The development was disclosed in a statement issued by the Senior Special Assistant to The President on Media & Communications, (Office of The Vice President), Stanley Nkwocha. Speaking on behalf of Nigeria’s President Bola Tinubu at the signing ceremony, Vice-President Kashim Shettima called Nigeria’s admission into the IEA a major milestone and said it reflected the gains achieved through the administration’s economic reforms. He added that the development validated the government’s policy choices and its efforts to make use of Nigeria’s abundant energy resources.

“Nigeria’s admission as an association country with the IEA is a significant milestone for our country and it reflects Nigeria’s strategic importance in the global energy landscape and the confidence that IEA has placed in our commitment to constructive international energy cooperation,” he said.

Shettima said the energy pact would provide Nigeria with access to the agency’s expertise and institutional resources as the country pursues its energy ambitions.

Highlighting Nigeria’s energy potential, he said, “the country will benefit from IEA’s institutional knowledge, the intellectual resources, the reach and expertise to support our nation’s ambitions in this sector.”

IEA to Provide Policy Advice, Data and Technical Expertise

Shettima also pointed to Nigeria’s significant renewable energy resources and reaffirmed the administration’s commitment to repositioning the economy by leveraging the resources available in the country. He assured the IEA that Nigeria was prepared to engage with international partners on discussions concerning a fair and just energy transition.

IEA Executive Director Dr. Fatih Birol said Nigeria’s admission came after extensive consideration and consultations with the country’s authorities. He noted that the IEA covers a broad range of energy technologies, including oil, gas, solar, nuclear power, artificial intelligence and electric vehicles.

According to Birol, Nigeria’s admission was unanimously approved by the IEA Board, comprising the governments of the United States, Japan, Germany, Italy and the United Kingdom.

Under the energy pact, the agency will support Nigeria’s energy sector over the coming years through policy advice, data and technical expertise.

“The IEA will accompany the Nigerian energy sector for the next few years to come for a much better energy future. We will provide policy advice from clean cooking to gas markets, from gas markets to training Nigerian experts at the IEA on our own,” he said.

Joint Programme to Support Energy Policy and Investment

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed Nigeria’s admission into the IEA to the performance of the Tinubu administration and the reforms implemented by the government. He said the Joint Work Programme would enable greater participation by IEA technical experts in developing data that can guide energy policy and investment across the value chain.

The Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, described the partnership as strategically important to Nigeria and recognised the contribution of the Nigerian Mission in Paris in facilitating the process. He said the Ministry of Foreign Affairs would support the initiative so that Nigeria could obtain maximum benefit from the partnership.

Dr. Mustapha Abdullahi, Director-General of the Energy Commission of Nigeria, said the Commission had already worked with the IEA on the joint sponsorship of Nigeria’s National Energy Master Plan, despite there being no formal framework governing their relationship. He expressed optimism that Nigeria’s new status and the Joint Work Programme would deepen cooperation between the two organisations.

Project Infrastructure and Technical Configuration

The power interconnector comprises a 218-kilometer high-voltage transmission line operating at 400 kilovolts. The infrastructure extends from the Matambo substation located in Mozambique’s Tete Province to the Phombeya substation in Malawi’s Balaka District.

Electricidade de Moçambique (EDM) has confirmed that the transmission infrastructure has been energized and subjected to initial system stress testing protocols. These assessments evaluate the stability and operational reliability of the system before it transitions to commercial service.

Strategic Significance for Malawi’s Electricity System

The power interconnector holds particular importance for Malawi’s energy landscape. The nation has traditionally operated as an isolated electricity system, which presents distinct operational challenges.

Malawi’s electricity generation relies substantially on hydropower resources from the Shire River, creating vulnerability to drought conditions and climate-related disruptions. Seasonal variations directly impact power availability, constraining the country’s ability to maintain consistent electricity supply during periods of low water flow.

The interconnector addresses these constraints by establishing a direct connection to Mozambique’s electricity grid. This link enables Malawi to access regional electricity resources and positions the country to participate in the Southern African Power Pool (SAPP). Through SAPP membership, Malawi gains entry to organized regional electricity trading mechanisms, facilitating power imports during domestic shortage periods and reducing systemic pressure on the national grid.

