Africa Attracts Less Than 5% of Energy Transition Investment for Storage Despite Falling Battery Prices

October 23, 2026 | By Semahegn Nigatu

Africa attracted just 666 million US dollars for energy storage and flexibility in 2025, less than five per cent of the 13.84 billion US dollars invested in the continent’s energy transition, despite a sharp decline in battery prices, according to a new industry report.

Stationary battery pack prices fell to about 70 US dollars per kilowatt-hour in 2025, a 45 per cent drop from the previous year, according to BloombergNEF data cited in the fifth volume of ESI Africa Industry Insights: Energy & Storage, published in 2026.

The report, released on Thursday, identifies financing constraints, regulatory gaps and inadequate infrastructure planning as obstacles to expanding energy storage across Africa, where battery systems can help integrate renewable electricity and improve the reliability of power supplies.

The investment figures, tracked by Electron Intelligence, point to a disparity between falling technology costs and the funding reaching storage projects.

“Capital, regulation and data have not yet caught up with that reality,” said Nicolette Pombo-van Zyl, editor-in-chief of ESI Africa, referring to the growing importance of storage in energy project financing and electricity grid management.

Battery storage can help utilities manage fluctuations in renewable power generation, shift electricity supply to periods of higher demand and reduce the amount of clean energy that goes unused. However, the commercial viability of projects also depends on financing costs, import duties, freight charges and battery performance in hot climates, the report says.

The publication examines the economics of different battery technologies, including modelling from South Africa that favours lithium iron phosphate batteries for stationary applications. It also considers emerging battery chemistries, long-duration storage, cybersecurity risks and the implications for African mineral value chains.

The report highlights the expansion of solar power as another factor increasing the need for better storage and electricity network planning. About 26 gigawatts of solar capacity was installed across Africa between 2023 and 2025, according to Ember, although only a quarter was captured in utility-scale and off-grid figures cited in the publication.

The report argues that improved registration and data collection could help energy planners better assess the growth of distributed solar and its effects on electricity networks.

It also examines projects involving storage investment, including Scatec’s Obelisk project in Egypt and Mulilo’s Hartebeesfontein battery storage project in South Africa.

Pombo-van Zyl said further deployment would depend on decisions by regulators, utilities and financiers on how storage services are valued, how connected infrastructure is protected and how quickly projects are prepared for financing.

The report was published in partnership with Envusa Energy, NOA Group and Lyra Energy. Its findings are expected to feature in discussions at the Commercial and Industrial Energy and Storage Summit in Johannesburg on October 28–29, 2026.

Source: FSX Business News