South Africa is undergoing a significant shift in its energy sector. Minister of Electricity, Kgosientsho Ramokgopa, recently outlined plans to "de-risk energy generation" by moving away from reliance on Eskom and encouraging multiple power generators. This initiative aims to diversify the energy mix, promote renewable energy, and enhance energy supply.
The Independent Power Producer Procurement Programme (IPPPP), launched in 2011, has been central to this transition. Through transparent and competitive bidding, the programme has appointed 141 preferred bidders, contributing a total of 13,422 MW to the national grid. Of this capacity, 7,335 MW is currently operational, with 1,897 MW under construction and 1,183 MW preparing for financial close. In addition, there are plans to evaluate 8,231 MW of capacity by next year, marking a steady ramp-up of renewable energy projects.
Ramokgopa also highlighted the significant drop in renewable energy costs. Solar energy prices have fallen by 88% over the years, from R4.66 per kilowatt hour to just 56 cents. Wind energy has seen a similar reduction, with prices dropping from R1.93 to 58 cents per kilowatt hour. These cost reductions not only make renewables more affordable but also position them as key drivers of economic recovery and sustainability.
The minister emphasised the need to accelerate the onboarding of renewable energy and battery storage to meet South Africa’s climate targets. The country aims to cut greenhouse gas emissions by 350 to 420 million tons of CO2 per year as part of its Nationally Determined Contributions (NDCs).
While most renewable energy projects are concentrated in the Cape provinces due to optimal conditions, there is potential to expand capacity across the rest of the country. The IPPPP’s focus on new battery storage technology will further enhance the efficiency and reliability of renewable energy sources.
In conclusion, as South Africa continues to embrace cleaner energy solutions, opportunities in the renewable sector are set to grow. Nepoworx is committed to supporting this transition through its training programmes, enterprise development and work placement initiatives, empowering businesses and individuals to contribute to a sustainable and resilient energy future.
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