Beyond the energy crisis: renewables as economic enablers
We are looking at a future where renewables provide the baseload power, but do so swiftly and cost-effectively
Amid South Africa’s prolonged energy crisis, transitioning to renewables offers more than just a reliable supply of electricity. It also holds the potential for economic revitalisation in the long term.
Let’s begin by looking at the most obvious solution renewables bring to the table: boosting our electricity grid. Until recently, integrating renewables such as wind and solar into the grid has posed several challenges when providing reliable baseload power — the consistent minimum level of electricity needed.
Unlike traditional fossil-fuel sources such as coal, renewable energy output can fluctuate owing to weather conditions.
This variability poses challenges in ensuring a stable supply, particularly during peak-demand periods, typically mornings and evenings, when renewable sources may face challenges in meeting the required supply. For instance, solar energy is less likely to fulfil baseload requirements.
The recently announced Oya Energy Hybrid Project, powered by ENGIE and partners, demonstrates that baseload can be achieved by combining renewables — solar and wind — with battery storage to provide dispatchable power that can be used as and when needed.
A hybrid energy project such as Oya has been amplified by two crucial factors.
First, the battery price point has dropped, which means combining solar with battery storage is now financially more cost-competitive than coal- or gasfired power plants.
Second, advancements in battery technology now allow us to choose batteries capable of delivering up to 12,000 cycles. In practical terms, this means a battery operating on one cycle a day can last for up to three decades. The total generation capacity of our power plants is designed to meet capacity at maximum usage, which in South Africa occurs during those two peak periods. If we can meet that demand — thanks to energy storage — renewables can rapidly contribute to solving South Africa’s energy challenges.
This is great news, obviously, but it’s also just the beginning. Renewable plants can come on stream quite quickly compared with a coal-fired power plant, which can take up to 10 years to become operational.
With renewable plants, obtaining the permits could take as little as six months, and construction another 12 months. In effect, implementing multiple projects such as the Oya Energy Hybrid Project could dramatically improve the energy landscape in South Africa in a relatively short period.
That begins to open up economic opportunities in all kinds of ways. Take jobs, for instance.
A 2022 Global Wind Energy Council report estimated that the shift from coalfired to clean energy in South Africa could deliver an additional 250,000 jobs and more than $10bn (about R189bn) in gross value-add to the economy over 25 years.
Along with jobs, the potential for skills development and transfer is enormous. There is a great deal of buzz around artificial intelligence, robotics and machine learning as skills of the future — and rightly so — but renewables also offer a wide range of future-facing skills. We will always need energy, and renewables are the future.
Renewables can also act as an enabler for economic development through local procurement, infrastructure improvement and enterprise development.
And, of course, in the bigger picture, business continuity across the country becomes possible again, with fewer power disruptions negatively affecting productivity and bottom lines in businesses large and small.
The future of renewables in South Africa is experiencing explosive growth, unlocking huge potential. Rather than lagging behind, the country is now poised to be at the cutting edge of the energy revolution.
While the Oya Energy Hybrid Project might be the first of its kind, it won’t be the last. We are looking at a future where renewables not only provide the baseload power, but do so swiftly and costeffectively.
This is just the beginning of a ripple effect that could transform South Africa. From creating a stable and affordable energy supply to fostering economic growth and job creation, the benefits of embracing renewables extend far beyond mere kilowatts. We are talking about empowering communities, revitalising industries and safeguarding our environment for generations to come.