Prøve GULL - Gratis

Energy mix reality a vision without infrastructure

Business Brief

|

BusinessBrief December/January 2025/26

The announcement of an audacious plan by Electricity and Energy Minister Dr Kgosientsho Ramokgopa to invest R2.23 trillion to build 105,000MW of new generation capacity between now and 2039 is commendable, however the envisaged contribution of gas of 11% to the country's envisioned energy mix by 2039 seems unrealistic and unfeasible.

- Nokwanele Qonde | Founder and Managing Director | WASAA Group | nokwanele@wasaa.co.za |

Energy mix reality a vision without infrastructure

While the quest to reduce reliance on polluting fossil fuels like coal, diesel and illuminating kerosene is laudable, the substantial contribution of gas to the energy mix during the stipulated timeframe is impractical.

IRP assumptions vs reality

The Integrated Resource Plan (IRP) that was approved by Cabinet earlier this month which provides a blueprint for South Africa's future energy journey assumes that the extensive and prohibitively expensive infrastructure required to operationalise the deployment of gas, whether in its natural form (natural gas) or Liquefied Natural Gas (LNG), is already in the offing.

The IRP makes no mention of the envisaged role that Liquefied Petroleum Gas (LPG) can play in the energy mix anywhere in their policy documents, whether under “fossil fuels” or “gas”. This is problematic because it overlooks the significant contribution that LPG can make, and is already making, as an alternative energy source that is environmentally friendly, cost-efficient and reliable.

The omission of LPG in the IRP disregards the fact that this energy source is increasingly being used for large-scale power generation in other parts of the world, especially in remote areas and developing regions that cannot be connected to the natural gas network.

We can draw important lessons from our BRICS partner, India, where government's flagship Pradhan Mantri Ujjwala Yojana (PMUY) programme, which provides deposit-free LPG connections to low-income households, had already expanded India's LPG residential penetration to 99.8% by 2021, the latest available data show, up from 62% in 2016. PMUY beneficiaries stood at 103mn as of July, up from 89mn in 2022, according to figures from Argus Consulting.

The gas cliff & infrastructure gap

FLERE HISTORIER FRA Business Brief

Business Brief

Carbon guidelines in context - aligning global practice for local construction

Could South Africa’s construction industry benefit from best-practice frameworks developed halfway around the world? And how well do international guidelines - such as the recently released Best Practice Guideline for Carbon Smart Construction Site[1] by the Hong Kong Construction Association - translate into local realities?

time to read

3 mins

BusinessBrief December/January 2025/26

Business Brief

Business Brief

Hospitality humans - the edge AI can't replace

While Al is projected to displace 300 million[1] jobs worldwide, the hospitality industry is making a contrarian bet: doubling down on people. This isn't sentimentality - it's survival. With 73%[2] of guests preferring human interaction, the sector runs on something technology can't replicate - genuine connection.

time to read

2 mins

BusinessBrief December/January 2025/26

Business Brief

Business Brief

Property investing - data, AI and disruption

Two decades ago, property investing relied on gut instinct and local gossip. The right address, a handshake, and a rough sense of what the neighbour's house sold for were often enough to close a deal. Today, the rules have changed. Technology, from machine learning models to satellite data and automated valuations, is rewriting how investors assess risk, spot opportunity and create long term wealth.

time to read

4 mins

BusinessBrief December/January 2025/26

Business Brief

AI in reporting readiness - what CFOs must get right

Finance leaders may be feeling the pressure to adopt AI into their reporting and planning environments, and it's understandable. CFOs are driven by board expectations, and many are of the opinion that staying ahead means adopting technology. At the same time, vendors are promoting it as the latest must-have, and these contribute to the wider narrative that its use in reporting is now unavoidable.

time to read

2 mins

BusinessBrief December/January 2025/26

Business Brief

Business Brief

Next-wave AI strategy from copilots to coordinated agents

For the better part of the last two years, the conversation around Artificial Intelligence (AI) has moved at breakneck speed. From the first Copilot demos to widespread experimentation across Microsoft 365, Power Platform, and Dynamics, we've watched a generation of users and businesses dip their toes into Al-powered productivity.

time to read

3 mins

BusinessBrief December/January 2025/26

Business Brief

Business Brief

Customer experience and loyalty - forging fulfilment from friction

Every small business owner wants happy, satisfied customers. But are those customers coming back? Loyalty is not only the holy grail of a sustainable business, it's also harder to achieve than most realise.

time to read

2 mins

BusinessBrief December/January 2025/26

Business Brief

AI infrastructure demands training vs inference at scale

The IT industry is undergoing one of its most defining shifts to date, driven by the explosive growth of generative AI. These powerful language models are pushing the limits of traditional data centre infrastructure. The upgrades operators prioritise will depend largely on whether they're handling Artificial Intelligence (AI) training or inference workloads.

time to read

3 mins

BusinessBrief December/January 2025/26

Business Brief

Swift's blockchain pivot - reinvention or slow obsolescence?

For years, industry headlines have circled around the same narrative - blockchain will kill Swift. The Society for Worldwide Interbank Financial Telecommunication, founded in the 1970s, has been the invisible layer behind trillions of dollars in global payments. Yet it's very design, slow, costly, and dependent on intermediaries, has made it an easy target for critics and innovators alike.

time to read

3 mins

BusinessBrief December/January 2025/26

Business Brief

Indemnity trigger rules - no payment, no cover

In ISMIE Mutual Insurance Co v Pergament, an Illinois appellate court reaffirmed a core principle of professional liability insurance - indemnity is not triggered unless the insured becomes legally obligated to pay damages.

time to read

1 mins

BusinessBrief December/January 2025/26

Business Brief

Taking your business seriously the long game of value creation

Consider this scenario. You have invested ten years into building your business. It has supported your lifestyle, paid salaries, funded personal expenses and allowed you to draw dividends.

time to read

4 mins

BusinessBrief December/January 2025/26

Listen

Translate

Share

-
+

Change font size