Struggling to wean a society away from a century-old legacy of coal based power: Challenges and possibilities for South African Electric supply future (original) (raw)

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.

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

Prospects for renewable energy in South Africa

2010

Post-apartheid electricity policy and the emergence of South Africa's renewable energy sector

South Africa’s new renewable energy sector is uniquely embedded within the country’s electricity system and in turn its unique political economy. In this paper I firstly chart major developments in the country’s energy policy and governance since the end of apartheid in order to demonstrate how electricity policy is determined by economic, political, and technological factors. Secondly I examine the contested negotiation of key policies, which have been fundamental to the introduction of a renewable energy sector. Finally I consider how the new renewable energy sector has evolved thus far and raise key challenges and concerns for its future development

Prospects for renewable energy in South Africa : Mobilizing the private sector

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.

A new energy future for South Africa: The political ecology of South African renewable energy

Energy Policy, 2011

Renewable energy remains a contested topic in South Africa. This paper argues that South Africa can build on the momentum surrounding its introduction of a feed-in tariff by enacting policies that may, if given adequate funding and political effort, allow the country to be a world leader in renewable energy. Given a variety of renewable energy policy options for moving forward, a majority of stakeholders consulted in this study strongly prefer the development of a renewable energy manufacturing cluster, in which government develops coordinated policy mechanisms that attract renewable energy manufacturers, over three other policies suggested by the authors. Interviews with key informants that play critical roles in this decision-making process suggest that there are reasons to remain cautiously optimistic about the country's renewable energy future while cognizant of the challenges that must still be overcome. Opportunities for a low carbon renewable energy transition in South Africa include the prevalence of broad stakeholder consultation, facilitated by civil society, and an innovative policy development context. Significant impediments also exist, however, and include pervasive social issues such as poverty and political inertia, along with the ongoing difficulties facing renewable energy technologies in reaching grid parity with inexpensive and abundant South African coal.

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 gathers steam in South Africa

Renewable and Sustainable Energy Reviews, 2015

South Africa's Renewable Energy Independent Power Producers Procurement Programme (the REI4P) is an extensive initiative to install 17.8 GW of electricity generation capacity from renewableswind, solar, biomass, biogas and hydropowerover the period 2012-2030. Although at the outset the REI4P seemed an expensive option, designed only to deflect criticism of South Africa's high carbon footprint and excessive dependence on coal-based electricity generation, the escalating costs of the latter, the rapidly falling costs of photovoltaic and wind power, and the increasingly competitive bidding process of the REI4P have changed this prospect. At the conclusion of round three, the weighted cost of energy has reached a 23% discount to the cost of new coal-based generation and a 28% discount to global renewable energy prices. The bidders' commitments to local employment creation have similarly increased from 11 to 18 jobs/MW. The programme is now well placed to deliver on a broad range of objectives, including regional development and black economic empowerment. However, maximum benefit from the REI4P will not be secured without some revision to aspects of the bidding and procurement process. More specifically, the local content provisions need to be tightened to drive higher levels of local manufacturing.

South Africa's renewable energy policy roadmaps

ENERGY RESEARCH, 2010

South Africa’s renewable energy policy to date has largely been driven by a 10,000 GWh target by 2013 and renewable energy project subsidies offered through the REFSO. In 2009 a REFIT was published, which has resulted in a great interest by IPPs to develop renewable energy projects in South Africa. Nonetheless, under existing renewable energy policy few renewable energy projects for electricity generation have been deployed. SWHs have seen some market growth in 2008 and 2009 largely facilitated by a SWH subsidy and increased energy awareness due to nation-wide electricity blackouts in 2008. In this study renewable energy Roadmaps have been projected for electricity generation from wind, CSP and PV and for high and low SWH rollout programmes that reduce the demand for electricity. Six roadmaps were developed. Electricity targets of 15% (Roadmaps 5 & 6), 27% (Roadmaps 3 & 4) and unlimited (Roadmaps 1 & 2) by 2030 were assessed, as well as high (Roadmaps 1, 3 & 5) and low SWH (Roadmaps 2, 4 & 6) strategies. The policy Roadmaps are compared to a Baseline projection in which only new supercritical coal power plants, such as those currently under construction, are built to meet South Africa’s growing electricity demand and no SWHs are deployed. The most employment benefits are recorded for the Roadmaps supporting a high SWH rollout. A high SWH deployment target results in at least 6 GW of electricity generation capacity saved, while the low SWH target only prevents 2 GW of electricity the electricity sector. A mixture of wind (30%) and CSP (70%) would be the largest contributors to achieving this target in 2030, supported by the REFIT.generation capacity from being deployed. The unlimited renewable energy target projections result in the highest GHG savings, while the 27% target projections stabilise GHG emissions form electricity. Reaching a 15% renewable electricity target does not result in any price increased above those projected for the Baseline and if a carbon tax is considered in all renewable projections the Baseline projection results in the highest price estimates by 2030. The renewable energy policy Roadmap 3, with a target of at least 27% electricity supply from renewable sources and a high SWH rollout strategy, is identified as the most favoured projection for South Africa. This strategy would create the most possible employment and stabilises the GHG emissions from By completing sensitivity analyses on Roadmap 3 it is seen that PV can play a more important role if higher technology learning rates are encouraged by an effective REFIT with sensible tariff degression. Furthermore, higher GHG emission reductions can be achieved at a lower cost compared to a renewables only strategy (Roadmap 1) by encouraging nuclear to supply the additional electricity demand from 2020. Furthermore the price of electricity under the nuclear sensitivity projection is below the original Roadmaps 1 and 3, and the Baseline projection if carbon taxes are considered in the analysis. This indicates that it may be the most economical strategy on the assumption that the cost of nuclear will not rise into the future. This study certainly shows how active renewable energy policy can result in higher employment and GHG savings, often at very little additional investment requirements. It is recommended that assessments of renewable energy policy in South Africa would have to incorporate a more detailed analysis of energy efficiency policy and targets, beyond the SWH rollout assed in this study, as these will have a notable influence on the electricity demand in the country. A more detailed review of the maco-economic impacts, beyond the employment benefits as was done for this study, would also be necessary.

Struggling to wean a society away from a century-old legacy of coal based power: Challenges and possibilities for South African Electric supply future (original) (raw)

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