The majority of South African electricity is generated through fossil fuels, particularly coal, contributing to the rapid warming of the planet, extreme weather patterns, rising sea levels, and unprecedented harm to the natural world.
“While this creates challenges, it also presents significant opportunities, according to insights presented in FNB’s sustainable energy white paper,” says Kyle Durham, sustainability head at FNB Commercial.
The loadshedding crisis – coinciding with political pressure ahead of the 2024 national elections – has spurred the rapid liberalisation of the energy market.
Private-sector players are finally permitted to generate electricity at scale. As such, there has been a massive take-up of alternative energy producers, solar, and other renewables. SA’s renewable energy market is growing fast.
Total power capacity is expected to significantly increase by 2035, driven by new renewables.
According to South Africa’s 2019 Integrated Resource Plan (IRP):
- The potential market value of solar PV by 2030 is R99-billion.
- The potential market value of wind by 2030 is R271-billion.
- According to the 2019 IRP and Green Cape, the potential market value for independent small-scale embedded generation is:
- R48-billion by 2030.
- R75-billion (7.5GW) by 2035.
According to the World Bank:
- Electricity demand in the agricultural sector is expected to double with a need of 6GW by 2030 in sub-Saharan Africa.
- Potential market for biogas energy produced from organic waste is 10 297MW.
Adopting greener and more sustainable energy solutions is now, more than ever, critical but access and affordability to renewable energy remains a concern. South African businesses need reliable and high-quality energy for ongoing economic growth and the all-important priority of job creation.
From energy optimisation and energy independence to driving the energy transition, South African businesses have a role to play in determining and defining the future of this sector.
More information on the trends, challenges, and opportunities facing South African businesses can be found through FNB’s sustainable energy white paper.