Africa grows hydropower but Nigeria still faces power issues

Africa added over 4,200 megawatts (MW) of new hydropower capacity in 2025. This makes it one of the fastest-growing regions for hydropower development in the world. This information comes from a new report by the International Hydropower Association (IHA).

The report, titled 2026 World Hydropower Outlook, shows that Africa commissioned 4,297 MW of new hydropower capacity last year. This is the second year in a row that the continent added more than 4,000 MW.

The growth mainly came from major projects in Ethiopia and Tanzania. Still, over 90 percent of Africa’s hydropower potential is not yet used.

Meanwhile, Nigeria continues to deal with serious power shortages. The country faces frequent grid failures and has one of the biggest electricity access deficits in the world, even with its large hydropower resources.

Malcolm Turnbull, president of the International Hydropower Association, said countries are looking more at hydropower and energy storage. This shift comes as they want reliable electricity supplies amid growing use of renewable energy and rising geopolitical tensions.

Turnbull said, "As electricity systems become more dependent on variable renewables, and geopolitical tensions make reliance on imports more challenging, countries are increasingly recognising the importance of flexibility, long-duration storage and resilient domestic generation. Hydropower and pumped storage are uniquely positioned to provide these services at scale."

Ethiopia fully opened the 5,000 MW Grand Ethiopian Renaissance Dam (GERD) in 2025. This makes it the largest power station in Africa.

Tanzania also finished the Julius Nyerere Hydropower Project. The report says this development has greatly reduced the country’s reliance on diesel-powered electricity.

The report highlights that Africa’s hydropower growth places the continent at the forefront of global hydropower development. But it also warns that progress is still far from what is possible.

The report states, "Despite progress, only around 10% of Africa’s hydropower potential has been realised. This represents one of the most significant development opportunities in the world, with direct implications for electrification, industrial growth and energy security across a continent growing at twice the global average."

Many projects are still stuck due to financial issues, regulatory hurdles, and delays in getting approvals. The report also points out weak transmission systems and broken electricity networks as major problems that stop power from reaching consumers effectively.

Nigeria got only a brief mention in the report. It highlighted the upgrade of the Kainji Hydroelectric Power Station. The upgrade added 80 MW, bringing its total capacity to 600 MW. This small increase stands out when compared to new investments in other countries.

Hydropower is still an important part of Nigeria’s electricity supply. The Kainji, Jebba, and Shiroro hydroelectric plants provide a large share of power to the national grid. But the electricity supply is still not enough for Africa’s most populated country.

Data from the Nigerian Electricity Regulatory Commission (NERC) shows that Nigeria's total generation capacity is over 14,000 MW. But the actual available generation is much lower due to gas supply issues, transmission problems, old infrastructure, and operational challenges.

Nigeria has also faced several national grid failures in recent years. These failures highlight long-standing issues in the electricity system. The report comes at a time when Nigeria is trying to improve electricity access and reduce reliance on self-generated power.

According to the World Bank, about 86 million Nigerians do not have access to electricity. This makes Nigeria the country with the largest electricity access deficit in the world.

Businesses and homes spend billions of naira each year on diesel and petrol generators to make up for the unreliable grid supply. This situation raises costs and slows down economic growth.

The 700 MW Zungeru Hydropower Plant has started adding power to the grid. But many planned hydropower projects in Nigeria have faced delays due to funding, environmental issues, and implementation challenges.

The IHA report says that while Africa is seeing a rise in hydropower development, Nigeria will need a lot of investment in generation, transmission, and energy storage to fully take advantage of the continent’s large renewable energy potential.