The present contribution of Renewable Energy to the total power supply through grid electricity in South Africa is negligible. However, the government driven by concerns for rural electrification, while realising their overall sustainable objectives and environmental pressures, has set a target of achieving 5% grid supply from renewable technologies by 2010. It is advocated that this target as stated in their strategy paper should be achieved through the development of micro-hydro, biomass, solar and wind systems. Existing renewable energy systems that are operating in South Africa shows that there are major challenges in achieving this target. This lecture will look at some of the issues surrounding these challenges and will discuss the prospects of overcoming these challenges through certain measures based on current realities. Prof. Davidson is also the co-chairperson of the IPCC Working Group III. On two earlier occasions, Prof. Davidson was a visiting Fulbright and McArthur Fellow at LBNL, and worked on transportation and household fuel use issues.