Africa Climate Summit: Major energy programmes launched as African Union and European Union celebrate 25 years of partnership

Africa Climate Summit: Major energy programmes launched as African Union and European Union celebrate 25 years of partnership

At the Second Africa Climate Summit (ASC2) taking place in Addis Ababa, the African Union (AU), the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ) launched two flagship programmes to accelerate Africa's energy access and just green transition. The Continental Energy Programme in Africa (CEPA), funded by the European Union (EU), and ENGAGE - Engaging for Africa's Green Energy Transition, funded by Germany's Federal Ministry for Economic Cooperation and Development (BMZ), were officially launched at the ACS2 high-level plenary session held on September 8 under the overarching theme of "Breaking Barriers, Building Bridges: Toward One Integrated Electricity Market Across Africa". These are tangible outcomes of 25 years of the AU-EU partnership, which joint #AUEU25 campaign highlights the depth and uniqueness of this enduring collaboration.

CEPA & ENGAGE aim to accelerate the implementation of the African Single Electricity Market (AfSEM) and the Continental Power Systems Masterplan (CMP) - key elements of the AU Agenda 2063 designed to create a fully integrated, cross-border electricity market across all AU Member States. The event further highlighted AfSEM's role in delivering universal access, accelerating integration, and driving green industrialisation. Guided by the CMP, AfSEM targets the world's largest interconnected power market by 2040, with competitive cross-border trade catalysing the scale-up of Africa's renewable resources.

Speaking on behalf of the African Union Commissioner for Infrastructure and Energy, H.E. Lerato Mataboge, the Director, Dr. Kamugisha Kazaura, stated: "Africa's energy future is built on vision, concrete roadmaps, and vast opportunities. With AfSEM and the Continental Power Systems Masterplan at the core, Africa is ready to attract investments that will deliver reliable, affordable, and clean energy to our citizens. The programmes we launch today - CEPA and ENGAGE - add vital impetus to this journey. With strong partnerships and clear strategies, we have what it takes to power inclusive growth and shared prosperity."

H.E. Nardos Bekele Thomas, CEO, AUDA NEPAD, accentuated, "The Second Africa Climate Summit comes at a pivotal moment as Africa moves from planning to implementation of its most ambitious energy initiatives, Africa Single Electricity Market (AfSEM) and the Continental Power Systems Masterplan (CMP). Through innovative finance and strong partnerships, we can unlock Africa's renewable energy potential and drive the continent's climate-resilient, sustainable development."

H.E. Teresa Ribera, European Commission Executive Vice-President for a Clean, Just and Competitive Transition highlighted that "The Africa Single Electricity Market and the Continental Master Plan are far more than technical tools; they are strategic pillars that bring to life the vision of African Union's Agenda 2063. Fostering one integrated electricity market across Africa represents a transformative step towards uniting the continent's diverse resources and empowering communities. Our clean transition is not only a climate imperative but more importantly about ensuring access to affordable and secure energy, thereby enhancing the lives of all humans and fostering a more equitable and sustainable future for generations to come. With Global Gateway, the European Union is committed to work alongside African institutions in unlocking the immense potential of renewable energy and regional energy trade."

Dr Bärbel Kofler, Parliamentary State Secretary to the Federal Ministerial for Economic Cooperation and Development underscored how "The plans for the African Single Electricity Market will be a game changer for mobilising investments in renewable energies. We know that renewable energies are the least-cost option for energy access for the 600 million people without electricity access in Africa. If energy markets become less fragmented and more integrated, investments will be less risky and more lucrative. In Germany and the EU, we are keen to partner with our neighbouring continent on a green and just energy transition. This is in both of our continents' best interests: for our people, our economies and the global climate."

Complementary technical sessions during the ACS2 agenda further spotlighted AfSEM and CMP as key instruments for advancing climate-smart, integrated power systems across the continent. They emphasised the mobilisation of political, technical, and financial support to accelerate energy market integration, enhance reliability, and scale up renewable energy deployment.

Over the past decade, the African Union has been partnering with Team Europe (EU institutions and its member states) -to lay the foundations for Africa's energy integration. As part of Team Europe, Germany has played a central role in advancing green energy goals in Africa. Since 2015, this partnership has developed AfSEM's strategy and action plan under the banner "One Electricity Market for Africa" and prepared the CMP's generation and interconnection investment plans guided by the "One African Grid" vision.

In Africa, over 600 million people remain without access to electricity, accounting for nearly 85% of the global electrification deficit. At the same time, electricity demand is expected to nearly double by 2040. Yet the continent also has enormous potential: Africa's generation capacity could rise from 266 GW in 2023 to over 1,200 GW by 2040, with renewables projected to grow from 25% to nearly 64% of the mix.

Against this backdrop, CEPA and ENGAGE are designed to create a conducive environment for public and private investment in renewable energy, cross-border transmission, and energy efficiency. Together, CEPA and ENGAGE form part of the Africa-EU Green Energy Initiative (AEGEI), a flagship of the EU's Global Gateway Africa-Europe Investment Package, which mobilises €150 billion for a strong, inclusive, green, and digital Africa.

The events were organised by the African Union Commission (AUC) and the African Union Development Agency (AUDA-NEPAD), the European Union (EU), the German Federal Ministry for Economic Cooperation and Development (BMZ). They reviewed progress, addressed implementation challenges, and reaffirmed the joint AU-EU commitment to building one integrated electricity market for Africa - a cornerstone for both the continent's transformation and global climate goals, including the Paris Agreement, the Sustainable Development Goals, and the global pledges to triple renewable capacity and double energy efficiency by 2030.