Alternative power a benefit for SA in multiple ways
SOUTH Africa has rapidly become a world player in renewable energy, says a new report from the Department of Energy (DoE).
The country is well on its way to achieving the government’s goal of 30 percent clean energy by 2025.
Abundant sunshine 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, the report states.
“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 in Cape Town, which runs from yesterday until Wednesday.
An independent study by the Council for Scientific and Industrial Research found energy generated from solar and wind during the first six months of the year created R4 billion financial benefits.
“An eclectic mixture of government policy converged with market forces to deliver an unprecedented world-class programme,” says the report, titled “State of Renewable Energy in SA”.
It was supported by GIZ and the South African-German Energy Programme, and was to be released today by DoE acting director-general Dr Wolsey Barnard.
Noted Kevin Nassiep, chief executive of the South African National Energy Development Institute: ”Renewables are delivering exactly what South Africa needs – from energy, jobs and technology to foreign investment, rural development, community benefits and working relations between the government and business.
“The scope and scale of renewable energy development in South Africa demonstrates what is possible when government and business share a commitment to success.”
The success stems from excellent policy foundations for renewable energy, including the constitution and the National Development Plan, and a 2009 government commitment to cut carbon emissions by 34 percent by 2020 and 42 percent by 2025.
Renewables were catapulted to prominence by the electricity shortages of 2008, leading to bold targets in the 2010 to 2030 Integrated Resource Plan for 17 800 megawatts of new power generation capacity.
The 2011 introduction of the dynamic Renewable Energy In-dependent Power Producer Procurement Programme (REIPPPP) was a tipping point. The DoE has committed to 6 236MW of renewable energy generation by 2019.
Its bidding process is investor-friendly, and by the middle of the year, over 6 000MW will be procured from 92 independent producers, with 37 having begun commercial operation, adding 1 860MW to the grid.
The REIPPPP is the fastestgrowing renewable energy programme in the world and one of Africa’s biggest infrastructure investments.
Renewable energy has attracted a R192.6 billion investment, of which 28 percent (R53.2bn) is much-needed foreign investment. Investment in the sector grew a phenomenal 20 500 percent from 2011 to 2012.
The booming sector has contributed to more than 109 000 construction jobs and cut the equivalent of 4.4 million tons of carbon dioxide.
Last year, the UN Environment Programme put South Africa in the global top 10 for renewable energy investments. It is the world’s 10th biggest solar market for installations above 5MW.
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, with the average tariff per kWh dropping by 68 percent since 2011. Prices are level with the lowest tariffs in global market leader Germany. Local communities have been big beneficiaries, with a shareholding of 10.5 percent in renewable projects – more than four times the required minimum of 2.5 percent.
Over 20 years, communities that host renewable energy projects are expected to receive a net income of R29.1bn, or R1.46bn a year. A total of R19.1bn has been committed to socio-economic development initiatives. The total projected value of goods and services to be procured from BBBEE suppliers is more than R101bn.
The renewable energy sector could create up to 462 000 jobs. More than 25 000 jobs have already been created, the DoE report said.
Renewables are also boosting manufacturing. In 2012, a solar PV manufacturing plant was built in Pinetown near Durban, employing 160 people and able to produce 250 000 solar panels a year.
A DoE solar energy technology roadmap estimates that by 2050 about 70 gigawatts of power can be generated from solar photovoltaic and concentrated solar power sources.
In addition, up to 247MW of small-scale hydro power could be developed in rural Eastern Cape, the Free State, KwaZuluNatal 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, using wastewater, food waste, manure, agricultural residues and commercial processes including abattoirs, breweries and cheese factories.