Even though South Africa has one of the highest solar irradiance levels in the world they do not feature favourably on this rating scale of investment attractiveness.
The questions being asked as part of the methodology are:
- Is there a long-term need for additional or replacement energy supply? If so, is there a strong case for energy from renewable resources in particular?
- Is policy hindering or helping the ability to exploit renewables opportunities in a country?
- Are essential components in place to ensure project delivery, such as long-term contracts, grid infrastructure and availability of finance?
- What does the strength of natural resource, track record and project pipeline reveal about the outlook for particular renewable technologies?
- Even if all other boxes are ticked, does the macro stability and investment climate enable or impede the ease of doing business in a country?
The answers to questions being asked by investors do not shed a favourable light in the wake of South Africa’s political and economic challenges.
There is still a very strong case to be made for embedded roof top solar for light commercial and industrial clients. It does not only take PPAs awarded by Eskom to move the needle on solar adoption in South Africa.