South Africa Awards 1,760 MW of Projects in Green-Energy Push

AFRICAN BUSINESS AND ECONOMYDecember 23, 2024 at 12:57 PM UTC

TLDR

South Africa has allocated 1,760 megawatts of renewable energy projects
Project sizes range between 150 MW and 240 MW to reduce reliance on coal
The government also awarded contracts for 615 MW of battery storage at Eskom sites

South Africa has allocated 1,760 megawatts of renewable energy projects to eight companies as part of its plan to reduce reliance on coal.

The seventh bid window of the renewables program received 40 bids for 1,800 megawatts, but only projects in Mpumalanga, Limpopo, Free State, and North West provinces were awarded due to constrained grid capacity, said Electricity Minister Kgosientsho Ramokgopa.

Infinity Power Holding SA will lead six of the projects, while Mulilo Renewable Project Developments and Scatec Solar Africa Pty. will each develop one. Project sizes range between 150 MW and 240 MW. The government also awarded contracts for 615 MW of battery storage at Eskom sites, with Mulilo leading five projects, AMEA two, and EDF one.

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Key Takeaways

South Africa’s reliance on coal for over 80% of its electricity remains a challenge as grid limitations hinder renewable energy deployment. Despite a $1.5 trillion-rand plan to expand renewable energy, green hydrogen, and EV industries, as well as $9.3 billion in climate finance through the Just Energy Transition Partnership, progress is slowed by inadequate transmission infrastructure. The government has a 390 billion-rand plan to expand grid capacity and plans to seek private-sector involvement, with requests for proposals expected in late 2025. Until grid constraints are resolved, South Africa’s ability to capitalize on its renewable resources will remain limited, complicating its energy transition and efforts to reduce frequent power outages.

South Africa

Green Energy

Renewable Energy

Eskom

Solar Power