The wind energy sector faces structural and regulatory challenges hindering its growth in South Africa despite progress in recent years.

This is according to energy experts at the Windaba Conference and Exhibition 2024 in Cape Town last week. In his keynote address, Minister of Electricity and Energy Kgosientsho Ramokgopa expressed the South African government’s intention to increase wind energy adoption, which will address energy affordability and sustainability.

“The cost of wind power per kWh has decreased by 70%. This shows the potential of wind to lower the cost of energy. Then we won’t be talking about Eskom asking for a 36% tariff increase.” This cost can be expected to decrease further as technology develops although the curve will not be as steep, he added.

Ramokgopa said wind energy has potential to help mitigate the impact of climate change. “South Africa has seen, first-hand, the damaging effects of climate change with water scarcity leading to Day Zero in Cape Town and floods recently plaguing KwaZulu-Natal. We contribute a third of emissions in sub-Saharan Africa. Wind energy is the answer and will be an integral part of South Africa’s energy mix in future.”

He acknowledged persistent regulatory and structural challenges. “This includes the need for transmission expansion and permitting. We are trying to reduce the timelines in connecting to the grid and licensing issues.”

Approval of wind energy projects takes two years as environmental issues, including protection of birds, are important considerations. Government must shorten the process, Ramokgopa added.

He said National Energy Regulator of South Africa (NERSA) regulations will be prioritised to address issues related to curtailment. NERSA has not yet approved a curtailment framework to enhance grid access in the short term.

In the long term, government needs to ensure the grid load is much closer to generation levels for wind farms. Another issue is misalignment of resources placed in areas where transmission is almost depleted.

Marcia Grimbeek, Head of Project Development at ENERTRAG South Africa, speaking at the same event, joined the call for structural reforms to overcome grid capacity and regulatory challenges hampering the deployment of renewable energy projects. Addressing these issues is vital to accelerate the pace of renewable energy rollout and to restore the credibility of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), she pointed out.

Project developers are willing to accept some curtailment to enable new projects to connect to the grid but consistent procurement rounds in the REIPPPP are essential to rebuild trust in the public procurement process and stimulate localisation of the supply chain, said Grimbeek.

“A key part of the solution lies in allowing for co-location of projects such as sharing a single grid connection between solar and wind projects, which would make more efficient use of existing infrastructure.” Advocating for greater flexibility in procurement, she proposed regional procurement or programmes incorporating wind, solar PV and battery storage co-location to alleviate current grid pressures.

Grimbeek also argued against large-scale, infrequent procurement rounds of the past. “Smaller, more frequent procurement rounds would avoid the bottlenecks created by mega-rounds and ensure a steady flow of renewable energy projects. This approach would also support the manufacturing sector and industrialisation and optimise resource use across construction and logistics.”