There are five main factors driving growth in the Energy Services market:
1) The above-inflation electricity price rises;
2) National energy insecurity;
3) Decreasing technology costs;
4) Supportive policies, regulations and tariffs; and
5) Increasingly relevant finance options
Amidst on-going load shedding, there is an increased interest from businesses in improved cost efficiencies and secure energy supply.
Rooftop solar PV has been identified as an important part of the country’s immediate efforts towards energy security. Positive regulatory movement, investor sentiment, and steady recovery in the key commercial, industrial and agricultural sectors have led to continued market growth in 2022.
Uptake of energy storage, in particular lithium (Li- ion) batteries, continued to grow in the commercial and agricultural sectors in 2022. The increasing relevance of load shedding-related risks is expected to lead to an increasingly prevalent role for the storage segment for back-up purposes in energy service provision.
The energy efficiency sector remains sluggish relative to the large identified annual saving potential across South Africa of 120 TWh. This is due to market barriers in end-user awareness, behaviour change, small project sizes and limited access to appropriate finance instruments, but segments that are seeing growth are the implementation of smart meters and third-party aggregation.
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