Publications

South Africa Energy Market Report - August 2018



​Electricity:

The Integrated Resource Plan 2018 released by South Africa’s Energy Minister during August 2018 has give 60 days for public comment, after which it will be sent to Cabinet for final signature. The IRP is considered to be the blue print for South Africa’s energy plan and aims to provide balanced energy source diversity, with more gas and wind renewables; whilst simultaneously reducing coal combustion. Currently, around 80% of our energy is generated by massive coal-fired power plants. To attain a balance in the spread of resource types, Eskom might have to decommission 12,000 megawatts worth of coal-fired capacity from their fleet by 2030.

Eskom will be providing less energy, extending bidding to private power producing entities to also compete in the provision of mixed energy generation resources. The hope is to transition from a weighty coal burning grid to a mixture of this with wind and solar energy. Gas power plants will support these for times where wind and solar are unable to sustain energy commitments due to climatic reasons.

By 2030, the South Africa energy department is aiming for a grid mixture of the following: 45% coal; 16% gas; 15% wind; 11% solar photovoltaic; 6% hydroelectric; 4% pumped storage and 2% nuclear.

Petroleum:

South Africa motorists experienced a slight increase in petrol in August 2018.

93- and 95-octane petrol increased by 1 c/l while diesel decreased by 4 c/l. Wholesale illuminating paraffin increased by 4 c/l while illuminating paraffin (SMNRP) increased by 5 c/l. The maximum retail price of liquid petroleum gas (LP Gas) increased by 17 c/kg.

According to the Department of Energy, the international prices of petroleum products had decreased along with crude oil prices and the average Brent Crude oil price during the review period; however the local exchange rate has weakened.

Carbon:

The Environmental Affairs Department confirmed that they are holding public consultations regarding the new National Climate Change Bill which is said to push for big co-operate companies to be penalized for their excessive carbon emissions. South Africans had until the end of August 2018 to comment on the draft Climate Change Bill. The Bill aims to ensure that South Africa cuts down on greenhouse gas emissions. In terms of the draft bill, provinces will also be obliged to put in place implementation plans. South Africa remains among the biggest per capita polluters in the world.

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