Zusammenfassung
Inhaltsangabe:Introduction:
The rapid adoption of wind energy in the renewable energy mix can be seen in many industrialized nations in the past decade, in particular the need to agreed greenhouse gas reduction and stable energy supply are seen as a sound vision for a sustainable energy policy. In an emerging market such as South Africa there are abundant renewable resources including wind energy, however there is low adoption observed to date.
This study aims to investigate barriers to entry in the South African wind energy sector and what the priorities are to remove such barriers for successful deployment of wind technology.
Therefore, it was required to examine successful deployment of wind energy in the European Union and how such barriers were removed; this was set in the current status of the renewable energy sector and existing barriers in South Africa. It was necessary to gain insight of the inter-related issues on opening a traditional fossil fuel based energy market to a transitional implementation of renewable energy provisioning, also considering the current utility monopoly based energy landscape in South Africa.
Chapter one considers the global shift for the need to implement renewable energy and highlights key issues such as security of supply, carbon reduction linked to climate change. Section three looks at the global benefits of renewable energy within the energy mix. Section four highlights key policy shifts and wind energy potential and section five gives an overview of South Africas renewable energy policies.
Chapter two looks at the research question of the need to answer what barriers exist and how to remove these in South Africa. Section three and four describe the qualitative research method applied and the setting of sampling. Section five, six and seven look at the tools used for telephone interviews. Section eight and nine describe the literary research applied, the key institutional papers reviewed and barriers identified.
Chapter three describes the lessons learned in a global context on policies for renewable energy to deploy wind energy successfully. Section three looks at the background on European lessons learned with key European wind markets focused on such as Denmark, Germany, Spain and UK.
Sections four to thirteen look at the barriers to entry, key mechanism such as feed-in tariffs, tendering, effectiveness of support schemes in various EU markets and conclusion on support schemes.
Sections […]
The rapid adoption of wind energy in the renewable energy mix can be seen in many industrialized nations in the past decade, in particular the need to agreed greenhouse gas reduction and stable energy supply are seen as a sound vision for a sustainable energy policy. In an emerging market such as South Africa there are abundant renewable resources including wind energy, however there is low adoption observed to date.
This study aims to investigate barriers to entry in the South African wind energy sector and what the priorities are to remove such barriers for successful deployment of wind technology.
Therefore, it was required to examine successful deployment of wind energy in the European Union and how such barriers were removed; this was set in the current status of the renewable energy sector and existing barriers in South Africa. It was necessary to gain insight of the inter-related issues on opening a traditional fossil fuel based energy market to a transitional implementation of renewable energy provisioning, also considering the current utility monopoly based energy landscape in South Africa.
Chapter one considers the global shift for the need to implement renewable energy and highlights key issues such as security of supply, carbon reduction linked to climate change. Section three looks at the global benefits of renewable energy within the energy mix. Section four highlights key policy shifts and wind energy potential and section five gives an overview of South Africas renewable energy policies.
Chapter two looks at the research question of the need to answer what barriers exist and how to remove these in South Africa. Section three and four describe the qualitative research method applied and the setting of sampling. Section five, six and seven look at the tools used for telephone interviews. Section eight and nine describe the literary research applied, the key institutional papers reviewed and barriers identified.
Chapter three describes the lessons learned in a global context on policies for renewable energy to deploy wind energy successfully. Section three looks at the background on European lessons learned with key European wind markets focused on such as Denmark, Germany, Spain and UK.
Sections four to thirteen look at the barriers to entry, key mechanism such as feed-in tariffs, tendering, effectiveness of support schemes in various EU markets and conclusion on support schemes.
Sections […]
Leseprobe
Inhaltsverzeichnis
Richard Ganter
South Africa Wind Energy Barriers
ISBN: 978-3-8366-4165-4
Herstellung: Diplomica® Verlag GmbH, Hamburg, 2010
Zugl. University of East London, London, Großbritannien, Magisterarbeit, 2010
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Page 3 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Abstract
Globally, out of the renewable energy mix wind energy has shown rapid growth due to a range of
policies designed to promote renewable energy including equipment subsidies, rebates, net metering
laws, investment tax credits and in Europe the electricity feed in laws (Beck & Martinot 2004).
