Business Opportunities in South Africa’s Power Sector

South Africa’s power plants present a multitude of business opportunities in a rapidly evolving energy sector. With the country’s commitment to expanding its energy capacity and transitioning to renewable sources, investors can find lucrative projects in both traditional and green energy. As South Africa’s power plants seek modernization and sustainability, there is significant potential for innovation, infrastructure development, and partnerships. In total, South Africa is home to 99 power plant projects. The following three projects represent a part of this potential.

3200 MW Wind and Solar Park – South African Renewable Energy Project

The project involves the construction of 5,000 MW of renewable energy through Independent Power Producers (IPPs) under South Africa’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) Bid Window 7 (BW7). The South African Department of Mineral Resources and Energy aims to build one of the largest wind farms on the continent, with a total project value of approximately $4.5 billion. The project also includes a solar component, aiming to produce 1,800 MW of electricity. Construction is scheduled to start in 2025.

Richards Bay Power Plant

This South African power plant project, with a cost of $4 billion, aims to construct a 3,000 MW combined cycle power plant (CCPP) at Richards Bay Port. The project received environmental approval in late 2022. As of July 2024, contractor award is expected to occur in early 2025. The project is anticipated to be completed by mid-2028.

Boegoebaai Green Hydrogen Project

Located in the Namakwa Special Economic Zone (SEZ), the project is expected to use 3,000 MW of renewable energy sources to produce 100,000 tons of green hydrogen. Developer Sasol estimates the construction cost of this significant South African power plant project to be $4 billion. By the end of 2023, Sasol completed a pre-feasibility study and is seeking partners for the project. According to the current schedule, the contractor will be awarded in mid-2025. Construction is expected to be completed in 2028.

Article Source: abiq