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Study: South Africa to become hot spot for renewables

Cape Town, South Africa - The potential for renewable energy (RE) generation in South Africa is high, and the successful execution of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) has been powering the growth of the RE industry in the country. A new study sees it on track to becoming one of the fastest-growing markets worldwide.

A new analysis from Frost & Sullivan indicates that the REIPPP aims to generate 3,725 megawatts of the country's total electricity from renewable sources. RE accounted for less than one percent of the energy mix in South Africa in 2012 and this is expected to reach twelve percent in 2020. The commercial and industrial RE segment is expected to grow rapidly in the medium to long term.

"In the light of electricity and water scarcity, as well as rising coal prices, RE is becoming a preferred choice of energy generation technology in South Africa," said Frost & Sullivan Energy and Environmental Research Analyst Joanita Roos. "Additionally, South Africa is the 12th highest carbon-emitting nation, and the need to diversify industries and incorporate lower carbon-emitting technologies will spur RE development."

Shortage of skills and experience

Under the REIPPP, various renewable technologies have to meet minimum annual targets by the medium term in order to stimulate local manufacturing and services. However, the parameters for each technology will need to be defined individually, and the local industry may lose momentum if certainty over local requirements and capacity allocations are not provided.

Moreover, financial restraints owing to the steep initial capital, as well as legal and technical project costs, hamper RE industry expansion in South Africa. The shortage of skills and experience in the local RE industry adds to the challenge.



Source: IWR Online, 21 Oct 2013

 


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