South Africa’s energy sector has undergone a remarkable transformation, RMB senior investment banker for infrastructure sector solutions Keith Webb says.
The country, once plagued by loadshedding, has seen a huge expansion in renewable-energy capacity.
Operational green generation capacity now exceeds 7 GW, with another 4 GW being built. Major energy users, such as mining and large industrial groups, have procured another 5 GW of privately-generated renewable power. Further, private households, small businesses, and small industries have installed 7 GW of rooftop solar capacity countrywide. When all forms of renewable energy are added together, the country’s total capacity in operation, or set to start operating soon, is more than 26 GW.
Another 14 GW is planned to come online by 2032.
“The economic logic behind this boom is simple: renewable energy is now incredibly cheap. When contrasted against [national electricity utility] Eskom’s standard daytime wholesale tariffs, the financial signal is clear. Building renewable generation remains a highly profitable move for investors and users," Webb states.
