South Africa has an installed capacity of about approximately 45,000 MW. ESKOM, the vertically integrated, state-owned power company, generates approximately 95% of the electricity used in South Africa. In an attempt to diversify its energy mix and attract more Independent Power Producers (IPPs) to the sector, the Government has focused its attention over the last 5 years on a competitive procurement process, namely the Renewable Energy Independent Power Producer Procurement Program (REIPPPP).  Since its inception, the REIPPPP has procured a total of 6,327 MW through 92 projects, and has leveraged approximately $19.6 billion in investment in South Africa. Based on 2013 data, South Africa’s 85% national electrification rate is amongst the highest on the continent, with a 77% connection rate in rural areas and 90% in urban areas.

Sources:

• U.S. Energy Information Administration. South Africa full report. 26 April 2015. .
• www.eskom.co.za.
• IEA, World Energy Outlook 2015
• Blue Horizon Energy Consulting Services, Insight – Price Decreases for South Africa’s Utility-scale Renewable Energy Procurement Program from 2011-2015 (Indexed April 2014 Values), 30 April 2015