However, in South Africa the energy market is distorted and barriers for new technologies such as
wind remain (Holm et al 2008). Whilst there are multiple opportunities to maximise this renewable
resource as seen globally, the low deployment of wind energy in South Africa, in a grid and non grid
environment highlights a lack of implementation which is likely policy related. Policy related
instruments at the disposal of the South African government as seen in the global context above
require further investigation.
Various countries in the EU have implemented policies to remove barriers for wind energy, broadly
identified as administrative, fiscal and grid access.
This study examines the current renewable energy policies in South Africa and asks what the
barriers to entry for wind energy are and how these might be removed to commercialize this
technology.
Using qualitative research methods, six key stakeholders with an in-depth knowledge of the South
African RE sector were identified. These stakeholders were interviewed with a pre defined
questionnaire which focused on the current state of the RE and wind sector and their perceptions of
current barriers to entry and which mechanisms could address the removal of barriers. The findings
show the lack of implementation relating mainly to policy, regulatory, legal and administrative issues.
Whilst support schemes such as the feed in tariff were welcomed as key tools for the deployment of
renewable energy technology.
It was further found that the liberalization of the energy sector requires more rapid implementation,
priority access to the grid, the quasi monopoly status of the utility Eskom perceived as a constraint. In
addition, it is not technology nor to a lesser extend financial that hinders uptake of wind energy but
largely, the skills and know how gap.
An overriding factor raised in relation to policy is the perception by some stakeholders that a
renewable energy act as seen in other countries could provide the overall policy instrument for
successful deployment of wind energy.
Key words: South Africa, Wind energy barriers, support schemes, renewable energy, built
environment
Page 4 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Dedication
With thanks for their inspiration to my parents, Induna Consulting and C. Zotwana.
Page 5 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Acknowledgements
I am very grateful for the support, advice and help received from my supervisor Dr Ruth Stevenson
during this study.
I further wish to express my special thanks to Programme Leader Damian Randle and my Tutor Dr
Kelvin Mason for their support and encouragement throughout this course.
Finally, I would like to thank all the people, companies and institutions interviewed in South Africa
which provided invaluable insight during the research in making this study possible.
Page 6 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
TABLE OF CONTENTS
Abstract ... ............3
Acknowledgements ...5
List of Abbreviations...8
List of Illustrations...9
Introduction
Background and aims of study ...10
Chapter 1
1.1
Reasons for renewable energy in a world context...12
1.2 Global lessons on barriers to renewable energy...12
1.3 Global benefits of renewables in the energy mix ...14
1.4 South Africa's Emissions ...15
1.5 Scaling up wind energy ...17
1.6 South Africa's wind energy potential...18
Chapter 2
Research Question...20
2.1
Research
objective...20
2.2
Research
method...20
2.3 Qualitative research method...20
2.4 Defining the qualitative research setting: Sampling...21
2.5 Method & Tools...21
2.6
Questionnaires...22
2.7
Stakeholder
interviews...22
2.8 Literary research outline...22
2.9 Academic sources...23
Chapter 3
Lessons from Europe...24
3.1
Lessons from Europe background...24
3.2
Barriers to entry...25
3.3
Support
mechanisms...26
3.4
Regional harmonisation of support schemes...26
3.5
Tendering...26
3.6
Feed-in
Tariffs...27
3.7
Fiscal mechanisms overview...27
3.8
Evaluation of specific support schemes...29
3.9
Effectiveness of support mechanisms...29
3.10 Effective mechanism in key wind markets in Europe... 31
3.11 Conclusion on EU support mechanisms...32
