How valuable are renewables?

Renewable energy sources – particularly solar and wind – tick all the right boxes when it comes to shaping a sustainable energy future.

The single most valuable aspect of renewable technologies is that they are zero carbon generators – they add energy without adding carbon emissions.

Further to this, they are affordable, and getting cheaper zero marginal cost and rapidly declining capital costs.

Also, the deployment of renewables is job-intensive and can spur economic activity and increased employment.

If we are to decommission South Africa’s coal-fired power plants as soon as feasibly possible, we’re going to have to accelerate the roll out of renewable energy.

However, renewable energy is weather-dependent, variable/intermittent, and less flexible. So, if we’re to have power system flexibility, we will need complementary dispatchable power capacity like gas-to-power and energy storage technologies in order to #energisemzansi. 

Renewables are resources that get cheaper the more they are widely deployed.

As we learn more about how renewable energy can be generated, the cost of producing it drops. At the same time, new technology is making for more efficient generation.

As a result, renewable energy is quickly becoming one of the most affordable sources of electricity, with very real benefits for consumers and industry.

Source: IRENA, Lazard, graphic adapted from Our World in Data https://ourworldindata.org/cheap-renewables-growth

South Africa is in a position to generate over 30GW of renewable energy by 2034, which will significantly diversify and strengthen our energy supply options.

Transmission grid expansion is essential

Transmission grid expansion determines where renewables can be installed. Because of the way the South African transmission grid has been designed – during the days of coal-fired power stations – there’s a mismatch: new renewable energy plants are being built in the coastal areas (where renewable energy capacity factors are higher), but most of the transmission capacity is available inland.

Source: Eskom Renewable Energy Connection Survey; Eskom 2025 GCCA

Expanding the transmission grid is critical to unlocking the full potential of renewable energy and to #energisemzansi. If the electricity grid isn’t expanded, we won’t be able to get the full benefits of renewables.

Why do we need flexibility?

As a larger share of power is provided by renewables, the power system will require additional flexibility provided by  storage or flexible thermal plants.

Electricity storage encompasses all technologies that can consume electricity, store it and return it later.

By 2025, the contribution of renewable energy to the national grid is likely to increase to between 30% and 40%. We’ll need an expanded – and flexible – storage network to make sure this energy is available to be dispatched when needed. In total, approximately 12 GW of storage will be needed by that time in order to #energisemzansi. 

What is energy storage?

Electricity storage technologies play a vital role in balancing supply and demand by storing energy during periods of oversupply and releasing it during times of undersupply.

Examples of storage technologies include pumped hydro-storage and battery electric storage systems (BESS) such as Lithium-Ion batteries. Alternatives for long-duration storage (e.g., hydrogen) are slowly becoming commercially viable.

Battery electric storage is the most scalable and cost-effective option for short-duration (<8 hour) electricity storage.

The cost of battery electric storage systems (BESS) is coming down rapidly. It is the most scalable and cost-effective option for short duration storage, around 8 hours or less.

Until 2035, Pumped Hydro Storage and BESS will be the dominate storage types based on South Africa’s storage and discharge needs.

What more do we need to discuss?

There are a number of topics to be discussed in more detail in order to speed up the rollout of renewables including:

  • How do we boost interest in areas like the Free State, Mpumalanga, Limpopo, and North-West?
  • What other incentives besides money are needed, such as making it easier to get environmental approvals and more adaptable procurement processes?
  • What is the best way to finance renewable energy projects and battery storage systems commercially?
  • What improvements are needed for engineering, procurement, and construction (EPC) companies to successfully deploy renewable energy and improve the grid? Will removing local content requirements help?

#EnergiseMzansi

Rolling out renewables