Electricity and Energy Minister Dr Kgosientsho Ramokgopa has expressed confidence that government and the National Transmission Company South Africa (NTCSA) are close to finding the “sweet spot” that will facilitate the integration of private Independent Power Transmission (IPT) projects. Such projects could help accelerate the expansion of the grid, which has emerged as a bottleneck for new renewables projects in particular, and help unlock 53 GW of mostly renewables generation in the coming ten years. In South Africa, IPT projects are also referred to as Independent Transmission Projects, or ITPs.
South Africa’s overall emissions will reach their peak this year and will be followed by a downward trend that will culminate in the lowest emissions this decade in 2030, the draft first ‘Biennial Transparency Report’ (BTR) shows. The BTR, which was published by Forestry, Fisheries and the Environment Minister Dr Dion George on October 7 for public comments, provides critical insights into the country’s progress in implementing and achieving its Nationally Determined Contribution (NDC) under the Paris Agreement.
Independent power producer (IPP) Yellow Door Energy (YDE) has inaugurated a large solar PV and battery energy storage microgrid system at a commercial farm of Waterberg Boerdery, in Limpopo.
Waterberg sought to increase energy reliability and reduce costs, having signed a power purchase agreement with YDE as a risk-free method for the farm to transition to clean electricity without incurring any capital expenses.
In this article, DG Capital African Green Alpha director Shaun Nel takes a critical look at how and why renewables tax incentives need to be better leveraged in the Just Energy Transition (JET) and South Africa’s economic recovery, and how the looming EU Carbon Border Adjustment Mechanism makes this imperative that much more urgent.
South Africa is far behind in its work to transition to a carbon-neutral energy system by 2050, and the significant proposed electricity tariff increases being sought by State-owned Eskom could lead to some businesses and industrial hubs being closed down, mining companies have warned. The companies have pointed out during discussions at this year’s Joburg Indaba that Eskom’s current proposed 36% increase in electricity tariffs is several times greater than inflation.
Eskom has been using diesel-fuelled auxiliary turbines extensively to stave off power cuts in South Africa following delays in restoring some generation capacity. The utility fired up the units after 2 685 megawatts of capacity failed to return to service on September 23 as planned, Eskom said in a reply to questions. “Additionally, higher-than-expected electricity demand driven by cold weather has contributed to this situation,” it said.
Future security of supply is of major concern to pipeline operator Republic of Mozambique Pipeline Investments Company’s (Rompco’s) as gas supply from the Pande and Temane gasfields, operated by energy company Sasol in Mozambique, is expected to decline from 2026. The Pande and Temane gasfields have an anticipated 25-year lifespan. Production began in 2004, making Pande the first gas production field in Mozambique, followed by Temane in 2009.
Despite consensus among South African businesses, including integrated energy and chemical company Sasol, on the necessity of achieving net-zero emissions by 2050, the debate regarding the pace of this transition continues. Speaking at the 2024 Coal and Energy Transition Day, held in July at The Country Club Johannesburg, Sasol sustainability VP Shamini Harrington noted that, given Sasol’s sizable economic impact and similarly significant emissions footprint in South Africa, there was an urgency for Sasol to move towards lowering its carbon emissions.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa is confident that government will be able to positively intervene on Eskom’s tariff-hike application for the 2025/26 financial year at the National Energy Regulator of South Africa (Nersa). If granted as it currently stands, electricity costs for direct Eskom customers would increase by 36.15% on April 1 next year, and by 43.55% at municipal level from July 1.
South Africa has some of the best resources for wind and solar energy in the world. However, the country battles with grid constraints in areas with higher wind speeds, and little renewable-energy deployment in areas with available grid. The Danish-South African energy cooperation addresses these challenges, write Elsebeth Søndergaard Krone, Ambassador of Denmark to South Africa, and Stine Leth Rasmussen, Deputy Director-General of the Danish Energy Agency
INDUSTRY NEWS
- Ramokgopa convinced ‘sweet spot’ will be found to unlock Independent Power Transmission projectsOctober 7, 2024 - 6:04 pm
- South Africa’s emissions to peak in 2024, reach decade low in 2030 – reportOctober 7, 2024 - 5:05 pm
- Yellow Door Energy inaugurates large solar microgrid at farm in LimpopoOctober 7, 2024 - 4:04 pm
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