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Africa

South Africa

With a power score of 2.33, South Africa ranks number 15 among Emerging Markets and number 4 in the Africa region

Power score

2.33/5

12345

Score over time

2021 - 2024

24
2021
37
2022
16
2023
15
2024

Overview

South Africa has a power score of 2.33, which puts it at rank 15 in the Emerging Markets power ranking. In comparison to 2023, South Africa has improved in the power rankings by 1 place, from rank 16, to rank 15.

At 2.33, the power score of South Africa is better than than the regional average of 1.8 in the Africa region and puts it at rank 4 in the region.

Regional comparison chart

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South Africa

Power

Power policy

South Africa implements policies in 6/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Import tax incentives, VAT incentives, Priority grid access, and Renewable Energy Certificates.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in South Africa has dropped from 99.94 USD/MWh in 2022 to 89.74 USD/MWh in 2023. Since 2017, the average electricity price in South Africa has fluctuated between 73.99 USD/MWh (2017) and 101.25 USD/MWh (2021).

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Power market

The top amount of capacity installed in South Africa in 2023 was in Coal at 69.8%, down from 72.9% in 2022. The technology with the biggest increase in capacity installed in 2023 was Small-scale PV - residential at 3.28%, up from 0.6% in 2022.

Installed capacity (in MW)

20002005201020152020020K40K60K MW

Electricity generation (in GWh)

20002005201020152020050K100K150K200K250K GWh

The top amount of electricity generated in South Africa in 2023 was in Coal at 83.71%, down from 85.22% in 2022. The technology with the biggest increase in electricity generated in 2023 was Oil & Diesel at 3.6%, up from 2.53% in 2022.

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Investment in clean energy in South Africa was around $2,381.35 million in 2023, an increase of 59.43% from 2022 ($1,493.63 million). Between 2018 and 2023, the highest investment in clean energy was in 2018 at $3,987.26 million, while the lowest was in 2021 with $507.82 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: No

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

Yes

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