Who Owns Whom

The Generation of Electricity in Southern Africa 2022

Gary Phillips | South Africa | 27 January 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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Report Coverage

This report focuses on the generation of electricity in Southern Africa and includes comprehensive information on generation and operational capacity, demand, prices, the expansion of and further plans for renewables, developments and notable players by country. There are profiles of 42 companies including state-owned entities such as Eskom, Namibia Power Corporation and Zesco, regulators such as the National Energy Regulator of South Africa and renewables companies such as Engie Southern Africa and Enel Green Power and Sola Group.

The Generation of Electricity in Southern Africa

Southern Africa has become characterised by supply insecurity in recent years. The electricity generation industry is seen as a critical vehicle for regional integration and industrial development. It is historically defined by national, centralised, state-utility monopoly supply. Decades of poor revenue, high debt, under-investment and poor maintenance have left the industry falling behind population growth and electricity demand while a significant percentage of installed capacity is unavailable due to breakdowns and transmission failures. As a result, the region regularly experiences power cuts.

Collaboration

The regional industry is well-integrated and well-organised in the Southern African Power Pool and there are significant plans to expand capacity. Regulatory reforms are intended to attract private sector participation in electricity generation, principal among them the acceleration of private sector-led renewable energy investment. This has included everything from hydroelectric mega projects to small solar powered generation.

Energy Mix

Southern Africa loosely divides into a hydro-rich north and a thermal-rich south, which is reflected in the mix of energy sources used in generating electricity. The region has significant and largely untapped natural energy resources that make the transition away from carbon-heavy fossil fuels to renewable energy a real possibility. Just over a quarter of hydroelectric power and biomass electricity potential is realised as is 1% of solar and wind power and less than that for geothermal power. There is a small but growing presence of independent power producers supplying the Southern African grid.

Table of Contents

PAGE
1. INTRODUCTION 1
2. REGION INFORMATION 1
2.1. Geographic Position 6
3. DESCRIPTION OF THE INDUSTRY 10
3.1. Industry Value Chain 11
3.2. Size of the Industry 13
3.3. Key Success Factors and Pain Points 28
4. SOUTHERN AFRICA 30
4.1. Key Trends 30
4.2. Trade 46
4.3. Corporate Actions 48
4.4. Regulations 50
5. AFRICA 54
6. INTERNATIONAL 57
7. INFLUENCING FACTORS 60
7.1. COVID -19 60
7.2. Economic Environment 61
7.3. Labour 63
7.4. Environmental Issues 65
7.5. Technology, Research and Development (R&D) and Innovation 67
7.6. Electricity Planning Approach 69
7.7. Cost-Reflective Tariffs 74
8. COMPETITIVE ENVIRONMENT 75
8.1. Competition 75
8.2. Barriers to Entry 76
9. SWOT ANALYSIS 76
10. OUTLOOK 77
11. INDUSTRY ASSOCIATIONS 78
12. REFERENCES 79
12.1. Publications 79
12.2. Websites 80
APPENDIX 1 -SUMMARY OF NOTABLE PLAYERS 79
Notable Players in South Africa 79
Notable Players in Other Southern African Countries 82
COMPANY PROFILES 85
Abengoa South Africa (Pty) Ltd 85
Acciona Energy South Africa (Pty) Ltd 87
ACWA Power Solafrica Bokpoort CSP Power Plant (RF) (Pty) Ltd 89
African Rainbow Energy and Power (Pty) Ltd 91
Associated Energy Services (Pty) Ltd 93
Avon Peaking Power (RF) (Pty) Ltd 96
Azari Wind (Pty) Ltd 98
BioTherm Energy (Pty) Ltd 99
Botswana Power Corporation 102
Cennergi (Pty) Ltd 105
Copperbelt Energy Corporation PLC 108
Coria (PKF) Investments 28 (RF) (Pty) Ltd 111
Dedisa Peaking Power (RF) (Pty) Ltd 113
EDF Renewables (Pty) Ltd 115
Enel Green Power RSA (Pty) Ltd 117
Engie Southern Africa (Pty) Ltd 119
Eskom Holdings SOC Ltd 121
Eswatini Electricity Company Ltd (The) 125
GL Africa Energy Ltd 128
Globeleq South Africa Management Services (Pty) Ltd 130
Hopefield Wind Farm Local Community Company NPC 132
Hulisani Ltd 134
Kelvin Power (Pty) Ltd 137
Lekela Power Intermediate Holdings (Pty) Ltd 139
Lesotho Electricity Company (Pty) Ltd 141
Lesotho Highlands Development Authority 143
Maamba Collieries Ltd 145
Mulilo Energy Holdings (RF) (Pty) Ltd 147
Namibia Power Corporation (Pty) Ltd 149
National Energy Regulator of South Africa 152
Pele Energy Group (RF) (Pty) Ltd 155
Phelan Energy Group (Pty) Ltd 156
Red Rocket South Africa (Pty) Ltd 158
Rede Nacional de Transport de Electricidade EP 161
Rosatom Central and Southern Africa (Pty) Ltd 163
Scatec Solar Africa (Pty) Ltd 165
SEF SOC Ltd 167
Shumba Energy Ltd 171
Sinogy Holding (Pty) Ltd 174
Sola Group (Pty) Ltd 175
Solar Capital (Pty) Ltd 177
ZESCO Ltd 179