South Africa has a large energy sector, being the third-largest economy in Africa, consuming 227 TWh of electricity in 2018. Whilst 88% of energy generation in 2017 was produced from coal, thereby being the world’s 14th largest emitter of greenhouse gases. As of July 2018, South Africa, with a current coal power generation capacity of 39 gigawatts (GW), the country is planning to shift away from coal in the electricity sector, aiming to decommission 34 GW of coal-fired power capacity by 2050, to be replaced by at least 20 GW of renewable power generation capacity by 2030.

As the UK’s power generation becomes increasingly reliant on renewable sources, energy supply becomes more irregular. Consequently, balancing supply and demand is an increasingly challenging, yet vital component of the energy supply market and flexible energy generation is a key solution to this.

Africa represents a rapidly growing market economy with an acute power deficit.

• Today, two in three Africans do not have access to electricity
• 600 million people in Africa live without power
• Power providers in the region are cash-strapped, suffer from ageing infrastructure and are unable to serve their customers in a reliable manner
• Two in three people in Sub-Saharan Africa live without power
• Energy-sector bottlenecks and power shortages cost the region 2-4 per cent of GDP annually, undermining sustainable economic growth, jobs and investment
• Although sub-Saharan Africa consumes less electricity than Brazil, by 2040 its demand will reach a level equal to 2010 consumption in Latin America and India combined
• Manufacturers lose an average of 56 days of production a year due to power shortages
• 620 million Africans rely on firewood, kerosene and charcoal for cooking, heating and lighting
• 600,000 Africans, mainly women and children, die prematurely every year due to illnesses caused by indoor air pollution produced by firewood, kerosene and charcoal
• Hydroelectricity capacity cannot be depended upon due to recurrent droughts on the continent

(source: World Bank, We Forum, McKinsey)