- GreenCape has released the 2022 edition of their Large Scale Renewable Energy Market Intelligence Report.
- The market intelligence report is written for foreign and local investors looking to invest directly in the South African renewable energy market.
- It highlights market opportunities in the public and private large-scale renewable energy market in South Africa (SA) and the Western Cape.
Uncertainty about the rollout of the REIPPPP and statements made by the DMRE, Eskom and coal labour unions about the future of renewable energy continues to create doubt in the market but there have been key developments influencing the market in 2021/22:
- Eleven (11) Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) preferred bidders announced a total generation capacity of 1 995 MW, with a total of R45 billion investment attracted.
- The DMRE gazetted the amendments to Schedule 2 of the Electricity Regulation Act, exempting a generation facility of up 100 MW to procure power without requiring a generation licence from the National Energy Regulator of South Africa (NERSA).
- Eskom has announced grid constraints in SA’s high-yield renewable energy areas.
- Twenty-five (25) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) BW5 preferred bidders announced with a total generation capacity of 2 583 MW (with 1 608 MW of onshore wind and 975 MW of solar PV) with a total of R50 billion investment attracted.
In addition to the gazetting an updated Integrated Resource Plan (IRP) in October 2019, these developments suggest substantial growth opportunities in the large- scale renewable energy market over the next ten years (2020 – 2030). Based on the R/MW overnight capital cost per technology4, the approximate South African market value per technology based on IRP 2019 allocations is R99 billion for solar PV, R271 billion for wind, and R48 billion for distributed generation of up to 100 MW.
Link to full report HERE
Author: Bryan Groenendaal