Xi Jinping met with the President of South Africa and reached a number of cooperation agreements including new energy power investment, with the participation of CGNPC, China Energy Construction and other enterprises

Buyit recently learned that on the morning of August 22, President Xi Jinping, who was on a state visit to South Africa, held talks with South African President Ramaphosa at the Pretoria Presidential Palace. The two heads of state discussed China-South Africa, China-Africa cooperation and issues of common concern In-depth exchange of views on international and regional issues, reached a series of important consensus, witnessed the signing of the “Belt and Road”, new energy power, agricultural products, special economic zones and industrial parks, blue economy, technological innovation, higher education and other fields. A bilateral cooperation document.

The “Joint Statement between the People’s Republic of China and the Republic of South Africa” clearly stated that the two sides are willing to strengthen the joint construction of the “Belt and Road” initiative and the “Economic Reconstruction and Recovery Plan”, and promise to continue to strengthen infrastructure and logistics, trade and investment, manufacturing, and agricultural product processing. , energy resources, finance, digital economy, science and technology, green development and other key areas of cooperation. China promises to continue to support South Africa in addressing energy security challenges, including actively participating in investment conferences hosted by South Africa in terms of power generation and transmission infrastructure.
In the field of electric power, the two sides signed the “Framework Agreement between the Ministry of Commerce of the People’s Republic of China and the Ministry of Electric Power of the Republic of South Africa on Promoting New Energy Power Investment Cooperation”, “The Ministry of Commerce of the People’s Republic of China and the Ministry of Trade, Industry and Competition of the Republic of South Africa on Promoting Green Memorandum of Understanding on Economic and Industrial Development”, “Exchange of Letters of Approval for South African Emergency Power Equipment Project”, “Memorandum of Strategic Cooperation between State Grid Corporation of China and South African Electric Power Company”, “South African Ministry of Electricity and China-Africa Development Fund, State Grid, China General Nuclear Power, China Energy Construction, Huawei, TBEA, and the Memorandum of Cooperation of the Global Energy Internet Cooperation Organization” and other cooperation agreements.

In fact, as early as August 17, Bloomberg reported that South African Presidential Power Minister Locienzo Ramohaupa said that an agreement with the Chinese government is expected to be reached next week to help South African solar installers get a settlement. Solar panels for projects needed for its energy crisis, the deal will be discussed on the sidelines of a summit of BRICS leaders.
Since the beginning of this year, South Africa’s power system has continued to deteriorate. At the beginning of the year, it was declared to have entered a “state of national disaster” due to frequent power cuts. President Ramaphosa said that “power shortage” has become a chronic problem in South Africa. In 2022, there will be 205 consecutive days of power outages, lasting up to 1,900 hours. From the beginning of 2023 to the present, there will be power outages every day, and even more than 8 hours a day.
South Africa is an important coal-producing country in the world, and more than 80% of its electricity comes from coal-fired power generation. However, due to aging thermal power generation equipment, poor management and slow construction of new power plants, South Africa is severely curtailed. South African President Cyril Ramaphosa is already embarking on part of his energy action plan, including doubling rooftop solar capacity. Previously, on June 2, South Africa’s Presidential Climate Council (PCC) stated that South Africa is currently launching solar and wind power generation, and by 2030, the share of solar and wind energy in South Africa’s energy mix will increase from 7% to 40%, which is to get rid of electricity. The fastest route to a crisis.
On June 19, when Zhang Jianhua, Director of the National Energy Administration, met with the visiting South African Presidential Office Minister of Power, Losienzo Ramohaupa, the two sides exchanged in-depth views on cooperation matters such as Zhongnan Electric Power, renewable energy, and nuclear power.
On the same day, Ramohaupa visited the Beijing headquarters of Energy China International Group, and Qiao Xubin, deputy secretary of the party committee and general manager of the Chinese company, held talks. Ramohaupa said that the power crisis in South Africa is severe and is at an important juncture in the transformation and upgrading of the energy and power market. Electricity market investment, improving the electricity market licensing system, etc.
Qiao Xubin said that this year coincides with the 25th anniversary of the establishment of diplomatic relations between China and South Africa, and he is willing to take this opportunity to take advantage of the entire industrial chain of planning, design, construction, and operation, and actively participate in the comprehensive cooperation between China and South Africa’s energy and the construction of the South African power market. In terms of planning and consulting services, large-scale renewable energy construction and stable access, etc., we will assist South Africa to solve the power supply crisis as soon as possible through multiple channels.
On the afternoon of June 20, Ramohaupa visited Zhonghuan New Energy Holdings Group and conducted research. Ramohaupa emphasized that South Africa’s electricity supply mainly relies on coal-fired power generation, and power suppliers can only meet 18% of electricity demand. At present, there is an urgent need to attract foreign capital to develop the market in order to solve the problem of lack of stable power suppliers in South Africa. Therefore, the South African government attaches great importance to the development of new energy. Warmly invite Zhonghuan New Energy Holding Group to explore the South African market, establish close cooperation with local South African enterprises, and promote South African energy reform with advanced technical support.
It is understood that during the trip to Ramohaupa this time, a total of 6 key Chinese photovoltaic new energy manufacturers will be visited, including China Energy Construction, Zhonghuan New Energy and China Energy Conservation. The achievements in hydrogen energy and coal power upgrading, more importantly, hope that China and South Africa will strengthen the cooperation and coordination of new energy, and solve the serious power shortage problem in South Africa as soon as possible.

