South Africa’s current Integrated Resource Plan (IRP) is significantly underestimating what new capacity should be being built to cater for the decommissioning of the coal-fired power stations and any future demand growth, African Rainbow Energy and Power (AREP) CEO Brian Dames has warned. Speaking during a breakaway session on energy at the recent South Africa Investment Conference, the former Eskom CEO argued that the plan – published in late 2019 and which energy commentors frequently describe as being sorely out of date – “should be a lot more aggressive”.
South African specialist investment company Futuregrowth Asset Management has expressed the view that nuclear power “should not be dismissed outright” as a long-term contributor to the country’s electricity generation system. Futuregrowth currently manages assets worth some R193-billion, or about $12-billion (these being the values on December 31 last year). In an ‘Insight’ note published on Thursday, Investment Analyst Bongile James and Portfolio Manager Paul Semple acknowledged concerns in South Africa regarding the construction of new nuclear power plants (NPPs) in the country. “Nuclear power as a long-term solution to our energy woes is a sensitive topic, partly due to the ramifications for our country of the substandard design and poor build quality of [the new and coal-fired] Medupi and Kusile, the last mega-power plants constructed in SA investmentSouth Africa,” they noted. “There are also concerns about Eskom’s ability to procure, build an operate a new nuclear power project.”
Research institution Trade & Industrial Policy Strategies (TIPS) has unpacked how just energy transition (JET) projects require a different approach to planning, financing and development, away from the traditional model.

Addressing delegates during a webinar on March 24, TIPS senior economist Gaylor Montmasson-Clair pointed out that tools for just transition projects were different to those used for traditional energy projects, and, as it stands, not enough on-the-ground thinking is being done to realise successful projects.

Research institution Trade & Industrial Policy Strategies (TIPS) has unpacked how just energy transition (JET) projects require a different approach to planning, financing and development, away from the traditional model.

Addressing delegates during a webinar on March 24, TIPS senior economist Gaylor Montmasson-Clair pointed out that tools for just transition projects were different to those used for traditional energy projects, and, as it stands, not enough on-the-ground thinking is being done to realise successful projects.

Project management skills are imperative to ensure that South Africa’s clean energy transition is successful, says organisation National Society of Black Engineers (NSBE) president Mdu Mlaba and nonprofit organisation Project Management Institute (PMI) business development lead George Asamani. Mlaba explains that the energy transition will bring about new energy initiatives, such as green hydrogen projects, which will, consequently, create opportunities for project managers in the renewable-energy, oil, gas and clean hydrogen space.
South Africa is struggling to address the energy security and economic imperatives of the national energy requirements, owing to the delay in implementation of new capacity additions and  the reduced energy availability factor and poor performance of its coal fleet, says Council for Scientific and Industrial Research (CSIR) senior researcher Aradhna Pandarum. The reduced energy availability factor and poor performance of South Africa’s coal-fired power stations is negatively impacting on the country’s ability to implement the planned coal fleet decommissioning schedule outlined in the 2019 Integrated Resource Plan.
Cape Town-based energy equipment and solutions provider Solar MD is expanding its production capabilities for South Africa to meet the expected demand for renewable-energy solutions, owing to the country’s anticipated energy transition. “Our current manufacturing capacity is 180 MWh/y and we expect to double this capacity over the next six to nine months,” says Solar MD CEO Kaloyan Dimov.
The pricing of solar modules is continually improving and the technology is expected to be beneficial for South Africa’s energy transition, says solar energy equipment supplier GameChange Solar chief commercial officer Derick Botha. “Solar energy has often been overlooked, primarily because of the high prices of solar modules.”
South Africa’s renewable-energy transition requires skills development and the educating of the country’s renewable-energy sector stakeholders, says Economic Development Solutions (EDS) head of business development Eckart Zollner. “In South Africa, there are concerns around an energy industry that’s been built around coal and crude-oil-fired power stations. Stakeholders must, thus, be educated regarding the reasons for and benefits of this energy transition and the associated opportunities.”
The Council for Scientific and Industrial Research (CSIR) has partnered with the City of Cape Town, and Stellenbosch, to create energy master plans to inform optimal procurement and market design for their municipalities’ specific renewable-energy needs. Energy master plans have been completed for the Garden Route district municipality, in the Western Cape, to inform the future procurement of energy.