3.12 Exploring barriers to entry...33
3.13 Gale force offshore barriers...33
3.14
Grid
access...34
3.15 Smart grid and decentralized electricity...34
3.16 Renewable energy and socio economic effects...35
3.17
Public
acceptance
and property...35
3.18
Environmental
impact assessment...36
3.19 Adverse Effects: Noise, visual and electromagnetic impact...36
3.20 Conclusion on removal of barriers...37
Page 7 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Chapter 4
Energy Landscape in South Africa...38
4.1
Background...38
4.2 Renewable energy policy status...40
4.3
Barriers to wind energy in South Africa...41
4.4
Eskom and renewable energy sector ...42
4.5
Barriers - Mapping the wind potential...43
4.6
Support mechanisms for removal of barriers...45
4.7
Provincial and local Initiatives...47
4.8
Distribution
and
decentralized Energy... 48
4.9
Small
scale
wind...49
4.10 Renewable energy and socio-economic Impact...50
4.11 Measures remaining to remove existing barriers...51
4.12 Slowly off the mark Refit...53
4.13 Priorities for removal...53
Chapter 5
5.1
Survey Methods...54
5.2
Data
analysis...54
5.3
Stakeholders interviewed ...55
5.4
Limitations...56
Chapter 6
6.1
Qualitative Findings ...57
6.2
On current status of the South African RE sector...57
6.3
On successful support initiatives for renewable energy...58
6.4
On unsuccessful measures...59
6.5
On barriers to entry...60
6.6
On removal of barriers...61
6.7
On priorities to remove barriers...61
Chapter 7
7.1
Discussion...63
7.2 Institutional and administration barriers...63
7.3 A question of liberalization...63
7.4
Market transformation...65
7.5
RE tradable certificates...66
7.6 Grid
access...66
7.7
Issues of rising land prices ...67
7.8
Skills transfer and training...67
Chapter 8
Conclusion...67
Chapter 9
Recommendations, Research and Development...69
Appendix 1
Energy from Wind...70
Appendix 2
Historical Overview of Promotion Strategies in European Countries ...73
Appendix 3
Inventory of Current Support Systems...74
Appendix 4
Questionnaire Example...78
Appendix 5
Summary Research Results from Coded Analysis...79
References ...80
Page 8 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Abbreviations
BWEA
British
Wind
Energy
Association
CO2
Carbon
dioxide
DME
South African National Department of Minerals and Energy
DoE
South African Department of Energy split from DME in April 2009
CSP
Concentrated
Solar
Power
EIA
Environmental Impact Assessment or statement
EU-27
European Union 27 Member States
EWEA
European
Wind
Energy
Association
Fossil Fuel
Coal, oil and natural gas derived from decomposed ancient
organisms, reserves are limited and non renewable
GHG
Green
House
Gasses
GWh
Gig watt-hour (1,000,000 kWh = 1 GWh )
Grid
The electrical distribution system often includes multiple forms of
power
generation
IEA
International
Energy
Agency
IRP
Independent
Power
Producer
IRP
Integrated Resource Plan produced by utility Eskom
kWh
kilowatt-hour
1kWh
Equivalent to 0.963 kg CO2
Mt Mega
tonne
MW
Megawatt
Nersa
National Energy Regulator of South Africa
NGO
Non-governmental
organisation
PPA
Power
Purchase
Agreements
REFIT
Renewable
Energy
feed-in
tariff
RE
Energy derived from natural renewable resources such as wind,
sun, geothermal, tidal, hydro and biomass
SANERI
South African National Energy Research Institute
SAWEP
South African Wind Energy Programme
South Africa
Republic of South Africa (RSA), this paper uses South Africa as a
short
form
in
reference
to
the
country
TW
Terawatt
UNFCCC
United Nations Framework Convention on Climate Change
Wind Turbine
Such a mechanical device can capture the kinetic
energy from moving air masses
List of Illustrations
Page 9 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Figure 1: Renewable Power Capacities (REN21 Global Status Report, 2009)...13
Figure 2: CO2 emissions by fuel (IEA, 2009)...14
Figure 3: Global CO
2
Emissions in thousands of metric tonnes (UN, 2007)...16
Figure 4: RE potential of electricity supply in 2030 (DLR, 2008)... ............................17
Figure 5: South African Wind Resource...18
Figure 6: Development for electricity for RE in (EU- 27), (EmployRes 2009)...24
