South Africa’s renewable energy sector has made significant strides in 2024, with multiple projects across the public and private sectors advancing rapidly. According to the World Economic Forum’s June 2024 report, the country’s renewable energy capacity has expanded quickly since 2011 and now accounts for over 7% of total power generation.
To meet its goal of achieving net-zero greenhouse gas emissions by 2050, South Africa must reduce emissions by 12-27%, a target requiring substantial investment in renewable energy. Despite the challenges, 2024 has demonstrated that the country’s green energy industry is rising to the occasion.
Mulilo, a leading renewable energy developer, has completed six major projects this year, including three battery storage facilities, two solar farms, and a wind farm, all of which are either under construction or set to begin in 2025. The battery storage projects, located in the North-West and Northern Cape provinces, will provide a combined capacity of 257 MW, helping stabilize South Africa’s energy system by storing excess power for future use. Additionally, Mulilo’s solar and wind projects, built under private power purchase agreements with companies like Sasol, Air Liquide, and Air Products, will contribute 420 MW to the grid, with more projects expected to add over 300 MW.
South Africa’s green energy renaissance is not limited to Mulilo. Teraco, a data center company, is constructing a 120 MW solar plant in the Free State, which is expected to be operational by 2026. Moreover, GuarantCo and British International Investment have pledged $100 million in finance to Etana, a green energy company, aiming to add 500 MW to the grid in the coming years.
The solar energy sector is also flourishing, with Neosun Energy completing a 1 MW solar installation atop the Dayizenza Mall in Nelspruit. This project is financially viable, offering an internal rate of return of 53% and a payback period of just 12 months, thanks to government incentives.
While renewable energy offers both environmental and economic advantages, it faces challenges such as limited grid infrastructure. Mulilo’s CEO, Jan Fourie, emphasized the need for an expanded transmission grid, highlighting the lag in infrastructure development. Eskom, the country’s largest power producer, remains a dominant player, but as more renewable energy projects come online, its market share is expected to decrease.
In July 2024, Eskom’s transmission arm was officially split into the National Transmission Company of South Africa, which is tasked with managing the transmission grid and facilitating the import and export of energy. This move is seen as a step toward addressing the country’s transmission infrastructure gaps and supporting the growth of green energy in South Africa.