The International Energy Agency (IEA) anticipates global electricity consumption will increase at the fastest pace in years over 2025 to 2027, fuelled by growing industrial production, rising use of air conditioning, accelerating electrification and the expansion of data centres. Global electricity demand increased by 2.5% in 2023, 4.3% in 2024 and will likely grow by another 4% a year from 2025 to 2027.
Johannesburg electricity utility City Power CEO Tshifularo Mashava has assured business customers in the city that the entity is working on reviewing the yearly electricity tariffs to cushion businesses from increasing tariffs, as well as to attract businesses while saving jobs. She noted that the utility wanted to ensure a balance between the needs of customers with the operational realities it encounters.
South Africa’s grid infrastructure is inadequate to support economic growth and accommodate much-needed additional power, especially from renewable-energy sources coming on line as part of the country’s just energy transition. While transmission infrastructure challenges are considerable, and much work lies ahead, the country has taken several steps in the right direction with supportive policies and a pipeline of projects being targeted.
The long-established practice of extracting fossil fuels and subsidising the industries associated with it, as well as institutional and regulatory drag, pose real threats to technological progress and the renewable-energy transition towards an ecologically sustainable path, says University of the Witwatersrand Business School African Energy Leadership Centre visiting adjunct professor Dr Rod Crompton. He says the continent is “in the middle of an electricity technology tsunami”, which is, for the most part, heading in a more sustainable direction, but he questions whether these technologies can truly move humanity onto this “sustainable” path in a timely manner, owing to the slow adoption of lower emissions electricity technology in Africa.
With a rapidly expanding population and increasing urbanisation, Africa’s energy demand is projected to soar, requiring innovative solutions, sustainable practices and significant investments to deliver reliable, affordable and clean energy, says events management company and Africa Energy Indaba organiser Siyenza Management MD Liz Hart. The Africa Energy Indaba 2025 – taking place from March 4 to 6 at the Cape Town International Convention Centre under the theme ‘Igniting the Power Revolution’ –  emphasises the importance of empowering Africa’s energy sector to drive economic growth, bridge energy access gaps and support industrialisation.
Africa is well positioned to improve its energy security, owing to its high solar radiation factor, highlights renewable-energy business platform Discovery Green. The company says the continent’s solar radiation factor can be more than 120% higher than Europe and, therefore, the potential return of solar energy solutions would be much higher, as the continent would be able to generate electricity at a comparatively low cost.
In noting the proliferation of technologies such as AI, Big Data, the Internet of Things (IoT) and digital twins in business operations across Africa, global management consulting firm Kearney says businesses are increasingly integrating these technologies into their operations to remain globally competitive. The firm contends that cloud, social technology, Big Data and analytics, combined with advanced hardware, are driving several technological trends that have an “immense impact” on the energy industry.
As Africa looks to the future, the transition to sustainable energy represents both a challenge and an opportunity, highlights national industry support programme the National Cleaner Production Centre South Africa (NCPC-SA) skills development projects manager Dr Zenzile Rasmeni Masipa. She notes that, with its abundant renewable-energy resources, the continent has the potential to leapfrog traditional energy systems and build a future powered by clean energy.