Page 11 - AfrElec Week 29 2021
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AfrElec                                      RENEWABLES                                              AfrElec


       SA C&I sector starts to make




       inroads into solar PV market




        SOUTH AFRICA     THE South African solar PV market installed  and industry work to meet the increasing energy
                         1,313 MW during 2020, broken down into 813  needs of the country as it embarks on a post-
                         MW of utility-scale systems and 500 MW of dis-  COVID-19 economic recovery.
                         tributed generation.                   “The commitment of President Cyril Rama-
                           This took the country’s cumulative solar PV  phosa to amend Schedule 2 of the Electric-
                         capacity to 4,172 MW, 2,372 MW of which is  ity Regulation Act, and to raise the licensing
                         provided by utility-scale solar.     exemption threshold for distributed generation
                           In a statement, the South African Photovol-  facilities from 1 MW to 100 MW, should cause a
                         taic Industry Association (SAPVIA) said it is  rapid increase in the development of large-scale
                         estimated that 20% of the 500 MW of distributed  distributed generation projects.
                         energy consists of residential systems, with the   “This work on updating the regulations that
                         C&I sector contributing the great bulk of rooftop  will allow municipalities to develop and procure
                         capacity.                            their own power generation projects shows that
                           This tallies with the uptake of solar PV into  the government is working hard to create the
                         the African C&I sector over the past few years,  right policy environment to let the industry fully
                         according to the African Solar Industry Associa-  realise the IRP2019 targets,” said Tshehla.
                         tion’s Africa Solar Report, released early in 2021.  He pointed out the solar PV market in South
                           That report said while large-scale solar pro-  Africa still faces challenges and SAPVIA recom-
                         jects have dominated the sector over the past  mends the IRP should be reviewed and updated
                         few years, the C&I energy landscape is booming.  to better enable government policy planning.
                         Their data suggests the C&I sector could repre-  According to Tshehla, progress has been
                         sent 30-40% of all solar capacity installed over  hampered by a lack of consistency in the pro-
                         the next few years.                  curement of solar PV projects. “However, it must
                           South Africa’s Integrated Resource Plan  be noted that over the last 12 months the govern-
                         (IRP2019) outlines a new additional capacity  ment has responded with pace and urgency. For
                         of 6 GW utility-scale solar PV and 6 GW of dis-  the industry to fully realise the opportunities of
                         tributed generation – the majority of which is  renewable energy and solar PV specifically, we
                         anticipated to come from solar – to be installed  need long-term commitments from the govern-
                         by 2030.                             ment to procure on a more consistent basis.”
                           The IRP2019 is based on least-cost electric-  “If industry is confident of a future procure-
                         ity supply and demand balance, considering  ment pipeline, they will then invest with confi-
                         security of supply and the environment, and will  dence in local manufacturing, which could then
                         result in a 400%+ increase of solar PV by 2030.  develop and thrive, offering more local opportu-
                         “This will increase the PV installed capacity from  nities for employment and upskilling,” he said.
                         3% of the current total electricity supply to 11%   SAPVIA believes it is a matter of urgency to
                         by 2030,” said SAPVIA spokesperson Maloba  address capacity challenges at distributor level,
                         Tshehla.                             implement the correct and most appropriate
                           Solar PV and renewable energy procurement  bureaucratic processes to allow policy to be
                         in SA needs long-term commitments for pro-  implemented and create space for more innova-
                         curement from government             tive funding models to allow participation from
                           Tshehla pointed out the country’s policy  non-traditional investors.™
                         landscape continues to change as government

























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