Financing renewable energy in developing countries: Drivers and barriers for private finance in sub-Saharan Africa

This report from the UNEP Finance Initiative, outlines how current obstacles to the scaling-up of sustainable energy solutions in Africa - such as the cost of electricity generation or difficult grid access - can be tackled.

To meet the continent's growing energy demands, the power sector in Africa needs to install an estimated 7,000 megawatts (MW) of new generation capacity each year. The report argues that much of this can come from Africa's wealth of untapped, domestic renewable resources.

Cape Verde, Kenya, Madagascar, Sudan and Chad have particularly significant potential, says the study. According to the African Development Bank Group, Mauritania's wind energy potential is almost four times its annual energy need, while Sudan's is equivalent to 90 per cent of its annual energy needs. This offers both opportunities to improve energy security and create regional markets.

The report is based on a survey of 38 institutions, mostly from the private sector, which are all involved in energy infrastructure finance in developing countries.