October 2017
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Although there has been a remarkable growth in global renewable energy consumption, the South African energy system is still highly biased towards fossil fuel sources. Despite its nondepletable renewable sources, particularly solar and wind, there is a wide gap between the potential for renewable energy production and actual generation. This may be attributed to the relative lower costs (per kilowatt-hour) for municipal electricity supply, gasoline, diesel (all fossil fuel derived), versus that from alternative sources. A direct cost index for alternative energy devices commercially available in South Africa can be the proportion of local content in respect of materials and technologies in the devices. It is highly probable that higher local content will drive increased productivity in local industries, which based on economy of scale should lead to costs reduction. After a survey of the environmental and economic potentials and prospects of alternative energy sources and technologies, within the South African context, this paper explores the local contents of alternative energy solutions in the industry, against the backdrop of the local content policy. In terms of set goal and reality, the level of stewardship clearly requires more commitment. Identified research and development gap areas include components with improved performance, advanced and mass-production friendly manufacturing techniques for components, reduced materials requirements, and improved methods for integration of renewable energy into buildings, electricity grids and other distribution systems. Increased attention to these areas will hasten realization of the set goals.