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.
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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
That South Africa, in general, and the renewable-energy sector in particular, need skills development, is a truism. But the requirements of the renewable-energy industry and the output of skills development institutions and programmes are significantly out of alignment. But not in the way you might think. The country is currently producing too many skilled renewable-energy workers, compared with the industry’s actual needs. This was made clear during a panel discussion at the Windaba 2024 conference, at the Cape Town International Convention Centre.
Wind and solar energy company Mainstream Renewable Power has reached financial close on its 50 MW Ilikwa solar PV plant. Construction of the plant, located in the Free State, has already started and it is expected to reach commercial operation in early 2026.
A new International Energy Agency (IEA) report shows that the number of low-emission hydrogen projects to have advanced to a final investment decision (FID) stage doubled over the last 12 months, representing yearly production of 3.4-million tonnes. These FIDs are split between green-hydrogen electrolysis projects, with a combined yearly capacity of 1.9-million tonnes, and fossil-fuel hydrogen with carbon capture, utilisation and storage, with a combined capacity of 1.5-million tonnes.
Consulting and involving the communities living at and around renewable energy projects was essential, agreed the participants in a panel discussion on the first day of the Windaba 2024 conference, at the Cape Town International Convention Centre. But it was not necessarily easy. Community participation in these projects was a key component of social justice, emphasised Presidential Climate Commission project manager Lindiwe Johnson. Procedural justice and inclusion were key principles in South Africa. Such democratic approaches empowered individuals. Engaging communities increased the transparency of projects, because community members received explanations of budgeting processes and priorities. This, in turn, helped create accountability for decision-makers. It also started the process of communities buying-in to the projects.
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