Market Intelligence: Energy Services

The South African electricity market is dominated by coal-fired power from Eskom, but is currently characterized by severe rolling blackouts and rising tariffs. This has driven a growing energy services (ES) market comprising rooftop solar PV, energy storage, and energy efficiency (EE). The ES value chain is primarily dominated by small- and medium-sized enterprises (SMEs). Policy drivers include the Integrated Resource Plan (IRP) 2019, the Carbon Tax Act, and the removal of the licensing threshold for embedded generation. While rooftop solar is popular, energy storage is in early stages—with Lithium-Ion being most promising for short-duration use—and energy efficiency faces barriers such as a lack of reliable performance data.

• In the energy storage segment, Lithium-Ion batteries are the most promising for short-duration (4 hours) applications in the commercial, industrial, and agricultural sectors, while Vanadium redox flow batteries are expected for medium- to long-duration use (>4 hours).
• The energy efficiency (EE) market is most attractive in the commercial and industrial sectors, with estimated total potential energy savings of 120 TWh/a and capital requirements of R326.2 billion for 2021/22.
• The energy services value chain is dominated by small- and medium-sized enterprises (SMEs), which are better able to adapt to rapid growth than larger corporate structures.
• Key regulatory shifts include the removal of the 100MWp threshold for embedded generation licenses and the introduction of mandatory Energy Performance Certificates (EPCs) for the private sector as of December 2020.
• The Carbon Tax Act of 2019 implements a 'polluter pays' principle, with rates increasing annually to reach R300, and potentially R450 by 2030 and R1 800 beyond 2050.

APA

GreenCape (2024). Market Intelligence: Energy Services. https://greencape.co.za/market-intelligence/energy-services-draft/

Chicago

GreenCape. Market Intelligence: Energy Services. 2024. https://greencape.co.za/market-intelligence/energy-services-draft/.

Wikipedia

{{cite report |author=GreenCape |title=Market Intelligence: Energy Services |date=20 May 2024 |url=https://greencape.co.za/market-intelligence/energy-services-draft/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2024market, author = {{GreenCape}}, title = {{Market Intelligence: Energy Services}}, institution = {GreenCape}, year = {2024}, month = may, url = {https://greencape.co.za/market-intelligence/energy-services-draft/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }