How South Africa’s Renewable Energy Stacks Up To Other Countries

How South Africa’s Renewable Energy Stacks Up To Other Countries

Allianz has released its Climate and Energy Monitor 2017 ranking South Africa 10th among G20 countries for renewable energy investment conditions.

The monitor examined the needs and investment climate for all G20 countries regarding renewable energy.

Germany, UK and France maintain the top three positions in the 2017 edition, primarily because they combine a largely supportive policy environment for renewable energy with a mature market and adequate general investment environment.

According to the report, South Africa scored high for its depth of capital markets, even though a high inflation forecast brought down the overall score. The country has steadily increased its renewable energy capacity in the last years and has a relatively high presence of leading renewable energy business.

It noted that while South Africa does have a national strategy to tackle climate change, the country needed to increase its ambition level and put together a plan to decarbonize the electricity sector.

“The current auctioning system available in the country is insufficient to create a level-playing field for renewables compared to the fossil-fuel electricity infrastructure,” it said.

Other emerging markets

“Emerging economies are increasingly taking on a leadership role and are credibly enhancing their renewable energy financing frameworks”, said Simone Ruiz-Vergote, MD at Allianz Climate Solutions.

“China, India and South Africa are keenly interested in improving their attractiveness for investors in renewable energy, and they clearly managed to do so in 2016. Their prospects are good if policy support and market capacities are maintained.”

According to Ruiz-Vergote, most G20 states improved conditions for investments in low-carbon energy over the past year, with several emerging market countries rapidly catching up to the leaders.

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This rapid development of the renewable energy sector is a crucial success factor for meeting the Paris climate goals.

“The G20 countries need to roughly double their annual investments in renewable energy to align their power infrastructure with the 2°C pathway, fixed at the Paris COP 21 in 2015,” she said.

Source Link – Business Tech

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