Powering Africa's sustainable future: The role of cross-border electricity trade on renewable electricity generation

Electricity trade plays a pivotal role in Africa's energy transition pathway, aiding in the distribution of new infrastructure costs, addressing the intermittency of renewable energies, and capitalising on their spatial concentration. Despite these advantages driving the establishment of a regional single electricity market, trading volumes remain relatively low. This study empirically explores Africa's cross-border electricity trade's influence on renewable electricity generation. Utilising a fixed effects model, data for 21 African countries from the World Bank and the International Energy Agency spanning 1996 to 2020 is collected and analysed. The results reveal that a 1% increase in electricity trade significantly raises the share of renewables in total electricity output by approximately 0.05%. Additionally, it is noted that net-exporting countries exhibit weaker positive impacts from electricity trade compared to net importers. Our results highlight the importance of governance quality as a driver of growth in the sector.