05 December 2024

Rising Energy Demand, Declining Costs of Renewables, and Policy Certainty Driving Energy Sector

Submitted by: Zamokuhle Ntsele

South Africa is on the verge of economic recovery, leveraging greener and renewable energy solutions. The energy sector is pivotal to this rebound, with reforms by the Government of National Unity and a more stable electricity grid supporting growth. The stabilisation of Eskom and the end of load-shedding are ensuring a consistent electricity supply, driving innovation and employment. These developments align with South Africa’s Just Energy Transition Plan, aiming for a low-carbon economy.

Embracing Technological Innovation and Driving Energy Efficiency

Innovation is central to South Africa’s energy transition. Professor Samson Mamphweli of the South African National Energy Development Institute (SANEDI) highlights advancements in technologies like solar photovoltaic systems, which are becoming more efficient and affordable.

“There are improvements in conversion efficiencies, driving down electricity production costs,” Mamphweli stated.

Energy Storage Advancements

Battery storage costs, including lithium-ion technologies, are declining, fostering the adoption of battery-electric vehicles. As storage becomes more affordable, renewable energy installations are expected to surge.

“The reduction in energy storage costs is a key driver for renewable energy uptake,” said Mamphweli.

Importance of Policy Certainty

Policy clarity is critical for implementing South Africa’s Integrated Resource Plan (IRP). It also bolsters investor confidence, enabling strategic energy investments. SANEDI advises the government on energy policy, including efficiency measures like the 12L tax incentive database managed with National Treasury.

Green Hydrogen; A Pivotal Energy Source

Hydrogen is emerging as a transformative energy source for emissions-intensive industries such as steel and cement. SANEDI’s Hydrogen Society Roadmap envisions significant progress by 2023, including the deployment of hydrogen-powered trucks in key provinces.

“Hydrogen will play a vital role in hard-to-abate industries, especially given the impending carbon border adjustment mechanisms,” Mamphweli stated.

About SANEDI

The South African National Energy Development Institute (SANEDI) focuses on energy innovation to drive sustainability, youth empowerment, and environmental initiatives. For more information, visit SANEDI's website.


Press Release Submitted By

Company Name: South African National Energy Development Institute
Website: www.sanedi.org.za


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Rising Energy Trends Shaping South Africa’s Future

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