The local government of the Gauteng province in South Africa has approved land leases to six independent power producers (IPPs) to develop a solar project of at least 800 MW in the Merafong Local Municipality (Northern South Africa). The project is being implemented by the State-owned utility City Power, which expects to add at least 100 MW to the South African grid in April 2024, with an expected expansion of 300 MW in the next financial year. The project should help increase energy stability in South Africa, particularly against power cuts (“load shedding”).
At the end of 2022, South Africa had a total installed capacity of 65.2 GW, of which solar accounted for 10% (6.3 GW). South Africa has been facing an ongoing energy crisis for years, due to technical problems at existing coal-fired power plants and delays in the commissioning of new power plants. In 2022, rolling power cuts ("load shedding") averaged 8 hours a day, costing around 2-3% of GDP.