Business Opportunities in South Africa’s Power Sector
South Africa’s power plants present a myriad of business opportunities in the rapidly evolving energy sector. With the country’s commitment to expanding its energy capacity and transitioning to renewable sources, investors can find lucrative ventures in both traditional and green energy projects. As South Africa power plants seek modernization and sustainability, there is significant potential for innovation, infrastructure development, and partnerships. In total, South Africa is home to 99 power plant projects. The three following projects represent some of this potential.
3200 MW wind and solar park – South African Renewable Energy Project
The project calls for the construction of 5,000 MW of renewable energy from Independent Power Producers IPPs under the South Africa Renewable Energy Independent Power Producers Procurement Programme REIPPPP Bid Window 7 BW7. The South African Department of Mineral Resources and Energy is targeting to build one of the largest wind farms on the continent, with a total project value of approximately $4.5 billion. The project also includes a solar element, aiming to produce 1800 MW of electricity. Construction is scheduled to start in 2025.
This $4 billion South Africa power plant project aims for the construction of a 3,000 MW combined cycle power plant (CCPP) at Richards Bay Port. The project received environmental approval in late 2022. As of July 2024, contractor award is scheduled for early 2025. The project is scheduled to be completed in mid-2028.
Boegoebaai Green Hydrogen Project
Located in Namakwa Special Economic Zone (SEZ), the project is expected to use 3,000 MW of renewable energy sources to produce 100,000 tons of green hydrogen. Developer Sasol estimates the build cost of this sizable South Africa power plant project to amount to $4 billion. In late 2023, Sasol completed a pre-feasibility study and is looking for partners in the project. At the current schedule, the contractor will be awarded in mid-2025. Construction is expected to be completed in 2028.
Conclusion: Opportunities despite a rocky market environment
Despite various challenges in the sector, South Africa is home to various large power plant projects, which present sizable opportunities for local, regional and global suppliers.
If you would like to learn more about the power sector in Africa, have a look at our recent blog post. To find out about other promising construction and investment projects, browse through our blog, or register for ABIQ’s Free Trial. If you believe you are not making enough use of Africa’s potentials, feel free to stop by at our sister company africon, which helps global suppliers to grow their business on the continent.