Our History

We as Energy4Africa felt it is prudent to give you the historical background and challenges that the western world perceives Africa and Africans, this will help give you context to our endeavours.

Putting South Africa first South Africa still faces legacy problems and other severe challenges in our national drive to create jobs, alleviate poverty, address historical inequality and build a sustainable future for all our people.

28 Years later in our Freedom we as Black South Africans are still fighting for our Equal Rights and Economic Emancipation.  The history of apartheid South Africa necessitated intervention to address imbalances which affected many citizens who were side-lined and excluded legally, socially and economically, by fall of apartheid, our country was the most unequal society and dysfunctional economy. Black South Africans were discriminated against in employment and in ownership of businesses.    

Energy4Africa strategy is to own its own Wind and Solar Generation Production Plant, through government’s IPP Renewable Procurement Programme, made possible by DMRE via, Eskom, The State-Owned Power Generation Company, we currently conducting due diligence on three (3) IPP Projects in the Bid Window Period 6, i.e. 2 x Solar Power Generation @ 100MW to 150MW and

1 x Wind @ 50MW.

NB: We are in the process of completing a bankable due diligence study.

WHY INVEST IN SOUTH AFRICA

The South Africa of today is one of the most sophisticated and promising emerging markets globally. The unique combination of a highly developed first-world economic infrastructure, Number One Economy on the African Continent and a huge emergent market economy has given rise to a strong entrepreneurial and dynamic investment environment.

South Africa is the economic powerhouse of the African continent, with a Gross Domestic Product (GDP) of R1.9 trillion (US$283bn) – four times that of its Southern African neighbours and comprising 30% of the entire GDP of Africa.

The World Economic Forum’s Global Competitiveness Report 2018/19 of the World Economic Forum, ranked South Africa 45th out of 134 global nations. South Africa’s GDP grew at a healthy 1.2 % in 2020 a lower 3.1% in 2018/19, due to the impact of the global economic crisis and Covid-19.

South Africa is one of the most sophisticated and promising emerging markets, offering a unique combination of highly developed first world economic infrastructure, with a vibrant emerging market economy. South Africa is also one of the highest-ranking developing economies and surpasses countries such as Hungary, Italy, Brazil and Thailand. The country leads the continent in industrial output (40% of Africa’s total output) and mineral production (45% of total mineral production).

Power Generation and Supply Demand

Eskom’s is the largest power utility on the African continent with generation capacity of 44 GW, of which 38 GW is from coal-powered stations and the only Nuclear Power Generation plant in Africa, Transmission comprises the 28,000 km of high voltage lines that transport electricity at high voltage levels (such as 400 kV or 765 kV) to cities and towns.

Load shedding is a last-resort measure implemented by the national utility Eskom in order to prevent the electricity grid from collapsing countrywide. Load shedding is typically implemented when the difference between Eskom’s power supply and the industrial and domestic users’ demand for power becomes too small. In order to prevent a disastrous national blackout, Eskom implements planned and controlled power interruptions aiming at reducing the pressure on the national power system.

Load shedding is generally implemented for two hours in each area.

What many South Africans find frustrating is that the government was informed that they should take action to secure the country’s electricity supply.

In 1998, the Department of Minerals and Energy said, “Eskom’s generation capacity surplus will be fully utilised by about 2007”.

This warning was ignored, and as predicted, South Africa ran out of energy in 2007 and had to implement load-shedding.

Energy experts issued many subsequent warnings about the country’s electricity supply shortages, but they also fell on deaf ears.

The interests of corrupt Eskom executives and politically connected businesspeople enjoyed preference over the interests of the country.

Instead of building new power stations and opening the grid, Eskom and mega-projects like Medupi and Kusile were easy targets for looting.

The result is that the country has not built enough power stations and ran out of electricity.

Renewable Independent Power Producer Programme

The renewables programme, which is seen as an example for other African countries, has resulted in over 6 000 MW of generation capacity being allocated to bidders across a variety of technologies, principally in wind and solar.

Hence, the birth of South African Renewable Energy Programme and Renewable Independent Power Producer Programme  (REIPPP) is aimed at bringing additional megawatts onto the country’s electricity system through private sector investment in solar, wind, biomass and small hydro, among others.

The South African Government. has gazetted a new determination for the Energy Regulation Act, allowing power utility Eskom to source over 16,800 megawatts of power from Independent Power Producers (IPPs).

The department said that new generation capacity is needed in the country to contribute to its growing power demands, and the new determination allows Eskom to tap renewable, gas, and coal producers for this.

