#BizTrends2022: Trends forecast for the renewable energy sector
BY: MERCIA GRIMBEEK
As our country joins its global counterparts in driving down carbon emissions, on the home-front our battle is just as pertinent as we continue to push for an accelerated transition to increased energy availability characterised by significantly larger percentages of green electrons in our power supply. Here is our trends forecast for the year ahead in the renewable energy (RE) sector.
Profound transformation of energy generation system needed
Renewable energy production needs to be scaled up significantly to meet global climate change objectives agreed to by South Africa, as emission trends are not on track yet. This requires a profound transformation of the energy generation system as government plans still fall far short of emission reduction needs. Renewable energy and energy efficiency provide the optimal pathway to deliver the majority of the emission cuts needed at the necessary speed. Together, they can provide a significant percentage of the energy-related CO2 emission reductions that are required, using technologies that are safe, reliable, affordable and widely available.
A decarbonised power sector, dominated by renewable sources, is at the core of the transition to a sustainable energy future. Although the power sector has made significant progress in recent years, the speed of progress must be accelerated. Industry, transport and the building sector, to name a few, will need to use more renewable energy. The energy transition makes economic sense and stimulates economic activity in addition to the growth that could be expected under a business-as-usual approach. With holistic policies, the transition can greatly boost overall employment in the energy sector.
Shift to cleaner sources of energy generation
There is a definite trend for the world to shift to cleaner sources of energy generation, and climate change is moving to the forefront of framing long-term business strategy and plans. The finance world is becoming increasingingly unsupportive of funding new coal generation projects. Societal pressure is increasing toward more sustainable sources of energy generation in the face of the real effects of climate change.
Industry and manufacturers are under increasing pressures to reduce their carbon emissions and carbon footprint. All of these pressures necessitate governments and regulators to draft regulations to increase the deployment of renewable energy. This in itself is a hugely positive impetus for the South African market. With the current status of the energy market, these trends not only support the execution of the IRP 2019, but definitely encourage a more considerable wind energy generation in excess of that.
We can address fundamental challenges of energy access, energy security and climate change through the deployment of renewable energy. SA can harness our abundant potential of increasingly cost-competitive renewable energy to service the growing demand for electricity and avoid a potential fossil-fuel lock-in.