By Thapelo Molefe
The Electricity and Energy Department is ramping up efforts to introduce more green energy onto the power grid, according to Minister Kgosientsho Ramokgopa.
Plans to accelerate the country’s transition to renewable energy include streamlining regulatory processes, launching targeted bid windows, exploring online auctions and developing a “credit see-through” mechanism to enhance local content in renewable energy projects.
Additionally, the minister said a battery energy storage programme would be introduced to store excess renewable energy and provide power during peak times, reducing the strain on the national grid.
Speaking at a media briefing on Monday, Ramokgopa highlighted the progress made in renewable energy procurement, citing the success of the Independent Power Producer programme, which has attracted investment from local and international stakeholders.
“We have seen companies coming from Germany, France, Italy, Luxembourg, Netherlands, Spain, Turkey and Denmark, that have also participated. We have seen companies coming from Saudi Arabia, Japan, Korea, that have also participated.
“And of course, out of this, we have seen investments of about R272 billion. But something that is understated in this, is that only 18% of that 272 billion rand comes from outside from those countries that I’ve mentioned. And in fact, 82% of this investment comes from the South African commercial banks, comes from our own DFIs, in the form of the IDC and the DBSA,” he said.
The minister told reporters that while South Africa had made strides in reducing its reliance on fossil fuels, it had to accelerate the transition to renewable energy to achieve its goals.
The minister noted that the renewable energy programme had achieved impressive milestones, including attracting R5.1 billion in savings from refinancing early projects and creating over 85,000 jobs primarily during construction phases.
He said there had also been a significant reduction carbon dioxide emissions and increased support for black South African participation, with 37.7% of investment shareholding held by black citizens.
He said the urgency of this transition was underscored by the devastating impact of climate change.
Ramokgopa emphasised that climate change was already affecting large parts of the country.
“KZN is exposed to extreme weather occurrences. We have seen this in parts of the Western Cape. We have also seen this in parts of the North West and in fact across the length and breadth of the country,” he said.
“So, it is a collective responsibility to ensure that we are able to transition and reduce greenhouse gas emissions.”
To mitigate these effects, Ramokgopa said the country must reduce greenhouse gas emissions and meet its international climate commitments.
He added that the renewable energy programme was critical to this effort, stressing that accelerating the transition to renewable energy was important for the country’s economic and environmental future.
Ramokgopa acknowledged Eskom’s improved operational efficiency, citing reduced load-shedding and decreased reliance on costly diesel.
However, he emphasised the need to diversify energy generation beyond Eskom’s monopoly to ensure energy security.
The minister urged stakeholders to collaborate in advancing South Africa’s renewable energy goals, emphasising the need for streamlined regulatory processes, improved communication and predictable pipelines to mobilise investment.
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