Power shortages loom in South Africa
For many years South Africans have neglected to make use of the renewable energy sources available to them as a result of the cheap and reliable power supplied by the national utility Eskom.
However, with power shortages looming and the cost of electricity expected to increase the attractiveness of renewable energy on a commercial scale is becoming increasingly significant.
As South Africa faces power crisis renewable energy equipment sales are expected to increase. The current market for renewable energy equipment is estimated to be worth $58 million in 2006 with a growth rate of 9.1 per cent in the base year and a CAGR of 21.1 per cent over the forecast period.
“The South African renewable energy market has thus far not developed in line with international standards as a result of the unique challenges being faced in the local market despite the excellent physical conditions”, observes Industry Analyst Cornelis van der Waal. “However, with increasing certainty about base load deficits in South Africa, the search is on for alternative energy solutions that can compete with traditional power generation technology on a commercial scale”.
“Equipment suppliers”, concludes Frost & Sullivan analyst, “will need to identify opportunities pro-actively in order to share in the increased revenue streams”.
A number of industry participants can benefit from this research. They include: Renewable Energy Equipment Suppliers, Energy Managers, Utilities, Energy Consultants as well as Renewable Energy End-users.
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