1. Background to the Energy Sector
2. Electricity Supply Industry (ESI)
3. Renewable Energy in South Africa
4. Energy Efficiency in South Africa

3. Renewable Energy in South Africa

3.1. Grid-based Initiatives

Due to the cheap and abundant coal reserves, there is little scope for grid-based renewable electricity, hence only little activities in this respect, mostly conducted by Eskom.

• The Sabre-Gen Programme is a project to investigate the potential of using renewable energy for bulk electricity generation

• Wind resource assessment, feasibility assessment, pilot/demonstration wind farm

• Concentrating solar power project (World Bank/GEF money, NREL involved)

In addition, Eskom conducts a number of pilot studies and projects in areas such as solar thermal power generation, biomass, wave energy and small hydro plants.

Furthermore, a small number of independent power producers and industrial firms are engaged in small hydro-power and other forms of renewable energy generation.

3.2. Off-grid Renewable Energy Initiatives

A couple of off-grid renewable energy initiatives exist in South Africa, such as

• non-grid rural electrification programme for 300.000 households within 5 years by means of the fee for service approach

• Government intends to promote / increase the use of solar water heaters.

• Eskom / Shell Solar Home initiative (Cloin 2000)

• READ renewable Energy for African Development Program

• IDT - Remote area power supply (RAPS) project (in Planung) and

• Mini Grid project in Huleka Nature Reserve.

3.3. Barriers to Implementation

There is also some funding available. However, renewable energy projects are not being realised mainly because of

• low prices for coal and electricity (economic and financial viability)

• other development priorities

• high transaction cost

• missing knowledge of potential for energy efficiency improvements, and

• an inadequate institutional and legislative framework.