Abu Dhabi-based renewable energy developer Masdar and Britain’s Octopus Energy have signed a memorandum of understanding to develop clean power solutions for Africa, with an initial focus on commercial and industrial customers, the companies said.
The partnership will target the deployment of distributed energy systems and local grids, using Africa’s abundant solar and wind resources to help address persistent constraints on reliable electricity supply for businesses. The two firms said chronic underinvestment in power networks, limited system flexibility and challenges in integrating decentralised generation continue to weigh on industrial productivity across much of the continent.
South Africa has been identified as the first market for implementation under the agreement, with plans to expand into other African countries at a later stage, the companies said, without providing a timeline or financial details.
“Masdar and Octopus Energy share a commitment to overcoming challenges, expanding access to renewable energy, and powering progress across the globe,” Masdar chief executive Mohamed Jameel Al Ramahi said in a statement. “Through these agreements, we continue to reimagine the potential of renewables in the AI era, while also bringing much-needed clean energy to communities and businesses across Africa.”
The memorandum sets out a framework for cooperation rather than a binding investment commitment. It aims to combine Masdar’s experience in developing and financing large-scale renewable projects with Octopus Energy’s focus on decentralised power solutions, energy storage and innovative grid models.
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Masdar is already active in Africa through several utility-scale, grid-connected solar projects. These include a recently announced 150-megawatt solar power plant in Angola, as well as other initiatives developed in partnership with governments and international investors. The company has also signed framework agreements with global energy groups, including TotalEnergies, to support the expansion of low-carbon electricity across African markets.
Octopus Energy has been building a presence in the region through decentralised and off-grid solutions. In 2024, the British firm launched a US$60 million fund dedicated to clean energy investments in sub-Saharan Africa, focusing on distributed solar generation, battery storage and grid upgrades.
Africa faces a significant electricity supply gap, with unreliable power often cited by businesses as a major constraint on growth. While the continent holds some of the world’s best solar and wind resources, limited transmission infrastructure and financing challenges have slowed deployment, particularly for small- and medium-scale projects serving industrial and commercial users.
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By focusing on distributed generation, the Masdar–Octopus partnership aims to bypass some of these constraints, offering on-site or localised power solutions that can be deployed more quickly than large grid projects. Such systems are increasingly seen as a way to improve energy security for businesses while supporting climate goals.
The companies said further details on specific projects and markets would be announced as the cooperation progresses.
