Electricity trends 2025: What to look for Globally, in Africa and Kenya
In 2025 electricity demand is predicted to grow by 4% (1). Traditional power sources however are struggling to keep up with demand due to a variety of pressures. As a result both globally and regionally we are seeing trends such as price hikes, and a shift towards alternative power sources.
Global Electricity Trends
In the past 5 years alone, the global energy price index saw notable increases in prices, reflecting broader economic pressures (2) such as inflation, supply chain disruptions, and increasing fuel costs.
Europe experienced some of the steepest hikes, particularly during the 2022 energy crisis, with household electricity prices in the EU rising from €22.0 per 100 kWh in early 2021 to €25.3 in 2022 (3). Emerging markets, including Sub-Saharan Africa, faced similar trends. As energy prices increase it disproportionately impacts low-income households, with their energy budgets growing from 7.8% in 2020 to 12% in 2022 (4). These rising costs and the challenges they bring emphasize the need for businesses to consider alternative energy solutions like solar.
Global electricity generation is rapidly shifting towards renewables, with solar power at the forefront. Renewables reached 30% of global electricity generation in 2023, driven by strong growth in solar and wind. Solar increased by 23% globally in 2023, contributing a record 5.5% to global electricity (5). Rising global electricity prices, driven by inflation and growing demand, prompt businesses worldwide to explore cost-effective energy alternatives like solar.
Energy Trends in Africa
Over the past five years, electricity costs across Sub-Saharan Africa have risen by an average of 15%, driven by infrastructure challenges and a reliance on imported fuels. Despite rising costs, there's still a significant gap between the continent's energy demands and supply despite its rich renewable energy resources. While Africa holds 60% of the world’s best solar resources, it contributes only 1% of installed solar capacity (6).
However, there is an ongoing renewable energy revolution on the continent with countries like Kenya and South Africa at the forefront. As countries increase their use of renewable energy to fill the gap, solar power’s affordability and reliability stands out, making it a critical component in Africa’s energy future
Kenyan Trends
Kenya’s electricity market exemplifies both the challenges and opportunities of the continent’s energy landscape. Between 2019 and 2024, average electricity tariffs increased by 39%, with small commercial customers (SC1 and SC2) seeing average hikes of 83%. Large commercial and industrial (C&I) customers, who consume 53.87% of Kenya’s electricity, experienced tariff increases of 18.5% over the same period. These rising costs have positioned solar energy as a practical and sustainable solution for Kenyan businesses, enabling them to offset operational expenses and achieve greater energy independence (7).
FIgure1. Electricity Tariffs in Kenya for Commercial Segment (2019-2024). Source EPRA
Why You Need Solar Today
As electricity prices rise and energy reliability becomes a pressing concern, businesses face hard decisions about their energy future. Solar power is no longer just an alternative; it’s the solution. With recent advancements, solar installations offer clear financial benefits—lowering energy bills by reducing dependence on the grid while providing stability in an era of unpredictable costs. This is especially crucial for Kenyan businesses, where average tariffs have jumped by nearly 40% in five years.
But solar is more than just a cost-saving tool; it’s a statement of resilience, innovation, and a commitment to sustainability—qualities customers and partners increasingly value. Whether it's a small enterprise or a large industrial operation, integrating solar shows forward-thinking leadership that resonates in today’s economy. Where energy decisions are business decisions, choosing solar is choosing growth, reliability, and impact. The question is no longer if solar energy is worth it but when you’ll take the leap!
