The continuous rise in load shedding has remained one of the significant challenges in Southern African countries, even though the region is endowed with vast renewable energy potentials. The peak period of load shedding amounts to more than a 10 GW supply-demand gap and results in the electricity grid being offline for massive swaths of the population for several hours daily. Consequently, many corporations and entrepreneurs who could not afford the high cost of backup generators have continued to suffer losses in their day-to-day business transactions. However, renewable energy is a potential technology that could improve the constant electricity supply for industries, commercial, residential, and business models. This study examines the impact and opportunities of renewable energy power supply on businesses in Southern Africa from 2000 to 2023, employing the time series and multilinear variant models. The results infer that reducing the length of electricity failures by 1% would improve the incomes of the business owners by 0.16 million USD. Moreover, about 29% of electricity in these regions is used in residential areas while industry shares about 54%. South Africa records the highest average energy consumption rate of 3.64×105 TJ, accounting for 64%, followed by Zimbabwe at 1.3×104 TJ, accounting for 53% in the industry. Besides analysing the opportunities, likely policy considerations the government should attempt to allow the transition to renewable energy are also described. The study's implications comprise the need for the authorities to consider subsidising the cost of renewable energy technology.
Read full abstract