Import Capacity and Future Export Potential

Electricity flow projections outline a phased approach to regional power trade.

Initially, Malawi is expected to import approximately 50 megawatts of electricity from Mozambique. As domestic electricity demand expands, import capacity could scale to as much as 200 megawatts, providing additional flexibility to the national electricity system.

The power interconnector also creates a framework for Malawi to export electricity in future periods. When additional domestic generation capacity becomes operational, the country will possess the infrastructure to actively participate in regional electricity trading arrangements, converting the interconnector from a unidirectional import conduit into a bidirectional platform for regional power exchange.

Investment, Development Impact, and Timeline

The project represents a substantial infrastructure investment with international development partnership.

The power interconnector carries an estimated investment value of $88 million and has received financial and technical support from international development institutions, including the World Bank.

The infrastructure initiative is positioned to strengthen electricity security, deepen bilateral cooperation between Mozambique and Malawi while supporting the broader regional energy integration across Southern Africa.

Speaking on the strategic effort, Nigeria’s Minister of Power Joseph Tegbe stated that the Ministry of Power is shifting away from temporary measures in favor of a comprehensive structural overhaul of the transmission network. Tegbe emphasized that long-term grid stability serves as the essential foundation for all other promises made to citizens regarding power sector improvements.

“This administration is committed to a stable, resilient national grid, not as a slogan, but as a measurable, time-bound programme of work,” Tegbe said.

Technical Working Committee Formed to Target Bottlenecks

According to the minister, a Technical Working Committee on Grid Stabilisation has been established to drive the initiative. The committee combines engineering and regulatory expertise to systematically resolve transmission bottlenecks, rehabilitate aging infrastructure, and eliminate frequent system collapses that have disrupted electricity supply in recent years.

The committee is tasked with working directly alongside the Transmission Company of Nigeria (TCN) and the Nigerian Independent System Operator (NISO) to pinpoint priority intervention points throughout the power network.

Rebuilding Stakeholder Confidence Through Measurable Delivery

The planned capital investment for grid stavbility will focus on strengthening critical transmission corridors, expanding general grid redundancy, and modernising control and monitoring systems to minimize both the frequency and impact of widespread power outages. This step aligns with the ministry’s broader effort to rebuild public confidence following years of power service disruptions.

Additionally, progress updates regarding the grid stability programme will form part of a unified, coordinated communication structure across all power sector institutions. This measure aims to ensure that citizens, investors, and industry stakeholders receive regular and accurate updates as operational work advances.

The collaboration arrives as South Africa works to enhance its power grid and advance its long-term energy transition. Developing robust transmission infrastructure is critical for integrating new electricity generation projects into the grid, reinforcing power system reliability, expanding electricity access, and fostering economic growth through energy sector investments.

Strategic Roles and Core Priorities

Under the terms of the MoU, DBSA will supply project preparation expertise, development financing solutions, and infrastructure planning support. NTCSA, tasked with managing the national power network, will contribute technical leadership and operational oversight. Together, DBSA and NTCSA will focus on project development, funding mobilization, institutional capacity building, and executing major transmission infrastructure projects.

A key focus area of the grid expansion partnership involves establishing regional transmission interconnectors. These cross-border connections aim to enhance regional electricity trade, improve overall grid stability, and pull in long-term investment. The initiative aligns directly with South Africa’s Transmission Development Plan, which targets higher grid capacity to meet rising demand and incorporate additional renewable power projects.

Institutional Collaboration and Resource Mobilization

The joint effort also intends to deepen engagement with development finance institutions, multilateral development banks, and private investors to secure funding mobilization for grid expansion projects.

Executive Perspectives on Strategic Alignment

Speaking at the MoU signing ceremony, NTCSA Chief Executive Officer Monde Bala emphasized that accelerating transmission infrastructure development is vital to unlock new generation capacity, strengthen energy security, and foster inclusive economic growth. Bala noted that the formal agreement reflects a shared commitment toward South Africa’s long-term power objectives.

