Renewable Energy

Challenges
South Africa has a unique situation that gives the country access to many reliable renewable energy sources. These include wind, solar and tidal and industry is slowly but surly starting to gear up for a greener lifestyle.

These projects are on the table already: Eskom has a 3.2 MW demonstration wind farm at Klipheuwel in the Western Cape, the 4-turbine, 5.2 MW Darling wind farm in the Western Cape started producing electricity in 2008 and remains the country’s only commercial wind farm, in October  2009 the government and the Clinton Foundation signed an agreement to establish the country’s first “solar park”, which is to deliver up to 5 000 MW of solar electricity to the national grid.
Cape Waters Solutions

South Africa has only small deposits of oil and natural gas and uses its large coal deposits for most of its energy needs. As a result, carbon emission and intensity levels are relatively high. The country also has a highly developed synthetic fuels industry, producing gasoline and diesel fuels from coal and natural gas.
EIA

Political
In 2003 the South African Department of Minerals and Energy (DME) published a White Paper on renewable energy. This document supplements the DME White Paper on Energy Policy of 1998 and presents the South African government’s vision, policy principles, strategic goals and objectives in the promotion and introduction of renewable energy. In the document the DME sets a target of a 10,000 GWh renewable energy contribution to final energy consumption by 2013.
DIE

South Africa's energy sector is critical to the economy as the country relies heavily on its large-scale, energy-intensive mining industry.  According to Oil and Gas Journal (O&GJ), South Africa had proven oil reserves of 15 million barrels in January of 2010. All of the proven reserves are located offshore southern South Africa in the Bredasdorp basin and off the west coast of the country near the border with Namibia. 

South Africa had 0.32 billion cubic feet (Bcf) of proven natural gas reserves in 2009 according to Cedigaz. The South African government would like to locate additional natural gas reserves and has provided investment money for exploration in fields in Mossel Bay. Any recoverable natural gas reserves would be developed with the intent of extending the lifespan of the Mossel Bay gas-to-liquids (GTL) plant.

According to the World Energy Council (WEC) South African coal resources were estimated to be approximately 34 billion short tons at the end of 2007, accounting for 95 percent of African coal reserves and 4 percent of world reserves.
EIA

Growth
The White Paper's target of 10 000 GWh renewable energy contribution to final energy consumption by 2013 was confirmed to be economically viable with subsidies and carbon financing. Achieving the target will:
a. Add about 1.667MW new renewable energy capacity, with a net impact on GDP as high as R1.071-billion a year.
b. Create additional government revenue of R299-million.
c. Stimulate additional income that will flow to low-income households by as much as R128-million, creating just over 20 000 new jobs.
d. Contribute to water savings of 16.5-million kilolitres, which translates into a R26.6-million saving.
DoE

Targets
The South African government has announced its plans to construct a 5000 megawatt (MW) Solar Park in the Northern Cape district, which will help begin the process of weaning the country off coal-based power generation.

Actual development of the solar park land space is estimated to cost 10-15 million US dollars, but construction of the solar thermal and concentrated solar plants (CPV) facilities within the Park zone is expected run into the tens of billions USD. This will be incurred over a period of ten years and those costs will largely be incurred by the private sector.
Energy Matters

The Department of Energy
The Department of Energy [DoE] is responsible for ensuring exploration, development, processing, utilisation and management of South Africa's mineral and energy resources. As the country's economy continues to grow, energy is increasingly becoming a key focus. The Electricity and Nuclear Branch is responsible for electricity and nuclear-energy affairs, while the Hydrocarbons and Energy Planning Branch is responsible for coal, gas, liquid fuels, energy efficiency, renewable energy and energy planning, including the energy database. 
DoE

The National Energy Regulator of South Africa
The National Energy Regulator of South Africa (NERSA), created in 2005, regulates policy over the entire South African energy industry and is responsible for implementing South Africa’s energy plan.
NERSA

The South African National Energy Association
The South African National Energy Association (SANEA), the South African member committee of the World Energy Council (WEC), represents a hub for the exchange of energy related information. In so doing, SANEA stimulates original thought and catalyses transformation of the Energy Sector.
SANEA

Funding
The department [of Energy] has been allocated a total of R 15.9 billion over the medium term expenditure framework (MTEF) period, with an allocation of R6.09 billion for 2011/12.
DoE

Current
The White Paper's target of 10 000 GWh renewable energy contribution to final energy consumption by 2013 was confirmed to be economically viable with subsidies and carbon financing. Achieving the target will:
a. Add about 1.667MW new renewable energy capacity, with a net impact on GDP as high as R1.071-billion a year.
b. Create additional government revenue of R299-million.
c. Stimulate additional income that will flow to low-income households by as much as R128-million, creating just over 20 000 new jobs. 
d. Contribute to water savings of 16.5-million kilolitres, which translates into a R26.6-million saving.
DoE

Following Cabinet approval of the White Paper, the DME proceeded with the development of its renewable energy strategy. The implementation plan of the various technologies was identified in a macroeconomic study undertaken in 2003.
DoE

Recent Legislation
As the principal energy sources, the White Paper refers to biomass, wind, solar and small-scale hydro. It focuses on larger and economically viable projects rather than small-scale electrification programmes, even though electrification is seen as an especially pressing issue in rural areas.

To achieve the renewable energy target, the government is committed to strengthening competition in the electricity market. It is seeking to create an enabling environment for independent power producers that use renewable energy sources. It is also committed to developing a Strategy on Renewable Energy which will “translate the goals, objectives and deliverables set out herein into a practical implementation plan.”

The White Paper specifies a policy review process after five years to see whether the targets, objectives and deliverables are being met. This process started in 2008, but has made little progress to date. The revised White Paper on Renewable Energy is expected to be published in late March 2010.
DoE