Developing a competitive concentrating solar power industry in South Africa: Current gaps and recommended next steps

Abstract

The paper provides an overview of the attractiveness of the global concentrating solar power (CSP) industry, analyses South Africa's current capabilities in developing a CSP manufacturing capacity, and then makes recommendations regarding policy measures and an associated industry roadmap for developing a competitive CSP industry in South Africa. The analyses highlight that cost reduction is currently the most important stumbling block for the large-scale rollout of CSP. From a supply, or technology-push, perspective, changes such as cost-effective production methods, improved products through directed research and development, and reductions in operating and installation costs could be implemented. From a demand, or technology-pull, perspective, more ambitious targets need to be incorporated into the current South African policies with reliable support schemes to ensure long-term investment security for CSP systems. Recommendations are made accordingly. Specifically, South Africa should continue to promote strategic collaborations with potential CSP investors to access funding possibilities for projects.

Keywords:

• concentrating solar power
• industry development
• roadmap

Notes

⁴An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost.

⁵The rationale for government intervention is satisfied due to failure of the private sector to accurately gauge the benefits of taking on the risk to establish a new industry.