AU, EU, and Germany Launch Major Energy Initiatives to Boost Africa’s Green Transition

Addis Ababa, September 12, 2025 (FMC) – At the Second Africa Climate Summit (ASC2) in Addis Ababa, the African Union (AU), the European Union (EU), and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) launched two flagship programmes to accelerate energy access and advance Africa’s green transition.

The Continental Energy Programme in Africa (CEPA), funded by the EU, and ENGAGE – Engaging for Africa’s Green Energy Transition, funded by Germany, were officially inaugurated during the ASC2 high-level plenary session under the theme “Breaking Barriers, Building Bridges: Toward One Integrated Electricity Market Across Africa.” The programmes mark tangible progress in the 25-year AU–EU partnership, celebrated through the #AUEU25 campaign.

CEPA and ENGAGE aim to fast-track the African Single Electricity Market (AfSEM) and the Continental Power Systems Masterplan (CMP), key elements of AU Agenda 2063 designed to establish a fully integrated, cross-border electricity market across all AU Member States. The initiatives are expected to expand electricity access, accelerate regional integration, and promote green industrialisation.

Representatives from the AU highlighted that AfSEM and CMP provide a clear roadmap for attracting investments that deliver reliable, affordable, and clean energy across the continent. The programmes are intended to give strong momentum to Africa’s energy transformation, mobilizing both public and private sectors.

The European Commission emphasized that AfSEM and CMP are strategic tools for implementing Agenda 2063, creating an integrated electricity market, and ensuring access to affordable and secure energy, while supporting sustainable development and climate resilience.

Germany stressed that integrated energy markets will attract renewable energy investments, providing low-cost electricity for Africa’s 600 million people without access. The partnership aims to make energy markets less fragmented and more attractive for investors, promoting a green and just transition.

Technical sessions during ASC2 further highlighted AfSEM and CMP as instruments for climate-smart, integrated power systems, with a focus on mobilizing political, technical, and financial support to accelerate energy market integration and scale up renewable energy deployment.

Over the past decade, Germany and Team Europe (EU institutions and member states) have supported Africa’s energy integration, developing AfSEM’s strategy and preparing CMP’s generation and interconnection plans under the “One African Grid” vision.

Africa continues to face a major electrification gap, with over 600 million people lacking access to electricity, while demand is expected to nearly double by 2040. The continent’s generation capacity could grow from 266 GW in 2023 to over 1,200 GW, with renewables projected to rise from 25% to 64% of the mix.

CEPA and ENGAGE are designed to create a favorable environment for investment in renewable energy, cross-border transmission, and energy efficiency. Together, they form part of the Africa–EU Green Energy Initiative (AEGEI), a flagship of the EU’s Global Gateway Africa–Europe Investment Package, mobilizing €150 billion to support a strong, inclusive, green, and digital Africa.

The programmes reaffirm the AU–EU commitment to building one integrated electricity market, a cornerstone for Africa’s development and the continent’s contribution to global climate goals, including the Paris Agreement and the Sustainable Development Goals.