Global investments in renewable energy are projected to reach $2-trillion (R35-trillion) in 2024. This is double the anticipated funding for fossil fuels.
According to Tabi Tabi, Granville Energy executive director, as nations worldwide compete for dominance in the clean energy sector, South Africa is poised for significant change.
He emphasised that the recent signing of the Electricity Regulation Amendment Act creates a competitive electricity market. It opens up opportunities for independent power producers (IPPs) in the country.
Promoting innovation, creating jobs
He also believes this could create 231, 000 new jobs by 2030. While promoting innovative solutions like microgrids and solar energy.
Tabi said with the new competitive market structure, IPPs are poised to expand their operations significantly. They could now develop multiple-generation fleets in locations where demand exists. There, or where building power plants is economically viable.
Tabi claims that South Africa is the most developed and advanced economy in Africa. It is still the most attractive destination of foreign direct investment.
As such, the amendment to the Act enhances the country’s appeal for foreign direct investment. With funds expected to support everything from plant development to job creation in the renewable energy sector.
“Granville Energy has already positioned itself to be one of the key players. This in delivering access to clean and affordable electricity to the masses. We do that through our products business. And this is where we design and manufacture our components such as solar panels, inverters and batteries.
Cater for low-income market sector
“We also build and operate solar micro and mini-grids. These accelerate the coverage for communities that cannot afford capital layout to cover the cost of implementing a solar power plant for their homes. Both of our businesses are attractive to foreign investors wanting to enter the African market,” said Tabi.
He said private investment is anticipated to be a major driver of the energy transition. With government support through the Transmission System Operator SOC Ltd (TSO) and an open energy market.
He said as it stands, private funding is already crucial for developing renewable energy infrastructure. And this trend is likely to continue.
These investments, according to Tabi, would help to curb the country’s unemployment rates by creating more jobs.
“Jobs can be created through direct employment, and indirectly through subcontractors. We believe in both approaches. One supports local entrepreneur development. While the other supports individuals who are not inclined to run their own small businesses.
“Job scope spans all functions of business operations. From finance and admin to logistics and technical installation,” said Tabi.
He said microgrids and solar solutions will also foster job creation by involving local teams in installation and maintenance.
SA can move from being importer to being exporter
South Africa has the chance to transition from a net importer to a net exporter of solar power components. Tabi said this will happen in the coming decade.
This will leverage local raw materials. And special economic zones can enhance the country’s attractiveness to foreign investors. These can position it as a key player in the global renewable energy market.
“Granville Energy has started various research and development projects. These aim to design solutions unique to our market. As an interface between the end users of clean and renewable energy, our primary role is problem-solving. We already design products that make it easier for customers to control spending and costs in real-time. This is regardless of their location.
Revenue-generating assets
“Also, we are working on solutions to turn investments in residential solar power plants into revenue-generating assets. These will encourage more people to invest in Solar for their homes,” said Tabi.
Transition to a sustainable energy model will rely on continued collaboration between public and private sectors. This in order for everything to work out, according to Tabi.
He said effective policies and innovative practices must work hand-in-hand to ensure the sector’s growth. While maintaining fairness and transparency for all stakeholders involved.
