This paper models the costs and benefits of setting a target of generating 15% of South Africa’s electricity from renewable sources by 2020. The modelling results show that the most promising scenario is a mix of solar thermal and wind, which benefits both from the lower cost of wind and the ability of solar thermal plants to contribute to peak demand.Key findings of the study are:

This study seeks to identify the initial impact that a global cap and share (C&S) scheme might have on South Africa, based on a set of limiting assumptions. In particular, it attempts to quantify the immediate impacts on energy process, the macro economy, household expenditure and income, industries and the competitiveness of renewable energy sources. Stabilising the world’s climate system and preventing a climate catastrophe requires urgent and coordinated international action to reduce the atmospheric concentration of global greenhouse gases.

High upfront costs for renewable energy technologies further compound the problem. Failure to account for externalities, such as health or the environment, coupled with fossil fuels subsidies, distort the market to the detriment of renewable energy. Knowledge and capacity among potential renewable energy financiers are often limited, resulting in increased risks and elevated costs.

Africa's renewable energy power potential is substantially larger than the current and projected power consumption of the continent. Local geothermal, solar thermal and bioenergy resources have an important role to play in covering future heat demand. Domestic biofuels and renewable energy-based electrification of urban public transport can contribute significantly to transport needs.

In cooperation with its African partner (the company Palfridge in Swaziland) and the Technical University (TU) Dresden, GIZ works along the objectives of the SolarChill concept to develop out of Africa sustainable solutions bringing much needed affordable vaccine supply to regions without grid connection and affordable refrigeration solutions powered by renewable solar energy.

In 2015, global investment in renewables grew about 5 percent relative to the previous year and reached an all-time high of US$ 286 billion (bn). And there are more interesting trends: Investment in renewables’ based electricity generation capacity in 2015 has been more than double the investment in the major fossil fuels (renewables: US$ 266 bn versus US$ 130 bn for coal and gas stations). This also leads to added capacity in terms of Gigawatts in 2015 in renewables (134 GW) outstripping all other technologies combined (conventional coal, gas, and nuclear).

POWERING AFRICA THROUGH FEED-IN TARIFFS, ADVANCING RENEWABLE ENERGY TO MEET THE CONTINENT'S ELECTRICITY NEEDS

The Allianz Climate and Energy Monitor ranks G20 member states on their attractiveness as potential destinations for investment in low-carbon electricity infrastructure. It takes into account their current and future investment needs in line with a 2° C global warming trajectory. Consistency with the Paris Agreement, negotiated by 195 countries at the end of 2015, would require a full decarbonization of the global economy before the end of the century. This transformation will be particularly challenging for the energy sector – the largest source of carbon emissions.