ENGIE has a presence in South Africa since 1994, specifically in energy efficiency services , and is the country’s number 1 independent power producer. The Group aims to support the government in defining a balanced energy mix based on renewable energies (solar energy, wind power) and natural ... read moregas.
South Africa context
With a population of 52 million and an estimated GDP of USD 350 billion accounting for more than 25% of GDP in sub-Saharan, South Africa is the second largest economy in Africa after Nigeria. In the energy sector, the country is the biggest electricity market in Africa, with an installed power generation capacity of more than 45 GW, but it still struggles with under-production. Some 25% of the population does not have access to electricity and the distribution grid suffers from under-capacity, exposing the country and industrial companies to frequent load-shedding risks. In its COP21 contribution to take on energy transition, South Africa reasserts the commitment it made in Copenhagen to reduce CO2 emissions by 34% by 2020 and 42% by 2025 compared to a 'business as usual’ scenario. To reach these targets, the country is establishing a carbon tax, implementing precise regulatory limits for each sector of the economy and modifying its energy mix, specifically by developing renewable energies and replacing coal-fired power plants.
South Africa has a high level of Renewable Energy potential and presently has in place a target of 10 000 GWh of Renewable Energy. The Minister has determined that 3 725 megawatts (MW) to be generated from Renewable Energy sources is required to ensure the continued uninterrupted supply of electricity. This 3 725 MW is broadly in accordance with the capacity allocated to Renewable Energy generation in IRP 2010-2030. The following shall be considered qualifying technologies eligible for selection under this Renewable Independent Power Producer Procurement Programme ("REIPPP”) and the generation capacity allocated to each is : onshore wind power (1 850 MW), concentrated solar thermal (200MW), solar photovoltaic (1 450), solid biomass (12.5MW), biogas (12.5MW), landfill gas (25MW), small hydropower plant (75MW) and small projects (100MW).