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Development status of distributed solar converter kit market in South Africa


Published by Mars November 02,2019

      Affected by the rapid increase in electricity prices of the South African National Electric Company (Eskom), many shopping centers and retail stores in South Africa have begun to use solar converter kit power to save electricity. The uncertainty of solar converter kit power generation regulations is the most important constraint to its development, but solar converter kit project developers and investors are cautious.


      So far, South Africa's commercial solar converter kit power generation is still mainly based on “spontaneous use”, and some areas allow excess power to enter the network.


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         The national electricity price standard of the South African National Electric Company (Eskom) during the standard period is 0.6 to 1 rand (5 to 8 US cents) per degree (excluding fixed fees such as Internet access fees), while residential users are required to pay 20-60% higher. s price. Some electricity peaks have higher electricity prices, and may even double up to 320% (the peak of electricity consumption is from June to August every year).


       Developers say they can offer customers a power purchase agreement of 0.9 to 1.0 rand per kWh, which is higher than our valuation of electricity costs in several provinces in South Africa, including the densely populated Gordon province.More policy changes in the first half of year  may drive local approved solar power panel kit capacity to easily break through 1MW.


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       At present, South Africa's solar power panel kit market is dominated by local players, but the German company Juwi also has a 2% market share. As the economic benefits of the power purchase agreement gradually increase, there may be more international players entering the South African market in the future.


      In contrast, South Africa's new energy target is not radical. The government only plans to build 10GW of solar power panel kit capacity by 2030 (source: Integrated Resource Planning 2010), and there is no plan to promote solar power panel kit capacity. Construction. However, the South African government research institute CSIR said that economically, it is feasible to build 74 GW of solar power panel kit capacity in South Africa by 2050.

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