South Africa’s renewable energy sector has relied primarily on imports between 2010 and 2022, with imports of solar panels, inverters, lithium-ion batteries and wind turbines respectively totalling R31 billion, R53bn, R22bn and R30bn.
This is contained in the South African Renewable Energy Masterplan (Sarem) by the Department of Mineral Resources, currently out for public comment.
Sarem explains that the renewable energy and storage sector, like other “greentech”, was rapidly evolving.
South Africa, however, according to the masterplan, does not have the capacity to compete with market leaders such as China, the US, Japan, South Korea and the EU in research, development and innovation.
Developed under the leadership of the South African government, the Sarem “is a social compact between government, business and labour unions, focused on leveraging investment in the renewable energy and storage value chain to deliver industrial development and decent jobs while supporting inclusive development”.
“In South Africa, the roll-out of renewable energy technologies is set to increase rapidly, as the country aims to achieve energy security for all as well as decarbonise its electricity supply.
“Utility-scale renewable energy and battery storage public procurement of 22.9GW is planned from 2022 to 2030, according the 2019 Integrated Resource Plan (IRP).”
As of February this year, more than 13GW (5GW of wind and 8.3GW of solar PV) of private sector-led projects were in advanced development in the country.
This is while the Presidential Climate Commission (PCC) pointed to the need to roll out 50-60GW of renewable energy, supported by co-located storage by 2030.
“To date, companies in the renewable energy and storage value chains have faced a number of skills-related challenges. The lack of skills on the local market is the primary constraint to the development of the industry. In addition, skills retention, particularly of young professionals, appears problematic.
This is primarily a result of the mismatch between the limited supply and rising demand for skills in the industry.
“These challenges are compounded by the lack of inclusivity and integration of previously disadvantaged individuals in the sector, particularly women. Despite some existing support mechanisms, such as the Technology Innovation Agency’s pre-commercialisation and commercialisation programmes, the DTIC’s Support Programme for Industrial Innovation and the Khoebo Innovation Promotion Programme managed by the IDC, multiple incubation programmes and a number of private sector funders, overall market access remain highly insufficient.
“A ‘valley of death’, fuelled notably by a lack of venture capital, hinders the innovation journey of local entrepreneurs.”
The second component Sarem envisioned was supporting the development of local capabilities focused on fostering technology commercialisation.
The masterplan also speaks about the opening of a solar research facility to enhance the integration of local innovations into existing value chains, supported by the Department of Science and Innovation (DSI).
The draft version of the Sarem can be found at: https://bit.ly/3XWhPT5.
Written comments and inputs can be directed to Mthunzi. [email protected] on or before Monday July 31, 2023.
The department is expected to hold public hearings on the masterplan.
To sign up to receive more information about these sessions, emails can be sent to: [email protected]
Cape Times