South Africa Embraces Solar Manufacturing

Key Figures & Findings: At the 2024 Manufacturing Indaba in Sandton, industry leaders emphasized the vital role renewable energy plays in boosting South Africa’s manufacturing competitiveness. With abundant solar resources and decreasing renewable energy costs, South Africa is well-positioned to align with global decarbonization efforts. The EU’s Carbon Border Adjustment Mechanism (CBAM), which enforces carbon taxes starting in 2026, puts pressure on local manufacturers to adopt clean energy solutions. Transitioning to renewable power, such as solar via Power Purchase Agreements (PPAs), is seen as both a necessity and a strategic advantage.

Statistics & Insights: South Africa has reduced solar PV costs by 76% since 2010 and wind energy costs by 55% in the same period. CBAM could lead to a 4% drop in exports to Europe, underscoring the importance of decarbonization to maintain trade.

Future Implications: By aligning with global carbon emission standards and leveraging renewable energy solutions, South African manufacturers could secure investor confidence and maintain competitiveness in export markets by 2026. These transitions may also bolster the sector’s resilience against rising grid power costs and supply instability.

Source:  Bizcommunity