DBSA Chief Executive Officer Boitumelo Mosako highlighted that the magnitude of national power requirements demands innovative finance structures and strong institutional partnerships. Mosako stated that the collaboration will help accelerate the rollout of critical network projects necessary to meet future power demand and bolster long-term energy security.

The new utility scale Battery Energy Storage System (BESS) marks an important milestone in strengthening the country’s power network while supporting greater deployment of clean energy resources. Funded through a $20 million grant from the Alliance, the installation is among the first large-scale battery storage systems in Southern Africa specifically designed to improve grid stability. The project is intended to address one of Malawi’s most pressing electricity challenges by overcoming transmission network weaknesses that have limited the delivery of available electricity to consumers. By introducing a utility scale BESS, the country aims to improve the performance of its electricity system and make better use of the renewable power already being generated.

Storage System to Unlock Renewable Electricity and Cut Diesel Dependence

Over recent years, Malawi has expanded renewable energy generation, particularly from solar power. Even so, constraints within the transmission network have frequently prevented utilities from utilizing all available electricity. Those limitations have often forced reductions in clean energy generation while increasing reliance on costly diesel generators during periods of peak demand. The newly commissioned utility scale BESS has been designed to store surplus electricity when renewable energy production is high and release it back into the grid when demand rises. This approach is expected to strengthen power supply reliability, minimize renewable energy losses, and improve the stability of the national electricity network.

Officials estimate that the battery installation could unlock approximately 100 megawatts of renewable electricity that had previously remained inaccessible because of grid limitations. In addition, the project is expected to reduce diesel consumption and prevent more than 10,000 metric tonnes of carbon dioxide emissions every year. Reduced dependence on imported diesel is also anticipated to lower operating costs for the national utility while helping protect consumers from increasing fuel prices.

Project Advances National Energy Goals and Climate Resilience

The battery storage initiative supports Malawi’s National Energy Compact, which seeks to increase electricity access from less than 26 percent to 70 percent by 2030. Currently, only around 11 percent of the population has access to the main electricity grid, while rural communities continue to experience very limited electricity availability. The government plans to expand both grid and off-grid electricity connections alongside increasing power generation capacity, with the new utility scale BESS expected to play an important role in making renewable energy more dependable. Malawi’s electricity sector has long relied heavily on hydropower, making the country vulnerable to droughts and fluctuating water levels. Integrating battery storage with solar and other renewable energy sources is expected to strengthen the resilience of the electricity system while improving long-term reliability. The newly launched facility represents a major step toward cleaner and more dependable electricity and could serve as a model for other countries across the region that are seeking to modernize their power networks.

During the talks, Adjal emphasized the depth of the long-standing strategic relationship linking the two countries in energy development. He praised the role played by Chinese companies in delivering major renewable energy infrastructure projects throughout Algeria, describing their contribution as an important element of the bilateral partnership.

Adjal specifically pointed to the construction of Algeria’s largest photovoltaic power plant in Touila (Fouila), highlighting it as a notable example of successful renewable energy cooperation between the two nations.

Green Hydrogen, Carbon Reduction and Technology Transfer Take Center Stage

Adjal also called for a wider scope of collaboration that extends beyond traditional energy activities. He stressed the importance of benefiting from Chinese expertise in reducing carbon emissions, promoting green hydrogen as an alternative energy source, and enhancing cooperation in training programs aimed at developing specialised human resources.

In addition, Adjal underlined the need to accelerate projects currently being implemented by Chinese companies in Algeria, particularly the combined-cycle power plant in Tébessa Province and the Birine power generation project in Djelfa Province.

For his part, Han Wenxiu praised the current level of cooperation achieved in the energy sector and expressed support for the proposals presented by the Algerian side. He reiterated China’s willingness to expand collaboration in wind and solar energy while supporting the manufacturing of solar panel components and related equipment. The position reflects Beijing’s interest in strengthening both industrial and technological partnerships with Algeria and advancing further renewable energy cooperation across multiple segments of the energy value chain.

