INTELLIGENT BRANDS // Green Technology
Alternative sustainable power sources
create new growth opportunities,
finds Frost & Sullivan
Over the past decade, the South
African electricity sector has witnessed
dynamic change. An economic shift
from mining and industrial production
towards a service industry has reduced
electricity demand to pre-2008 levels.
Under these challenging
circumstances, the continued
development of the electricity
supply industry will prove essential in
achieving business sustainability and
providing power at competitive prices.
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“A sluggish economy and rapidly
decreasing technology costs
associated with grid-connected solar
and wind power are proving to be
critical determinants in the future
development of the power generation
industry in South Africa,” said Frost &
Sullivan Power Generation Industry
Analyst, Neeraj Sanjay Mense. “Coal
and nuclear power are set to become
less competitive in the future, paving
the way for alternative sustainable
generation sources that have the
potential to ignite economic growth
and job creation.”
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Recent research from Frost & Sullivan’s
Power Generation Growth Partnership
Service programme, analyses the
total electricity supply industry (ESI)
of South Africa and explores trends
in current and future electricity
demand, transmission and distribution
infrastructure and possible power
generation scenarios until 2050.
Several trends and developments
are encouraging growth in the South
African electricity market, including:
•
•
•
•
Vast potential for solar
photovoltaic and wind
renewal energy;
Decreasing cost of renewable
energy technologies;
New business models, such
as pay-per-use in the off-grid
segment involving renewable
power generation;
The Renewable Energy
Independent Power Producer
Procurement Program (REIPPPP)
for infusion of renewable power
into the national grid has
become a global benchmark for
procurement of renewable power
projects developed and owned by
private players;
• Potential implementation of
an adaptive model for power
generation and electricity demand
that takes into consideration
evolving conditions in South Africa;
• Successful smaller projects with
short lead times, lower liabilities,
low power-generation costs and
operational flexibility
“Future investments in power generation
should be determined through an up-to-
date central database, which considers
changing conditions and demand,”
noted Mense. “Establishing local supply
chains and relationships with regulatory
authorities will be critical for companies
foraying into renewable project
development, while leap-frogging power
storage technologies can improve
project viability and impact.”
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