Renewables cheaper and more reliable
The transition to renewable energy could result in cheaper, cleaner and a more reliable electricity supply for SA, says a new study.
The transition to renewable energy could result in cheaper, cleaner and a more reliable electricity supply for SA, according to a new study.
Part of the Southern Africa — Towards Inclusive Economic Development (SA-TIED) programme of the University of Cape Town’s Energy Research Centre (ERC), the study highlights that future energy supply should come primarily from wind and solar. Renewable energy and flexible generation or storage provide the least-cost pathway for the electricity sector and no new coal or nuclear power plants should feature in SA’s electricity future as their inclusion would require subsidies from consumers, it says.
The study comes as the government scrambles to find solutions to the Eskom crisis. The utility has struggled with maintenance issues and design flaws at its new coal power stations, and had to resort to stage-four load-shedding in March.
Recent statistics from the Council for Scientific and Industrial Research show that without renewables SA would have endured higher stages of loadshedding more often in 2018.
The ERC study found there is no single or quick-fix solution to SA’s electricity woes, but that a vibrant energy mix should be adopted to not only save money for consumers, industry and the economy but also to meet carbon emissions target. Such a mix would include methods to store excess power on grid through utility-scale storage and off-grid by generating hydrogen, ammonia and methane, and charging electric vehicles.
A large-scale procurement programme for battery technology to provide storage capabilities for variable renewable energy should be pursued.
“The need for clean energy solutions has also been reinforced by the devastating impact of cyclone Idai which struck parts of southern Africa. This tragedy once again highlights that any future economic and energy planning scenarios must account for climate change mitigation effort,” the report said.
A report by the Londonbased Climate Policy Initiative released last week states that SA could lose as much as $124bn between 2019 and 2035 if it delays the energy transition.
A global low-carbon transition could reduce the demand for and prices of assets such as coal and oil. Infrastructure that supports higher carbon activities — including rail, power plants or ports — may have to be replaced or retired early.
“Companies, investors and workers could be hurt by lower prices and reduced demand for certain products. Governments may face reduced revenues, for example from lower tax receipts, while their expenditure increases for financial assistance to industries and workers in transition,” the report said. phakathib@businesslive.co.za