RENEWABLE ENERGY SECTOR
Global Overview
Renewable energy has become the most cost-effective method for electricity generation worldwide. Over the past decade, renewable power capacity additions have consistently outpaced those of coal, natural gas, and oil combined. In 2023, renewables contributed over 30% to the global electricity supply, a substantial increase from 18.6% in 2000.
Significant cost reductions have driven this growth:
- Solar PV costs have dropped by 88% between 2010 and 2023.
- Onshore wind costs have decreased by 68% in the same period.
These trends make renewable energy an attractive and sustainable investment opportunity.
National Overview
As a signatory to the Paris Agreement, South Africa is committed to reducing greenhouse gas emissions through an aggressive transition to renewable energy.
Key National Targets:
- Generate 13,225 MW of renewable energy by 2025 and 17,800 MW by 2030.
- Save 1.2 litres of water for every kilowatt hour of renewable energy produced, reducing reliance on fossil fuels and addressing water scarcity in this drought-prone nation.
- Exploit high solar and wind energy potential, with 80% of South Africa’s landmass capable of achieving a 30% average annual wind load factor.
The renewable energy market in South Africa represents a substantial investment opportunity, with a project pipeline of 22,500 MW, translating into R400 billion in private sector investments. The energy efficiency market alone is projected to reach R21 billion by 2035.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is the second-largest contributor to South Africa’s GDP, with strategic sectors such as paper, petrochemicals, automotive, and steel industries requiring large-scale energy consumption. The province consumes approximately 6,700 MW of electricity, making a reliable, cost-effective energy supply critical for sustaining industrial growth.
As KZN transitions towards a low-carbon economy, opportunities abound in renewable energy investments at district, provincial, and industrial levels.
KwaZulu-Natal Investment Opportunities
Opportunity | Overview |
Wind Energy Potential in KZN
| The 2024 South African Renewable Energy Grid Survey (SAREGS) highlighted the rapid expansion of wind energy projects, with 48 GW in development nationwide, up from 30 GW in 2023. KZN’s northern coastal region offers ideal conditions for wind energy projects due to:
Richards Bay’s heavy industrial base creates a compelling business case for wind farm development, bolstered by the province’s mature industrial and manufacturing capabilities, including localizing wind energy components such as turbine towers and transformers.
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Solar Energy Projects in KZN
| KZN has seen significant investment in solar energy projects, including:
Additionally, KZN hosts Artsolar, South Africa’s only locally owned solar panel manufacturer, operational since 2010.
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Diverse Renewable Energy
| Beyond wind and solar, KZN’s renewable energy sector includes:
The recycling sector is also gaining traction. Notably, Austrian company Alpla has invested R1 billion in a PET recycling facility in Ballito, which could serve as a model for similar projects across the region.
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