Regional power trade and the future of hydropower in Africa

Africa possesses the world's largest untapped hydropower potential, yet much of this resource remains underdeveloped due to limited market access, transmission constraints and investment challenges. Today, however, a combination of powerful trends is creating new opportunities for hydropower development across the continent.

Regional integration is accelerating through new transmission infrastructure and cross-border interconnections, helping to connect resource-rich regions with growing centres of demand. Projects such as the Tanzania–Zambia, Ethiopia–Somalia and Angola–DR Congo interconnectors are expected to strengthen regional power trade while improving grid reliability and efficiency. At the same time, rising electricity demand is driving private and hybrid investment models, particularly from industrial and mining users seeking dedicated and reliable power supply. Meanwhile, the rapid expansion of solar and wind generation is increasing the need for flexible, dispatchable resources, positioning conventional hydropower and pumped storage as essential enablers of renewable energy integration.

This session will explore how these developments are reshaping the investment landscape for hydropower in Africa and examine the role of regional power trade in unlocking the continent's next generation of clean energy projects.

Session objectives

• Examine how regional power pools, electricity markets and transmission interconnections can improve the bankability of hydropower projects.
• Explore emerging opportunities for private and hybrid hydropower investment driven by industrial growth and rising electricity demand.
• Highlight the role of hydropower in supporting the integration of solar and wind generation, while enhancing grid stability, flexibility and energy security.
• Identify the policy, regulatory and infrastructure priorities needed to accelerate regional power trade and attract investment into Africa's hydropower sector.