MARKET OPPORTUNITY3 Nov 2024 12:44
South Africa is the largest electricity market in sub-Saharan Africa. It is predominantly supplied by coal fired power generation and as a result, around 80% of greenhouse gas emissions come from the energy sector. There is a major lack of supply due to insufficient energy generation and power outages have significant macroeconomic impacts.
These two fundamental issues underpin the rationale for the rapid market deregulation that is now taking place, enabling private sector renewable power generation and trading through the national grid. The SA National Energy plan has forecast the needs for an additional 30GW of renewable energy to be procured by 2030, with the first 4GW to be added into the grid by the end of 2024.
As a result, there is significant market demand for green and competitively priced electricity and multiple commercial and industrial offtakers have already been secured across mining, industry, municipal and retail sectors. The Etana model is already working, as evidenced by the first wheeling of renewable energy through Cape Town’s grid in September 2023. Wheeling is a process where electricity is bought and sold between private parties, using the existing grid to transport power from the point of generation to end-users.
On the generation side, 400MW of gross wind generation capacity has been identified and is in negotiation. The trading platform enables Chariot’s participation in these large renewable projects, and there is a strong focus on securing a future pipeline of large generation projects.
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