Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Blue Label Telecoms to change its name as restructuring gathers pace

      11 July 2025

      Get your ID delivered like pizza – home affairs’ latest digital shake-up

      11 July 2025

      EFF vows to stop Starlink from launching in South Africa

      11 July 2025

      Apple plans product blitz to reignite growth

      11 July 2025

      Nissan doubles down on South Africa despite plant uncertainty

      11 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » South Africa ‘needs gas as a transition fuel to renewables’

    South Africa ‘needs gas as a transition fuel to renewables’

    By Agency Staff6 April 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    A key funder of South Africa’s renewable energy drive is backing natural gas as the fuel needed to help the country bridge the transition from coal power generation to the use of wind and solar.

    Old Mutual’s African Infrastructure Investment Managers will consider funding companies that compete for the right to produce 3GW of electricity from gas in an upcoming bid round planned by the government, said Vuyo Ntoi, co-MD of the almost US$2-billion (R29-billion) fund.

    “We believe gas is an excellent transition fuel from coal-heavy generation to renewables,” Ntoi said in an interview. “Gas fulfils that role and will fulfil that role until storage in the form of batteries is competitive.”

    It will rile the country’s renewable energy lobby, which argues that the country should take advantage of its abundant sun and wind…

    Ntoi’s support for the fuel that is rarely used in South Africa is in line with the stance taken by South Africa’s biggest coal consumers, Eskom and Sasol. The companies plan to rely on gas to cut their greenhouse emissions while maintaining their output of electricity and motor fuels respectively.

    Still, it will rile the country’s renewable energy lobby, which argues that the country should take advantage of its abundant sun and wind and not invest in gas infrastructure that may be rendered obsolete in coming years.

    The use of gas is still a necessary step, according to Ntoi, whose fund has invested about R9-billion in South African renewable energy plants. Gas is currently more dispatchable, meaning it can be used on demand, than renewable energy, which depends on the weather, he said.

    ‘Political will’

    Ntoi said he is encouraged by the “political will” that’s seen South Africa announce plans this year for further renewable energy bid rounds as well as seeking additional power from coal, gas and battery storage.

    The government should have taken advantage of the number of projects that competed in an emergency power provision round that awarded contracts to produce 1.8GW by August next year, he said.

    Projects that could have supplied an additional 4GW to 4.5GW, including ones backed by his fund, were rejected, Ntoi said. Those could have been used to bring South Africa’s crippling power cuts to an end, he added.  — Reported by Antony Sguazzin, (c) 2021 Bloomberg LP



    African Infrastructure Investment Managers AIIM Old Mutual top Vuyo Ntoi
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFacebook shares surge to record despite Apple risk
    Next Article World’s billionaires added $5-trillion to their wealth in one year

    Related Posts

    Is Google overspending on AI?

    18 May 2025

    Old Mutual’s OM Bank targets breakeven in three years

    18 March 2025

    Meet the CIO | Kerissa Varma on what it takes to be a top CISO

    10 March 2025
    Company News

    $125-trillion traded: Binance redefines global finance in just eight years

    11 July 2025

    NEC XON welcomes HPE acquisition of Juniper Networks

    11 July 2025

    LTE Cat 1 vs Cat 1 bis – what’s the difference?

    11 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.