Abstract
Due to South Africa’s reliance on energy generated from fossil fuels, its increasing energy demand and its position as a potential victim and contributor to climate change, investments in renewable energy technologies are considered as a possible solution in addressing these challenges. Furthermore, renewable energy presents potential for South Africa to diversify its energy mix. This study critically examines the opportunities and constraints that currently exist in South Africa’s renewable energy generation sector. Although findings suggest that opportunities exist in South Africa, such as selling electricity outside Eskom, energy storage and electric vehicles, factors such as policy uncertainty, procurement inconsistency, regulatory issues, and a lack of coordination between key industry players, all negatively affect the country’s renewable energy deployment. The case study reveals an urgent need for government to create an enabling environment such as the establishment of sound regulatory frameworks, opening of the markets, removal of barriers to entry, and the promotion of infant green industries. This study recommends that South Africa’s renewable energy regulations are constantly reviewed in order to promote the deployment of green energy technologies. As the global challenges of climate change require many countries to transition into a low carbon economy, it is of utmost significance that energy strategies are constantly evaluated in order to ensure their relevance and effectiveness. Other study recommendations include access to funding, procurement consistency, access to the grid and the reduction of foreign participation on REIPPPP (Renewable Energy Independent Power Producer Procurement Programme) to promote the participation of local companies.
Key words: climate change, emissions, renewable energy, industrial policy, REIPPPP, minerals energy complex.