New energy innovations and the future of South Africa's energy sector

South Africa stands at the cusp of an energy revolution, as new innovations drive progress and shape the future of the sector. As the country grapples with energy security challenges and strives for sustainable development, investors eye opportunities in a rapidly evolving landscape.

In recent years, South Africa has made significant strides in diversifying its energy mix, moving away from its heavy reliance on coal towards cleaner and more renewable sources. One of the most promising innovations in this regard is the growth of solar power. The country boasts abundant sunlight, making solar energy an attractive option for both utility-scale projects and distributed generation systems. The falling costs of solar panels and supportive government policies have fueled a surge in solar installations across the nation.

The Solar & Storage Live Africa 2024, a major renewable energy exhibition on the African continent, opened on March 18, 2024 in Johannesburg, South Africa. Held at the Gallagher Convention Centre, the three-day event attracted more than 350 domestic and international exhibitors, according to Terrapin, a global events company.

During the show, forums and conferences were held, with attendees from governments and leading players in the energy sector across the region, who focused on the most pressing issues in Africa's energy sector.

One of the most significant developments in South Africa's energy sector has been the rapid growth of renewable energy sources, particularly solar and wind. The Renewable Energy Independent Power Producer Procurement (REIPPP) program has been instrumental in driving this growth, which has been attracting private investment and stimulating job creation. According to the Department of Mineral Resources and Energy, renewable energy sources had contributed over 10 percent of South Africa's total electricity generation in 2023, a figure set to rise as new projects come online.

Also in attendance at the Solar & Storage Live Africa 2024 was Wendeler Hannes, Area Sales Manager for Sub-Saharan Africa at Fronius International. He expressed his optimism in the future role of solar energy in South Africa's energy mix. He highlighted the increasing efficiency and competitiveness of solar energy compared to other sources.

However, Hannes also identified the challenges for expanding renewable energy adoption in South Africa. He said that current energy tariffs do not reflect the true cost of energy, hindering the competitiveness of solar power. The lack of a clear framework for producers to feed solar power into the grid and receive fair compensation also poses a challenge. Hannes emphasized the importance of supporting grid stability while promoting solar energy adoption.

According to Ezzat Sankari, Channels Business Director for Sungrow Middle East and Africa, which is the top PV inverter global supplier with over 405GW installed worldwide, transitioning to renewable energy sources such as solar, wind, and hydropower can significantly reduce carbon emissions associated with power generation. This shift aligns with global efforts to mitigate climate change and can help South Africa meet its emissions reduction targets. Historically reliant on coal for electricity generation, South Africa's increased focus on renewable energy will lead to a diversification of the energy mix, and will reduce dependence on fossil fuels and enhance energy security.

“The renewable energy sector also presents significant opportunities for job creation and economic development. Solar energy projects, for example, require technicians for installation, maintenance, and operation, generating employment at both the local and regional levels. The transition to sustainable energy sources can also stimulate economic growth by attracting investments and fostering entrepreneurship, leading to job creation across the economy,” Sankari added.

When asked how the government and private sector can collaborate to accelerate the transition to renewable energy in South Africa, Dr. Thandeka Ellenson, the acting head of the Department of Economic Development, Tourism and Environmental Affairs in the province of KwaZulu Natal, South Africa spoke on how the government is an enabler.

“We provide an enabling environment and we want to make sure that whatever the business does is regulated and that it doesn't interfere with the rights of the people nor interfere with the other businesses. So when it comes to collaboration it means that the government has something to bring to the table, and to make sure that businesses and people are taken care of. And when it comes to business, companies bring the product to the table, and they make sure that the businesses boost the economy,” she said.

She noted that while the department acknowledges that we are all struggling towards the common goal, which is clean renewable energy, the department is making sure that it works with the policies and the laws so that everyone involved is well taken care of.

“The policies that we are developing make sure that the businesses are able to operate, and have the right kind of energy they need so that their businesses are not disturbed. But the government also make sure that some of the energy businesses are able to provide energy to other businesses and to citizens,” she added.

The increasing focus on renewable energy and sustainability in South Africa is expected to bring about positive changes that benefit the environment, economy, and society. Collaboration between government, industry, civil society, and communities will be crucial in realizing these benefits and ensuring a sustainable energy future for South Africa.