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Wind Power Leading the Charge
In Southern Africa, South Africa is at the forefront of wind energy generation. Despite facing challenges that could potentially hinder its progress, the country remains a key player in the region’s wind energy landscape.
The Global Wind Energy Council (GWEC) recognized South Africa, along with Egypt and Morocco, as pivotal to the sector’s expansion in Africa. While 2024 saw remarkable growth in Egypt and Morocco, new installations in South Africa were disappointing. However, GWEC anticipates a resurgence in South Africa’s wind industry in 2025 and steady growth up to 2030.
Driving Factors Behind Growth
A significant portion of the capacity allocated through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 4 is currently under construction. Moreover, private off-take projects totaling nearly 2GW have been announced post the electricity market reforms in 2022.
The country has made strides in integrating renewable energy into its energy mix over the past decade. With approximately 30% of Africa’s installed wind capacity, South Africa has seen consistent growth with utility-scale wind farms operating for over a decade.
The Evolution of Wind Energy Policies
Public policies like the White Paper on Energy (1998) and White Paper on Renewables (2003) kick-started South Africa’s wind industry journey. The Integrated Resources Plan (IRP) of 2010 introduced renewable energy allocation auctions and mandated Eskom to procure wind power.
Since then, REIPPPP has facilitated over 4GW of wind energy procurement, with a substantial portion already operational. Although there was procurement momentum early on, it slowed towards the end of the decade until a resurgence in successful projects was witnessed in 2021.
Private Sector Driving Growth
Private off-taker projects have played a crucial role in invigorating South Africa’s wind sector following regulatory amendments that established an independent transmission operator and liberalized the energy market. Notably, various industries such as mining and petrochemicals are embracing renewable energy for decarbonization efforts.
The future looks promising for wind energy with a projected pipeline of over 50GW for development within five to eight years. The Draft IRP2024 suggests a substantial increase in wind deployment between 2031 and 2050 across various scenarios.
Challenges Ahead
Despite these optimistic projections, constraints such as land acquisition, logistics, financing issues, skill availability challenges persist. Additionally, grid capacity remains a critical factor that needs addressing to realize these ambitious targets efficiently.
In anticipation of revised policies like IRP2024 and restructuring within REIPPPP aimed at accelerating renewable energy procurement and aligning with broader power sector reforms will be crucial steps forward for sustainable growth.
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