The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been extremely successful in adding megawatts to the power available to South Africans, so much so that by 2025 loadshedding seemed to be a thing of the past on the back of investments of more than R300-billion.
In addition, solar PV installations are soaring. GreenCape’s “Energy Services Market Intelligence Report 2024” noted a 52% increase in rooftop solar PV installations in South Africa, rising to 3.2GW when measured at the first quarter of 2023. They assessed that market value at R41.6-billion and predicted that installed capacity will increase by 2030 to 10GW with a market value of R130-billion.
However, the country needs 14 000km of transmission infrastructure, together with 2 300kVa capacity in transformer infrastructure if the newly acquired power from solar farms and wind parks is to be delivered to homes, mines and factories. The cost of this exercise is estimated to be in the region of R440-billion.
Bid Windows 6 and 7 revealed the extent of the problem, with about 6GW of projects being unable to be executed because of lack of grid access. The Department of Electricity and Energy (DoEE) will roll out a system of allocating transmission projects based on the successful model of the REIPPPP. The first implementation of the Independent Transmission Projects (ITPs) programme will see 3 200MW running along 1164km of privately funded and operated transmission lines in three provinces.
In support of the ITP programme, a Credit Guarantee Vehicle is to be established with the support of National Treasury. This will allow for better security for private investors in telecommunications infrastructure, given concerns about Eskom’s debts.
A new company has been formed to deal with transmission.
A new company has been formed to deal with transmission. As of June 2024, the National Transmission Company of South Africa (NTCSA) was established as a separate, wholly-owned subsidiary of Eskom, the state utility. This is part of a plan to ultimately split Eskom into three parts, the other two covering generation and distribution.
Another way of mitigating concerns about transmission is through energy storage. In December 2024, eight preferred bidders in the second bid window of the Battery Energy Storage programme were announced. R12.8-billion was committed and the intention is to increase grid availability in the North West, Gauteng and Free State.
A third solution to the transmission problem is through “curtailment”, whereby new projects are allocated unused capacity that a previously approved project is not using. The National Energy Regulator of South Africa (NERSA) is the body that regulates issues such as a curtailment framework and rules about grid access.
Swedish company Polarium has set up a factory in Cape Town to assemble lithium-ion batteries. Polarium spent about R510-million setting up the plant and has plans to expand. In March 2024 the company announced that it had completed the transition to 100% solar-powered operations. The biggest customer for Polarium’s batteries in Africa is the American Tower Corp, which sets up and maintains telecommunications towers across the continent.
In South Africa the 12.6kWh battery sells well and customers include shopping malls and hotels. By using nickel, manganese and cobalt (NMC) technology, the lifecycle of the manufactured batteries is effectively doubled and they are recyclable, a fact which will assist Polarium as it aims for net-zero status for the factory by 2030.
In Mpumalanga, Seriti Green has broken ground on a project that will deliver 750MW of wind from 130m towers when it is complete. In addition, the hybrid model will include 100MW of solar and 800MW of battery.
The greater Humansdorp Jeffreys Bay area hosts no fewer than 13 wind farms so the announcement in March 2024 that Nordex Energy South Africa is to start making concrete tower sections at a manufacturing facility in Humansdorp makes economic sense. Up to 300 jobs will be created. Having invested in the Eastern Cape since 2013, Nordex Energy South Africa boasts a significant footprint in the province, including a warehouse in Gqeberha and 573MW of installed capacity across five wind-power plants.
Resources companies are looking to source renewable energy. Richards Bay Minerals has signed a 20-year power-purchase agreement with Khangela Emoyeni Wind Farm to supply the miner with 140MW from the site that rolls over a series of mountains on the edge of the Western and Northern Cape provinces.
Certain manufacturing companies that have access to biomass that results from the manufacturing process, such as woodchips for Sappi and bagasse in the case of sugar producers such as Tongaat Hulett and Illovo, are in a position to produce their own energy.
However, there are industries where signing offtake agreements with renewable energy producers is the more logical route to take. In fact, even PGM miner Ivanhoe Mines, despite having its own plans to produce solar power, has signed an offtake agreement with Renergen.
…there are industries where signing offtake agreements with renewable energy producers is the more logical route to take.
The Automotive Industry Development Centre (AIDC) Eastern Cape is taking steps to prepare the province for EVs through its eMobility and Climate Change Support Business Unit.
A high-profile aspect of the unit’s work has been the creation of EV charging stations in different parts of the Eastern Cape, including Gqeberha, East London and Tsitsikamma. Education, research and the promotion of the idea of EV travel, including through the conversion of bus fleets, form important parts of the work of the unit.
