South African renewable energy investment barriers: An investor perspective

Abstract

As recently as the year 2010, renewable energy contributed less than 1% of all the energy sources in South Africa. Possible reasons include the lack of private sector investment in Renewable Energy technologies. By way of a structured interview methodology, this paper explores the reasons why private investors are reluctant to invest in renewables. The responses point to political, economic, social and technological barriers limiting private investment in renewable energy. Other barriers that were identified include poverty, low levels of education, limited technological readiness and access to the electricity grid. Some of these barriers are specific to the South African context. The paper concludes that a closer relationship between government and the private sector is required to stimulate innovation in the renewable energy sector.