TotalEnergies SE TTE, along with partners Hydra Storage Holding and Reatile Renewables, has initiated the construction of a major hybrid renewables project in South Africa. The project includes a 216 MW solar plant and a 500 MWh battery storage system and is expected to start commercial operation in 2025.
Dispatchable Renewable Electricity for 20 Years
The hybrid project aims to supply dispatchable renewable electricity to the South African national grid for twenty years, generating more than 400 gigawatt hours per year. According to the Power Purchase Agreement signed in November, the project will provide 75 MW of dispatchable power to the national utility Eskom continuously.
Clean Energy Transition in South Africa
The project aligns with South Africa’s transition toward clean electricity generation and contributes to TotalEnergies’ global portfolio of clean energy projects. The initiative supports the country’s goals of reducing carbon emissions and diversifying its energy mix.
TotalEnergies’ Renewable Energy Vision
TotalEnergies is actively working toward its ambition to become net-zero by 2050. The company aims to generate more than 100 terawatt hours of clean energy by 2030. This project contributes to TotalEnergies’ long-term renewable energy goal and expands its renewable portfolio through strategic investments, partnerships, and organic growth.
Global Expansion of Clean Energy Portfolio
TotalEnergies, traditionally an oil and gas major, is diversifying its portfolio by investing in low-carbon businesses. The company envisions that 15-20% of its sales will come from low-carbon businesses by 2040. This move reflects the broader industry trend of energy companies transitioning toward cleaner and sustainable energy solutions.
Renewable Energy Gaining Traction Globally
The global energy landscape is witnessing a significant shift toward renewable energy sources. With nearly 50% of the global electricity mix expected to come from renewables, there is a growing demand for clean energy projects. TotalEnergies and other major oil and gas companies, including ExxonMobil, BP, and Chevron, are adapting to this transition by investing in renewable projects and adopting measures to reduce emissions from their operations.
Industry-Wide Efforts to Reduce Emissions
ExxonMobil is focused on developing more efficient fuels to reduce emissions and has set ambitious targets to achieve net-zero Scope 1 and Scope 2 GHG emissions by 2030 for unconventionally operated assets.
BP has outlined a comprehensive energy transition strategy to tap into the rising demand for sustainable energy, aiming to reduce emissions from its operations by 30-35% by 2030.
Chevron is actively working to lower methane emissions and has committed to ending routine flaring by 2030.
Positive Market Response
TotalEnergies’ strategic shift toward renewables has been positively received by the market, with the company’s shares showing a notable surge of 13.7% over the past year, outperforming the industry’s growth of 6.2%.
Source: businesswire.com
