Concentrated solar power in South Africa

Kate Grant

Climate Policy, 2009, vol. 9, issue 5, 544-552

Abstract: The case is examined for accelerated deployment of concentrated solar power (CSP) technology in the South African electricity sector. Policy mechanisms and enabling activities that need to be defined and developed to encourage investment in CSP are reviewed. The use of a tender process, complemented by support from other policy instruments such as feed-in tariffs, is proposed as an efficient way of meeting an effective CSP target. The advantages of international support and commitment to large-scale CSP deployment include the sharing of knowledge and the incremental improvements inherent in the process of 'learning-by-doing'. Policy relevance: South Africa requires a viable alternative to coal power generation if it is to endorse decarbonization of the power sector. CSP could offer an appropriate technology but, after some years of discussions, no pilot project has yet been realized. Amongst other enabling activities, this illustrates two requirements for such a shift to a new lowcarbon technology: finance to meet the incremental costs of the initial pilot projects, and a strategy to create domestic production or attract international manufacturers to South Africa. These requirements are necessary to reduce costs and replace lost jobs from reduced coal power generation. International cooperation might unlock these opportunities by providing financial support for the incremental costs, thus enhancing the credibility of longer-term deployment strategies so as to attract investment in the supply chain; for creating technical assistance and capacity-building measures towards a suitable regulatory framework; and for manufacturing, installation and operation of plants.

Date: 2009
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DOI: 10.3763/cpol.2009.0637

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