ABSTRACT
Traditionally, South Africa has relied on its abundant coal reserves to provide electricity. However, three factors argue for supporting renewable energy. First, energy security: South Africa suffers from supply shortages, and renewable capacity can be added quickly. By diversifying the energy mix, it can reduce dependence on coal as the dominant source of energy supply. Electricity demand in South Africa currently totals about 234 TWh (terawatt-hours) per year (Statistics South Africa, 2013a). Electricity production stands at about 258 TWh from an installed capacity of about 41 MW (CIA, 2013; Eskom, 2013a). Most of the electricity is provided by Eskom, the South African state-owned electricity utility. Renewable energy capacity, such as wind power or solar photovoltaics, can be added quickly. This may make an important contribution to easing Eskom’s narrow electricity supply reserve margin, which currently averages 8 per cent and fell below 1 per cent during peak demand in June 2013 (Eskom, 2013d; Reuters, 2013).
