Electricity access in South Africa is a major challenge for rural and peri urban communities. Despite a high potential for solar power generation, investments in green energy projects are not as they should be. Solar photovoltaic (PV) systems generate electricity in a cost- and carbon emission conscious way. As a result, PV projects are very often prioritised over alternative fuel sources.
In February 2023, around 1,073 MW of renewable energy projects were registered with the National Energy Regulator of South Africa (NERSA) across the country – close to ⅔ of the 1,664MW registered in the previous year. These projects were mostly solar, and were largely registered by the property, retail, farming, mining and energy sectors. South Africa is expected to see even more project development following the launch of new tax incentives on 1 March 2023. Albeit a general fear from municipalities, based on Parliament’s warning, that the incentive for domestic generation could strip municipalities off most of their income derived from utilities, it still is the most viable solution, for quick deployment in the short and medium term.
Currently we are looking at 700% more private power registered than in the whole of 2021, this is an outstanding increase in privately owned generators. The problem remains that, due to little knowledge on renewables and more of short-term mitigation strategy far too many organizations and homes, revert to in the long run expensive non-renewable power sources.
The exemption of private generators in South Africa is the life blood needed to remove barriers to access for an equitable transition to a greener tomorrow. The South African power sector, as volatile as it may seem, is one of the few economies in the world, to make drastic framework adaptions, as the country faces menacing load-shedding and general water stress, that have become more of a plague than a mere circumstantial challenge.
MEB is here to help you implement and plan the best possible infrastructure solution – designed to suit your operational and organizational needs. We have the know-how to unlock significant renewable energy capacity that caters for the power security needs of communities at the push of a button.