20
B. Baruah and R. Nath
major drop in electric power load projections. It has been predicted that the demand in
energy load would reduce to an extent of 3480 MW in 2019 which can be reflected by
the fall in electricity consumption by 0.9% in 2016. The dip in electricity consumption sends negative feedback to the industries. In December 2016, the solar and wind
energy auction was canceled which seemed to shake the confidence of the investors
as 1260 projects were registered for the auction out of which 841 numbers were
under wind energy and 419 numbers were under solar photovoltaic (PV), totaling to
35,147 MW of installed capacity (New Development Bank 2019). The cancellation
decision by the government brought doubt on the minds of investor’s on the intention
of the government to support energy projects which were going well forward. Since
that was the only tender in the year for renewable energy, its cancellation brought
a halt in the process of commissioning wind and solar capacity for that year. The
investors felt that this decision rather would bring a long-term impact on renewable
energy investment in the country and hence slowing down the investment process in
that sector.
The New Development Bank hasn’t financed any renewable energy project in
Brazil since 2017 which also illustrates the complicities in the renewable energy field.
With the growing pace, Brazil is expected to have a jump of 44% in solar installed
capacity in 2019, which would enhance the solar capacity by another 3.3 GW. With
an expected demand in electricity consumption between 2018 and 2022 at an average
of 3.8% annually, the need for further investment in infrastructure in the renewable
energy sector becomes more prominent (New Development Bank 2019).
Brazil has been a great supporter and promoter of renewable energy for years. But
due to the inadequate infrastructure in transmission lines, several projects have been
delayed. This made the Brazilian Government set prior conditions for the investors
to have secure transmission lines before participation in the auctions. This would not
only reduce the problem of delays due to insufficient transmission infrastructure but
would also accelerate to drive the market for T&D equipment.
2.6 BRICS: Role of South Africa
The most developed economy in Sub-Saharan Africa is the Republic of South Africa,
yet the slow growth is the strong headwinds the country is facing at present. Frequent
disruption in the electricity seems to complicate and bring challenges for the economic growth of the country (Conway et al. 2015). Moreover, the grid facilities also
need up gradation as they are outdated. As per the National Treasury of South Africa,
if the issue of electricity shortage is well addressed, then GDP growth is expected to
increase by 2% roughly. Therefore it has become a major matter of concern for the
government to secure energy supply and develop renewable energy (Martin 2017).
As per the national commitment for the transition from high carbon to low carbon
economy, IRP was formulated to set an ambitious target of 17 800 MW of renewable
energy in 2010 to be achieved by 2030 (Wentworth 2014). About 5000 MW of renewable energy was planned to be operational by 2019 within this frame time of 20 years.
B. Baruah and R. Nath
major drop in electric power load projections. It has been predicted that the demand in
energy load would reduce to an extent of 3480 MW in 2019 which can be reflected by
the fall in electricity consumption by 0.9% in 2016. The dip in electricity consumption sends negative feedback to the industries. In December 2016, the solar and wind
energy auction was canceled which seemed to shake the confidence of the investors
as 1260 projects were registered for the auction out of which 841 numbers were
under wind energy and 419 numbers were under solar photovoltaic (PV), totaling to
35,147 MW of installed capacity (New Development Bank 2019). The cancellation
decision by the government brought doubt on the minds of investor’s on the intention
of the government to support energy projects which were going well forward. Since
that was the only tender in the year for renewable energy, its cancellation brought
a halt in the process of commissioning wind and solar capacity for that year. The
investors felt that this decision rather would bring a long-term impact on renewable
energy investment in the country and hence slowing down the investment process in
that sector.
The New Development Bank hasn’t financed any renewable energy project in
Brazil since 2017 which also illustrates the complicities in the renewable energy field.
With the growing pace, Brazil is expected to have a jump of 44% in solar installed
capacity in 2019, which would enhance the solar capacity by another 3.3 GW. With
an expected demand in electricity consumption between 2018 and 2022 at an average
of 3.8% annually, the need for further investment in infrastructure in the renewable
energy sector becomes more prominent (New Development Bank 2019).
Brazil has been a great supporter and promoter of renewable energy for years. But
due to the inadequate infrastructure in transmission lines, several projects have been
delayed. This made the Brazilian Government set prior conditions for the investors
to have secure transmission lines before participation in the auctions. This would not
only reduce the problem of delays due to insufficient transmission infrastructure but
would also accelerate to drive the market for T&D equipment.
2.6 BRICS: Role of South Africa
The most developed economy in Sub-Saharan Africa is the Republic of South Africa,
yet the slow growth is the strong headwinds the country is facing at present. Frequent
disruption in the electricity seems to complicate and bring challenges for the economic growth of the country (Conway et al. 2015). Moreover, the grid facilities also
need up gradation as they are outdated. As per the National Treasury of South Africa,
if the issue of electricity shortage is well addressed, then GDP growth is expected to
increase by 2% roughly. Therefore it has become a major matter of concern for the
government to secure energy supply and develop renewable energy (Martin 2017).
As per the national commitment for the transition from high carbon to low carbon
economy, IRP was formulated to set an ambitious target of 17 800 MW of renewable
energy in 2010 to be achieved by 2030 (Wentworth 2014). About 5000 MW of renewable energy was planned to be operational by 2019 within this frame time of 20 years.