tipslogo2c

Janet Wilhelm

ESI Africa - 27 February 2024 by Yunus Kemp

Read online at ESI Africa

In the face of rising electricity costs, persistent power outages (loadshedding), and the emergence of domestic and international carbon taxes, there has never been a better time for businesses in South Africa to adopt renewable energy (RE) to realise significant savings on their electricity bills, lower their tax liability, secure a reliable supply of electricity, and reduce their carbon footprint.

This study focuses on an assessment of RE adoption pathways without a “loadshedding lens”. In particular, it focuses on the commercial viability of different RE adoption pathways and mechanisms (off-site versus on-site, power purchase agreement versus self-owned) by quantifying the savings businesses can achieve on their utility bills and their carbon tax liability by decarbonising their energy source. Furthermore, the study focuses on medium-sized manufacturing firms with a moderate energy profile, and on solar PV generation as it is unlikely that wind can be deployed on-site by most businesses in an urban setting. It  explores the key pathways available to businesses for adopting PV; describes the core assumptions used in the model to generate the results for each adoption pathway; presents results and observations for three different sizes of installed RE capacity, with and without battery energy storage systems, for a representative firm in Cape Town and Ekurhuleni; and summarises key findings and draws policy conclusions.

The TIPS Development Dialogue on the transition to electric vehicles was on 5 February. Information about the dialogue and speakers, as well as a video recording and copies of the presentations are available here.   

TIPS industry studies aim to provide a comprehensive overview of key trends in leading industries in South Africa. For each industry covered, working papers will be published on basic economic trends, including value added, employment, investment and market structure; trade by major product and country; impact on the environment as well as threats and opportunities arising from the climate crisis; and the implications of emerging technologies. The studies aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

The electrical equipment sub-sector in South Africa encompasses a wide range of products and services related to the generation, transmission, distribution, and utilisation of electrical power. Its history dates back to the discovery of gold and diamonds in the late 19th century and associated requirements for lighting, telecommunications and electrification. The establishment of Eskom in 1922, gradual electrification of the Transnet (then the South African Railways) rail network from the mid-20th century, and the growth of heavy manufacturing industries linked to minerals and energy laid the foundation for subsequent development. Given the sub-sector’s historically close relations to mining and state-owned companies, a number of factors are likely to shape the sub-sector in profound ways.

Industry Studies

Technological Change in the Food Processing Industry 2024

Horticulture Value Chain 2024

Technological Change in the Plastics Industry 2024

South Africa's International Trade in Plastics 2024

Technological Change in South Africa's Automotive Industry 2024

Technological Change in the Capital Goods Industry 2024

Clothing and Textiles International Trends 2024

International Trends in the Capital Goods Industry 2024

International Trade in South Africa's Automotive Industry 2024

Capital Goods in South Africa 2024

Plastics 2024

Clothing and Textiles 2024

Auto Manufacturing 2023

Electrical Equipment 2023

Additional studies for other industries will be added when finalised

Business Day - 13 February 2024 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read as a PDF

News24 - 11 February 2024 by Lameez Omarjee

Read online at News24

Business Day - 7 February 2024 by Ernest Mabuza

Read online at Business Day

 

TimesLive - 7 February 2024 by Bobby Jordan (Senior Reporter)

Read online at TimesLIVE

 

South African Government - 7 February 2024 Media Statement 

Read online at South African Government Information Services

Page 10 of 158