Leading green energy company G7 Renewable Energies is making headway in advancing South Africa’s transition to a green economy, progressing various wind energy projects with the purpose of enhancing the country’s Just Energy Transition initiatives.

The latest wind energy projects in South Africa, specifically the ones that G7 Renewable Energies initially developed and later sold, are the 140 MW Brandvalley and 140 MW Rietkloof wind farms, both of which are under construction by Red Rocket.

“Our Oya hybrid project is also currently under construction since February 2024. It combines 86.4 MW of wind turbines, 155 MWp of solar PV arrays, and 92 MW of lithium-ion batteries to deliver cost-effective, clean dispatchable power,” says G7 Renewable Energies CEO Dr Kilian Hagemann.

Additionally, the company’s 140 MW Karreebosch Wind Farm will reach financial close and start construction before the end of 2024. “It is our first wind farm that we will build, own and operate. It will sell all its power to a single private offtaker.”

Despite not being as cost-effective and quick-to-use as PV systems for power generation, wind generation patterns are more aligned with demand profiles, generating significant amounts during evening peak and night-time hours, making wind a crucial part of South Africa’s energy transition, says Hagemann.

He suggests that in the long run, dozens of gigawatts of wind power, coupled with similar magnitudes of storage and two to three times as much PV, will be able to supply all the country’s needs.

“By adopting wind energy, companies can achieve significant cost savings, hedge against future price increases and ultimately reduce their carbon footprints, improving their competitiveness in global markets that are increasingly placing a value on low carbon inputs,” he adds.

Having the right amount of wind in any company’s electricity procurement strategy also hedges against the low daytime price environment – which is already prevalent in liberalised markets such as the US, Australia and Europe – thanks to large PV penetrations that will no doubt materialise domestically.

Hurdles to Wind Capacity Roll-Out

The biggest challenge to the roll-out of new capacity is dwindling grid capacity, says Hagemann.

He states that this is best addressed by working through the industry associations to closely engage State-owned power utility Eskom, transmission company National Transmission Company South Africa, energy regulator National Energy Regulator of South Africa, government and other stakeholders to draft and implement sound strategies for safely “overloading” existing transmission lines – known as the curtailment approach – and constructing new ones.

Hagemann highlights that another note- worthy challenge is increasingly higher development risks that come with scarce grid capacity and more stringent regulatory and environmental hurdles. This situation requires more capital and robust funding strategies to navigate.

However, the most fundamental change in recent times has been the removal of obstacles such as licensing for embedded renewable- energy projects for the private sector, opening an alternative route to market, other than the Renewable Energy Independent Power Producer Procurement Programme.

The Electricity Regulation Amendment Act and the unbundling of Eskom into separate generation, distribution and transmission units creates further opportunities in a fully liberalised market.

“Over time, renewables coupled with storage will not only displace coal but ultimately phase out the fossil fuels such as oil and gas. Electric vehicles will largely decarbonise the transport sector while industrial processes will be electrified through technologies such as thermal batteries or high temperature heat pumps for process heat. The sooner we realise this, the faster we can decarbonise our entire economy and futureproof it, never mind the imperative of reducing and ultimately eliminating greenhouse-gas emissions.”

Hagemann says that, in the next few years, G7 Renewable Energies wants to become a leading developer and independent power producer with several gigawatts of renewable-energy capacity operational, comprising not only wind and solar but also sizeable amounts of storage.