Solar power is currently a more attractive generation option than gas-to-power in South Africa, according to an industry executive quoted by Engineering News, adding to the debate over which technologies should receive investment as the country plans its future electricity supply.
The comparison comes as South Africa considers new generation capacity to support electricity security and diversify its power mix. Solar projects can be developed in stages, and their fuel source carries no ongoing commodity cost. These characteristics can make solar competitive for supplying electricity during daylight hours, particularly when equipment and project financing costs are favourable. Gas-fired generation, by contrast, requires a continuing fuel supply, exposing plant economics to gas prices, transport costs and the availability of suitable infrastructure.
However, comparing the cost of generating electricity does not settle the question of which technology South Africa needs. Solar output changes with sunlight and falls after sunset, while gas-fired plants can be dispatched when required, provided fuel and generating capacity are available. Their value to the electricity system therefore differs: solar can supply relatively low-cost energy when conditions allow, while gas can provide flexibility during periods when renewable output is insufficient. The cost comparison depends on whether it measures generation alone or includes the additional resources needed to maintain a reliable electricity supply.
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South Africa’s gas-to-power plans also face infrastructure questions. Developing new gas-fired capacity requires access to gas, transport and storage arrangements, as well as power stations capable of delivering electricity when needed. The country’s future fuel costs will depend partly on whether gas is sourced domestically or imported and on the commercial terms under which it is supplied. These factors can affect the cost and timing of new projects, making assumptions about long-term fuel prices important when comparing gas with renewable alternatives.
Solar power has its own integration costs. As more projects connect to the grid, transmission capacity, battery storage and other flexible resources become increasingly important. Without adequate infrastructure, some renewable generation may be constrained or unable to reach demand centres. Batteries can shift part of the daytime solar output into evening hours, but the required storage duration and capacity depend on demand patterns and the wider generation mix. A system-level comparison must therefore consider the combined cost of generation, networks and flexibility rather than treating either technology in isolation.
For policymakers and electricity planners, the question is not simply whether solar or gas has the lower generation cost today, but which combination can deliver reliable electricity at an acceptable long-term cost. Solar may offer an economic advantage for energy supplied during daylight hours, while dispatchable capacity and storage can help manage periods when solar output declines. The industry executive’s assessment adds to the case for scrutinising the cost assumptions behind new power investments, particularly as South Africa weighs further renewable energy procurement against plans for additional gas-to-power capacity.