Figure 7: Onshore wind effective support schemes 2006 (OPTRES,2007)...26
Figure 8: Effectiveness indicator wind on-shore 1998-2006 (OPTRES, 2007)...27
Figure 9: Fundamental types of promotional Strategies (EWEA , 2005)...28
Figure 10: Effectiveness indicator 1998-2005 policy schemes (OPTRES, 2007)...29
Figure 11: Efficiency of support schemes (OPTRES, 2007)...30
Figure 12: UK Renewable electricity generation 1996-2008 (DECC, 2009)...31
Figure 13: Blyth UK (Powertechnology.com, 2009)...33
Figure 14: Horns Rev 2 Denmark (Dongenergy.com, 2009)...33
Figure 15: Alpha Ventus Germany (ErneuerbareEnergien.de)...33
Figure 16:
Energy generation mix, South Africa (University of Cape Town, 2006)...38
Figure 17: Committed new capacity integrated resource plan (DoE, 2009)...39
Figure 18: Early wind map of South Africa (Diab, 1995)...43
Figure 19: South Africa practical RE potential (DME/SAWEP RE Summit, 2009) ...44
Figure 20: Projected renewable production (DoE Integrated Resource Plan, 2009)...46
Figure 21: Western Cape Energy Consumption by Fuel (WCWPSE, 2008)...47
Figure 22: Distribution landscape (University of Cape Town, 2006)...48
Figure 23: South African water pumping wind mills (DME, 2003)...49
Figure 24: Risk factor criteria (DoE Integrated Resource Plan, 2009)...52
Figure 25: Data collection time scale plan (Author)...55
Figure 26: Capacity Requirement (DoE Integrated Resource Plan, 2009)...65
Figure 27: Wind turbine Horizontal axis type (EWEA, 2009)...70
Figure 28: Wind turbine Vertical axis type (Alvesta energy, 2009)...70
Figure 29: Horizontal wind turbine showing key components (Redcar, 2009)... ........71
Figure 30:
Onshore wind farm Denmark (Panoramio,2009)...72
Figure 31: Electricity generation using small wind turbines (Omafra, 2009)... ...72
Figure 32: Hybrid Power Systems (EERE, 2009)...72
Page 10 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Introduction
Background and aims of the study
The rapid adoption of wind energy in the renewable energy mix can be seen in many industrialized
nations in the past decade, " in particular the need to agreed greenhouse gas reduction and stable
energy supply are seen as a sound vision for a sustainable energy policy" (EWEA 2007,p 2 ). In an
emerging market such as South Africa there are abundant renewable resources including wind
energy, however there is low adoption observed to date (Holm et al 2008).
This study aims to investigate barriers to entry in the South African wind energy sector and what the
priorities are to remove such barriers for successful deployment of wind technology.
Therefore, it was required to examine successful deployment of wind energy in the European Union
and how such barriers were removed; this was set in the current status of the renewable energy sector
and existing barriers in South Africa. It was necessary to gain insight of the inter-related issues on
opening a traditional fossil fuel based energy market to a transitional implementation of renewable
energy provisioning, also considering the current utility monopoly based energy landscape in South
Africa.
Chapter one considers the global shift for the need to implement renewable energy and highlights key
issues such as security of supply, carbon reduction linked to climate change. Section three looks at
the global benefits of renewable energy within the energy mix. Section four highlights key policy shifts
and wind energy potential and section five gives an overview of South Africa's renewable energy
policies.
Chapter two looks at the research question of the need to answer what barriers exist and how to
remove these in South Africa. Section three and four describe the qualitative research method applied
and the setting of sampling. Section five, six and seven look at the tools used for telephone interviews.
Section eight and nine describe the literary research applied, the key institutional papers reviewed and
barriers identified.
Chapter three describes the lessons learned in a global context on policies for renewable energy to
deploy wind energy successfully. Section three looks at the background on European lessons learned
with key European wind markets focused on such as Denmark, Germany, Spain and UK.
