South Africa needs to move fast on renewables, get its gas infrastructure ready, scale up storage and clear the grid connection backlog to keep the lights on and meet climate goals. If it gets these elements right, South Africa can move closer to realising its vision of a modern, resilient and affordable power system, says financial advisory services company Cresco and financial services firm Standard Bank Corporate and Investment Banking (CIB) in their June 2025 ‘Energy Market Projections’ report.
Wind power was a very appropriate renewable energy technology for South Africa, G7 Renewable Energies CEO Dr Kilian Hagemann told Engineering News, in an exclusive interview at the recent Africa Energy Forum, at the Cape Town International Convention Centre. In fact, he noted, a decade ago, there was more wind energy capacity entering the South African market than solar energy capacity. However, since then, the amount of solar energy capacity had greatly increased, creating a more balanced situation. This was because the barriers to entry into the local market were higher for wind than for solar.
Africa added more than 4.5 GW new hydropower capacity in 2024, up from 2 GW in 2023, and hydropower now accounts for 20% of the continent’s total electricity generation, industry organisation the International Hydropower Association (IHA) says. According to its ‘2025 World Hydropower Outlook’, the capacity added in 2024 more than doubles the development of the preceding three years.