2023 ENERGY SERVICES MARKET INTELLIGENCE REPORT

The 2023 Energy Services Market Intelligence Report by GreenCape identifies significant growth in South Africa's energy services sector, driven by national energy insecurity (load shedding) and rising electricity costs. Rooftop solar PV is the most immediate opportunity, with an estimated annual market value of R7.5 billion and a projected total capacity of 10 GWp by 2035. Behind-the-meter storage, particularly lithium-ion batteries, is growing as a backup solution, with a current market size of R4 billion expected to reach R32.5 billion by 2035. The energy efficiency sector remains sluggish despite a potential annual saving of 120 TWh, though smart meter upgrades present a market opportunity of R40–R60 billion. Key barriers include port inefficiencies causing long equipment lead times and a shortage of skilled technical labor. The report also details the regulatory landscape, including the removal of the 100 MW generation license threshold and the implementation of mandatory energy performance certificates for large buildings.

• The rooftop solar PV market in South Africa is growing rapidly, with an estimated annual added capacity of 600-900 MWp in 2022, valued at R7.5 billion. It is projected to reach a total capacity of 10 GWp and a market value of approximately R100 billion by 2035.
• Behind-the-meter energy storage, dominated by lithium-ion batteries, has a current national market size of R4 billion with 500 MWh installed capacity. This is expected to grow to approximately R32.5 billion with 6.5 GWh capacity by 2035.
• South Africa's energy efficiency sector is underperforming relative to an identified annual saving potential of 120 TWh. However, smart meter upgrades represent a significant opportunity, with an estimated total market value of R40–R60 billion based on 4 to 6 million meters needing upgrades.
• Severe electricity insecurity and rising costs are primary drivers for energy services. Eskom tariffs increased by 753% between 2007 and 2021, while inflation was 134% over the same period.
• Port inefficiencies in South Africa lead to long lead times for importing equipment, sometimes reaching six to nine months, which impacts the energy services value chain.
• The removal of the generation license threshold for embedded generation systems (previously 100 MWp) has encouraged the installation of larger systems, with some expanding up to 5 MWp.
• Energy performance certificates are now mandatory for government buildings over 1,000 sqm and private non-residential buildings over 2,000 sqm, though adoption has been slow with only 450 certificates issued by October 2022.
• The cost of diesel generators has become less competitive compared to battery storage due to a 49% increase in the price of diesel in South Africa during 2022.

APA

Poorun, A., & Radmore, J. (2023). 2023 ENERGY SERVICES MARKET INTELLIGENCE REPORT. GreenCape. https://greencape.co.za/wp-content/uploads/2023/04/ES_MIR_2023_DIGITAL_SINGLES.pdf

Chicago

Poorun, Argon, and Jack Radmore. 2023 ENERGY SERVICES MARKET INTELLIGENCE REPORT. GreenCape, 2023. https://greencape.co.za/wp-content/uploads/2023/04/ES_MIR_2023_DIGITAL_SINGLES.pdf.

Wikipedia

{{cite report |last1=Poorun |first1=Argon |last2=Radmore |first2=Jack |title=2023 ENERGY SERVICES MARKET INTELLIGENCE REPORT |publisher=GreenCape |date=2023 |url=https://greencape.co.za/wp-content/uploads/2023/04/ES_MIR_2023_DIGITAL_SINGLES.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{poorun20232023, author = {Poorun, Argon and Radmore, Jack}, title = {{2023 ENERGY SERVICES MARKET INTELLIGENCE REPORT}}, institution = {GreenCape}, year = {2023}, url = {https://greencape.co.za/wp-content/uploads/2023/04/ES_MIR_2023_DIGITAL_SINGLES.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }