Disconnect on renewable energy could cost SA investors
BMI Research has warned of "downside risks" to SA’s renewable energy sector if the "disconnect between government and Eskom" persists. The research agency, a unit of the Fitch group, has maintained its forecast for average annual growth in the sector of 13.1% over the next decade, and says it still expects just under 10GW of SA’s power supply to come from renewables by 2026. Robust growth will be underpinned by growing investor interest, government policy and the falling costs of technology in the sector. But BMI warns that investor interest could move elsewhere if Eskom and the government do not get onto the same page on the contribution of renewable energy to the national grid. The Department of Energy’s latest integrated resource plan, released in November 2016 and covering the period up until 2050, provided for a greater role for renewable energy such as solar and wind power than the previous plan, which spanned the 2010-30 period. Nonetheless, it drew criticism from the renewab...
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