Correspondingly, at the China-South (China-South Africa) New Energy Investment Cooperation Conference held in Johannesburg, South Africa on June 13, China Power Construction, China Energy Construction, CMEC, Norinco, JA Solar, LONGi, Jinko More than 20 companies and more than 50 entrepreneurs, including TBEA, TBEA, Shouhang New Energy, and Eternal New Energy, went to the local area to participate in the exchange.
It is understood that South Africa has abundant photovoltaic power generation resources and is one of the best places in the world to develop photovoltaic projects. The country has set a target of installing 18GW of renewable energy generation by 2030, and photovoltaic systems are expected to account for a large part of this target.
For example, South Africa’s Integrated Resource Plan (IRP) in 2019 mentioned that by 2030, wind power generation will be vigorously developed, gas-fired power generation will be moderately developed, coal power generation will be developed cautiously, and nuclear power generation will be stopped. It is set in the plan that by 2030, the cumulative installed capacity of renewable energy will be 27.6GW, of which wind power will be about 11GW and photovoltaic power will be about 8.2GW.
Previously, the Renewable Energy Independent Power Producer Procurement Program (REIPPP) issued by the South African government has been successful in attracting investment and supporting the development of photovoltaic projects in the country. According to new data from the brokerage Huafudian, from 2011 to 2021, South Africa has completed five phases of bidding for renewable energy independent power producers, with a total bidding capacity of 8.911GW, including 3.267GW for photovoltaics and 3.267GW for wind energy. 4.966GW, with wind and solar accounting for 92% of the total; the Renewable Energy Independent Power Producer Procurement Program (REIPPP) launched the sixth bidding window in April 2022. Its goal is to add 2,600MW of renewable energy to South Africa’s energy mix. NERSA, South Africa’s national energy regulator, approved the establishment of 15 IPPs in May and June 2022. As of the end of March 2023, a total of six solar photovoltaic projects have won the bid, with a total contracted capacity of 1GW.
In addition, South Africa also plans to transmit new energy power to other African countries, which will also generate a considerable overall installed capacity demand. The installed capacity of wind and solar is expected to reach 66GW, of which photovoltaics account for 80%.
Power cuts in South Africa have become the norm. In order to alleviate the current urgent power crisis, the South African government announced that the national electricity price will increase by 18.56% and 12.74% in 2023 and 2024, respectively, to save residents’ electricity consumption. At the same time, the government has also released two photovoltaic tax subsidies totaling up to 4 billion rand (about 210 million U.S. dollars) to encourage the construction of distributed photovoltaic power generation facilities.
This means that South Africa will have a huge market share for home photovoltaic systems. In 2022, its household storage installed capacity will be about 1.4GWh, with a year-on-year growth rate of 200%. At the same time, considering that the short-term power supply problem in South Africa is difficult to solve, the newly installed household storage capacity is expected to exceed 9.5GWh in 2025, and the CAGR will reach 90% from 2022 to 2025.
It can be seen that South Africa’s new energy growth space is ushering in the focus of the market. According to Chinese customs data, 1,187MW of photovoltaic modules were imported from China and South Africa in 2022, and in the first five months of 2023, the import volume of photovoltaic modules ushered in explosive growth, reaching 2,665MW, a year-on-year increase of 4.6 times. It is estimated that the annual import volume will reach 3.8 to 4.5GW, a year-on-year increase of about 3.4 times. The import of inverters increased by as much as 600% during the same period.
However, entering the South African market presents certain challenges. The South African market is still at an early stage and the competition is fierce, with local players and other international PV players vying for market share. At the same time, there are certain uncertainties in the electricity market and policy environment in South Africa, which may affect the investment and development of photovoltaic projects.
To sum up, Chinese photovoltaic enterprises have strong competitiveness and opportunities in the South African market, but they also need to face the challenges of market competition and policy environment. By providing high-quality products, comprehensive after-sales services and cooperating with local partners, Chinese photovoltaic companies can further expand their market share in South Africa and promote South Africa’s clean energy transition.