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South Africa is one of the best locations globally for developing photovoltaic projects.
2023/6/1
South Africa, with its abundant solar resources, is one of the best locations globally for developing photovoltaic (PV) projects. The country has set a target to install 18 GW of renewable energy generation facilities by 2030, with PV systems expected to make up a significant portion of this goal. The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), initiated by the South African government, has been successful in attracting investments and supporting the development of PV projects in the country.
The REIPPPP launched its sixth bidding window in April 2022, with the aim of adding 2,600 MW of renewable energy to South Africa's energy mix. Simultaneously, the National Energy Regulator of South Africa (NERSA) approved the establishment of 15 independent power producers in May and June 2022.
On September 2, 2022, the South African Minister of Mineral Resources and Energy released a draft amendment bill for the Electricity Regulation Act (ERA) of 2006. The main change in its content is the removal of the 100 MW threshold for licensing renewable energy installations. This exemption allows unrestricted electricity from renewable energy generation facilities, including energy storage systems, with a connection point to the distribution or transmission system, eliminating the need for licensing. The proposed amendment to remove the licensing threshold was announced shortly after the threshold was raised from 1 MW to 100 MW on August 12, 2021. This is part of the South African government's efforts to encourage further investment and development in the energy sector, as well as promote the construction of renewable energy generation facilities and supply reliable electricity. It will contribute to addressing South Africa's energy crisis and provide much-needed assistance to the economy after years of load shedding.
During a three-week period from late June to July 2022, South Africa experienced daily power cuts lasting up to 8 hours, severely impacting the already fragile economy and exacerbating the country's energy supply crisis.
Policy initiatives and ESKOM reform
The South African government has attempted to address the power crisis by revitalizing the REIPPPP, raising the threshold for embedded generation projects from 1 MW to 100 MW, and allowing municipalities to procure their own power. However, the REIPPPP program has faced significant delays due to other uncertainties.
Measures for achieving long-term energy security in the country
The state-owned power utility, Eskom, has implemented the first PV + energy storage project at the Komati, Majuba, and Lethabo power stations, adding 500 MW of capacity to the South African electricity system.
Some PV + energy storage projects being developed in South Africa include a farm in Lephalale, Limpopo Province, with a PV system ranging from 200 kWh to 1,200 kWh and a 7.4 kWh lithium-ion battery energy storage system.
The Botha huis PV system installed in Mossel Bay, South Africa, has a capacity of 13.2 kW and is equipped with a battery energy storage system.
The Matjhabeng PV + battery energy storage system project involves the construction of the Matjhabeng 400 MW PV plant by SunElex Energy in two locations in Odendaalsrus, Free State Province, with an 80 MW/320 MWh battery energy storage system. The project is divided into two phases: the first phase includes a 200 MW PV system and a 40 MW/160 MWh battery energy storage system in the southern part of Odendaalsrus, while the second phase includes a 200 MW PV system and a 40 MW/160 MWh battery energy storage system in the northern part of Odendaalsrus.
Other measures include purchasing surplus capacity from independent power producers, buying additional energy from private generators, mines, paper mills, shopping centers
, or other entities with excess electricity, importing power from neighboring countries (Botswana and Zambia) through arrangements with the Southern African Power Pool (SAPPY), and utilizing climate funds provided by the Powering Africa's Fair Energy Transition Partnership to invest in and retrofit aging power stations. The South African Police Service has established a special task force to assist the national power utility in combating corruption and crime.
Furthermore, the expected decrease in the cost of PV components and improvements in generation efficiency will make PV systems more competitive compared to fossil fuel-based generation facilities. Additionally, the growing focus on reducing carbon emissions is expected to further drive demand for PV power in South Africa.
The REIPPPP launched its sixth bidding window in April 2022, with the aim of adding 2,600 MW of renewable energy to South Africa's energy mix. Simultaneously, the National Energy Regulator of South Africa (NERSA) approved the establishment of 15 independent power producers in May and June 2022.
On September 2, 2022, the South African Minister of Mineral Resources and Energy released a draft amendment bill for the Electricity Regulation Act (ERA) of 2006. The main change in its content is the removal of the 100 MW threshold for licensing renewable energy installations. This exemption allows unrestricted electricity from renewable energy generation facilities, including energy storage systems, with a connection point to the distribution or transmission system, eliminating the need for licensing. The proposed amendment to remove the licensing threshold was announced shortly after the threshold was raised from 1 MW to 100 MW on August 12, 2021. This is part of the South African government's efforts to encourage further investment and development in the energy sector, as well as promote the construction of renewable energy generation facilities and supply reliable electricity. It will contribute to addressing South Africa's energy crisis and provide much-needed assistance to the economy after years of load shedding.
During a three-week period from late June to July 2022, South Africa experienced daily power cuts lasting up to 8 hours, severely impacting the already fragile economy and exacerbating the country's energy supply crisis.
Policy initiatives and ESKOM reform
The South African government has attempted to address the power crisis by revitalizing the REIPPPP, raising the threshold for embedded generation projects from 1 MW to 100 MW, and allowing municipalities to procure their own power. However, the REIPPPP program has faced significant delays due to other uncertainties.
Measures for achieving long-term energy security in the country
The state-owned power utility, Eskom, has implemented the first PV + energy storage project at the Komati, Majuba, and Lethabo power stations, adding 500 MW of capacity to the South African electricity system.
Some PV + energy storage projects being developed in South Africa include a farm in Lephalale, Limpopo Province, with a PV system ranging from 200 kWh to 1,200 kWh and a 7.4 kWh lithium-ion battery energy storage system.
The Botha huis PV system installed in Mossel Bay, South Africa, has a capacity of 13.2 kW and is equipped with a battery energy storage system.
The Matjhabeng PV + battery energy storage system project involves the construction of the Matjhabeng 400 MW PV plant by SunElex Energy in two locations in Odendaalsrus, Free State Province, with an 80 MW/320 MWh battery energy storage system. The project is divided into two phases: the first phase includes a 200 MW PV system and a 40 MW/160 MWh battery energy storage system in the southern part of Odendaalsrus, while the second phase includes a 200 MW PV system and a 40 MW/160 MWh battery energy storage system in the northern part of Odendaalsrus.
Other measures include purchasing surplus capacity from independent power producers, buying additional energy from private generators, mines, paper mills, shopping centers
, or other entities with excess electricity, importing power from neighboring countries (Botswana and Zambia) through arrangements with the Southern African Power Pool (SAPPY), and utilizing climate funds provided by the Powering Africa's Fair Energy Transition Partnership to invest in and retrofit aging power stations. The South African Police Service has established a special task force to assist the national power utility in combating corruption and crime.
Furthermore, the expected decrease in the cost of PV components and improvements in generation efficiency will make PV systems more competitive compared to fossil fuel-based generation facilities. Additionally, the growing focus on reducing carbon emissions is expected to further drive demand for PV power in South Africa.
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