South Africa Energy Articles & Analysis

Chapter | Energy from The Report: South Africa 2016

With the most energy-intensive economy on the continent, South Africa has undergone a spate of load shedding in recent years as demand for electricity continues to outstrip supply. While faltering output and poorly maintained infrastructure have had an adverse effect on the country’s economic performance, a range of government initiatives – notably the country’s independent power producer (IPP...

The second-largest economy in Africa after Nigeria, South Africa benefits from some of the most sophisticated financial markets in the world, paired with a robust regulatory system, and is also home to the headquarters of a number of major multinational players in the fields of industry, energy and financial services.

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South Africa has stepped up plans to expand renewable energy’s contribution to the power mix, signing a series of new procurement deals that will considerably boost overall capacity and provide greater opportunity for private sector investment.

Already the continent’s largest producer of renewable energy, South Africa is moving to further reduce its reliance on hydrocarbons by expanding private sector investments in solar and wind projects, and introducing biofuels.

Seeking to reduce its dependence on coal-fired power, South Africa is shifting its energy mix toward natural gas and renewables.

 

To what extent can power purchase agreements help improve the overall availability of supply?

 

As South Africa continues to face problems with load-shedding, government and industry stakeholders have turned towards liquefied natural gas (LNG) as a solution to meet demand. The country is also working to generate new capacity from coal-fired and renewable power plants.

 

With the most energy-intensive economy on the continent, South Africa has undergone a spate of load-shedding in recent years as demand continues to outstrip supply. However, while faltering output and under-maintained infrastructure have had an adverse effect on the country’s economic performance, a range of government initiatives, notably the...