Renewable energy gathers steam in South Africa (original) (raw)
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South Africa's renewable energy procurement: a new frontier?
Despite a contuining electricity crisis from its coal-fired sources, in recent years South Africa has become one of the leading destinations for renewable energy investment. This is thanks to the launch of its renewable energy independent power producers’ programme for which an estimated $14 billion/R168 billion has been committed thus far and approximately 4 GW of utility-scale renewable energy capacity approved. The programme is unique in that it in order for projects to qualify, developers must commit to undertake requirements for community ownership and economic development benefits in a country with gross socio-economic inequality. However as the industry facilitated by RE IPPPP continues to develop, concerns have arisen including over: the extent to which financial returns will leave or benefit the country; that the ownership of the industry is rapidly becoming the domain of large international utilities; and emerging tensions between ‘bankability’ required by banks and investors and the economic benefits and community ownership criteria.
The Economics and Imperatives of Renewable Energy: Impact on South Africa's Competitiveness
This study analyses the impact of Renewable Energy (RE) on South Africa's gross domestic product (GDP), social welfare, global trade and employment in South Africa. Government commitment to developing Renewable Energy Technologies (RETs) will result in a more sustainable energy supply for the economy. The study highlights the broader macroeconomic benefits of deploying renewable energy-namely wind, solar and bioenergy-both for on and off grid supply. This study also identifies the major challenges that in the implementation of RE in South Africa and offers some solutions to these steep initial costs and the investment needed to develop new skills are major challenges to the implementation of RET. However, it is important to note that these costs can easily be offset-renewable energy technologies (RETs) have lower running costs than other forms of electricity generation. The study concludes that the deployment of renewable energies will greatly benefit South Africa. However, shortcomings were identified in terms of the implementation of renewable energy. There is therefore a need for the government to come up with a higher target and accelerate the implementation programmes.
Overview of the energy sector in South Africa RENEWED PROJECTS
Overview of the South African energy sector as of 2020, 2022
Globally, renewable energy sees by far the fastest growth, with gasification and electrification remaining the main trends. As far as the local power utility, Eskom, are concerned they consist of a fleet of thirteen (13) coal fired power stations contributing to approximately 36000MW, a nuclear power plant, four (4) gas or petroleum power stations, two (2) hydro plants and two (2) pump storage facility, collectively contributing to around 41000MW of power generation capacity. Due to the delays in the planning and decision making process for additional energy resources, the actual reserve margins managed by the local utility were depleted and as a result of unplanned maintenance in 2008 this lead to the need for load shedding across the local utility’s complete network. In addition to this, Eskom did not adhere to the basic law of economics and instead of producing competitive electricity prices a cumulative increase of 503% from 2008 to 2020 had been observed. Coal fired pants are expected to remain the dominant source for electricity generation, at least till 2030, when Kusile and Medupi are fully commissioned. The depletion of national reserve margins sparked the interest into exploring feed-in tariffs (FITs) for renewable energy, but these were later rejected in favour of competitive tenders. The resulting program, now known as the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), constituted of a public-private initiative on a massive and unprecedented scale helped to stabilise power supply and attempted to reduce South Africa’s dependence on coal and diesel, through the introduction of the use of renewable energy resources onto the national grid. In monetary terms, the Department of Energy reported that the investments into energy, renewables programme has, by 2017, brought $14-billion of foreign direct investment into the country This report highlights the key area’s of progress within the renewable energy sector in relation to South Africa’s developments as well as the current status of non-renewable energy sources, and electrification.
