SA ‘world-player’ in renewables
SOUTH Africa has rapidly become a world player in renewable energy, says a new report from the Department of Energy (DoE).
It claims the country is well on its way to achieving the government’s goal of 30% clean energy by 2025.
World-class sun and strong coastal wind, combined with “sensible policy” and government partnerships with business, have led to jobs, foreign investment and clean power which reduces load shedding, said the report.
“We’re making intelligent use of our natural advantages,” said Energy Minister Tina Joemat-Pettersson, in welcoming delegates to the South African International Renewable Energy Conference 2015 being held in Cape Town.
The conference ends today (Wednesday).
An independent study by the Council for Scientific and Industrial Research (CSIR) found energy generated from solar power and wind during the first six months of 2015 created R4 billion in financial benefits.
“An eclectic mixture of government policy converged with market forces to deliver an unprecedented world-class programme,” says the DoE report, State of Renewable Energy in SA.
“Renewables are delivering exactly what South Africa needs – from energy, jobs and technology to foreign investment, rural development, community benefits and working relations between government and business,” said Kevin Nassiep, chief executive of the SA National Energy Development Institute. “The scope and scale of renewable energy development in South Africa demonstrates what is possible when government and business share a commitment to success.”
Renewables were catapulted to prominence by the electricity shortages of 2008, leading to bold targets in the 2010-2030 Integrated Resource Plan for 17 800MW of new power generation capacity from renewables.
The 2011 introduction of the Renewable Energy Independent Power Producers Procurement Programme was a tipping point. The DoE has already committed to 6 236MW of renewable energy generation by 2019.
By mid-2015 more than 6 000MW will be procured from 92 independent producers, with 37 having started commercial operation, adding 1 860MW to the grid.
The programme is the fastest-growing renewable energy programme in the world and one of Africa’s biggest infrastructure investments.
Renewable energy has attracted R192.6 billion in investment, of which 28% (R53.2bn) is much-needed foreign investment. Investment in the sector grew a phenomenal 20 500% from 2011 to 2012. The booming sector has contributed to more than 109 000 construction jobs and cut the equivalent of 4.4 million tonnes of carbon dioxide, the report states.
In 2014 the UN Environment Programme put South Africa in the global top 10 for renewable energy investments. It is already the world’s 10th biggest solar market for installations above 5MW.
Load shedding
Renewables have reduced the frequency and duration of load shedding, according to Stellenbosch University’s Centre for Renewable and Sustainable Energy Studies.
Prices of renewable energy are falling fast, with the average tariff per kWh dropping 68% since 2011. Prices are now level with the lowest tariffs in global market leader Germany.
Renewables are also boosting South Africa’s manufacturing industry. In 2012 a solar PV manufacturing plant was built in Pinetown employing 160 people and able to produce 250 000 solar panels a year.
A DoE solar energy technology roadmap estimates that by 2050 about 70GW of power can be generated from solar photovoltaic and concentrated solar power sources.
In addition to solar and wind power, up to 247MW of small-scale hydro power could be developed in the rural Eastern Cape, Free State, KZN and Mpumalanga; and work has begun on a national biomass action plan. The Southern African Biogas Industry Association estimates that biogas can contribute 2.5GW generation capacity in the country, using wastewater, food waste, manure, agricultural residues and commercial processes including abattoirs and breweries.