Sections four to thirteen look at the barriers to entry, key mechanism such as feed-in tariffs, tendering,
effectiveness of support schemes in various EU markets and conclusion on support schemes.
Sections fourteen to twenty two look at specific barriers to entry, offshore, grid access, distribution,
socio-economic effects, public and environmental issues with conclusion on removal of barriers
Page 11 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Chapter four sections one to three look at the energy mix, policy status and wind potential in South
Africa. Sections four and five look at current support mechanisms and provincial initiatives. Sections
six to eight describe distribution and small scale wind barriers and socio-economic considerations.
Section nine and ten look at non implementation at regulatory and legal level, issues on power
purchase agreements, and inconsistencies in integrated resource planning.
Chapter five looks at the survey methods used the raw data analysis and limitations of the survey.
Chapter six looks at the qualitative findings in South Africa. Section two to six describes the analysis is
themed on successful initiatives, unsuccessful measures, barriers to entry, on priorities to remove
barriers.
Chapter seven presents the discussion based on the results.
Chapter eight draws conclusions and chapter nine recommends and identifies further areas of
research.
Page 12 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Chapter 1: Introduction
1.1 Reasons for Renewable Energy Implementation in a world context
"
The dependency on non-renewable energy sources such as coal, oil and gas has developed over a
short period within the past century asserts" (Sorensen 1979 p.11). Emissions from fossil energy
sources underpin what is generally acknowledged as causing major environmental impacts such as
greenhouse gasses (GHG) and global warming. In this context however (Toke 1995,p.1) observes,
"no energy can be used without disturbing the environment".
However, since the 1990's major changes in energy policy throughout the world, mainly forced by
energy insecurity, socio economic and environmental issues significantly influenced the debate and
policies to promote renewable energy (RE) such as from biomass, hydro, geothermal, solar, and
wind.
The current transitional move away from conventional fossil fuel is also due to shortage of supply and
increasing cost of extraction.
Indeed, in a world context "at current consumption rates, proven world coal reserves may last about
200 years, oil for approximately 40 years and natural gas for around 60 years" observes (Boyle 2003
p. 11). It should however be noted that projections on fossil fuels reserves can vary, a case in point
is the recent report " that the world is much closer to running out of oil than official estimates suggest",
The Guardian (9 November 2009). In contrast, another report suggests that latest deep water oil
reserves discoveries may due to latest technology, change the debate on peak oil (Casselman
Chazan 2010). Due to such uncertainties, these factors have further led to a paradigm shift towards
greater energy self sufficiency and RE's possible contribution as perhaps the only technologies
available to achieve the emission reductions needed in the near term (Sawin Moomaw 2009).
1.2 Global Lessons on Barriers to Renewable Energy
As shown in the introduction this study asks what the barriers are for successful deployment of wind
energy in South Africa and how to remove these. The importance of policy targets and implementing
such is shown in the following global RE industry developments.
The policy targets for renewable energy were revised in many countries in 2008. (REN21 2009).
Moreover t
he report (REN 21, 2009 p.14) highlights that,
"b
y early 2009, 63 countries had some type of policy to support RE...
In 2008 for example, the United
States took on about US$ 24 billion in new wind power and ethanol investment or 20 percent of total
global investment, ahead of long time wind investment leader Germany. ...furthermore, Spain, China,
and Germany respectively were not far behind, all in the range of US$ 15-19 billion".
Page 13 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
As seen in figure 1 below, the (REN21 2009, p.12) report illustrates RE capacity expanded to
approximately 280GW in 2008 globally, a 75 percent increase from 160 GW in 2004 excluding
hydropower.
Figure 1:
Source: REN21 Global Status Report 2009
However, from a global view a variety of barriers to entry remain in the RE sector and are often
attributed to conditions that prevent investments from occurring, (Beck Martinot 2004, p.3)
summarised these as: "1. Cost and Pricing 2. Legal and Regulatory 3. Market Performance"
Furthermore, (Beck Martinot, 2004, .2) state "several different types of policies can affect RE
successful development directly or indirectly these are
· RE promotion policies
· Emissions reduction policies
· Electric power restructuring policies
· Distributed
generation
policies
· Rural electrification policies"
However, such support policies can be regional or country specific, chapter 3 explores these issues in
context of the European Union and follows with the review of the South African RE policy related
barriers in chapter 4. In context of such barriers the following section considers the benefits for
deployment of RE resources.
