LISTEN | Talking Green: How is SA faring in the global energy transition?

The Economist Intelligence Unit predicts that global energy consumption will grow by 1.8% in 2024. The general continued growth of energy consumption means the world needs to start investing more in the transition from fossil fuel-based energy to renewable energy.

Energy and climate science journalist Nick Hedley says although the transition to renewable energy has gotten traction over the last few years, the world is still behind schedule.

“The energy transition is very far behind schedule. The world started very late on it which is very problematic obviously because it means we have to go even faster now than we would have. That said, it's starting to gain some really serious traction, which is very important for the climate and energy security,” says Headley.

Hedley sat down with News24 as part of Nedbank’s Talking Green podcast series to discuss how South Africa is faring in the global energy transition.

“We currently only have around 9% renewables in our electricity mix and that's exceptionally low compared to the rest of the world and compared to a lot of African countries as well. So we've got a lot of catching up to do. Unfortunately, the sort of state-led side of things is still just far too slow and far too unambitious. But the good news is that households are coming to the party,” Hedley says on the podcast.

For businesses, the lack of stable electricity supply directly translates into money lost but, Hedley says the addition of solar and wind energy can alleviate the loss.

“The longer-term trickle-down effects are that the sort of additions of solar and wind keep electricity price inflation in check because they are by far the cheapest sources of new electricity that we have access to,” Hedley says.

Renewables switch

Switching to renewables is often easier said than done, but Hedley believes starting small can make all the difference.

“So, the very obvious place to start is supplementing your power… with far cheaper and cleaner electricity from solar and wind. The first place to start there is rooftop solar, which thankfully there's a huge amount of it going on in that space right now. So solar panels on your rooftops, solar panels on your carports, your parking lots and that reduces your cost of electricity,” he says.

A key factor in switching to renewables is finding the right partner to offer you sustainability financing.

Nedbank has key offerings for businesses that are tailored to match the unique terms of sustainability funding. In 2020, Nedbank invested R60.9 million in projects involving several top energy developers. Additionally, the bank extended its funding scope beyond energy generating to encompass energy-efficient technology such as those used in refrigeration and lighting.

Visit Nedbank HERE to help you get started on your sustainability journey.

 Listen to the podcast above to hear more about climate and visit Nedbank HERE to help you get started with sustainability funding.