How COVID-19 has spurred the move towards renewable energy supply

The COVID-19 pandemic has brought about unexpected changes to the world, one of which is a glimpse of what a cleaner and more sustainable world could look like. As countries enforced strict lockdown measures to combat the spread of the virus, industries slowed down, emissions plummeted, and skies cleared. This unforeseen pause in human activity has sparked a conversation about the importance of transitioning towards renewable energy sources for a more sustainable future. Management consulting firm Kearney predicts that the move towards renewable energy supply will be accelerated by the impacts of the pandemic, positioning the renewables industry as one of the more confident sectors emerging from the crisis. South Africa, in particular, stands to benefit from a shift towards renewable energy, as the country grapples with energy challenges and the need to diversify its energy mix. Prashaen Reddy, a Partner at Kearney, shed light on the significant strides South Africa is making towards embracing renewable energy. In a recent interview with CNBC Africa, Reddy highlighted the commitment of the South African government to incorporate renewables into the energy mix. The Integrated Resource Plan (IRP) outlined by the government earlier this year sets a target for renewables to account for more than 20% of the country's energy mix by 2030. Additionally, South Africa recently announced the opening of Bid Window 5 for renewables, signaling a push for increased wind and solar generation capacity in the country. State-owned utility Eskom is also on board with the idea of ramping up renewable energy production to address the current challenges in the energy sector. Despite some past challenges in integrating independent power providers into the formal mix, Reddy remains optimistic about the future of renewables in South Africa. He believes that the renewable energy sector presents an opportunity for economic growth, especially in the wake of the COVID-19 crisis. Governments worldwide have recognized the potential of renewables as a key sector for recovery post-pandemic, and South Africa is no exception. Reddy expressed confidence in the government's focus on renewables, with initiatives allowing municipal and commercial entities to procure independent power sources. Companies like SACIL have already ventured into self-generation, indicative of a shift towards a more sustainable energy landscape. While the current global economic climate may pose challenges in terms of capital availability, Reddy assured that investors and financiers remain interested in the long-term prospects of renewables. The energy transition towards renewable sources is viewed as a sustainable investment, attracting more capital compared to traditional energy feedstocks like gas, coal, and oil. Despite constrained capital markets, the renewable energy sector is poised for growth and resilience amidst the uncertainties brought about by the pandemic. As the world adapts to a new normal post-COVID-19, the renewable energy sector stands as a beacon of hope for a cleaner, more sustainable future.