On 21 November Prime Minister Jonas Gahr Støre visited a Norwegian-owned solar power plant in South Africa. The company that owns the plant has provided renewable energy to 200 000 households, and a number of Norwegian companies are now investing in solar power in South Africa.
‘Some 600 million people on the African continent lack access to electricity. At the same time, Africa has an abundance of sunshine, which is a good source of renewable energy. I had the chance to see how Norwegian companies are helping to produce renewable energy. This solar energy plant is serving both to reduce emissions and create growth,’ said Prime Minister Jonas Gahr Støre.
Big plans
The Prime Minister visited the Damlaagte and Ilikwa solar power plants in the Free State province in South Africa. The facilities were developed by Mainstream Renewable Power, in which Norway’s Aker Horizons ASA is a major shareholder. Together, these two power plants will be able to supply electricity equivalent to the annual consumption of roughly 120 000 households.
South Africa is currently highly dependent on coal, which accounts for approximately 85 % of the country’s power production.
‘Norway is an energy nation, and our knowledge and expertise are making a difference far beyond our own borders. These solar power plants are an excellent example of how Norwegian investments are being used to advance the green transition across the world. Plants such as this also create new jobs,’ said the Prime Minister.
The Damlaagte project employed more than 1 700 workers during its construction and has a permanent staff of 19 to oversee operations. Mainstream Renewable Power has developed and built 850 MW of renewable energy generation assets in South Africa and is planning to establish a further 12 GW in the coming years. This is equivalent to the electricity consumption of 2.8 million households.
Public and private
‘This project demonstrates how private companies and the public sector can work together to achieve common goals. Norad provided NOK 20 million in grants for feasibility studies. This made it possible to identify and lower potential risks to companies, which facilitated realisation of the project. Norway can help to accelerate the energy transition by making profitable investments, and sharing its technology, knowledge and experience. This is an approach that we are proud to support,’ said the Prime Minister.
Norway is investing widely in renewable energy development in South Africa. Norway is supporting South Africa’s long-term plan to phase out coal, and helping to mitigate the country’s energy crisis and implement the green transition. Norwegian companies such as Scatec, Aker ASA (through Mainstream Renewable Power), Magnora, and Valinor/Norsk Renewables have won numerous tenders for projects in South Africa since 2010, including projects involving large solar power plants, wind farms and hybrid systems combining solar power and battery storage systems.
Norfund (the Norwegian investment fund for developing countries) has invested approximately NOK 5 billion in South Africa, predominantly in renewable energy efforts. These investments have helped to boost capacity, create new jobs and reduce emissions.
Facts
- Some 40 % of the world’s electricity now comes from non-fossil sources. Renewable energy production, especially solar power, has expanded more rapidly than previously anticipated.
- In 2024 approximately 15 times more solar power was installed than the International Energy Agency’s estimated in its World Energy Outlook 2015 . At the global level, four times more solar power has been installed than the IEA forecasted in 2015.
- 600 million people on the African continent lack access to electricity. This lowers the standard of living and poses obstacles to development.
- South Africa is currently highly dependent on coal, which accounts for approximately 85 % of the country’s power production. A number of Norwegian companies are investing in South Africa to advance the green transition.
Distributed by APO Group on behalf of The Government of Norway.