Page 14 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
1.3 Global Benefits of Renewables in the Energy Mix
"Preventing climate change is the universally agreed ultimate goal of climate policy established in the
1992 U.N. Framework Convention on Climate Change (UNFCCC)" states (State of the world 2009,
p.14). This follows a renewable energy source could contribute to such climate change goals since RE
"may be replenished at the same rate as they are used" (Sorensen 1979 p.3 ).
Further, "RE offers our planet a chance to reduce emissions"
(
Ren21 2007 p. 2).
Moreover, energy
from wind, waves, tides and the sun produces negligible amounts of local pollutants (UK
Renewable Energy Strategy 2009, p.176). In the UK for example, decarbonising energy production
alongside nuclear and carbon capture and storage would provide cumulative savings of 755 Mt CO
2
between now and 2030.
In addition, 535 Mt CO
2
would help to meet the Emissions Trading System caps with 220 Mt CO
2
proving additional reductions (UK Renewable Energy Strategy 2009, p.18).
On a world scale CO
2
emissions by fuel shown in figure 1, RE emissions are at a low 0.4 per cent.
Whereas fossil fuels such as oil and gas, coal and peat make up a total of 99,6 per cent of total
emissions by fuel.
Figure: 2
Source: IEA 2009
Page 15 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
RE projections vary, for example the International Energy Agency (IEA) estimates RE contribution
will remain at thirteen percent between 2005 and 2030. "In 2007 renewable energies including large
hydro, generated more than 18 percent of global electricity" reveal (Sawin et al 2009, p.131).
In addition, The Intergovernmental Panel on Climate Change (IPCC) projects that, with a CO
2
equivalent price of $50 per ton, RE could generate 30-35 percent of electricity by 2030 (Climate
Change 2007, p.13).
This however requires a dual strategy of however, via "reducing the amount of energy required
through energy efficiency and then meeting most of the remaining needs with renewable sources"
observes (IEA Energy Technology Perspectives 2008, p.39).
In contrast, some observers propose that coal with carbon capture and storage or nuclear power may
be needed "as part of the energy mix to combat climate change, at the same time having to meet the
rising energy demand" (Sawin Moomaw 2009, p.131).
In this context, it should be noted the nuclear option is relatively short term however, uranium reserves
are not infinite asserts (Elliot 1979, p.71), this includes factors such as very costly nuclear waste
disposal risk vulnerability and minimal efficiency ( Scheer 2005). It is also recognised the shift to RE
is undoubtedly a burden for the energy business and changes in the energy mix may pose a threat for
the established sector, by contrast however "RE presents an enormous opportunity from a
macroeconomic view " (Scheer 2005, p.108).
Indeed, "renewable energy can put our civilization on a more sustainable footing. It also offers
countries around the world the chance to improve their energy security and spur economic
development" Reports (Ren21 2007).
The (Stern Review 2007, p.367) further supports the importance deployment of RE when it states that
"clean energy technologies are set for a prolonged period of rapid growth. In addition, it will be worth
hundreds of billions of (US$) dollars a year in a few decades' time... companies and countries
should position themselves for these growth markets".
1.4 South Africa's Emissions
In context of the energy mix, South Africa is the sixth largest coal producer globally. In addition, it has
a highly developed synthetic fuels industry which includes Sasol's oil from coal processing. The
country is further "supported by substantial coal reserves and offshore natural gas" explains (Recipes
2006, p.10).
Coal currently contributes up to 70 percent of the prime energy and fuels 93 percent of electricity
production (Department of Minerals and Energy, 2005b). Whilst of "Eskom's 35,060 MW of nominal
generating capacity, 34,532 MW is primarily coal fired" observes (Recipes 2006,p.12).
