South Africa on Track to Becoming One of the Fastest-Growing Renewable Energy Markets Worldwide, Finds Frost & Sullivan

Successful implementation of the REIPPP will stimulate investments in large, utility-scale RE systems

Oct 18, 2013, 11:59 ET from Frost & Sullivan

CAPE TOWN, South Africa, Oct. 18, 2013 /PRNewswire/ -- The potential for renewable energy (RE) generation in South Africa is high, and the successful execution of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) has powered the growth of the RE industry in the country.

New analysis from Frost & Sullivan (, South Africa Renewable Energy Project Tracker, finds that the REIPPP aims to generate 3,725 megawatt of the country's total electricity from renewable sources. RE accounted for less than one percent of the energy mix in South Africa in 2012 and this is expected to reach twelve percent in 2020. The commercial and industrial RE segment will grow rapidly in the medium to long term.

"In the light of electricity and water scarcity, as well as rising coal prices, RE is becoming a preferred choice of energy generation technology in South Africa," said Frost & Sullivan Energy and Environmental Research Analyst Joanita Roos. "Additionally, South Africa is the 12th highest carbon-emitting nation, and the need to diversify industries and incorporate lower carbon-emitting technologies will spur RE development."

Under the REIPPP, various renewable technologies have to meet minimum annual targets by the medium term in order to stimulate local manufacturing and services. However, the parameters for each technology will need to be defined individually, and the local industry may lose momentum if certainty over local requirements and capacity allocations are not provided.

Moreover, financial restraints owing to the steep initial capital, as well as legal and technical project costs, hamper RE industry expansion in South Africa. The shortage of skills and experience in the local RE industry adds to the challenge.

Further, the overtraded global market has slowed the industry down and increased the reluctance of manufacturers' to start new facilities in South Africa. Only after the huge stock and inventory backlog of large global players has been released, and demand has caught up, can the growth of the local market improve.

"To gain credibility, domestic companies must partner with international firms that have the relevant RE experience and skills," concluded Roos. "International suppliers too have expressed interest in beginning operations in South Africa, not only to establish a local footprint, but also to secure access to other emerging markets in sub-Saharan Africa."

If you are interested in more information on this research, please send an e-mail to Samantha James, Corporate Communications, at, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

South Africa Renewable Energy Project Tracker is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Global Solar Power Market, Idea Labs Industry Scorecard for Power Generation, Investment Plans for Power Utilities in Sub-Saharan Africa, Utility-scale Wind Turbine Technology Options and Pricing in Africa, Sub-Saharan African Power Plant Construction Market, and Southern African High Voltage Transmission and Distribution Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

South Africa Renewable Energy Project Tracker

Samantha James
Corporate Communications – Africa
P: +27 21 680 3574
F: +27 21 680 3296

SOURCE Frost & Sullivan