The renewables sector has attracted R192,6bn in investment, of which 28% (R53,2bn) is much-needed foreign investment, a report by the department of energy shows.
The State of Renewable Energy in South Africa report, which was released at the South African International Renewable Energy Conference this week, explains that the country is well on its way to achieving a goal of 30% clean energy by 2025.
“We’re making intelligent use of our natural advantages,” said energy minister Tina Joemat-Pettersson. “Renewables are a massive success story for South Africa.”
The report comes as a Bloomberg study revealed on Tuesday that wind power is now the cheapest electricity to produce in Germany and the UK, even without government subsidies. “It’s the first time that threshold has been crossed by a G7 economy,” reported Bloomberg.
In addition, a panel member at the conference said on Tuesday that the cost of new build for solar and wind energy is the same as building a coal power station. Tobias Bischof-Niemz, chief engineer at R&D Core, said that means “business sense can [now] drive the decisions”.
Renewables were catapulted to prominence in South Africa when electricity shortages in 2008 led to load shedding, leading to bold targets in the 2010-2030 Integrated Resource Plan for 17,8GW of new power generation capacity from renewables, the department of energy report states.
South Africa has already committed to 6,2GW of renewable energy generation by 2019. Another 6GW will be procured from 92 independent producers, with 37 having started commercial operation, adding 1,9GW to the grid.
The sector has contributed to more than 109 000 construction jobs and cut about 4,4m tonnes of carbon dioxide.
Prices of renewable energy are falling fast, with the average tariff per kWh having dropped 68% since 2011. Prices are now level with the lowest tariffs in global market leader Germany, according to the report.
Local communities have been big beneficiaries, with a shareholding of 10,5% in renewable projects, more than four times the required minimum of 2,5%, the report showed.
“A total of R19,1bn has been committed to socio- economic development initiatives in these communities,” the report showed. “The total projected value of goods and services to be procured from BBBEE suppliers is more than R101bn.”
The renewables sector could create up to 462 000 jobs, with more than 25 000 jobs already created, the energy department’s report said.
A departmental solar energy technology roadmap estimates that by 2050 about 70GW of power can be generated from solar photovoltaic and concentrated solar power sources.
About 247MW of small-scale hydropower could be developed in rural Eastern Cape, Free State, KwaZulu-Natal and Mpumalanga. Work has also begun on a national biomass action plan, it explained.
The Southern African Biogas Industry Association estimates that biogas can contribute 2,5GW generation capacity in the country. — Fin24