Investment Prospects for Solar Energy in Sudan: Adapting the Malaysian Investment Model (Part 2 of 4)

Dr Ahmed Abdelbagi
The first part of this series provided an overview of renewable energy sources and their growing global significance, with particular emphasis on the six renewable energy resources available in Sudan. Of these, only photovoltaic (PV) solar energy—commonly referred to simply as solar energy—is currently being utilised. The remaining three parts examine Sudan’s solar energy sector, provide an overview of Malaysia’s renewable energy investment model, and assess how elements of that model could be adapted to support investment in Sudan.
An Overview of Electricity Coverage in Sudan
In March 2026, the Regional Bureau for Arab States of the United Nations Development Programme (UNDP) published a study entitled “Solar Energy Value Chains in Sudan.” The report notes that Sudan’s electricity sector suffered from structural weaknesses even before the outbreak of the war.
The Electricity Act of 2001 established the Sudan Electricity Holding Company, which assumed responsibility for the sector through three separate entities responsible for electricity generation, transmission and distribution. Despite considerable efforts, progress remained limited due to operational inefficiencies, inadequate electricity coverage—particularly in rural areas—and insufficient data on the sector itself.
According to the study, the lack of reliable data makes it difficult to determine the precise extent of grid coverage. Based on available estimates, electricity access ranges between 45 and 60 per cent of the population. The sector has also been constrained by electricity tariffs that fail to cover production costs, the depreciation of the Sudanese pound against foreign currencies, and heavy dependence on imported equipment and inputs.
Although the Investment Promotion Act was enacted in 2013, macroeconomic instability discouraged private investment in the electricity sector. Furthermore, the removal of fuel subsidies in 2020 contributed to soaring inflation, which reached approximately 400 per cent by September 2021, without adequate social protection measures for vulnerable groups.
The electricity sector deteriorated even further during more than three years of war. Sudan’s economy contracted by over 40 per cent, while damage to the national electricity network is estimated at around US$3 billion, according to the UNDP’s March 2026 report.
Solar Energy: The Fastest Available Solution
Given the current circumstances and the urgent need to address Sudan’s worsening electricity crisis, solar energy represents the quickest and most practical solution for several reasons. Solar systems can be installed and commissioned rapidly, operate independently of the national grid, and can be deployed in decentralised units to meet the needs of public services, residential areas and rural communities alike.
In this regard, the UNDP Resident Representative in Khartoum observed:
“Solar energy has become essential infrastructure in Sudan. It enables farmers to irrigate their fields, helps clinics keep vaccines refrigerated, and allows small businesses to remain operational even during wartime. Yet this clean and reliable energy source depends on small enterprises that themselves operate under extremely difficult conditions. Without targeted support for both suppliers and consumers, the sector will never achieve its full potential.”
This underscores the urgent need for the Sudanese state to adopt photovoltaic solar energy as one of its principal short-term solutions to the electricity crisis.
Sudan’s Solar Energy Sector
Before the outbreak of the war, Sudan had launched five solar energy projects that formed the foundations of a broader strategy to capitalise on the country’s location within the global solar belt.
With more than 300 days of sunshine annually and solar radiation levels ranging from 5.5 to 7.5 kWh per square metre per day, Sudan possesses exceptional natural conditions for generating clean energy and easing pressure on the national electricity grid.
According to the International Renewable Energy Agency (IRENA), Sudan ranked fifth among Arab countries in installed clean electricity capacity by the end of 2022.
The country’s current solar power projects have a combined capacity of approximately 200 megawatts. Regional distribution includes:
Khartoum – 7.1%
Darfur – 6.0%
Kordofan – 4.9%
Eastern Sudan – 3.1%
Central Sudan – 2.7%
Major solar projects include:
MAS Industrial Solar Plant in Atbara
Dongola Solar Plant (20 MW)
Kenana Sugar Company’s Solar Plant (40 MW)
El Fasher Solar Plant (5 MW)
Shendi and Al-Metemma Solar Irrigation Project (459 kW)
Over the past five years, UNDP has installed nearly 300 solar-powered water systems for irrigation and domestic use throughout Sudan. These systems have increased agricultural productivity, reduced dependence on diesel fuel, and lowered operating costs by as much as 70 per cent.
The programme has also converted 110 healthcare facilities and three women’s centres to solar power. Overall, UNDP’s solar energy initiatives have improved healthcare, livelihoods and skills development for approximately 800,000 people.
However, since the outbreak of the war in 2023, the pace of expansion has slowed considerably. Projects located near conflict zones have either been suspended or significantly delayed, while implementation has continued only partially in more distant states, facing serious logistical challenges related to maintenance and prolonged power disruptions, according to the UNDP study.
The Need for a New Investment Framework
Against this backdrop, Sudan urgently needs to encourage investment in solar photovoltaic energy by introducing attractive investment incentives and establishing a robust legal framework to protect investors.
Sudan could adopt a number of internationally recognised investment models, including:
Power Purchase Agreements (PPAs)
Public-Private Partnerships (PPPs)
These models could be adapted to suit Sudan’s unique economic and institutional circumstances.
To illustrate the potential of such approaches, the next part of this series will provide a concise overview of Malaysia’s successful photovoltaic solar investment model and examine how key elements of that experience could be applied within the Sudanese context.
To be continued…

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