Perceptions of energy leaders in private industrial sector energy project development models

Abstract

This study explores the perceptions of energy leaders in South Africa’s private industrial sector regarding two energy project development models, namely the Self- Build and Power Purchase Agreement (PPA) model. The study utilised qualitative research methods and thematic analysis to identify some of the key decision-making factors utilized by energy leaders when deciding on which development model is best suited for the application. These include cost vs. security of supply, financial considerations, grid impact, and environmental, social, and governance (ESG) factors. Findings indicate that the PPA model is generally preferred for industrial applications due to the larger capacity requirements and inherent complexities, however, the Self- Build model offers greater control and improved energy security. Furthermore, a growing trend toward modified PPA structures, such as energy trading models, was also observed. The study provides insights to guide future energy project development in the industrial sector.