Introduction
Around 77 percent of the electricity used by South Africa comes from coal produced electricity (Statistics South Africa, 2009). South Africa ranks in the top twenty countries in the world in carbon dioxide emissions. As a result, South Africa has set out to lower its greenhouse emissions and push for renewable energy. There are many paths to take in reaching this goal, but I believe South Africa should adopt a similar program as Germany’s Community Wind Power program in order to meet some of its renewable energy goals and needs and solve some of its infrastructure and economic issues.
Background of South African Energy
Eskom is South Africa’s national power utility, which generates about 95 percent of the electricity in South Africa (U.S. Commercial Service, 2012). Of the total electricity generated in South Africa, 88 percent comes from coal fired power, 6.5 percent comes from a nuclear station, and 2.3 percent comes from hydroelectric and pumped storage schemes (U.S. Commercial Service, 2012). Also, South Africa is crucial to the rest of Africa’s infrastructure, supplying two thirds of Africa’s electricity. In addition to being so crucial to Africa’s infrastructure, South Africa is one of the cheapest electricity producers in the world.
The 2009 world economic crisis reduced South Africa’s power supply constraints, but this reduction didn’t last long. In 2010, the electricity demand in the country began to rise again with no sign of slowing down or declining. As a result, the South African government produced The Policy-Adjusted Integrated Resource Plan (IRP2010). The IRP2010 lays out the proposed electricity generation mix for 2010 to 2030 (U.S. Commercial Service, 2012). The plan expects that 70 percent will be done through Eskom and the public sector and that 30 percent will be done through various independent power producers. Eskom is borrowing