 billion – significantly more than exports to the United States and the European Union.
Exports of the same products to the US and the EU last year were US$117 million and US$11 billion, respectively. The study also reported that in 2024, China exported over US$1 billion of clean-energy technology to South Africa, Mozambique and Kenya.
Kiryakova noted that China’s solar and wind power tech exports to the US had been falling for several years due to US trade barriers on Chinese solar cells, lithium-ion EV batteries and electric vehicles.
“Given China’s need to sell internationally and lower trade barriers in African countries compared to Western markets, a stronger push of Chinese clean tech exports into Africa is expected,” she said, adding that it could also accelerate the trend of China exporting clean tech to emerging economies.
Kiryakova said that if US tariff policies resumed after the 90-day suspension, Chinese firms could consider shifting production to African nations offering favourable trade terms and investment incentives for clean technology supply chains.
“On the other hand, stricter US rules of origin for clean tech could reduce the benefits of relocation,” she added.
The ODI Global study also found that Chinese finance has supported most of the renewable projects in Africa, though lending volumes peaked in 2016 and have since declined.
Nevertheless, Chinese lenders continue to fund a growing number of these projects. ODI Global’s study noted that “Africa accounts for nearly a third of Chinese global energy lending”, receiving US$65 billion in Chinese energy-related financing between 2010 and 2021.
The study pointed to Kenya, Mozambique and South Africa as examples. Kenya has seen a shift in Chinese energy engagement since 2020, with no new fossil fuel investments. Instead, China has financed key renewable projects like Olkaria IV and Garissa Solar Park, moving beyond traditional lending approaches.
In gas-rich Mozambique, China primarily focuses on LNG financing through a mix of concessional and commercial loans backed by Sinosure insurance.
And in South Africa, China has been the dominant supplier of imported clean energy technology, with Chinese firms taking a significant share of the sector, particularly solar power projects, since 2022, according to the report.