Home » After Load Shedding: Why Freedom from the Grid Remains Imperative

After Load Shedding: Why Freedom from the Grid Remains Imperative

Forbes Padayachee, CEO, Yellow Door Energy South Africa

by Tia

While South Africa has enjoyed an extended respite from load shedding this year, there are other compelling reasons to accelerate the transition to renewable energy:

  • Businesses and homeowners are concerned about ESKOM’s reported intention of seeking a 36% increase in tariffs in 2025 – on the back of electricity prices that have roughly tripled over the past 14 years.
  • The future reliability of our electricity system remains uncertain. Recent reports indicate that load reduction is frustrating communities, particularly in Gauteng.
  • It is forecast that more than three million green jobs could be directly created in Africa by 2030, mostly in renewable energy and, particularly, solar. At the same time, independent power producers like Yellow Door Energy must be committed to the Just Energy Transition in South Africa, in partnership with government and industry. We  are mindful that the broader energy shift must work in tandem with a sustainable employment framework – especially in a country with such high unemployment levels.

Consensus on the Value of Sustainable Power for Africa

In June, more than 2 000 stakeholders gathered at the annual Africa Energy Forum (AEF) in Barcelona. The prevailing consensus among attendees was that the continent’s move towards sustainable energy presents immense opportunities.

During a panel hosted by the International Finance Corporation (IFC), I emphasised that sustainability is integral to the energy sector. South Africa holds tremendous potential for renewable energy and distributed or decentralised generation is a viable solution for delivery in the short term, while Eskom and all industry stakeholders co-operate to solve the longstanding grid crisis.

South Africa has the largest installed capacity in Africa at c.60GW and replacing the older, coal-fired Eskom fleet would require a huge annual replacement energy investment  – in which renewables should play a major role.

From my discussions at AEF and my overall industry experience, the following key themes emerged about the future of energy in South Africa:

The Growing Affordability of Battery Energy Storage Systems (BESS) and Solar

BESS is now becoming more economically viable for South African business owners, who can combine this rapidly evolving technology with solar and diesel generators to escape the impact of escalating grid power prices. Accelerating innovation in BESS will bring reliable electricity to many businesses in the next few years.

Wind power generation has had mixed operational performance given climate change and, with BESS becoming increasingly more affordable, an integrated solution of solar and BESS is proving to be an ideal and environmentally friendly solution.


Whilst it represents a capital expense, parties like Yellow Door Energy undertake this expense, leaving industry players free to sign up power purchase agreements (PPAs) to secure their power requirements without needing to use their capex budgets.

The Rising Popularity of Power Purchase Agreements (PPA’s)

In a power purchase agreement (PPA), an independent power producer (IPP) provides the financing for engineering, construction, procurement and operations and maintenance (O&M). Data shows that an IPP-owned and operated solar power plant typically performs better than those that are funded and operated by offtakers, whose core business is not energy generation.

The cost savings are substantial as well. Assuming an ESKOM blended tariff of R1.65/kWh, a solar PPA typically provides savings of 20 – 30% on electricity bills. This percentage varies and can increase significantly for large-scale on-site and solar wheeling projects.

The Role of the Private Sector

The resourceful private sector has already been swift in securing on-site solar power, BESS and generators, as shown by SAPVIA’s statistics on South Africa’s accelerated solar adoption. Large energy users are now seeing the benefits of solar wheeling and behind-the- meter (BTM) solutions. On the broader scale, the government has highlighted the role of public-private sector partnerships in strengthening South Africa’s economic future; we should see them being a priority within the energy sector.

The Role of Education

In celebration of Women’s Month, I had the opportunity to address more than 150 female students from the Women in Mining group at the University of Johannesburg recently. I spoke about my career and what I have experienced as a female leader moving up the ranks in the corporate world. I also provided advice on how students should navigate through their careers. I was impressed and re-energised by the students’ eagerness to learn and make a difference in our country. We have one of the best higher educational systems on the continent, and South Africans are sought after globally for their skills and work ethic. We need to provide our future leaders with the tools to lead, not just in South Africa but globally.

Opening the Door to a New Energy Era

As CEO of Yellow Door Energy in South Africa, I want to shed light on the opportunities that renewable energy creates for our nation: stabilising the grid, providing businesses with reliable and affordable electricity, reducing carbon emissions, creating jobs and upskilling our future generation. Renewable energy is already the present and will continue to be the future for South Africa.

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