Commitment to a Long-Term “Win-Win” Partnership

At the conclusion of the meeting, Algeria and China agreed to work toward creating favorable conditions for advancing bilateral cooperation in energy and renewable energies. The two sides emphasized that future initiatives would be guided by a mutually beneficial “win-win” partnership consistent with the strategic vision and shared ambitions of the leaderships of both countries.

Speaking at the Lagos Chamber of Commerce and Industry Renewable Energy Outlook Conference 2026, Tegbe characterized the current state of the power sector as a paradox. He noted that while Nigeria remains Africa’s largest economy with an installed electricity generation capacity exceeding 13,000 megawatts, less than half of this output consistently reaches the end consumer. This discrepancy has forced manufacturers to rely on expensive alternative fuel sources, creating what the Minister described as a structural tax on the economy.

Legislative Framework and Grid Modernization

Working towards the 277GW electricity generation capacity goal, the ongoing Nigeria power sector reforms are anchored in the Electricity Act 2023, which effectively decentralized the sector by removing electricity from the Exclusive Legislative List. This shift empowers subnational governments to generate, transmit, and distribute power within their borders. To date, approximately 20 states have instituted their own electricity laws, with 12 states moving to take over regulatory functions from the federal commission.

To support this transition, the government has focused on strengthening the national grid infrastructure. Between 2024 and 2025, authorities installed 82 power transformers, adding 8,500MVA of transmission capacity. Furthermore, a $1.16 billion digitalization initiative is currently 69 percent complete. This project has seen the deployment of 3,000 kilometers of fiber optic cables and the upgrading of over 100 substations with advanced monitoring systems to stabilize the national grid infrastructure and reduce the frequency of disturbances.

The Nigeria Energy Transition and Economic Growth

The Nigeria energy transition is designed to address energy poverty while simultaneously meeting climate objectives. The Federal Executive Council’s approval of the National Integrated Electricity Policy in May 2025 serves as the updated framework replacing the outdated 2001 policy. This new direction seeks to utilize Nigeria’s vast natural resources, including 37 trillion cubic feet of natural gas and high solar irradiation levels, to drive sustainable development.

Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency, emphasized that renewable enrgy should be viewed as a catalyst for industrial growth and economic development rather than just a solution for rural areas.

The Sudanese government on 21st June 2026 relaunched a Turkish-Sudanese joint transformer factory located south of Khartoum, a move aimed at addressing the severe shortage of electrical equipment resulting from the ongoing conflict and supporting broader industrial recovery efforts. The reopening comes after extensive damage to Sudan’s power infrastructure following the outbreak of conflict in April 2023.

Authorities estimate that approximately 15,000 electricity transformers of varying capacities have been destroyed since the conflict began. Each transformer is valued at around $46,000. In addition to the loss of transformers, substantial quantities of electrical cables were looted for their copper content, while utility companies lost entire stocks of critical hardware after warehouses in Khartoum were ransacked. 

Officials Highlight Importance of Local Production

Sudan’s Industry and Trade Minister Mahasin Ali Yaqoub joined the governors of Khartoum and Al-Jazirah states to officially inaugurate the Maxan transformer factory in the Safola industrial area. The facility was originally established in 2020 as a partnership between Sudanese and Turkish investors but ceased operations after suffering war-related damage and looting.

Yaqoub stated that the return of the joint transformer factory will assist government initiatives focused on rebuilding the country’s industrial sector while reducing dependence on imported equipment. Domestic transformer manufacturing plays an important role in stabilizing electricity services, reducing costs, and supporting both maintenance activities and grid expansion projects.

Khartoum State Governor Ahmed Osman Hamza said the state had lost around 14,000 transformers in addition to extensive quantities of cables and other equipment. He described the reopening as a strategic measure to ease the shortage and urged factory management to expand output and accessory production lines to meet reconstruction needs. Hamza also pledged state support for securing industrial zones and facilitating the return of factories to operation.