Page 16 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Moreover, the parastatal utility company Eskom produces approximately 95 percent of South Africa's
electricity, with the remainder made up from small inputs via local authorities (Winkler et al 2006).
Furthermore it can be observed, the South African energy market can be described as distorted by the
"omission of externalities, a protected monopoly and subsidies" (Holm et al 2008, p.1). To put this in
perspective, relative to Africa, South Africa represents just 5 percent of the total population, yet is
responsible for more than one-third of the continents' CO
2
emissions as a direct result of electricity
generation from abundant coal supplies (Africa Geographic 2007, p.87).
Amongst global countries by CO
2
emissions in thousands of metric tonnes shown in figure 3, South
Africa currently ranks as the 13
th
largest emitter of carbon dioxide. This, despite the recognised need
for reduction in greenhouse gasses (GHG), (White Paper Renewable Energy Policy of South Africa
2003, p. 17).
Figure: 3 Global
CO
2
Emissions in thousands of metric tonnes
Source: United Nations Millennium Indicators 2007
Moreover, South Africa has ratified the Kyoto Protocol (2002) giving the opportunity for example to
develop and implement renewable energy industries via the Clean Development Mechanism (CDM).
However, after the Copenhagen Climate Change Conference, reductions to limit GHG remain through
voluntary pledges which included South Africa (UNNFCC 2009).
However, after the Copenhagen Climate Change Conference in December 2009, reductions to limit
GHG remain through voluntary pledges which included South Africa (UNNFCC 2009). Furthermore,
the Copenhagen Accord recognized "a low emission strategy is indispensable to sustainable
development " ( UNFCC Draft CP15 2009, p. 2). However this does not seem to reconcile in the
absence of binding targets to achieve the need to reduction on emissions.
Page 17 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
1.5 Scaling Up Wind Energy
Mitigation therefore is a key consideration in the process of reducing carbon emissions. It is claimed
that there is "agreement and much evidence of substantial economic potential for the reduction in
GHG" (IPCC 2007, p.36).
A strategic energy shift is shown in the European Union, who is a signatory to the Kyoto Protocol on
climate change and committed to a target of twenty percent carbon emission reduction by 2020.
This follows, the Directive 2001/77/EC introduced national targets to promote electricity from RE. In
context of a promotion mechanism "the well adapted feed in tariff regimes are generally the most
efficient and effective support schemes for promoting RE electricity asserts" (EU 2008 Commission
Staff Working Document, p. 4). It further acknowledges that administrative, grid and market barriers
require assessment.
A global report illustrated in figure 4 by the German Aerospace Centre (DLR), shows that by 2030 the
share of RE could potentially reach around 30 percent in South Africa if support policies are in place.
Figure 4:
Source: DLR 2008
In a world context the wind energy potential is significant. According to the Global Wind Energy
Council (GWEC) at the end of 2009 total installed global wind power capacity reached 158.5 GW an
increase of 31.7 % on previous year. Africa and the Middle East reached 865 MW, with South Africa
estimated installed capacity at 8 MW ( GWEC 2009 , p.9).
The scaling up of RE is shown in the success of the 2007 wind power contribution in Europe, where
new installed capacity was second only to natural gas in the United States (Sawin Moomaw 2009).
Page 18 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Notwithstanding that, Denmark generated 21 percent of its electricity with wind in 2007 and four
German states produced more than 30 percent of electricity with wind in 2007 (EWEA, 2009 p.137).
This suggests the increase in wind power may be due to EU policies to remove barriers to entry and
stable support schemes which are examined in detail in chapter 3.
1.6 South Africa's Wind Energy Potential
Specifically, South Africa's wind resources are mainly at coastal geographic locations of the Western,
Northern, Eastern Cape and Kwazulu Natal provinces (DME 2001). However, obstacles to
implementing wind energy are recognised in the South African governments (White Paper 2003)
which will be further examined with regard to barriers in chapter 4. The aforementioned paper set a
target of 10 000 GWh (or 10 TWh) RE contribution by 2013 (White Paper 2003, p. 25). In contrast, the
current wind power installed capacity is estimated at a low 29MW ( Holm et al 2008). Furthermore,
there is an estimated wind power potential ranging from 3GW to 33GW (DME 2009), for verification
this would require a dedicated wind energy measurement programme.
