Africa and the Middle East invested $ 15.2 billion in renewable energy in 2019, 8% less than in 2018, according to a study. This decline was mainly driven by the slowdown in auction cycles aimed at building new power plants.
Investments in renewable energies in Africa and the Middle East in 2019 decreased by 8% compared to 2018. The countries of the region have, in fact, invested $ 15.2 billion in the past year against 16 , $ 5 billion in 2018. This is revealed by a study co-produced by the United Nations Environment Program Center, the University of Frankfurt and Bloomberg New Energy Finance.
According to the study, several countries such as South Africa, Jordan, Morocco, Egypt and Kenya have been major investors. However, they recorded a drop in their investments in 2019 due to a slowdown in their procurement procedures.
The most important asset financings were the injection of $ 302 million in a photovoltaic power plant by the National Office of Water and Electricity in Morocco and the investment of $ 325 million in the wind power plant of West Bakr (250 MW) in Egypt by Lekela Power.
“In all of these countries, there was a gap between the auction cycles that drove the development dynamics of their renewable energy subsector. The rapid fall in the price of equipment, in particular that of solar photovoltaics, has led managers to be more careful about the right time to build these plants, ” the report said.
Source: Agence Ecofin