By Francois van Themaat, Managing Director of Massive Initiatives at Sustainable Energy Options (SPS)
3 March 2025
Many essential components of the economic system of the long run can be vastly vitality intensive, foremost amongst which can be electrified transport and the massive information processing required by automation and Synthetic Intelligence (AI). The transition in direction of sustainable vitality has additionally gathered tempo and renewable vitality targets is now firmly entrenched within the Key Efficiency Indicators (KPIs) of most multi-national companies.
Profitable economies can be these that may guarantee companies and traders of a steady provide of low-cost renewable vitality. South Africa has the chance to grow to be a worldwide chief on this regard, given the superb photo voltaic and wind sources that the nation has been blessed with.
Steering the IPP panorama – challenges and options
Since its inception in 2011, the Renewable Vitality Impartial Energy Producer Procurement Programme (REIPPPP) has performed a pivotal position in driving South Africa’s shift in direction of renewable vitality. Competitors between Impartial Energy Producers (IPPs) have brought on costs on every renewable vitality bid window to come back down considerably, which in time ought to result in decrease vitality prices for customers. There have been different successes following on initiatives by Eskom and the South African authorities to open up the grid, for instance the efficient scrapping of licensing necessities.
Nonetheless, the best impediment to unlocking South Africa’s potential to grow to be a frontrunner within the renewable area, is obtainable grid capability and grid entry.
There are two components to this. The primary is the truth that South Africa’s growing old grid requires vital upgrades and growth as a way to transfer South Africa from its present coal dependence to a largely renewable vitality pushed vitality economic system.
These upgrades will take time and vital funding. There may be, nonetheless, an unlimited quantity of personal capital and technical experience prepared to maneuver into this sector. Eskom, with Authorities’s help, have to welcome this and take away regulatory obstacles as a way to velocity up grid upgrades.
The second half is regulatory certainty and the effectivity of processes to acquire grid entry the place that is technically obtainable. This course of is prolonged, pricey and poses vital dangers for builders.
Eskom has to advise the place grid capability exists primarily based on rigorous scientific evaluation and they should set up clear processes for acquiring grid entry while adhering to deadlines as a way to take away the uncertainty for builders.
Within the meantime, IPP builders might want to grow to be extra progressive in find out how to construction and develop massive scale initiatives as each the regulatory panorama and the vitality wants dealing with builders can be very totally different a decade from now. There can be fewer and fewer alternatives for builders to enter into 20-year offtake agreements with single shoppers.
We imagine {that a} versatile strategy is required as a way to future proof initiatives so far as doable. Some examples that we’re engaged on are shorter time period wheeling offers with a number of off-takers, buildings the place the off-taker and/or landlord additionally has a stake within the era challenge and guaranteeing that crops are permitted to permit for the later addition of a battery element.
Battery Vitality Storage Techniques (BESS) will play a key position to allow a bigger portion of South Africa’s vitality must be met by renewable vitality and to assist stabilise the nation’s vitality provide.
There are various roles BESS will play. Batteries can be utilized to shift daytime vitality generated by photo voltaic crops into the night hours. Which means one may improve the scale of a photo voltaic plant with a selected grid connection (let’s assume 50Megawatts) by nearly threefold with out having to acquire a bigger grid connection from Eskom as the surplus daytime vitality might be saved within the batteries and fed into the grid on the 50MW capability.
Smaller battery methods is also used to focus on peak consumption intervals, thereby avoiding the necessity for the grid operator to run Heavy Gas Oil (HFO) or diesel mills throughout these occasions.
South Africans all hope that load shedding is a factor of the previous, however we’re nonetheless seeing many companies choosing batteries options to offer back-up energy as a way to get operational and price certainty.
South Africa is at the moment at a degree the place it has the chance to reshape its vitality trade and take the lead in vitality initiatives by working along with each private and non-private entities to sort out regulatory and infrastructure obstacles successfully. By encouraging challenge fashions and making investments in grid enhancements together with incorporating battery vitality storage options into the combo, South Africa can set up a sustainable vitality panorama for the long run.
For additional details about SPS and its renewable vitality initiatives, please go to www.sps.africa or e-mail contact@sps.africa.
