South Africa Renewable Energy Market Size (2024 - 2029)

South Africa Renewable Energy Market Size Summary

The renewable energy industry in South Africa is poised for significant growth, driven by supportive government policies and the country's abundant solar resources. Despite the challenges posed by the COVID-19 pandemic, the market is expected to expand steadily, with solar energy playing a dominant role due to its high availability and potential applications. The South African government is strategically investing in renewable energy projects, particularly solar and wind, to achieve its ambitious net-zero emissions target by 2050. Initiatives like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have attracted substantial private investment, facilitating the development of grid-connected renewable energy facilities. The untapped offshore renewable energy potential also presents lucrative opportunities for market expansion.

The South African renewable energy market is moderately consolidated, with key players such as Mainstream Renewable Power Ltd, Segen Solar (Pty) Ltd, and EDF Renewables contributing to the sector's growth. The market's expansion is further supported by the increasing installed capacity of solar and wind energy projects, including significant developments like the Redstone concentrated solar energy project and Amazon's solar plant in Northern Cape Province. These projects, along with others, are expected to enhance the country's renewable energy capacity, aligning with the government's goals of ensuring affordable electricity access, promoting decarbonization, and boosting economic development. As the market evolves, the focus on renewable energy is anticipated to strengthen South Africa's energy security and reduce its reliance on coal.