Page 13 - AfrElec Week 14 2022

AfrElec RENEWABLES AfrElec

South Africa set for 5.4 GW of

new wind by 2026

SOUTH AFRICA SOUTH Africa could add 5.4 GW of new wind Following a milestone agreement at COP26
capacity between 2022 and 2026, although pro- in 2021, South Africa is set to receive $8.5bn to
curement delays will see additions fall this year decommission, repurpose or repower coal-fired
over 2021. power stations and invest in renewable energy
The Global Wind Energy Council (GWEC) The ongoing restructuring and unbundling
said in its Global Wind Report 2022 that South of Eskom and the government’s decision to allow
Africa was the largest wind market in sub-Saha- wind projects of under 100 MW to proceed with-
ran Africa, with 3,168 MW of capacity already out a licence “will further incentivise renewable
connected to the grid. energy development”, as could the “milestone”
The country installed a record 668 MW in COP26 offer of $8.5bn to support South Africa’s
2021, up from 515 MW of additions in 2020, transition away from coal.
most of which were projects procured during The report warns that grid constraints in
the fourth bid window (BW4) of the govern- the three provinces of the Eastern, Northern
ment’s Renewable Energy Independent Power and Western Cape are curtailing the roll-out of
Producer Procurement Programme (REIPPPP). shovel-ready projects and affecting investment
The GWEC blamed the lower figure for 2022 certainty.
on procurement delays and the fact that projects Looking ahead, a number of obstacles must
already procured under BW5 would only open be overcome in order for wind and renewables
within three years. in general to develop.
“The latest BW5 in October 2021 attracted The report said that the South African energy
bids amounting to nearly four times the capac- market still had key challenges to overcome. His-
ity awarded, resulting in a record 12 wind farms torically, regulation has favoured legacy systems
winning bids,” the report states, adding that 46 based on fossil fuels. This means that regulatory
wind projects have, to date, been awarded to var- changes will be necessary to support the transi-
ious developers under the REIPPPP. tion to cleaner sources. Investors and financiers
The 12 wind projects that were selected are require as much policy certainty as possible, with
currently scheduled to achieve financial close at supportive frameworks which allow for wheel-
the end of April. ing and the signing of direct PPAs with IPPs
“In total, 14 GW of new capacity is expected without ministerial approval.
to be added in Africa/Middle East in the next Stable pipelines of wind projects can be cre-
five years (2022-2026), which is primarily driven ated through continuous and regular capac-
by growth from South Africa (5.4 GW), Egypt ity procurement, including a long-term and
(2.2 GW) and Morocco (1.8 GW) in Africa, and on-time auction schedule, as well as a more
Saudi Arabia (1.3 GW) in the Middle East.” robust REI4P process that can minimise delays
The report highlighted that South Africa’s for selection and contract completion.
energy mix is largely based on fossil fuels, with In addition, grid constraints in three prov-
nearly 90% of its electricity generation derived inces, including the Northern Cape, have
from coal and peat, as of 2020. strongly curtailed the rollout of shovel-ready
It also notes that South Africa’s Integrated projects in these areas, affecting investment cer-
Resource Plan to 2030 outlines a primary role tainty in new renewable projects. An updated
for renewable energy in the future power mix, Generation Connection Capacity Assessment
requiring an additional 20.4 GW of renewable (GCCA) report is due to be released in Q1 2022
energy capacity in this decade. to provide more clarity on capacity planning and
The report further highlights the country’s transmission connections.
2021 Nationally Determined Contribution Meanwhile, new wind resource assessments
(NDC) pledge to limit greenhouse gas (GHG) in provinces like Mpumalanga, historically home
emissions to 350mn-420mn tonnes of CO2 by to fossil fuel-generation and energy-intensive
a 12-31% reduction from the country’s previous industries, could unlock further deployment.
NDC in 2016. Globally, the wind industry posted its sec-
For coal, the country’s reliance on the fossil ond-best year ever in 2021, posting 12% growth
fuel means around 80% of its GHG emissions and adding 93.6 GW of new capacity onshore
come from the energy sector, making the phase- and offshore, bringing the global fleet to 837
out of coal vital for climate action. GW.™

Week 14 07•April•2022 www. NEWSBASE .com P13