The situation in South Africa 

South Africa has many problems to contend with in terms of its climate and energy situation. However, there are also numerous opportunities. 

On the problem side: 

• In South Africa, approximately 85 percent, of the nation’s electricity is generated via coal-fired power stations. Despite environmental concerns, coal will continue to provide the majority of South Africa’s power for the next decade, although the share from renewables will grow rapidly. South Africa is the world’s 14th-largest emitter of greenhouse gases. 

• Major power outages occur time and again. This restricts people’s lives and impairs the country’s economic productivity.  

• Energy costs are rising year after year. Since 2009 cost have risen very sharply by around 300% in total. In 2023 the Total Standard Tariffs by Eskom had an average increase of 18,65%. It is assumed that the electricity tariffs will increase from 0,06 Euro/ kWh to 0,190 Euro/kWh on a low level up to 0,276 Euro / kWh on a high level. 

• Financing renewable energies through bank loans is very difficult and expensive.
  

On the other hand, there are many opportunities for the renewable energy sector and for national climate protection. 

• South Africa’s solar potential is one of the highest in the world. With more than 2,500 hours of sunshine per year and an average of 2,100 kWh/m2 of global radiation annually, electricity generation using solar energy in South Africa is highly effective. The daily solar radiation is between 4.5 and 6.5 kWh/m2. It increases steadily with distance from the coast and is highest in the Northern Cape and North West provinces. However, the most highly irradiated areas are only sparsely populated. 

• Prices for the construction of solar power systems are falling continuously. 

• The combination of both factors – high irradiation and favourable installation costs – creates the basis for economically viable PV projects  

• For this reason, the national embedded generation market for installations and operation and maintenance of rooftop solar PV has grown in the last years. Local solar PV data suggests an installed capacity increase by as much as ~110 MW throughout South Africa. It is expected that the total annual available market could continue to grow at this rate to a saturation point of ~500 MW installed per year on an ongoing basis. This market could reach a total of 7.5 GW of installed capacity by 2035. 

• There are tried and tested rental or leasing models for PV systems that are economically viable and eliminate the credit financing problem.
  

Where One Climate World wants to start 

In particular, we want to enable church owned social institutions such as schools and hospitals to use solar power systems.  

We want to carry out an initial pilot project with the South African Council of Churches (SACC) and the Methodist Church of South Africa (MCSA). 

The MCSA is responsible for the school for the deaf in Richmond-Indaleni. One Climate World wants to finance a PV system here. The aim is to supply the school with low-cost solar power so that it can reduce its electricity costs. The technical and organisational preparations are currently underway.