Critical factors that influence investment in alternative energy in South Africa

Abstract

With South Africa facing increasing challenges due to load-shedding and energy shortages, the need for a cost-effective and efficient renewable energy system has become urgent. This study conducts a comparative analysis of existing research to evaluate the most viable alternative energy and potential storage solution for South Africa's power system. Unlike empirical studies, this research does not involve physical testing but instead synthesises theories, models, technical frameworks and simulations to assess their feasibility.

Various energy sources, including solar, wind, hydro, biomass, nuclear and hydrogen energy, are evaluated for their advantages and challenges. Key factors influencing renewable energy integration - such as voltage stability, frequency response, system inertia, reactive power control, and bidirectional flow management - are analysed in depth. Additionally, technical, financial, and policy-related constraints affecting large-scale renewable adoption are examined.

One of the primary challenges identified in renewable-integrated grids is low system inertia. This study highlights the potential role of synchronous condensers as a solution and future investment for improving frequency stability, reactive power support, and short-circuit power contribution in low-inertia systems. A comparative review suggests that synchronous condensers could enhance grid reliability and resilience when combined with battery energy storage systems and demandside response strategies. Still, more research might be needed in the future.

The findings of this study provide valuable insights for policymakers and energy stakeholders, offering a technical foundation for future investment decisions in South Africa's energy sector. The conclusions and recommendations are presented in the peer-reviewed Southern African Universities Power Engineering Conference (SAUPEC) 2025 proceedings.