State of renewable energy in SA

Since we last reported on the matter, there has been considerable progress made towards an envisaged low carbon energy future for SA, in support of green buildings and sustainability in general. Here, we report on the current renewables landscape in South Africa.

Recent milestones at a strategic governmental level have included the long-awaited release of the government’s Integrated Resources Plan 2019 (IRP). Shortly thereafter, the Minister of Minerals and Energy alluded to certain rights being given to independent power producers to generate and supply electricity direct to users, especially with reference to the mining industry. This is the first time that a senior cabinet minister has referred to the passing of legislation that could directly mitigate the monopoly that Eskom has over the supply and distribution of electricity to consumers, including municipalities.

This was backed by President Cyril Ramaphosa, who in his State of the Nation Address specifically referred to the renewable energy sector.

In his SONA, the President said that a Section 34 Ministerial Determination will give effect to the Integrated Resource Plan 2019, enabling the development of additional grid capacity from renewable energy. However, the South African Wind Energy Association (SAWEA) has commented that this is only the first step in delivering new power into the grid.

‘Thereafter, the industry will wait for a Request for Proposals (Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme – acronym REI4P), the announcement of a preferred bidders; and financial closure period (which takes about 12 months), before the power purchase agreements are signed. Then construction can commence, with new projects reaching commercial operation date within 18 to 24 months,’ says a statement issued by SAWEA CEO, Ntombifuthi Ntuli.