R/€ = 13.05
R/$ = 12.04
Au 1165.48 $/oz
Pt 1160.50 $/oz
Sep 25, 2007
SA plans to subsidise renewable energy schemesBack
Africa|CoAL|Environment|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|Energy|Wind Energy|Power
© Reuse this The South African government has set up a subsidy and finance office to guide funding for renewable energy technologies, Minerals and Energy Minister Buyelwa Sonjica said on Tuesday.
Speaking at an energy summit, where industry stakeholders are deliberating possible changes to the country’s energy policy, in Johannesburg, she said that South Africa would also establish a new certification system to support the development of renewable energy projects.
The Tradable Renewable Energy Certification System would provide an additional revenue stream for the development of the projects, and would be operational by early next year.
Renewable energy technologies, such as solar power, wind power, hydroelectricity, biomass and biofuels, were set to play a key role in South Africa’s energy needs, which were currently being met by electricity generated by coal. But, the technologies were often criticised for being too costly, when compared with technologies, such as coal-fired power, and “unreliable and unsightly”.
Sonjica said, however, that the State was recognising that there were barriers to the introduction of more renewable energy in the South African industry, and cited high capital costs.
“Overcoming the initial high capital costs and increasing the commercialisation of renewable energy technologies in a market driven by [an] energy economy, will guide funding for renewable energy technologies.”
She said that South Africa had also partnered with Global Environment Facility (GEF), an international organisation helping developing countries to fund projects and programmes that protect the environment, to provide technical assistance to renewable energy project developers, and to leverage investment from the private sector.
GEF would assist the State to implement a South African wind energy programme, and renewable energy market transformation projects.
The country had, thus far, managed to kick-start the interest from investors and independent power producers to start developing local renewable energy projects, but medium- to long-term financial mechanisms would now have to be developed, Sonjica stated.
The Department of Minerals and Energy and the National Energy Regulator of South Africa had started looking at the development of medium- to long-term financial mechanisms.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
This Week's Magazine
The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
JSE-listed Emira Property Fund reported distribution growth per participatory interest (PI) of 9% for the six months ended December 31, 2014.
Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.