The energy mix in South Africa has largely been dominated by the use of coal, both for electricity generation, as well as supplementing crude oil use through the production of synthetic liquid fuels.
With the abundance of steam coal in South Africa it is not surprising that three years ago, in excess of 90 percent of electricity generated in South Africa was sourced from coal. This picture has changed dramatically over the past three years and South Africa finds itself among the forerunners in creating a viable market for renewable energy globally.
South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP) is largely credited with the success story that is being written at present. The Global Status Report of 2014, the global reference publication that analyses the international renewable energy market, placed South Africa fourth globally, in a list of investment in renewable energy relative to gross domestic product (GDP).
This year, other African countries, such as Burundi and Kenya have overtaken South Africa on this list, a pleasing sign for the energy economies of Africa. The success of REIPPP locally is due to the aggressive auction system introduced, whereby developers placed bids in response to specified rounds, where technology caps were in place. These caps are based on the Integrated Resource Plan of the country and cover technologies such as large wind turbines, photovoltaic systems, concentrated solar power plants and biomass or waste to energy plants.
Transition
Some 17 800 megawatts (MW) of new renewable energy must be added to the grid by 2030, in line with the country’s aspirations as far as a transition to a low carbon economy is concerned. Currently, over 4 000MW has been added to the grid already, the culmination of three bidding rounds so far. In the fourth round, where winning bidders were announced in April 2015, a further 1 121MW of renewable energy capacity was contracted.
What is even more impressive is the reduction in prices for large wind turbines and photovoltaic power. We have seen the price of electricity generated from wind energy reduced to about 61 cents per kilowatt-hour (kWh) and from photovoltaic systems, to about 79c/kWh. This bodes well for renewable energy in general, as grid parity has been reached, albeit without large-scale storage being cost effective at present.
When one considers the current demand for electricity and the installed capacity of Eskom, there is a 3 000MW shortfall at peak and this explains the current load-shedding challenge in the country. Only some 29 000MW of Eskom’s installed capacity is available at any given time, due to heightened maintenance requirements. This creates an opportunity for renewable energy to step in as a cost-effective means of bridging the current shortfall.
Even with the almost 9 600MW of additional capacity set to be introduced once Medupi and Kusile (Eskom’s two new coal-fired power stations) are commissioned, there will be a shortfall as economic growth will pick up momentum and industrial and commercial demand for electricity will result in further power shortages.
The South African National Energy Development Institute (Sanedi), has the mandate to undertake, monitor and co-ordinate energy research in the country. Added to this responsibility is the objective of transforming energy consumption patterns in the country, creating sustainable jobs in the energy sector and stimulating local manufacturing.
Sanedi concentrates on all forms of energy, except nuclear energy, as this area is covered by a sister agency, the South African Nuclear Energy Corporation SOC Limited (Necsa). Included in the programmes Sanedi administers on behalf of the government is Renewable Energy. Under its programme, Sanedi has developed a comprehensive set of interventions designed to build capacity in South Africa, as well as advance the development of renewable energy technologies.
Through the Renewable Energy Centre of Research and Development (Record), Sanedi has established a link to other research bodies around the country. Record is supported by GIZ, the German Agency for International Co-operation.
As a result of collaborative efforts between Germany and South Africa, the South African Renewable Energy Technology Centre (Saretec) was established at the Cape Peninsula University of Technology in Cape Town. The centre offers vocational training to artisans in the fields of wind energy safety, installation and maintenance. Photovoltaic (PV) energy systems will be added to the training programme.
Wind atlas
A PV testing facility has also been established at Nelson Mandela Metropolitan University in Port Elizabeth. In addition, a revised wind atlas for South Africa, developed in partnership with the Danish government, is also now available.
Sanedi has created platforms for bioenergy and algae, to allow for researchers and industry partners to have a collective voice when it comes to lobbying government for support, as well as to share information among fellow researchers. Sanedi, through its affiliation to the International Energy Agency (IEA), participates in research groups that bring together researchers from across the globe. Renewable energy is an important area in this regard and leading researchers are invited to share their knowledge and experience with their South African counterparts.
Through the South Africa International Renewable Energy Conference (Sairec) 2015, the first such a conference to take place on African soil at the Cape Town International Convention Centre next month, Sanedi and its partners will bring together not only researchers but also policymakers to stimulate the renewable energy market in Africa and the rest of the developing world.
Sairec 2015 creates a platform for spurring on action and an important outcome of this event must be a call to action to other governments that have not adopted favourable policies or targets supporting an uptake of renewable energy.
There are many examples of building an energy efficiency portfolio. For example, wind is one renewable energy source in which there has been particularly fast development of technology in recent years. This has driven its cost (and noise!) way down, with natural market interest following. In fact, wind is now the fastest-growing energy source, with global demand and use of wind turbines and associated infrastructure growing at a mind boggling pace.
Working together, we can help our country invest in renewable energy – something which will: benefit our economy and consumers, be good for the entire planet and be a contributor in leading South Africa to a more energy independent, environmentally friendly future.
* Kevin Nassiep is the chief executive of the South African National Energy Development Institute (Sanedi), one of the hosts of Sairec 2015 which takes place next month.
** The views expressed here are not necessarily those of Independent Media.
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