Did you know that about 80% of South Africa's electricity is from coal plants and only 7% is from renewable energy sources? Many experts think it's time for government to prioritise the latter. In a keynote address at the African Utility Week conference in Cape Town earlier this year, Energy Minister Jeff Radebe informed delegates that government will integrate renewable energy sources into the current energy infrastructure.

This means that government intends to include renewable energy as a means to provide a sizable portion of the country's electricity needs. Radebe reiterated the country's commitment to collaborate with independent power producers as he applauded government's "very successful independent power producers' procurement programme". The plan is to open a new round of renewable agreements with independent power producers in November this year in the hopes of unlocking investments worth R50 billion.

Although the renewable energy market in the country is reasonably young, K2 Management South Africa country director, Hebren James, told media house Creamer Media that South Africa is ahead of the curve. Hebren explains that this is due to power purchase agreements (PPAs) that have been accepted by the National Treasury.

James believes that the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has so far been a monumental success for the renewable energy market in the country as it has created a suitable environment for competitive bidding, resulting in continued market confidence.

Radebe advised delegates that to date government has concluded 91 projects with a capacity of 63 000 MW. Of the 91 projects, 63 have a combined capacity of 3 800 MW which has been connected to the grid. In addition, approximately R136 billion has already been invested in the country's economy with investments in the range of R56 million expected over the next three to five years.

South Africa will be joining countries such as Egypt, Ethiopia, Kenya and Morocco who have already incorporated renewable energy into their electricity infrastructure and have seen what a significant role it plays. This will also aid the economy, as thousands of jobs will be created for South Africans participating in these projects.

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