It breaks down the capacity in Window Period 5 as follows:

10,800 megawatts from renewable (wind and solar) sources.

3,000 megawatts from gas sources.

1,500 megawatts from coal sources; and

513 megawatts from storage.

“Electricity from the new generation capacity shall be procured through one or more tendering procedures…and shall target connection to the grid as soon as reasonably possible within the given timeline,” the department said.

“The electricity must be purchased from independent power producers.”

The timelines are outlined in the department’s Integrated Resource Plan of 2019, where the focus has been placed on decommissioning the country’s dependence on coal power, in favour of alternatives such as wind, solar and gas. The renewable components are projected for the 2022 to 2024 allotment, with the gas component projected for completion by 2027.

By 2030, the department expects around 11,000 megawatts of coal power to be decommissioned; however, when coupled with new coal sources, it will still contribute the biggest proportion of South Africa’s energy mix (approximately 33,400 megawatts – or 43% of total capacity).

Over the same period, renewable energy is expected to see the biggest climb to about one third (26,000 megawatts, or 33%) of total installed capacity. Other sources would include gas (8%), hydro (6%) and nuclear (2%) – which remains part of the long-term energy mix plans.

Despite government’s pivot away from nuclear energy builds, Energy and Mineral Resources minister

Gwede Mantashe has maintained that nuclear remains part of the country’s plans. In May, the department said that it plans to expand nuclear capacity within the next five years.

The country currently has a single nuclear plant. A drive for additional facilities largely faded after the ruling party forced Jacob Zuma to step down as president in 2018.

Additional plants were widely considered unaffordable, and the nation’s economic slump has further dented the government’s ability to pay for them. Under Zuma, government was pushing for a build of multiple nuclear plants in the country, which some analysts projected would cost the country over R1 trillion.

Speaking at the International Atomic Energy Agency (IAEA) general conference earlier this month, Mantashe said that South Africa has commenced consultations with suppliers of nuclear power reactors to provide costing and schedule information and possible ownership models, through a Request for Information for the 2,500MW programme issued in June 2020.

Renewable energy focuses on four core areas:

  1. Cooling, transportation and rural energy services.
  2. The energy sector in South Africa is an important component of global energy regimes due to the country’s innovation and advances in renewable energy.
  3. South Africa’s greenhouse gas (GHG) emissions are ranked as moderate, and its per capita emission rate is higher than the global average. Energy demand within the country is expected to rise steadily and double by 2025. Primary sources of renewable energy in South Africa are solar, wind, hydroelectric, and biomass.
  4. Of all South African renewable energy sources, solar holds the most potential.[3] Because of the country’s geographic location, it receives large amounts of solar energy.[3] Wind energy is also a major potential source of renewable energy.[4] Due to the high wind velocity on the coast of the country, Cape Town has implemented multiple wind farms, which generate significant amounts of energy.
  5. Renewable energy systems in the long-term are comparable or cost slightly less than non-renewable sources. [citation needed] Biomass is currently the largest renewable energy contributor in South Africa with 9-14% of the total energy mix.
  6. Renewable energy systems are costly to implement in the beginning but provide high economic returns in the long run.
  7. The transition to renewable energy in Africa has been progressing impressively over the last decade, with many countries working to increase renewable energy capacity in recent years.

    Forecasts by the International Renewable Energy Agency (IRENA), the intergovernmental organisation mandated to facilitate cooperation, advance knowledge and promote the adoption and sustainable use of renewable energy, indicate that with the right policies, regulation, governance and access to financial markets, sub-Saharan Africa could meet up to 67 per cent of its energy needs by 2030.

    The good news is that the compelling case for clean energy in Africa has never been stronger than now, with so much demand for energy owing to population growth, increasing urbanisation, industrialisation, trade and climate change among other factors. Countries in Africa are increasingly embracing renewables as an enabler to leapfrog to sustainable energy future.

  8. According to the International Renewable Energy Agency, countries like Egypt, Ethiopia, Kenya, Morocco and South Africa have shown firm commitment towards accelerated use of modern renewable energy and are leading energy transition efforts, while some of Africa’s smaller countries including Cape Verde, Djibouti, Rwanda and Swaziland have also set ambitious renewable energy targets. Others are following suit, and renewable energy is on the rise across the continent.
  9. Africa has shown great progress in the development of its solar energy markets over the recent years, with the continent experiencing a growth of over 1.8W of new solar installations, mainly driven by five countries; Egypt, South Africa, Kenya, Namibia and Ghana.