South Africa’s renewable energy market is poised to reach 13.21 gigawatts (GW) by the end of 2023 following favourable regulations and private sector participation, advocacy group African Energy Chamber said in a new report.
The new energy legislation, favourable power purchase agreements and the renewable energy independent power producer procurement programme have driven nearly $13 billion in private capital to develop 77 wind and solar facilities.
South Africa’s rooftop solar photovoltaic market has witnessed significant growth in recent years, with an installed capacity potentially as high as 250 MW.
The private sector participation has the potential to alleviate pressure on the country’s ailing power networks in the wake of its ongoing energy crisis, resulting in between 4.5-6 hours of regularly scheduled rolling blackouts per day, the report said.
Currently, the country has a total installed capacity of 62.7 GW, most of which is generated from coal.
Although South Africa is currently diversifying its power generation mix by attracting investment into its renewables sector, the chamber stated that coal is likely to remain the primary source of electricity for the country in the near future.
The power generation capacity currently is at approximately 195 TWh and is forecast to increase to 240 TWh by 2030.
The government-backed National Development Plan will serve as a blueprint for infrastructure development until 2030.
The plan offers a framework for future power generation in the country and envisages an additional 29,500 MW of electricity capacity, led by renewables, the report stated.