Worldwide renewable energy projects are growing at a remarkable speed. South Africa, a country that has a big potential to generate electricity from renewable energies, especially from wind energy, has so far neglected to develop and invest in these resources. This despite increasing electricity demands through growth in population and industry, escalating electricity costs and alarming environmental concerns.
This research paper identifies the main hurdles that presently impede potential wind energy developments from being implemented. They are identified and analyzed through primary research, in the form of interviews. The findings reveal a variety of barriers, where the lack of government commitment and supportive policies seem to be the central issue. This leads to uncertainties and consequently reinforces a number of other obstacles such as difficulties in establishing favorable power purchase agreements and forecasting income streams, and this consequently means insecurities for investors. Long lead times for supplying technical equipment and unanswered questions around grid connection add to this quandary.
Lessons learnt in nations leading in renewable energies are discussed and their supportive policies are compared. The report suggests recommendations to stimulate market penetration of wind energy projects in South Africa.
South Africa has an abundance of renewable resources leading to numerous potential renewable energy projects that could be implemented as soon as the current barriers are overcome.
Download research paper from Sabine Raab, presented to the Graduate School of Business of the University of Cape Town, in December 2008: MBA THESIS Sabine Raab