The recent announcement by the President to lift the limit on the self-generation of power from 1 MW to 100 MW, is a gamechanger for industries such as mining, farming, retail, healthcare and manufacturing. Off the back of this announcement, some companies such as private hospital groups have already secured deals to install solar photovoltaic (PV) generating systems to save costs and relieve pressure on the national grid.
Renewable energy producer Genesis Eco Energy states that the promulgation of the Electricity Regulation Act (ERA) amendment, gazetted August 20, 2021, surprised many. “Business had been calling for an increase from the 1 MW limitation for years but the Department of Mineral Resources and Energy would only consider a move to 10 MW. Industry leaders wanted a 50 MW limit increase, so the giant leap to 100 MW was highly welcomed throughout the private sector and by renewable energy independent power producers (IPPs),” says Genesis Eco Energy project development executive Glynis Coetzee.
With renewable energy developer Mainstream Renewable Power (RP) already responsible for developing wind and solar assets contributing 850 MW of power to South Africa’s grid, the company is currently involved in developing new projects that will contribute up to 9 GW of power to the grid. “Currently, we are in the developmental stages of about 9 GW in wind and solar energy projects across almost all provinces, all of which are in various stages of development,” says Mainstream RP Africa GM Hein Reyneke.
Last year, South African engineering, procurement and construction (EPC) company Lesedi Nuclear Services (LNS) established a 100% held subsidiary called Lesedi Renewables Africa (RA) to offer tailormade renewable solutions to clients. Lesedi RA is technology agnostic and offers appropriate technologies, hybrid solutions incorporating a range of solar technology options, coupled with storage that meets clients’ individual requirements. These solutions are available under the embedded generation programme in South Africa.
Uncertainty seems to be the only certainty when it comes to the security of South Africa’s electricity supply and associated utility costs.
Solar resource technical service providers GeoSUN has expanded into the wind energy industry through a newly formed brand GeoWIND. “We see the future of renewables being a combination of solar, wind and batteries, as well as other renewables. Clients will most likely be looking for a single service provider to offer both wind and solar measurements on their project site,” says GeoSUN MD Riaan Meyer.
South Africa aims to meet with other governments and multilateral finance institutions on the sidelines of the upcoming COP26 gathering to progress talks on raising concessional funding, in phases, for a Cabinet-endorsed ‘Just Transition Financing Facility’ to fund green projects in the electricity, automotive and hydrogen sectors. As part of the first phase, South Africa is proposing a multitranche, multiyear facility, funded by a multilender syndicate, to fund decarbonisation and green projects.
The continued absence of a long-term vision for South Africa’s energy sector is creating a policy “vacuum” and undermining investment, the 2021 edition of the South African Energy Risk Report states. Published by the South African National Energy Association (Sanea), the report highlights that the country still has no overarching policy that offers an integrated approach to the energy sector.
Water-scarce Egypt aims to more than quadruple desalination capacity by granting private companies concessions from its sovereign wealth fund to build 17 plants over the next five years with sustainable solar energy. The plan fits into Egypt’s push to diversify its sources of fresh water for a fast-growing population as it faces competition for Nile river water from the giant hydropower dam that Ethiopia is building upstream.
During the closing panel of the Electricity Forum, Manufacturing Circle executive director Philippa Rodseth said municipalities were the missing piece of the energy security puzzle and an elephant in the room in terms of South Africa achieving a just energy transition. From an industrialisation perspective, she said, the rubber hits the road when municipalities start being engaged – they either enable power to operations or compromise on business’ ability to operate, owing to either a lack of electricity infrastructure and maintenance thereof, or mismanagement of administrative matters.
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