Utility-Scale Renewable Energy: Market Intelligence Report 2019

The report examines the South African utility-scale renewable energy market, focusing on the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) and the 2018 Integrated Resource Plan (IRP). It highlights the transition from a coal-dominated energy mix toward wind and solar, detailing the economic impact of the REIPPPP, emerging opportunities in municipal procurement and project refinancing, and the role of the Western Cape as a greentech hub.

• South Africa's electricity mix is heavily reliant on coal, which represents over 90% of the total mix, while renewable energy is a new sector with the first commercial utility projects starting in 2013.
• The Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) has procured 6,376 MW of energy to date and attracted over R200 billion in investment, including R48.8 billion in foreign direct investment.
• The REIPPPP has achieved significant cost reductions, with a tariff decline of more than 150% over five years; recent expedited rounds saw levellised costs for wind and solar below R0.62/kWh.
• The draft Integrated Resource Plan (IRP) 2018 indicates a significant shift toward renewables, with allocations by 2030 including 8,100 MW for wind, 5,670 MW for Solar PV, and 2,400 MW for small-scale embedded generation (SSEG).
• A secondary market for refinancing and equity buyouts has emerged for REIPPPP projects from Bid Windows 1-4, as projects pass their three-year lock-in period after the Commercial Operation Date (COD).
• Metropolitan municipalities are challenging the 'single-buyer' model by seeking to purchase electricity directly from independent power producers, with the City of Cape Town committing to purchase approximately 520 MW of renewable energy over 15 years.
• Local manufacturing opportunities exist for solar PV and wind towers, though some facilities have become dormant or decreased capacity due to delays in the REIPPPP.
• The REIPPPP incorporates an economic development component that accounts for 30% of tender proposals, focusing on job creation, local content, and black ownership.
• The transition from coal to renewable energy is expected to create a net surplus of 30,000 jobs by 2030, despite the decommissioning of 12.6 GW of coal plants.

APA

GreenCape (2019). Utility-Scale Renewable Energy: Market Intelligence Report 2019. https://greencape.co.za/wp-content/uploads/2022/10/RENEWABLE-ENERGY-MARKET-INTELLIGENCE-REPORT-FINAL-WEB2-3.pdf

Chicago

GreenCape. Utility-Scale Renewable Energy: Market Intelligence Report 2019. 2019. https://greencape.co.za/wp-content/uploads/2022/10/RENEWABLE-ENERGY-MARKET-INTELLIGENCE-REPORT-FINAL-WEB2-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Utility-Scale Renewable Energy: Market Intelligence Report 2019 |date=2019 |url=https://greencape.co.za/wp-content/uploads/2022/10/RENEWABLE-ENERGY-MARKET-INTELLIGENCE-REPORT-FINAL-WEB2-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2019utilityscale, author = {{GreenCape}}, title = {{Utility-Scale Renewable Energy: Market Intelligence Report 2019}}, institution = {GreenCape}, year = {2019}, url = {https://greencape.co.za/wp-content/uploads/2022/10/RENEWABLE-ENERGY-MARKET-INTELLIGENCE-REPORT-FINAL-WEB2-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }