The global quest for transformation across the energy sector has gathered momentum over the past decade. This transformation is enshrined in the shift from fossil fuels to the use of cleaner energy technologies. However, region-based disparities in making a transition to green energy technologies are pretty evident. South Africa has emerged as a robust player in the renewable energy industry. Despite being heavily reliant on its coal production, the country is making rapid advancements in the renewable energy sector.
Renewables and the Electricity Sector
The global energy supply mix has a large share of renewables. This is because energy scientists have addressed all major concerns pertaining to renewable energy usage. Meanwhile, efficient technologies alleviate the high costs of renewables. Moreover, several countries have proved the ability of renewables to supply sustainable energy. The increasing competition amongst energy companies have paved way for improved technologies. Besides, economies of scale have become a reality across the global energy sector. The electricity sector could reap tremendous benefits from improvements in the renewable energy industry. Advancements in renewable manufacturing could affect the price of electricity and investment dynamics. It is important for policy makers to understand the impact of renewables on the electricity sector.
Impact on Regulatory Authorities
The regulatory framework of national planning authorities can be developed based on renewable energy technologies. However, a higher share of renewables in the energy mix does not guarantee a reduction in electricity bills. In Spain, electricity prices increased as the share of renewables in the energy mix increased during 2002-2009. Therefore, the functional dynamics of the sector can vary according to the region. It is important for countries to understand their requirements in this regard.