Utility-Scale Renewable Energy: Market Intelligence Report 2020

The report outlines the growth of South Africa's utility-scale renewable energy market, driven by the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the Integrated Resource Plan (IRP 2019). It highlights a potential market value of R418 billion for solar PV, wind, and distributed generation by 2030. Key opportunities include the upcoming Bid Window 5, local manufacturing of PV panels and wind towers, and the deployment of utility-scale batteries. The document also discusses the unbundling of Eskom into generation, transmission, and distribution entities to improve market competition and transparency.

• South Africa's utility-scale renewable energy market is projected to have a total potential value of R418 billion based on IRP 2019 allocations, comprising R271 billion for wind, R99 billion for solar PV, and R48 billion for distributed generation of less than 10 MW.
• The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has procured 6,422 MW of electricity to date, with 3,976 MW already connected to the national grid. This has attracted R209.7 billion in total investment, with foreign investment accounting for 20% (R41.8 billion).
• The IRP 2019 sets a target for renewable energy to potentially fulfill 33% of energy production (321 TWh) by 2030. This includes allocations of 14,400 MW for wind and 6,000 MW for solar PV.
• The South African government is unbundling the state utility Eskom into three separate entities: Generation, Transmission, and Distribution. The Transmission Entity (TE) is prioritized as the market operator and will eventually become the buyer for power purchase agreements (PPAs) with IPPs.
• There is significant potential for local manufacturing of renewable energy components. The dtic suggests it is feasible to establish at least five solar PV component manufacturing facilities (requiring 1,000 MW annual allocation) and potentially one to five wind tower manufacturing facilities.
• Utility-scale battery storage presents a growing opportunity, with a potential market of approximately 5 GW between 2022 and 2030 if battery storage replaces some gas allocations in the IRP. Eskom is also implementing a 1.4 GWh flagship battery storage pilot project.
• The REIPPPP incorporates a strong economic development (ED) mandate, where ED criteria account for 30% of the tender proposal qualification. This has resulted in the creation of 40,134 job years and R860.1 million in socio-economic development contributions.
• Opportunities exist for the refinancing of projects from REIPPPP Bid Windows 1-4 as the three-year lock-in period after the Commercial Operation Date (COD) lapses, potentially increasing leverage from 75% to 85%.

APA

GreenCape (2020). Utility-Scale Renewable Energy: Market Intelligence Report 2020. https://greencape.co.za/assets/Uploads/RENEWABLE_ENERGY_MIR_20200330_WEB.pdf

Chicago

GreenCape. Utility-Scale Renewable Energy: Market Intelligence Report 2020. 2020. https://greencape.co.za/assets/Uploads/RENEWABLE_ENERGY_MIR_20200330_WEB.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Utility-Scale Renewable Energy: Market Intelligence Report 2020 |date=2020 |url=https://greencape.co.za/assets/Uploads/RENEWABLE_ENERGY_MIR_20200330_WEB.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2020utilityscale, author = {{GreenCape}}, title = {{Utility-Scale Renewable Energy: Market Intelligence Report 2020}}, institution = {GreenCape}, year = {2020}, url = {https://greencape.co.za/assets/Uploads/RENEWABLE_ENERGY_MIR_20200330_WEB.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }