Facts & Figures

Table of declining renewable energy costs at different rounds

Average technology tariffs per bid window (R/kWh)

Technology
Bid Window 1
Bid Window 2
Bid Window 3
Bid Window 3.5
Bid Window 4
Wind 1.51 1.19 0.87 0.75
CSP 3.55 3.32 1.93 1.80
Solar PV 3.65 2.18 1.17 0.91
Hydro 1.36 1.24
Biomass 1.65 1.61
Landfill Gas 1.11

Solar PV has dropped most significantly with a price decrease of 75% to R0.91kWh between BW1 and BW4.

(Source: IPPPP quarterly report for reporting quarter 2 of the 2016/2017 financial year (1 July to 30 September 2016)


Price comparisons between solar, gas, wind, coal and Nuclear

Current price comparisons between technologies (R/kWh)

Technology
Current tariff (R/kWh)
Solar PV
0.91 (latest REIPPPP average tariff)
Wind
0.75 (latest REIPPPP average tariff)
Gas (landfill gas)
1.11 (latest REIPPPP average tariff)
Coal
1.01 (minimum,  COAL IPP price)
Nuclear
1.50 (Hinkley Point, minimum)

Comparative price analysis for new power in South Africa

The Energy Centre of the CSIR has taken upon itself to provide updated and consistent information on the cost of new power from wind, solar PV, baseload coal IPP, baseload Eskom coal, and nuclear power generation technologies in South Africa. In their most recent presentation of 14 October 2016, the CSIR provide a comparative analysis for new power in South Africa based on the coal IPP bid price announcements by Minister of Energy Tina Joemat-Pettersson on 10 October 2016, and other data.

The CSIR study shows the significant reduction in the cost of energy from wind and solar PV generation technologies in South Africa since submission of bids for Window 1 of the renewable energy IPP programme (REIPPP) on 4 November 2011, to those of the expedited round of Window 4 on 4 November 2015 – the result of which is that new power from solar PV and wind today is at least 40% cheaper than that from new baseload coal today.

In the presentation, the price of R0.61/kWh for new wind and solar PV, and R1.03/kWh for new coal IPPs, reflects an adjustment of the bid prices to ensure a common base-date of April 2016, a consistent present-value-equivalent escalation index of CPI+1%-point, and exclusion of the carbon tax of R120/t of CO2 emitted from the coal IPP tariff.

The study presents the latest updated levelised cost of electricity (LCOE) calculations for new Eskom baseload coal at R1,10 to R1,20/kWh, new baseload nuclear at R1,20 to R1,30/kWh, new mid-merit gas (CCGT) at R1,00 to R1.20/kWh, and new mid-merit coal at R1.50/kWh.

Click here to download the full CSIR study.


Eskom fleet information


Carbon emissions targets

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