Transforming South Africa’s manufacturing sector to embrace green practices is not just an environmental necessity but a strategic imperative to remain competitive on the global stage, writes Nedbank Commercial Banking national manager Amith Singh, adding that immediate action is needed to ensure industry adapts to these changes and thrives in a carbon-neutral future. We need to have a direct discussion about the state of manufacturing in South Africa. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is not just on the horizon – it’s quickly approaching and set to fundamentally reshape our industry. The CBAM will impose tariffs on imports based on their carbon content, meaning our goods will face much higher costs unless we drastically cut our carbon footprint. This isn’t just a financial inconvenience; it’s a direct threat to our competitiveness on the global stage.
Engineering News editor Terence Creamer discusses the role of the National Transmission Company South Africa (NTCSA) in the country’s electricity system; its current trading status; its plans to secure its own allowable revenue during upcoming tariff deliberations; and whether it has the capacity to deliver on the ambitious Transmission Development Plan.
A recent Vertiv industrial solutions webinar, chaired by business, leadership and technology consulting services provider Collaboretix MD Nils Gerstle, provided valuable insights into the challenges faced by, and the innovative solutions available to, the commercial and industrial sectors in Africa. The webinar featured expert panelists including Vertiv MD for Africa Wojtek Piorko, Vertiv Technical Director for Africa Jonathan Duncan, and Namibia-based Swakop Electrical CEO Jaco Duvenhage, who shared their perspectives on addressing power-related issues, embracing sustainability and deploying cutting-edge technologies across the continent. Tackling Power-Related Industrial Challenges
The Presidency has released new details showing that $613-million of the $821-million in grants pledged to support South Africa’s Just Energy Transition Investment Plan (JET-IP) have now been allocated to projects. The disclosure has been made in the second instalment of the online ‘JET Grants Register’ covering the first two quarters of 2024, and set up to record the nature of the projects being supported and to name the grant recipients.
Ringfencing revenue for the National Transmission Company South Africa (NTCSA) is regarded as a crucial short-term step for ensuring that the newly operationalised Eskom Holdings subsidiary is placed on a firmer financial footing to begin dealing with the estimated R390-billion grid infrastructure backlog. However, complete financial and operational unbundling from Eskom, together with further tariff reform, is still required to fully derisk the business and position it to play its central role in facilitating South Africa’s transition to an electricity system that does not undermine the country’s export competitiveness as key trading partners begin implementing carbon taxes.
Eskom has released the names to Engineering News of the five transformer companies appointed to a panel of suppliers that will compete for upcoming contracts for a total of 101 large-scale transformers to be installed as part of the National Transmission Company South Africa’s (NTCSA’s) Transmission Development Plan (TDP). Ahead of the NTCSA’s operationalisation on July 1, Eskom announced in late June that the suppliers had been selected following an open tender issued in March 2023, but did not immediately identify the companies, saying only that they were “local with an international footprint”.
JSE-listed real estate investment trust Growthpoint Properties has announced a new energy benefit scheme called e-CO2, which it will roll out at ten of its properties in Sandton.
This marks a next step in the company’s rollout of its renewable energy transition and will involve providing green energy at its office buildings through wheeling, reducing carbon footprints and generating renewable energy certificates (RECs) for tenants using the latest blockchain technology.
Johannesburg, billed as Africa’s richest city because of its concentration of businesses and millionaires, needs R221-billion to catch up on maintenance and overdue upgrades across its collapsing road, power and water networks. The city council discussed the shortfall late last month and detailed it in documents seen by Bloomberg. It comes at a time when regular power outages — the result of distribution-network breakdowns — hit large swathes of Johannesburg. Officials leave potholes unattended for months and parts of the city had no water for as long as 11 days in March.
The South African Wind Energy Association (SAWEA) has expressed concern about the National Energy Regulator of South Africa’s (Nersa’s) decision to reject Eskom’s application to reserve grid capacity for the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
While the association acknowledges that there are regulatory complexities involved with preserving grid capacity for these projects, there are also implications of Nersa’s decision for the wind energy sector and the broader renewable energy landscape in South Africa.
Power and energy expert Vally Padayachee has emphasised the untapped potential and critical importance of optimising the country’s grid system, especially now as it transforms into a high-value smart grid that incorporates smart technologies and serves as a “backup” for renewable-energy power. Padayachee, a former senior executive at City Power, in Johannesburg, and a former executive manager at Eskom, highlights, in an opinion article sent to Engineering News, the need for critical thinking, strategic investment, modernisation and a shift in thinking to address the challenges facing the South African energy landscape.
INDUSTRY NEWS
WHERE TO FIND US
Address
9 Yellow Street
Botshabelo Industrial Area
Botshabelo, Free State
Call / Email Us
Tel: +27 (0) 61 956 6772
Email: info@transfix.co.za
