Even more sun for South Africa: Sharp promotes integrating solar PV into renewable energy law

Hamburg, 04.06.2009

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South Africa is one of the first African countries to introduce a renewable energy feed-in tariff (REFIT) along the lines of the German system.  Increasing energy requirements, high CO2 emissions, the threat of power failures and the desire to meet the government’s renewable energy targets has caused a re-think of energy supply policies.  Solar PV, the renewable energy technology offering great potential, has not, as yet, been included in the REFIT. That is why solar pioneer Sharp is advocating its inclusion into the REFIT as the best energy source for the future.

South Africa is already top of the league in Africa – not the football league, however, but as the country that consumes the most energy. Almost 80 percent of primary energy needs in South Africa is covered by coal.  Such dependence on a single source of energy not only makes the country heavily reliant on a fuel with limited reserves, but also adds to carbon dioxide emissions.

“South Africa’s hunger for energy continues to increase as the economy is growing and people’s living standards are rising,” says Peter Thiele, Executive Vice President Sharp Energy Solution Europe. “Shortages in energy supplies are looming, while power station capacities need to be expanded. But South Africa still relies heavily on coal, ensuring that 40 percent of the greenhouse gases produced in Africa are emitted by the continent’s southernmost nation.”

In order to curb this development, secure supplies, and become less dependent on highly subsidised electricity generated from coal, South Africa has started to focus on promoting renewable energy this year.  In March 2009, the National Energy Regulator of South Africa (NERSA) announced its Renewable Energy Feed-In Tariff (REFIT). The list only included power generation from wind energy, hydropower, landfill gas and solar thermal power plants (CSP).  Solar PV, the renewable energy technology with great potential, is yet to be included.

“Renewable energy, particularly solar energy, offers a clean, high-capacity, sustainable alternative to electricity produced by coal,” says Thiele.  “The REFIT is a first, positive step towards sustainable energy, but makes its debut without including solar PV, the number one energy source for the future.” 

Following the REFIT announcement, NERSA is now looking at adding other renewable energy sources to the list, including solar PV. The government is therefore responding to calls from industry, NGOs and scientists, who all  argued in favour of including solar PV.

“We are very optimistic that solar PV will also be included in the feed-in tariff over the coming months,” explains Barbara Rudek, Manager Governmental Policy Affairs Sharp Energy Solution Europe. “We can see the advantages of such promotion in Europe where there are now 19 European countries relying on renewable energy and promoting solar power with feed-in payments. This has resulted in positive socio-economic effects such as the creation of jobs, added value on a local level, as well as a significant reduction in CO2 emissions and, consequently, an improvement in quality of life. The fact that South Africa is converting in the mid-term to an energy mix with a high percentage of renewable energy not only helps to preserve the climate, but also offers reliable power supplies and eliminates costly subsidies for coal power. The German renewable energy law set an example - the all-important changeover to other energy sources is feasible and, above all, can be financed.  In order to ensure the same kind of success in South Africa, we are working together with highly qualified specialists in the country itself.  This enables us to take a rapid, concerted approach to local needs in accordance with our slogan ‘Think global, act local’,” continues Rudek. 

The German renewable energy law is the most efficient subsidy programme in that country and boosts the use of solar power systems due to a low impact on electricity tariffs.  The feed-in law guarantees a fixed payment for a certain period of time per solar kilowatt hour fed into the power network.  The feed-in payment varies according to the size of the system and the type of installation.  Moreover, this type of promotion also aids further technological development in renewable energy and helps to build up a sustainable energy supply.  40 countries worldwide have now followed the example of Germany’s renewable energy law to promote renewable energy.

For 50 years, Sharp has been a driving force behind the use of photovoltaics and has made key contributions to the development of the European solar market. Innovation, cost-effectiveness, and sustainability will ensure Sharp continues to lead the global solar power market in the future. In 2010, the company will put the world’s first gigawatt production facility into operation in Sakai, Japan. The solar pioneer is already manufacturing solar cells in its production plants in Europe, North America and Asia, boasting a local presence on the world’s markets. To date, Sharp has produced solar cells with a total capacity of more than two gigawatts making it the world’s largest photovoltaic manufacturer.