Renewable energy policy in South Africa: policy options for renewable electricity
Energy Policy, 2005
Investment in renewable energy and energy efficiency is important to reduce the negative economic, social and environmental impacts of energy production and consumption in South Africa. Currently, renewable energy contributes relatively little to primary energy and even less to the consumption of commercial energy. This article examines policy options for promoting renewable electricity. Feed-in tariffs guarantee prices for developers, but lack certainty on the amount of renewable electricity such laws would deliver under local conditions. Portfolio standards set a fixed quantity, which would guarantee diversity of supply. The question is whether the incremental upfront cost to be paid by society may be unacceptably high, compared to future health and environmental benefits. A renewables obligation combines the setting of a target with a tendering process, but may be bureaucratic to administer. Neither setting targets or regulating prices alone, however, will be sufficient. Power purchase agreements, access to the grid and creating markets for green electricity are some supporting activities that should be considered. Given that renewable electricity technologies have to compete with relatively low electricity tariffs, funding will be needed. Possible sources, both locally and internationally, are identified. The extent to which these are utilised will determine the future mix of renewable energy in South Africa. r
Journal of Energy in Southern Africa, 2021
The South African Renewable Independent Power Producer Procurement Programme selects bid winners based on bid tariff (70% weighting) and various economic development criteria (30% weighting). Locating renewable energy (RE) projects in areas with better resources increases their cost competitiveness. As a result, most successful bids for wind and solar photovoltaic (PV) systems to date have been concentrated in the Eastern Cape and Northern Cape provinces, respectively. Studies have shown that a wider geographic distribution of wind and solar PV projects mitigates the impacts of the variability of wind and solar PV resources, eases grid congestion and generally improves the power system’s operation. This paper conducts a literature review to investigate the procurement methods used in different regions of the world to influence the placement of RE plants, the results of which then inform proposals on adjustments to the current REI4P. The study finds that, after congestion incidents d...
Renewable energy in South Africa: Potentials, barriers and options for support
Energy Policy, 2010
The challenge of transforming entire economies is enormous; even more so if a country is as fossil fuel based and emission intensive as South Africa. However, in an increasingly carbon constrained world and already now facing climate change impacts South Africa has to reduce greenhouse gas emissions intensity soon and decidedly. The South African electricity sector is a vital part of the economy and at the same time contributes most to the emissions problem. First steps have been taken by the South African government to enhance energy efficiency and promote renewable energy, however, they fail to show large-scale effects. This paper seeks to identify the relevant barriers to renewable energy investments and, based on experience from other countries, provide policy recommendations. The major barrier identified in the paper is based in the economics of renewable energy technologies, i.e. their cost and risk structures, two main factors in investment planning. As solution, the South African government introduced several renewable energy support measures, such as a feed-in tariff. The paper discusses the potential and possible shortcomings of this and other existing support schemes and identifies complementing measures on a national scale.
Prospects for renewable energy in South Africa : Mobilizing the private sector
The challenge of transforming entire economies is enormous; even more so if a country is as fossil fuel based and emission intensive as South Africa. However, in an increasingly carbon constrained world and already now facing climate change impacts South Africa has to reduce greenhouse gas emissions intensity soon and decidedly.
SOUTH AFRICAN JOURNAL OF INTERNATIONAL AFFAIRS, 2023
South Africa’s renewable energy-independent power producers (REIPPs) largely depend on foreign manufacturers and resources as they generate the power needed to address the country’s energy crisis. This foreign dependence contradicts some principles of a just energy transition, which encourages developing local job creation in the renewable energy sector. Although South Africa has increased its power procurement targets and relaxed some regulatory requirements in response to the current energy crisis, the long-term policy framework is unclear. Sustainably expanding renewable energy generation depends on a clear policy framework which plots the transition from coal and develops local manufacturing and skilling capacities. Through a case study review of two South African wind farms, this article examines how REIPPs can shift their reliance on foreign equipment manufacturers and skilled resources to local providers, fostering a sustainable and inclusive just energy transition.
Prospects for renewable energy in South Africa
2010
The challenge of transforming entire economies is enormous; even more so if a country is as fossil fuel based and emission intensive as South Africa. However, in an increasingly carbon constrained world and already now facing climate change impacts South Africa has to reduce greenhouse gas emissions intensity soon and decidedly.