Production Expansion Planned as Demand Rises

Al-Jazirah State Governor Al-Tahir Ibrahim al-Khair emphasized the significance of domestic manufacturing, noting that his state is home to eight industrial cities that depend on such services for both industrial and agricultural activities. Representing the Maxan board of directors, Ibn al-Jarrah Ali announced that the joint transformer factory has already begun operations with an initial production capacity of 150 transformers per month under a single-shift system. Plans are in place to add more shifts and modernize production lines to satisfy growing demand across Sudanese states.

Earlier in June 2026, the Ministry of Energy and Petroleum unveiled an urgent four-track strategy designed to rehabilitate the electricity sector, improve supply reliability, and stabilize the national grid. Measures include repairing inactive stations in Khartoum State to support the return of residents, reinforcing distribution networks, and installing new transformers in densely populated areas. According to the United Nations Development Programme, Sudan’s electricity sector has incurred damages of around $3 billion since the war broke out, contributing to worsening power outages across multiple states.

The project has been structured with a total capital expenditure of $111 million, financed through a combination of non-recourse debt and equity arrangements. The financing structure maintains a leverage ratio of approximately 70%. The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) serve as the senior lending institutions.

Project Partnership and Development Structure

Sidi Bouzid II has been developed through a collaborative partnership between Scatec and Aeolus SAS (Aeolus) that brings together complementary expertise in renewable energy development and investment. The ownership structure divides the project equally, with Scatec holding a 50% stake and Aeolus holding the rest 50% in the project.

Scatec will provide comprehensive project delivery services, including Engineering, Procurement and Construction (EPC), Asset Management, and Operations and Maintenance services. The EPC scope represents approximately 75% of total capital expenditure.

Renewable Energy Contribution and Climate Impact

Once it reaches commericial operation in second half of 2027, the Sidi Bouzid II solar power plant is projected to generate 276 gigawatt-hours of electricity annually. This electricity generation will contribute meaningfully to Tunisia’s renewable energy targets and enhance the nation’s energy security. Furthermore, the plant is expected to reduce annual CO2 emissions reductions by approximately 107,000 tonnes.

Currently electricity generation in Tunisia relies heavily on natural gas, which accounts for 95% of generation capacity. Notably, more than 60% of Tunisia’s natural gas requirements are met through imports, creating both economic and energy security considerations. Tunisia has established an ambitious target to increase renewable energy’s share of electricity generation to 35% by 2030.

EU Providing Financial Support for the Project

The Sidi Bouzid II project has received substantial support from the European Union through grant funding via the EU Neighbourhood Investment Platform and guarantees provided by the European Fund for Sustainable Development Plus.

Currently, Lesotho maintains an installed generation capacity of approximately 72MW, primarily derived from hydropower. Because this capacity does not meet domestic demand, the nation relies heavily on power imports from neighboring countries through the Southern African Power Pool. By constructing the USD 6.2B hydropower project , Lesotho intends to increase its domestic power production by more than sixteen-fold. This expansion in Lesotho renewable energy capacity is expected to move the country toward total energy self-sufficiency and establish it as a regional electricity exporter.

The USD 6.2B hydropower project includes the establishment of an AI data center, aligning with a global trend of co-locating energy-intensive computing facilities with reliable renewable sources. As investment in digital technology grows, the demand for stable, low-cost power becomes paramount. Lesotho is positioning itself to meet these requirements by leveraging its water resources. Furthermore, the country is expanding its participation in the International Renewable Energy Certificate system to facilitate the trade of certified clean energy.

While the recent signing represents a binding memorandum of agreement, officials have noted that the initiative is still in its early stages. The successful realization of this Lesotho renewable energy vision depends on the completion of several critical components. Before construction can commence, the project must undergo rigorous feasibility studies, environmental impact assessments, and the procurement of necessary regulatory approvals. Additionally, securing long-term power purchase agreements and financing for this investment remains a primary requirement for the developers. The USD 6.2B hydropower project serves as an ambitious effort to diversify the national economy beyond its traditional reliance on water exports, textiles, and customs revenues.