Solar Energy Boom In South Africa: Economic Shifts, Not Just Customers, Drive Need For Business Agility

Investment in clean energy in South Africa increased more in 2012 than in any other country, rising 206-fold to $5.5 billion, according to Bloomberg New Energy Finance. South Africa generates 85% of its electricity from coal, but chronic power shortages may have been the catalyst to look to solar (a low point in 2008 closed mines for five days). It’s making up for that gap with solar energy — and now it’s the only African nation among the top 20 solar markets, with installations comparable to South KoreaThailand, and Israel.

The 360 days a year of sunshine certainly help, and it’s great to see the clean energy push work so well. But what is interesting to me is the amount of change in the overall economy the solar boom has caused. Wages are up, new jobs are available; hotels are adding more rooms, restaurants are changing menus to be more suitable for Europeans, and sales volumes are increasing.  So I’m adding “changes to the energy infrastructure” to my list of events that require business agility. Changes in customer expectation, digital disruption, and shortening product life cycles get the most attention as change events that drive the need for companies to be agile, but as shown here change can rapidly come from infrastructure shifts. And South Africa is just starting its transformation. There are plans to invest in other forms of renewable energy: wind, concentrated and photovoltaic solar, landfill gas, and biomass power. And it looks like South African businesses are up to the challenge and are responding to the market. For more info, click here.