Driving Continental Energy Integration through CEPA and ENGAGE
Addis Ababa, September 2025
During 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 aimed at accelerating energy access and supporting Africa’s green transition. These programmes are the Continental Energy Programme in Africa (CEPA), funded by the EU, and ENGAGE – Engaging for Africa’s Green Energy Transition, funded by BMZ. ENGAGE is designed to promote the implementation of the African Single Electricity Market (AfSEM) and the Continental Power Systems Masterplan (CMP). Both initiatives fall under the broader Africa–EU Green Energy Initiative (AEGEI), part of the EU’s Global Gateway Africa–Europe Investment Package, which is mobilising €150 billion to support sustainable energy, digital infrastructure, and industrial development across the continent.
Africa’s rapidly growing population and industrial expansion are creating an unprecedented demand for electricity, which is projected to nearly double by 2040. It is a challenge, yes, but an even greater opportunity for transformation. With over 600 million people yet to be connected, the continent can leapfrog the fossil fuel era entirely and build a modern, clean energy system from the ground up. The continent’s electricity generation capacity is already on a path to a sustainable future, with renewable energy expected to grow from 25% of the total mix today to nearly 64% by 2040. This shift positions Africa to become a global leader in renewable energy deployment, with an opportunity to exceed 1,200 GW of generation capacity by 2040 and demonstrate a new model for green, inclusive, and decentralized energy development.
CEPA and ENGAGE focus on creating an enabling environment for investment in electricity infrastructure, strengthening regulatory frameworks, and facilitating cross-border electricity trade. By improving market integration and harmonising policies, the programmes aim to reduce barriers for private sector investment, accelerate renewable energy deployment, and ensure efficient functioning of energy markets across the continent. They also prioritise capacity building and technical knowledge sharing between African institutions and international partners, fostering a collaborative approach to energy system development.
AEEP’s involvement in ENGAGE centres on fostering dialogue and collaboration between African and European energy stakeholders that would funnel investments into priority energy projects in Africa, for the mutual benefit of both continents. Through ENGAGE, AEEP facilitates knowledge exchange, and collaboration between partners to explore approaches for operationalising Africa’s integrated power systems. By promoting shared learning and cooperative planning, AEEP helps ENGAGE advance the objectives of AfSEM and CMP, contributing to strengthening regulatory frameworks and enabling innovative financing for sustainable energy deployment.
These initiatives build on over a decade of AU–EU cooperation on energy integration, including the development of AfSEM’s strategic framework and CMP’s generation and interconnection plans under the One African Grid vision. AfSEM and CMP are central to Agenda 2063, which seeks to achieve a fully integrated, continent-wide electricity market, expand access to affordable and reliable energy, enhance regional cooperation, and scale up renewable energy deployment.
ASC2 provided a platform to showcase progress, outline implementation strategies, and strengthen AU–EU collaboration. The summit also set the stage for upcoming regional and global engagements, including the AU–EU Summit in Luanda and COP30 in Belem, Brazil, highlighting Africa’s proactive role in shaping climate-resilient energy policies. By supporting cross-border energy trade, climate-smart power systems, and sustainable industrialisation, CEPA and ENGAGE aim to contribute to Africa’s climate-resilient growth and help the continent in its efforts to meet global climate commitments, including the Paris Agreement and the Sustainable Development Goals. The programmes represent a practical step toward realising Africa’s vision of energy integration, economic transformation, and sustainable development, while promoting international collaboration and investment in clean energy infrastructure across the continent.
