Renewable energy in South Africa

Renewable Energy Feed-In Tariff (2009–2011)

The National Energy Regulator of South Africa (NERSA) implemented the Renewable Energy Feed-In Tariff^[9] (REFIT) in 2009.^[10] The REFIT works to progressively reduce carbon-based power generation by moving in the direction of renewable energy sources.^[10] NERSA employed the REFIT in an attempt to meet the target of producing 10TWh of electricity by 2013.^[11] When first introduced, the feed-in tariffs applied only to wind energy, hydropower, and concentrated solar power (CSP).^[3] Six months after the introduction, the tariffs were expanded to include biomass and solar photovoltaics.^[3] The organization wants to achieve sustainability through the use of renewable resources while engaging stakeholders, lowering the cost of investment, and making the cost of electricity more affordable for all people.^[10] The decentralized investment opportunity provides South Africa with the resources to overcome its current energy crisis.^[12] REFIT is the first successful greenhouse gas mitigating projects used in South Africa.^[3] The REFIT program was superseded by the Renewable Energy Independent Power Producer Procurement Programme in May 2011.

Renewable Energy Independent Power Producer Procurement Programme (since 2011)

South Africa first introduced the Renewable Energy Independent Power Producer Procurement Programme (REI4P) in 2011.^[7] The program includes an initiative to install 17.8GW of renewable energy in South Africa before 2030.^[5] The goal of the REI4P is to reduce greenhouse gas emissions while minimizing the country's reliance on non-renewable energy sources such as nuclear and coal.^[7] REI4P also works to promote local manufacturing of materials used in the renewable energy sector.^[11]

Tax incentive (since 2016)

To incentivize the further rollout of renewable energy generation by the private sector, the South African Revenue Service has of 1 January 2016 amended the Income Tax Act No. 58 of 1962 to include accelerated depreciation for renewable energy assets commissioned by a tax paying entity. This tax incentive is not limited to new renewable generation systems.^[13][14][15]

Solar energy

Solar energy is light and heat that is radiated from the Sun.^[18] It is then transformed into electricity through photovoltaics (PV) or concentrated solar power (CSP).^[19] Solar energy in South Africa is primarily based in PV and CSP.^[20] The levelized cost of solar electricity is relative to the quality and quantity of solar radiation in South Africa. The same plant can produce up to 20% more electricity for the same capital investment in South Africa compared to countries in Europe.^[7] The furthest area in the west of the country receives the highest levels of solar radiation, ranging from 2100 kWh/m2 to more than 2300 kWh/m2.^[7] Solar power production in South Africa is predicted to reach 8400 MW by the year 2030.^[20] South Africa implemented a solar park in the Northern Cape region that is set to deliver 180,000 MWh of annual solar energy to the country.^[21] It is estimated that only 3000 km^2 of land used for solar electricity is required to meet South Africa's demand.^[6]

Solar energy is a low-cost source of energy compared to traditional non-renewable energy resources in South Africa. The introduction of solar power plants has stimulated the economy and created jobs within the country.^[22] South Africa's land cover receives an average of 2,500 hours of sunshine per year.^[6] Solar energy systems have a high initial cost, but typically return the investment within 5 to 8 years.^[22] The use of solar energy in South Africa is driving the use of other renewable energy sources including wind, hydroelectric, and biomass.^[6]

Wind energy

Wind power uses wind turbines to produce electric power. Wind levels vary depending on factors such as terrain, bodies of water and vegetative cover.^[24] Wind turbines convert the wind into kinetic energy and mechanical power.^[24] The wind turns 50-metre-long blades attached to 80 metre-high shafts that generate the electric energy.^[25] Wind turbine farms can range between 10MW to over 100 MW and produce energy when the wind is between 13–90 km/h.^[26] Wind turbines farms can be onshore or offshore. Offshore have stronger winds and less visual impact.^[27]

In 2014 the first major wind farm became operational, with approximately 10 either operational or in construction today. South Africa's extensive coastline and geographical terrain including lowlands and high veld escarpment, provide wind energy that can be extracted and generated into off-the-shelf technology.^[6] There are currently 19 wind energy developments in South Africa with more than 600 wind turbines.^[28] On the international scale, South Africa ranks as having fair to reasonable wind resources.^[6] Wind power is a renewable, widely distributed and clean form of energy. The production of wind energy does not produce greenhouse gases and is an alternative to burning fossil fuels.^[29]

South Africa's installed wind capacity reaches 3,442 MW in 2022, with 668 MW installed in 2021 and no new installations in 2022. South Africa remains the leading African country ahead of Morocco (1,788 MW) and Egypt (1,702 MW).^[30]

Hydropower

Hydropower, or hydroelectric power, is energy that is captured from flowing water and turned into electricity.^[31] The most common forms of hydropower use hydroelectric dams to create a reservoir. Water released from the reservoir flows through a turbine that generates electricity.^[31] South Africa currently has seven hydroelectric power stations across the country, all owned by Eskom.^[32] The country's hydroelectricity potential is limited due to the low annual rainfall rate of 500mm.^[33] South Africa experiences seasonal flows and frequent droughts, which pose obstacles to the hydropower success.^[33] The Eastern Cape province is the most hydro-potential in the country.^[6]

Hydroelectric dams in South Africa can be associated with other water uses, such as irrigation and flood control, to increase economic development within the country.^[34] The current installed capacity within the country is 668MW.^[6] Large-scale (>10MW) hydroelectric generation systems have the potential to contribute up to 5091MW of energy, but can have negative implications on the environment.^[6] The large amount of flowing water can damage river ecology, and the facilities take up a significant amount of land space.^[6] Small-scale (<10MW) hydroelectric generation systems can contribute up to 69MW of energy and do not have any major environmental implications.^[6]

Biomass

Biomass is physical biological material that comes from living or recently living organisms. It comes from plants or materials derived from plants (lignocellulosic biomass).^[35] Biomass has the capacity to produce electricity, heat, or liquid fuels.^[36] Biomass can be used as a direct energy source as heating or cooking fuel, or can be burned to generate electricity.^[6] It can also be used indirectly by using its biological processes and producing ethanol, methanol, and fuel that can be used in transportation and cooking processes.^[6] Wood is currently the largest producer of biomass fuel—including tree stumps, forest residue, dead trees, and wood chips. Animal matter and plant matter can also be converted into forms of biofuel.^[37]

South Africa currently has several biodiesel production facilities in production.^[6] South Africa's 42 million hectares of natural woodlands and 1.35 million hectares of plantation provide a large potential for biomass production.^[38] The South African government has a Working for Energy Programme that aims to process biomass energy for various applications.^[39]

Geothermal energy

Geothermal energy is generated from heat that is stored in the Earth. The geothermal energy that is generated from the Earth's crust is the original formation of the planet and from radioactive decay of material.^[40] Geothermal heat pumps tap into the ground to use this resource as a source of energy.^[41] The production of geothermal energy is a clean and sustainable form of energy.^[41] There are currently no geothermal energy practices in South Africa but there are projects underway to implement them.^[42] Geothermal measurements have been made throughout South Africa, demonstrating that there is high geothermal potential and that the relevant temperatures rank from medium to high on the global scale.^[42]