The European Commission has announced a €545 million funding package under its Team Europe initiative to accelerate Africa’s renewable energy transition, with support for hydropower projects alongside solar, wind and geothermal.

The package was unveiled by European Commission President Ursula von der Leyen in a video message at the Global Citizen Festival, held alongside the United Nations General Assembly. The funding is part of the Scaling Up Renewables in Africa campaign, co-hosted with South African President Cyril Ramaphosa.

“The choices Africa makes today are shaping the future of the entire world. A clean energy transition on the continent will create jobs, stability, growth and the delivery of our global climate goals. The European Union, with the Global Gateway investment plan, is fully committed to supporting Africa on its clean energy path,” von der Leyen said.

Nearly 600 million people in Africa still lack access to electricity, despite the continent’s vast renewable energy potential. Hydropower, alongside solar, wind and geothermal, is seen as a key technology to expand reliable access and strengthen regional power systems.

The new package will finance projects in transmission, electrification, and renewable generation across several countries. Notable hydropower-related investments include:

  • Republic of Congo (€3.5 million): Expanding access to renewable energy sources, including solar, wind and hydropower.
  • Lesotho (€25.9 million): Supporting the Renewable Lesotho programme to unlock both hydro and wind resources.
  • Central Africa (€1.2 million): Feasibility study for the Friendship Loop (Boucle de l’Amitié), a cross-border transmission line linking Pointe Noire, Brazzaville and Kinshasa – seen as essential for regional hydropower integration.

Other major projects include a €359.4 million transmission line in Côte d’Ivoire, rural electrification in Cameroon, mini-grids in Madagascar, and renewable energy access programmes in Mozambique and Somalia.

The Scaling Up Renewables in Africa campaign, carried out with the advocacy organisation Global Citizen and supported by the International Energy Agency, aims to mobilise new finance and technical expertise for clean energy projects. It will conclude with a high-level meeting during the G20 Summit in South Africa in November 2025.

The initiative is part of the EU’s Global Gateway strategy, which is backing large-scale investments in generation, grid infrastructure, and cross-border power trade. For the hydropower sector, the package highlights a growing emphasis on regional interconnection and the role of hydro in stabilising Africa’s renewable mix.