South Africa relies primarily on coal for electricity generation, and coal accounted for about 70% of the country’s primary energy consumption in 2016. However, aging coal-fired power plants and insufficient investment in power infrastructure have led to recurring power outages. Scheduled power cuts for certain customers during peak electricity demand periods occurred frequently between 2013 and 2015, which, according to the International Monetary Fund, negatively affected the country’s industrial and economic growth.
In response, South Africa’s government is expanding its electric generating capacity to include more efficient coal-fired capacity and encouraging more private sector investment. Over the next five years, South Africa plans to replace some of its outdated coal-fired capacity with nearly 10 gigawatts (GW) of supercritical coal units, which are more efficient because they operate at higher temperatures and pressures than conventional coal power plants. The country also plans to add more generating capacity fueled by natural gas and renewable energy by 2030.
In addition to increasing LNG imports, the government plans to develop offshore natural gas fields, produce more onshore shale gas, and import more natural gas by pipeline from Mozambique. One of the country's most viable opportunities for offshore field development is the Ibhubesi natural gas field, which is estimated to hold at least 540 billion cubic feet of recoverable reserves.
EIA estimates that South Africa holds 390 trillion cubic feet of onshore shale gas reserves, making it the eighth-largest holder of technically recoverable shale gas in the world. However, regulatory delays and technical difficulties have so far hindered shale gas development.
In an effort to increase the use of renewable energy, South Africa began a procurement program in 2011 to purchase power from renewable sources and lower-emitting energy plants funded by independent power producers. This program has added 3.3 GW of renewable generation capacity to the grid so far, mostly from facilities fueled by wind and solar.
South Africa’s state-owned electricity firm, Eskom, also added large-scale wind and hydropower facilities since 2015 and currently operates 3.5 GW of renewable energy capacity. South Africa's government aims to have 17.8 GW of renewable capacity on the grid by 2030, based on its latest energy plan.
Principal contributor: Candace Dunn