Figure 5 illustrates an earlier South African RE wind resource map from 2001 at 10m hub height.
Figure 5: South African Wind Resource
Source: Department of Minerals and Energy, Eskom, CSIR
2001
The utility Eskom installed a pilot wind turbine at 1.7MW for test purpose at Klipheuwel in the Western
Cape. To date the only wind farm with installed capacity is at Darling Western Cape, which was
initiated as far back as 1999 in a joined UNDP and Global Environmental Fund (GEF). However, the
plant was only officially opened in May 2008 with a claimed output of 5,2MW under assistance from
the Development Bank of Southern Africa, the Danish Government, the Central Energy Fund and
Darling Independent Power Producer (Darlipp).
Page 19 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Whilst, global wind power grew at rates of twenty nine percent, and RE at up to twenty percent
according to (Ren21 2007, p.8) the South African RE sector has not shown any significant growth.
This follows, in making a case for RE in South Africa (Holm et al 2008, p.1) assert, "that economic,
social and environmental cost of delaying mass deployment of RE is higher than current capital cost
differential".
It further suggests that the renewable energy sector, in particular the successful implementation of
the wind energy sector in South Africa requires detailed examination of policy support and
mechanisms to remove barriers to entry for the technology to succeed.
This would require a literary review of current South African policy instruments examined in chapter 4
and a survey of industry stakeholders in the South African wind energy sector in chapter 6.
Page 20 of 88 Richard Ganter: South Africa, wind energy barriers to entry and how to remove
Chapter 2 Research Question
This thesis asks, what the barriers to entry in the South African wind energy industry are, and what
measures might be taken to remove such barriers.
2.1 Research Objective
In order to investigate this question in detail, the research taken in this paper examines and aims to
identify the key factors such as what policy mechanisms are required to remove barriers to implement
a successful wind industry.
In view of the perceived existing barriers this paper sets out to further substantiate links with European
Union RE policy mechanisms and if such can be best practiced in South Africa.
2.2 Research Method
This study could have investigated specifically both energy policies and regulations in the European
Union (EU) renewable energy industry and a comparative research study on recent and current
policies in South Africa to identify similarities and what measures might remove barriers to entry in the
South African wind industry. Such as the ongoing South African Wind Energy Programme (SAWEP)
funded by UNDP under the Department of Minerals and Energy (DME) and the SA government's
White Paper for Renewable Energy (2003) which identified certain barriers to entry in the wind sector.
This follows a " comparative literary research includes a systematic method for identifying and
evaluating existing body of work " (Fink 1998, p.3).
However, the author decided that a more robust investigation is required to validate current
developments in the South African renewable energy sector barriers to entry in the wind energy
sector. The need for a qualitative method would elicit a deeper understanding of barriers in South
Africa. Interviews with stakeholders with indepth knowledge in the renewable energy sector would be
conducted as policy and social issues are related to what barriers exist and how these can be
removed.
2.3 Qualitative Research Method
Thus, interconnected constraints inhibiting the development of the market will place the literary review
against the findings of the qualitative method in a survey with key stakeholders as described under the
qualitative research method.
The motivation for this thesis is directly related to how barriers of entry have been overcome in EU
countries and how barriers can be removed in the South African wind power industry in context of
Details
- Seiten
- Erscheinungsform
- Originalausgabe
- Jahr
- 2010
- ISBN (eBook)
- 9783836641654
- DOI
- 10.3239/9783836641654
- Dateigröße
- 1.7 MB
- Sprache
- Englisch
- Institution / Hochschule
- University of East London – Centre for Alternative Technology, Graduate School of the Environment
- Erscheinungsdatum
- 2010 (Januar)
- Note
- 2,0
- Schlagworte
- south africa wind energy renewable built environment support schemes
