ENERGY SERVICES MARKET INTELLIGENCE REPORT

The South African energy services market is expanding due to rising electricity costs, energy insecurity, and falling technology prices. The market is segmented into small-scale embedded generation (SSEG), energy storage, and energy efficiency, with a total available market estimated at R131 billion by 2035. Key opportunities include rooftop solar PV for commercial and industrial (C&I) and agricultural sectors, behind-the-meter battery storage, and innovative energy efficiency models like Cooling-as-a-Service (CaaS). The Western Cape is highlighted as a leading regional hub due to its supportive municipal policies and high uptake of SSEG.

• The total available South African energy services market, comprising small-scale embedded generation, energy storage, and energy efficiency, is valued at approximately R131 billion by 2035, with R35 billion of that value located in the Western Cape.
• The small-scale embedded generation (SSEG) market, dominated by rooftop solar PV, is projected to reach a total capacity of 7.5 GWp by 2035 with a market value of R75 billion.
• The energy storage market, specifically behind-the-meter Lithium-ion batteries, is expected to grow to approximately R31 billion with 6.5 GWh of installed capacity by 2035.
• The energy efficiency (EE) market is estimated to reach a national value of R21 billion by 2035, with approximately 15% of this market located in the Western Cape.
• Cooling-as-a-Service (CaaS) presents a significant opportunity for energy savings of 15-35% by replacing old plants with bespoke systems, with a potential national market of 25-30 GW.
• Rising electricity costs are a primary driver for the market, with average standard Eskom tariffs increasing by 307% since 2007, significantly outpacing inflation.
• Regulatory changes have increased the threshold for embedded generation from 1 MW to 100 MW without requiring a license, though registration with NERSA is still necessary.
• The Western Cape is the leading province for supportive municipal energy policies, with 24 out of 25 municipalities allowing SSEG installations.
• Behind-the-meter battery storage remains constrained by high upfront costs, with Li-ion batteries costing approximately three times more per kWh than diesel generators in 2021.
• Energy efficiency projects in South Africa are typically small, with an average capital cost under R2.85 million, making the bundling of projects necessary to attract commercial financing.

APA

Poorun, A., & Radmore, J. (2022). ENERGY SERVICES MARKET INTELLIGENCE REPORT. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/ES_MIR_29_3_22_FINAL-3.pdf

Chicago

Poorun, Argon, and Jack Radmore. ENERGY SERVICES MARKET INTELLIGENCE REPORT. GreenCape, 2022. https://greencape.co.za/wp-content/uploads/2022/10/ES_MIR_29_3_22_FINAL-3.pdf.

Wikipedia

{{cite report |last1=Poorun |first1=Argon |last2=Radmore |first2=Jack |title=ENERGY SERVICES MARKET INTELLIGENCE REPORT |publisher=GreenCape |date=2022 |url=https://greencape.co.za/wp-content/uploads/2022/10/ES_MIR_29_3_22_FINAL-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{poorun2022energy, author = {Poorun, Argon and Radmore, Jack}, title = {{ENERGY SERVICES MARKET INTELLIGENCE REPORT}}, institution = {GreenCape}, year = {2022}, url = {https://greencape.co.za/wp-content/uploads/2022/10/ES_MIR_29_3_22_FINAL-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }