Green Economy Journal Issue 61 by GreenEconomyMedia

journal

ISSUE 61 | 2023/24

Economy G

Infrastructure &

WAVE POWER

SKILLS

MOBILITY

BESS

ANNIVERSARY 1 9 9 4 - 2 0 2 4

5-8 February 2024

CTICC, Cape Town, South Africa

Since 1994, Investing in African Mining Indaba has been among the best places for deal sourcing and corporate matchmaking for the African mining industry. It serves as the most comprehensive meeting for investment, finance, innovation, and transformation to support end-to-end value creation. Today, Mining Indaba continues to drive the economic and sustainable development of Africa and the mining sector forward. Join us from 5-8 February 2024 to celebrate how far the industry has come and discover what the future holds for Africa’s mining industry.

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Economy G

journal

CONTENTS 6 10

NEWS & SNIPPETS INFRASTRUCTURE

It’s a question of scale

SKILLS DEVELOPMENT

18 How to make the grass greener for the other side 22 GREEN Solar Academy 23 Careers in renewable energy 24 Accelerating the integration of youth in renewable energy 25 SA’s engineering skills need infrastructure momentum

RESOURCE EFFICIENCY

26 NCPC-SA assisting SA’s cheese and dairy plants transition to better water and energy efficiency

EQUIPMENT

28 Keep lifting your business this holiday season with Masslift

MOBILITY

30 32

The future of EVs Enabling e-micromobility expansion in African cities

The beauty of a full charge

STORAGE ENERGY

40 Virtual wheeling 101 42 Shifting currents 43 SAWEA set to advocate for SA’s wind energy sector at COP28 44 Menlo Electric on solar products for residential projects

WASTE

46 52

Plastics SA and the Global Plastic Treaty talks in Kenya Responsible actions today will safeguard tomorrow

Waste not, want not

MetPac-SA celebrates resounding success

CIRCULARITY PACKAGING WATER

56 Water modelling is key to managing SA’s scarce water resources 58 SA’s year-end water update

READ REPORT

THOUGHT [ECO]NOMY

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To access the full report in our Thought [ECO]nomy report boxes: Click on the READ REPORT wording or image in the box and you will gain access to the original report. Turn to the page numbers (example below) for key takeouts of the report.

key takeouts of the report

PUBLISHER’S NOTE Dear Reader, Reading the now annual COP headline: Poor countries that contribute the least to global emissions but who are most at risk lobby for more climate adaptation funding. The logic of this line of reasoning cannot be faulted, but it’s not what COP was originally about, and it’s certainly not what wealthy countries want it to be about. Wealthy countries want to work towards a climate mitigation deal that results in countries like India, South Africa, Brazil, Nigeria, Indonesia, the Philippines and other leading developing economies changing course and emerging on a low-carbon trajectory. That is what the Kyoto Protocol was about and what the Paris Accord was about. And in my view, it is what COP should continue to be about. The loud, boisterous and frankly disruptive voices calling for compensation led by our own South African delegation are not constructive. They are being opportunistic, and this constant banter may undermine the ability of the People to reach any kind of consensus and thus undermine the global importance of COP. My proposal – have a separate conference that only discusses adaptation funding and climate disaster compensation, and ban these discussions at COP. Let’s get the ball back in the court and move to the establishment of a global deal to accelerate the green economy internationally. Note: a very positive development is coming to the fore of the plastic crisis within the COP framework. Waste is a tangible, imminent crisis no one can debate the scientific existence of. I wish the COP delegates every success in their deliberations! Yours,

Economy G

journal

EDITOR: Alexis Knipe alexis@greeneconomy.media CO-PUBLISHERS: Gordon Brown gordon@greeneconomy.media Alexis Knipe alexis@greeneconomy.media Danielle Solomons danielle@greeneconomy.media LAYOUT AND DESIGN: OFFICE ADMINISTRATOR:

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EDITOR’S NOTE Our requirement for energy remains an important topic based on infrastructural development. Energy security is critical for meeting objectives with respect to reconstruction and recovery. The transition will require many new skills currently not prioritised in South Africa (page 18). On page 10, Llewellyn van Wyk attests that the causes for the poor standard of infrastructure services worldwide have more to do with scale and complexity than funding/skills shortages. South Africa is experiencing a transformation from monopolistic electricity provision to decentralised services operating at several scales. Decentralised grids have contributed to alleviating the disruptions caused by outages by adding a substantial amount of solar PV (page 44) and battery energy storage (page 36). The mini-bus taxi industry is a decentralised, yet significant public transportation system. Congestion within South African cities is worsening. E-micromobility provides cost-effective and eco-friendly urban transportation opportunities, but we need to – once again – prioritise infrastructure development (page 32). Electricity wheeling facilitates the integration of renewable energy into the grid. Virtual wheeling opens opportunities for companies with low-voltage loads across South Africa to participate in the market (page 40). With almost 25-million solar panels in South Africa, and most of those with a lifespan of 20 years, mass recycling will be required in about 15 years. We must adopt waste management solutions for solar, and the batteries used in these systems, now (page 52). And that’s where circularity steps in (page 48). Round and round we go. A happy and green 2024 to you!

Alexis Knipe Editor

www.greeneconomy.media

CMY

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NEWS & SNIPPETS

AFRICA’S GREEN ASSETS EXCHANGE Africa’s first locally developed online marketplace for trading environmental assets, the Green Asset Exchange, has launched. The asset exchange connects buyers and sellers through an online platform which allows a transparent, trusted and efficient way to get the best economic value from the green economy. The launch in South Africa comes after three years of collaboration between the founders of the Green Asset Exchange and various market participants, brokers, developers, environmental lawyers and top carbon registries in the world. “Several years ago, we identified that the development of green assets is the greatest mechanism to put an economic value on the environment,” Green Asset Exchange Founder and MD, Nicholas Rowley, explains. “At the same time, South Africa brought out its carbon-tax legislation with one of the most forward-thinking policies on carbon pricing and inclusion of carbon credits in the world. So, the time and place is here and now.”

The asset exchange works as a tool to help accelerate the green economy as it continues its rapid growth and maturation. “Green assets” – such as carbon credits and renewable energy certificates – already exist and they have economic value because of their positive impact on the environment. The producers of these assets want to get the highest price for them, and buyers want to buy them at the best price they can get – this is where the Green Asset Exchange comes in. “South Africa and Africa has a solid base for growth in the green economy with established developers and consultants already in the industry and with growing interest from banks and investment companies,” explains Rowley. This is backed up by impressive figures: $7.5-billion was invested in carbon projects last year and 1 500 new projects have been developed or registered with the five main global registries since 2020. The Green Asset Exchange is launching with a diverse asset portfolio and is calling for more producers and buyers of green assets to register, along with brokers, consultants and project developers. www.greenassetexchange.com

TAX AND ESG-RELATED EXPENSES

Candice Meyer

Cor Kraamwinkel

Margaret Vermaak

Cor Kraamwinkel, Candice Meyer and Margaret Vermaak from Webber Wentzel, consider ESG-related expenditure from a tax perspective. In South Africa, ESG considerations permeate our regulatory law, in our environmental, employment, corporate and B-BBEE legislation. Kraamwinkel highlights the practical considerations of ESG taxation, by expanding on three areas: 1. Tax transparency and disclosure This is a theme that is more advanced in certain of the first world countries where there is legislative guidance on how and what you need to disclose in your financials from a tax perspective. South Africa is not there yet, but we see corporate groups moving forward and starting to be early adopters. This results in ESG impacting on how and what is reported from a tax perspective, throughout the financials. 2. Ethical tax contributions The discussion around fair share of tax and whether there is a duty beyond legislation is ongoing, but ESG now also informs it. 3. Tax treatment of ESG expenditure This area is the most technical, and it includes some of the following examples of ESG expenditure by a company or group: costs incurred for receiving environmental sustainability advice, calculations of carbon tax credits, or the newly introduced incentives around renewable energy. GENERAL PRINCIPLES There is no dedicated section in the Income Tax Act that deals specifically with ESG. Instead, general principles apply for business entities: i) expenses must be incurred for purposes of trade in the production of income and ii) expenditure must not be of a capital nature. This also means that the tax deductibility of ESG-related expenditure will require a case-by-case analysis with case-specific rules that may allow for a deduction or allowance in a specific context. Listen to Kraamwinkel, Meyer and Vermaak unpack the tax deductibility of ESG-related expenses.

TWO WITS ACADEMICS LEAD GLOBAL CLIMATE WORKING GROUP The Dean of the Wits Faculty of Science, Prof. Nithaya Chetty, has been appointed as the chair of the International Union for Pure and Applied Physics (IUAP) Working Group on Physics for Climate Action and Sustainable Development, and visiting professor Igle Gledhill from the School of Mechanical, Industrial and Aeronautical Engineering is secretary. These appointments, effective for an initial three-year term, were confirmed during the IUPAP General Assembly in October 2023 in Geneva. Chetty also serves as the vice-president of the Union responsible for membership and the global development of physics. Both Chetty and Gledhill are previous presidents of the South African Institute of Physics. “Issues around climate change are set to grow in the coming years. These challenges are intimately connected with the need for energy security and sustainability of the environment, and if not addressed will impact negatively on poverty, inequality, mass migration, and the human condition,” says Chetty. “These are global problems that require a global effort, and a more focused quest for the green economy.”

NEWS & SNIPPETS

TAKE-OUTS: PACKAGING WASTE Liquid board packaging colloquium hosted by Fibre Circle. “We are facing a crisis in waste management with fast diminishing landfill airspace, and we all have a role to play in finding sustainable solutions that not only divert waste from landfill but create the much-needed jobs for the South African economy,” says Edith Leeuta, CEO, Fibre Circle. Key takeouts: • Diversion from landfill. Agreement needs to be reached on how targets are going to be reached and the collaboration required to achieve set targets. • Public-private sector partnership is critical to preserve the environment and so that investment is made to educate all South Africans. Links between the industry and academic institutions need to be strengthened. Municipalities must ensure that their integrated waste management plans enable separation at source to promote the collection of recyclable materials. Municipalities must provide consistent services to all citizens in the collections value chain. • Infrastructure is a key priority. There has been little or no investment in infrastructure for several years. Without waste processing infrastructure, high volumes of different kinds of waste cannot be processed. • Investment is problematic. Considerable investment is needed

to improve municipal waste management capabilities. Privatesector investment is essential. • Transition to a circular economy needs to be inclusive. Informal waste pickers need to be integrated into the waste management system as it becomes more circular. • Separation at source is critical. Given the various challenges at municipal landfill sites, households must be persuaded to separate their waste so that paper and packaging waste is not contaminated by other waste materials. • Incentivisation is key. The industry needs to produce ways to incentivise citizens to play their role, particularly in underprivileged areas. Incentivisation will also make it more likely that waste pickers will collect more types of packaging waste. • Government has a key role to play. Government needs to ensure that compliance and enforcement are carried out for those organisations that choose to ignore regulations. Municipal by-laws should promote separation at source.

PEOPLE-PLANET-PROFIT BALANCE By Siphokazi Kayana and Nomfundo Mkatshwa-Jackson, CMS South Africa

It has become necessary for companies to prioritise sustainability amidst the threat of climate change. Countries have thus sought to develop regulations in various fields including environmental footprint, market/product communication and financial reporting for companies. Partly because of those regulations, companies are increasingly being held legally accountable from different angles with respect to their role in climate change – ESG litigation. ESG litigation focuses on larger companies with a wide-reaching footprint and its primary goal is to bring about behavioural change in companies. Companies are often publicly held accountable through various media campaigns. It is not just environmental organisations that are acting as consumers; investors, shareholders and local communities are increasingly vocal about taking action. Climate litigation has doubled globally since 2015, bringing the total number of climate lawsuits to some 2 000 – 25% of which were initiated between 2020 and 2022. KEY TRENDS Infringement of climate law. There is no international binding convention on business and human rights. In Europe, however, a great deal of ESG legislation is under preparation, including the Proposal of the European Commission of 23 February 2022 for a Directive on Corporate Sustainability Due Diligence. The legislative process is expected to take a while longer, as such, a final directive is not likely to enter into force until 2025/2026. The obligations to be embedded in this directive are, however, already largely part of existing soft law standards ensuing from previous international conventions. Conversely, the regulations formulated by intergovernmental organisations are integrated into domestic laws, thereby heightening the potential for sanctions and legal disputes. The integration of such international regulations into national legislation holds significant importance, particularly for jurisdictions outside of the EU, as it directly shapes the trends observed in ESG litigation.

Misleading market communication and financial information. The greening trend entails the inevitable risk that companies advertise financial instruments and products as greener and more sustainable than they are. Companies must be aware of the risk of providing misleading market communication and financial information, known as “greenwashing”. Misleading product information may constitute a wrongful act. The CSRD Directive requires large companies to report on issues such as carbon emissions and social capital, but also about the impact that a company has on biodiversity and human rights violations in the supply chain. Pollution of, and damage to, the direct environment. Companies may be held accountable by local communities for polluting or causing damage to, the direct environment. This can be done through a class action. Such claims will be based on wrongful acts in combination with environmental legislation. Shareholders’ actions. Shareholders are increasingly exercising their rights for ESG purposes to force the board of directors to act, for example, their right to place items on the agenda, to speak or to vote on the appointment or dismissal of directors or their remuneration policy. Personal liability of directors. An international trend is that, in addition to holding the company liable to exert pressure, the board of directors of a company is also held personally liable for compliance with the company’s ESG obligations. This relates to (i) personal involvement/negligence in violated standards; and (ii) improper climate change policy. The need for action to protect our planet has prompted intergovernmental organisations and lawmakers to establish clearer standards determining the extent to which businesses can impact the environment while pursuing their operations. We stand at a crucial point in history, necessitating the implementation of rules that uphold the values of people, planet and profit in equal measure.

NEWS & SNIPPETS

MEETING NET ZERO South Africa is currently not in a position to inject finances into repairing an environment ridden with the toxins associated with emissions, says Sune van Niekerk, consultant and compliance specialist at World Wide Industrial and Systems Engineers. Businesses should determine where they are on the net-zero emissions map, so they can identify the gaps between their current and desired states. “They need to develop strategies and a phased approach is best in terms of measuring and tracking progress. By breaking up what needs to be done in phases, the business can achieve small targets which will hopefully assist them in reaching the bigger goal,” Van Niekerk says. Given that Net Zero 2050 is a global target, it is important for businesses to align with international standards. To this end, standardisation principles developed by the International Organisation for Standardisation (ISO) will be key: ISO 14064 [Greenhouse gases] Specifies principles and requirements at the organisational level for quantification and reporting of greenhouse gas (GHG) emissions and removals. Details principles and guidelines for GHG projects for quantification, monitoring and reporting of emission reductions and removal enhancements. Provides principles, requirements, and guidelines for conducting GHG information validation and verification. [ISO 14067 - Greenhouse Gases - Carbon Footprint of Products] Guidelines for quantifying and reporting the carbon footprint of a product based on life cycle assessment. [ISO 14090 - Adaptation to Climate Change] Principles, requirements and guidelines for climate change adaptation planning. [ISO 14080 - Greenhouse Gas Management and Related Activities] Guiding principles for methodologies on environmental management, particularly relating to GHG emissions and removals.

POLICY: CRUCIAL TO SA’S TRANSITION By creating a favourable policy environment that supports investment in green energy, we can accelerate the country’s transition, writes Shirley Webber, Absa. Loadshedding has cost the economy almost R1.2-trillion, according to advocate Tembeka Ngcukaitobi, who is representing political parties against Eskom. The knock-on effects are taking a serious toll on employment, food security and community stability. With government’s decision to remove licensing requirements for generation projects, interest in green energy solutions soared. In the first quarter of 2023, private companies registered nearly 2 500MW of renewable energy projects, which amounts to two stages of loadshedding. In March 2023, 31 renewable energy projects, amounting to 1 308MW of collective capacity, were approved by NERSA. This is a notable increase of over 800%, compared to 2021 when 134 projects registered in the entire year. NERSA indicates that seven wind projects account for the bulk of new capacity, totalling 1 058.2MW. Government has also announced plans to procure up to 10 000MW of additional energy in bid windows 7 and 8 of the REIPPP. INVESTING IN THE FUTURE Government should consider progressive regulatory reforms for renewable energy. This includes creating incentives for private investment, such as more attractive tax rebates or feed-in tariffs to drive innovation, reduce the costs of green energy and add income to the pockets of investors in the country’s renewable energy infrastructure. Work can be done to develop local renewable energy industries by providing training and support for local businesses – ensuring they can grow from concept phase to commercial viability. By supporting clean-tech and green initiatives, we can enable them to contribute more energy to the grid.

SA’S “ENERGY CROSSROAD” SA is at an energy crossroads, caught between a crisis that is costing the economy around R204-million a day and a need to decarbonise the country’s future and achieve this transition in a just, socially acceptable manner. “We urgently need to mobilise enormous amounts of money for humanitarian response, social and economic transition, and large-scale spending to make cities cooler and more resilient, and to finance generation as well as distribution capacity,” says Standard Bank Group CEO, Sim Tshabalala “We need to make better use of blended finance. Banks and other private capital providers can lend and invest more when development finance institutions provide credit guarantees. It is exciting that this idea is getting traction,” says Tshabalala. The transition will need to consider the energy mix, context and security in different countries and regions. The introduction of renewable energy and gas as transition fuels will require innovation and changeover finance.

DFFE REACHES A MILESTONE DFFE is proud to announce the outcome of the allocation of 15-year fishing rights to small-scale fishers in the Western Cape. The delegated authority on the Minister’s instruction issued grant of rights letters to 62 small-scale fishing co-operatives with a total membership of 3 850 declared fishers. This marks the final province where these rights have been granted for the first time in South Africa’s history. The Department is in the process of developing a financially viable basket of species for the small-scale sector. Some of the species that have been granted to date includes commercial traditional line-fish species, West Coast rock lobster, seaweed, bait species, abalone aquaculture ranching sites, net-fish species, white mussels, oysters and hake handline.

NEWS & SNIPPETS

HUAWEI BUILDING BRIDGES FOR BUSINESS GROWTH HDC.Together HUAWEI MEA Ecosystem Summit soars to new heights at the Dubai Opera, fostering collaborations across China and the MEA region. The summit showcased a seamless fusion of collaboration and innovation. The exclusive event brought together Huawei Ecosystem partners from China and across the Middle East and Africa. Organised in partnership with Dubai Economy and Tourism (DET) and the Saudi Tourism Authority (STA), the focus of the summit was on fostering innovation, economic growth and developments in technology and tourism. When converging technology and opportunity, HDC.Together acts as the bridge connecting the MEA region and China, fostering innovation, partnerships and business exchange across markets. Eng. Maryam Al Balooshi, Vice Chair and UAE representative of the Committee of Aviation Environment Protection (CAEP)-ICAO, said, “In the ever-evolving landscape of technology, Huawei’s

ecosystem stands as a testament to transformative collaboration, enriching experiences by building bridges for a better future.” The event outlined a comprehensive 2024 action plan with 24 strategic partners joining the conversation, formalising commitments to innovation and growth across regions including the Emirates, Arabian Oud, Jahez and Viu, all of whom expressed their commitment to these shared goals. The summit delivered the perfect platform for HUAWEI to introduce new solutions, underscoring a commitment to connect with customers, enable brand growth and embrace future challenges. Ultimately, the annual HDC.Together HUAWEI MEA Ecosystem Summit highlighted Huawei’s unwavering dedication to fostering collaboration, innovation and a connected future, showcasing knowledge sharing and cutting-edge solutions within Huawei’s thriving ecosystem, while uniting partners from China and MEA.

THE PCC ON KOMATI POWER STATION President Ramaphosa welcomed a report from the Presidential Climate Commission (PCC) to support a just transition at the decommissioned Komati coal power station in Mpumalanga as an important consolidation of the perspectives of impacted stakeholders in Steve Tswhete and Emalahleni municipalities. “The report, which was developed in an inclusive and consultative manner, provides a factual assessment of the decommissioning process followed at Komati. The report’s recommendations should move us closer to reclaiming restorative justice to affected workers and communities,” said Ramaphosa The PCC began interacting with Komati in January 2022 as part of the development of the national Just Transition Framework. Ramaphosa emphasised the aim is to bring coherence to just transition planning, and to use the report as a blueprint for ensuring justice in future coal plant decommissioning projects.

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THOUGHT LEADERSHIP

INFRASTRUCTURE It’s a question of scale

Previously*, I asserted that the underlying causes for the poor standard and performance of infrastructure services worldwide had more to do with scale and complexity than funding or skills shortages, which are contributory albeit secondary causes. This raises a need for further investigation of compact cities and decentralised management approaches. BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST

argued, based on a limited case study of three countries, that scale – both physical and financial – would appear to be the primary issue and that it required a compact infrastructure network coupled to strategic decision-making in terms of scale, complexity and location. From the albeit limited evidence shown in that think piece, a correlation was drawn between population density, GDP per capita and global infrastructure ranking. I noted that more research is required to make a definitive statement on this hypothesis. Nonetheless, compactness and strategic investment decision-making are key factors in Taiwan and Singapore’s success. This raises issues that need to be investigated regarding the original proposition. One of these is the compact city and the other is the use of innovative engineering and decentralised management approaches. The latter speaks to microgrids and distributed grids.

THE COMPACT CITY

The compact city, despite the recent press attention given to comparable ideas such as the 10-minute or 15-minute city, is not a new concept. The term was first invented by Dantzig and Saaty in 1973 in their publication Compact City: Plan for a Liveable Urban Environment (WH Freeman, San Francisco) although credit should also go to Jane Jacobs and her book The Death and Life of Great American Cities (1961). Jacobs identified four essential conditions for urban renewal namely, mixed uses, small walkable blocks, mingling of building ages and types as well as a denser concentration of people.

Similarly related concepts include smart growth although critics, such as Kaid, argue that it differs in principle since it suggests that growth is necessary and good; new urbanism; green urbanism, with its 15 core principles as set out by Lehmann; and eco-districts. Central to all these concepts is the notion of a compact city. A compact city as originally promoted is one that is predicated on relatively high residential density, mixed land uses, an efficient public transport system and, critically, the ability to walk to most destinations of choice. Notably absent from these conditions was the provision of infrastructure apart from transport and personal mobility. Infrastructure only emerged as an essential condition when the focus of compact cities began to include self-sustainability, meaning that the city has access to all the services it needs within the community. Apart from the typically included services such as stores, employment and service providers, it began to include infrastructure services previously provided at a regional, provincial and national level. These are typically energy generation, waste disposal and processing as well as smallscale agricultural production such as community gardens and/or vertical gardening. Lehmann extended these essential conditions by including water infrastructure. Still absent was sanitation. From an infrastructure development perspective, the argument made for compact cities is that they are more sustainable than the conventional model of urban sprawl as they reduce car dependency and require less and cheaper per capita infrastructure provision. As noted by improving land efficiency through improvements of resource

THOUGHT LEADERSHIP efficiency and reduction of travel demand is at the core of the compact city’s conceptualisation. Yao, notes in the study that the compact city concept can provide twofold contributions to higher land efficiency namely, it reduces low-efficiency consumption of land resources while, simultaneously, promoting agglomeration economies by encouraging high-density development. Yao found that higher population density and compact urban form are beneficial to the urban economic efficiencies of large cities. However, Yao proposed “tailor-made policy suggestions regarding compactness and economic efficiencies for cities of different sizes” which concurs with the finding made in earlier pieces for strategic investment decision-making. Westerink found that “compact cities excelled in efficient land consumption, more flexible land use patterns, cost efficiency of development and maintenance [the emphasis is mine], and reduced reliance on fossil fuels and motor vehicles.” Numerous other researchers have come to the same conclusion, including Dempsey (2010), Kain et al (2022) and Ghisleni (2022). Marcotullio introduced wastewater treatment as one of the essential conditions. Marcotullio argues that a further innovation required to enhance the sustainability of compact cities is the adoption of sustainable systems, which include “infrastructure to naturally process sewage waste, grey water and storm runoff on site”. This reference to natural processes begins to address the application of nature-based solutions (NbS) in development to, inter alia, deal with climate change adaption and mitigation.

NATURE-BASED SOLUTIONS

The International Union for Conservation of Nature (IUCN) promotes nature-based solutions that leverage nature and the power of healthy ecosystems to protect, optimise infrastructure [the emphasis is mine], and safeguard a stable and biodiverse future. It is the optimisation of infrastructure specifically that is of interest to this think piece. It notes that nature-based solutions can help cities realise an emerging opportunity to reimagine the built environment, and by extension, our civilisation. Nature-based solutions are defined as the sustainable management and use of natural features and processes to tackle socio-environmental issues. The European Union’s definition of nature-based solutions states that nature-based these solutions are inspired and supported by nature, are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more, and more diverse, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systematic interventions.

South African households and businesses have installed 4 400MW of rooftop solar PV, an increase from 983MW in March 2022 to 4 412MW in June 2023.

THOUGHT LEADERSHIP The IUCN proposes NbS as an umbrella concept with covering various categories: the category of interest to this think piece is the infrastructure-related category which includes natural infrastructure and green infrastructure. NbS is classified into types (see figure 1) with Type 3: Design and Management of New Ecosystems being the category that includes greening cities, greening buildings and artificial ecosystems.

Figure 1: Types of nature-based solutions. By Hilde Eggermont – received from the original article author, CC BY-SA 4.0.

The use of mangroves along coastlines is one of the more readily identified nature-based solutions. However, green roofs or walls are also deemed to be NbS as they can moderate the impact of high temperatures, capture storm water, abate pollution and act as carbon sinks while simultaneously enhancing biodiversity. In this capacity, NbS can bring together established eco-based approaches, such as ecosystem services, green-blue infrastructure, ecological engineering, ecosystem-based management and natural capital . The World Water Development Report 2018 by UN-Water notes that NbS is particularly helpful in enhancing water availability and improving water quality by, inter alia, the use of natural wetlands and constructed wetlands to treat wastewater. More specifically, the following solutions are of benefit to infrastructure: blue-green roofs; ecological sanitation; hydroelectricity; hydropower; marine energy; rainwater harvesting; rainwater tank; tidal power and wave power. Green infrastructure is considered a sub-set of NbS. It is also included in standards such as the Standard for Sustainable and Resilient Infrastructure (SuRe). It can also include low-carbon infrastructure such as renewable energy infrastructure and public transportation

The bigger question is whether decentralised infrastructure can solve the ongoing decline in infrastructure services and assets.

The use of mangroves along coastlines is one of the more readily identified nature-based solutions.

THOUGHT LEADERSHIP

In 2021, the [mini-bus taxi] industry transported about 16.5-million passengers a day.

systems. In concert with green infrastructure is the idea of green-blue infrastructure which includes sustainable urban drainage systems (SUDS) for managing urban stormwater systems. Green infrastructure has been found to reduce project costs: in a 2012 study focusing on 479 green infrastructure projects across the US, 44% of green infrastructure costs were reduced. The most notable cost savings related to reduced stormwater runoff and decreased heating and cooling costs, . Green-blue infrastructure projects completed in the City of Philadelphia in the US reduced their stormwater infrastructure costs from $6-billion to $1.2-billion over a 25-year period.

DECENTRALISED SOLUTIONS

A decentralised physical infrastructure network refers to a network of physical devises or resources distributed across various locations and operated in a decentralised manner. Unlike traditional centralised infrastructure networks, where a single entity or organisation controls and manages resources, decentralised networks aim to distribute control and decision-making authority among multiple participants. Decentralisation at this level entails a shift from monopolistic silos to a federated structure operating at several scales. Decentralisation also means ensuring real control of the user’s own resources either at the individual or collective level. South Africa is currently experiencing, because of Eskom’s failures, such a transformation from monopolistic electricity service provision to decentralised services operating at several scales. It can be argued that this would have happened anyway, but it has been accelerated by the critical power shortages experienced by consumers.

Decentralised grids – residential and commercial – have contributed to alleviating the disruptions caused by outages by adding a significant amount of rooftop solar PV and battery energy storage. Data from Eskom and Professor Anton Eberhard revealed that South African households and businesses have installed 4 400MW of rooftop solar PV, an increase from 983MW in March 2022 to 4 412MW in June 2023. This 349% increase in solar rooftop PV significantly reduced the residual load that Eskom needs to meet during the day. In truth, decentralisation of infrastructure services in South Africa began many decades ago with the emergence of the mini-bus taxi industry, again a result of monopolistic service delivery failure, just like Eskom. This decentralised transport system is a significant part of the country’s public transportation system, transporting about 69% of South Africa’s commuters. In 2021, the industry transported about 16.5-million passengers a day. By way of context, Gautrain ridership is about 55 000 passengers per day. The bigger question is whether decentralised infrastructure can solve the ongoing decline in infrastructure services and assets. Decentralised infrastructure shifts functions and responsibilities towards entities distributed across various locations and scales. A specific concept associated with decentralisation of services is that these systems are scalable, modular and can be geographically distributed in proximity to customers without big networks and grids. In addition, suppliers can perform distribution, maintenance and repair services as well as additional services. This approach can address challenges associated with traditional centralised networks such as cost, risk and scale as well as lowering barriers to access and participation.

THOUGHT LEADERSHIP

Radhuset Metro Station, Stockholm.

The major benefit of decentralised infrastructure is that there is no single point of failure – as so alarmingly demonstrated by the Eskom scenario. This not only applies to service delivery inadequacies but the impacts of climate-related extreme weather events as well. Big, centralised power plants also lose between 8% to15% of the power generated between the power plant and consumers: this can vary substantially depending the specifics of the power grid and the distance between the power station and the consumer. These transmission losses are avoided in decentralised plants.

THE NET-ZERO MOVEMENT

We are a finite world. Qureshi posed an enticing proposition when he argued that “both infrastructure investment and climate action are urgently needed. With the right approach, we can achieve both goals simultaneously, building a more prosperous and sustainable future”. He further argued that “shifting to renewable energies and sustainable infrastructure can help to mitigate greenhouse gas emissions while enhancing countries’ resilience to climate change. If climate risks are factored in investment decisions, renewable energies, cleaner transport, efficient water systems and smarter, more resilient cities will emerge as the best bets”. The proposition challenges one to consider what “the right approach” may be. Through this series on infrastructure, I have constructed an argument for might it be. I suggest that the “right approach” contains at least four core strategies: 1) Compact cities excel in efficient land consumption, more flexible land use patterns, cost efficiency of development and maintenance and reduced reliance on fossil fuels and motor vehicles. 2) Nature-based solutions leverage nature and the power of healthy ecosystems to protect and optimise infrastructure and safeguard a stable and biodiverse future. 3) D ecentralised grids. A specific concept associated with decentralisation of services is that these systems are scalable, modular and can be geographically distributed in proximity to customers without big networks and grids. 4) Net zero. Decentralised infrastructure will operate at optimum efficiency when resources consumed and generated are in balance.

Zia Qureshi, a former director of development economics at the World Bank and a non-resident fellow at the Brookings Institution, noted that “as it stands, more than 80% of the world’s primary energy supply and more than two-thirds of its electricity are derived from fossil fuels. Infrastructure alone accounts for around 60% of global greenhouse gas emissions. If the world follows the same old approaches in building new infrastructure, it will lock in polluting, resource-intensive and unsustainable pathways to growth”. A core driver of decentralised grids is the concept of net-zero: net-zero refers to a balance between used and generated resources. While this concept is most often used in the context of energy, increasingly other resources are coming into focus. Day Zero in Cape Town in 2017/18 is a vivid reminder that all the resources we use face exhaustion at some point: we are a finite world. REFERENCES <?> Benfield, K. 2011. “The Country’s Mostwill Ambitious Smart Growth Atlantic. when Decentralised infrastructure operate at its Project”. most The efficient <?> Lehmann, S., 2010. “Green Urbanism: Formulating a Series of Holistic Principles.” S.A.P.I.EN.S. 3 (2). resources consumed and generated are in balance. With careful <?> Li, L., & Yu, Y., 2016. “Planning low carbon communities: Why is a self-sustaining energy management system indispensable?” In Energy Sources, Part B: Economics, Planning, and Policy. 11 (4): 371-376. and strategic design, net-zero energy, water, sanitation, waste and <?> Yao, Y., Pan, H., Cui, X., & Wang, Z., 2022. “Do compact cities have higher efficiencies of agglomeration economies? A dynamic panel model with compactness indicators.” In Land Use Policy, 115: 106005. biodiversity (net-zero +5) are within reach. With thisof the approach, can achieve both goals infrastructure <?> Westerink, J., Haase, D., Bauer, A., Ravetz, J., Jarrige, F., & Aalbers, C., 2013. “Dealing with Sustainability Trade-Offs Compact City we in Peri-Urban Planning Across European Cityof Regions. ” In European Planning Studies, 21 (4): 473-497. investment and climate action simultaneously, building a more <?> Marcotullio, P. 2017. Towards sustainable cities: East Asian, North American, and European perspectivesprosperous in managing urbanand regions. New York: Routledge. sustainable future. QUO VADIS INFRASTRUCTURE DESIGN <?> Raymond, C., Frantzeskaki, N., Kabisch, N., Berry, P., Breil, M., Nita, M., Geneletti, D., & Calfapietra, C. 2017. “A framework for assessing and implementing the co-benefits of nature-based solutions in In the first of the think-pieces in this journal on this topic urban areas. ” In Environmental Sciencepublished & Policy, 77:15-24. <?>question Berg, N., 2012. “Green Infrastructure Cities Billions”. Bloomberg.com. New York: Bloomberg LP. the was asked aboutCould theSave future direction of infrastructure <?> US EPA, 2015. Economics of Green Infrastructure”. Washington, D.C.: U.S. Environmental Protection Agency (EPA). 2015-11-02. investment and“The design. <?> Green, J., 2013. “The New Philadelphia Story is About Green Infrastructure”. The Dirt. Washington, DC: American Society of Landscape Architects (ASLA). <?> Neethling, B. 2023. “Eskom is on the right track.” * For previous infrastructure thought leadership articles written by Llewellyn van Wyk, visit www.greeneconomy.media and read our digital version of Green Economy Journal issues 57, 58, 59 and 60. <?> Research and Markets, 2020. “2020 Report on South Africa’s Minibus Taxi, Bus Services and Metered Taxi Industry.” Dublin: Research And Markets. <?> Ibid. <?> Centre for Public Impact, 2016. “South Africa’s Gautrain: rail travel from Pretoria to Johannesburg.” <?> CHNT undated. “How much power loss in transmission lines.” <?> Qureshi, Z., 2016. “Infrastructure for a Sustainable Future.” <?> Ibid.

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Altum Energy: BASF NAS® Battery Storage Business Development Partner – Southern Africa

A Nightmare in the Making The Untold Consequences of Neglecting Sustainability in South Africa In a world not so distant from our grasp, South Africa, a nation once celebrated for its abundant resources and flourishing industries, now lies in desolation. This remarkable land, once synonymous with economic promise and resource wealth, has become a victim of environmental decay, merciless corporate exploitation, and the relentless tide of societal upheaval. The nation’s former glory has given way to a haunting tableau of ruins and despair, where the echoes of its past achievements have been silenced by the dark forces of decay and exploitation, casting a shadow over its once-vibrant future... The Economic Abyss As the gap between the wealthy elite and the impoverished masses grew wider, the economy continued to unravel. Unemployment and inequality reached unprecedented heights, plunging the majority of citizens into a vortex of destitution. The absence of crucial anti-corruption and business continuity management systems left the nation susceptible to rampant bribery and economic instability. Political Turmoil Political turmoil gripped the nation, with rival factions vying for control. Corruption ran rampant, and infighting paralysed the government, rendering it impotent in the face of mounting crises. The lack of ethical standards led to a culture of exploitation and dishonesty, further weakening the nation’s leadership. Social Unrest Amidst the gloom, social unrest swelled. Without adequate access to healthcare, education, and basic services, communities turned into cauldrons of desperation. The absence of comprehensive sustainability reports and assurance processes left the people’s cries for help unanswered, threatening to tear the social fabric asunder. Environmental Desolation Environmental degradation spiraled out of control, as natural resources were depleted, and ecological disasters became the norm. South Africa’s once-stunning landscapes became barren wastelands, as the lack of sustainability practices and material stewardship standards left the nation helpless in the face of ecological collapse. Exodus As the situation worsened, a mass exodus of South Africans seeking refuge abroad became inevitable. This brain drain sapped the nation of its brightest minds and most talented individuals, leaving it even more vulnerable and destitute. The absence of ethical practices in the steel industry allowed rampant environmental destruction to persist. This narrative offers a haunting glimpse of what a nation’s future may become when crucial standards are neglected, serving as a solemn reminder of the dire consequences associated with the abandonment of essential reforms. However, within this darkness, there is a shared hope for a better future...

Embracing Essential Sustainability Reforms and Standards Can Prevent a Dystopian Crisis. DQS, an internationally recognised certification body, is renowned for our expertise across various sectors. Our comprehensive services, including expert accredited training, thorough audits, and detailed assessments, are strategically designed to foster a sustainability-focused culture within organisations. Training Programs: We offer training programs that focus on sustainability to help your organisation gain the necessary skills, tools, and knowledge for sustainable growth. Our educational initiatives will enable you to excel in your sustainability journey, whether you want to improve your understanding of sustainable practices, ethical conduct, or specialised industry standards. Audits for Sustainability: DQS conducts audits with expert precision, offering a comprehensive evaluation of your sustainability systems, processes, and compliance. Our experienced auditors ensure that your organisation not only meets sustainability standards but also surpasses them, fulfilling the commitment to sustainable practices. Sustainability Assessments: Our sustainability assessments provide a strategic insight into areas where your organisation can further its commitment to sustainability. They offer a roadmap for potential improvements and growth opportunities, enabling you to fine-tune your sustainability strategies, reduce environmental impact, and enhance resource efficiency.

Our specialisation in these standards, along with the initiatives they encompass, forms a foundation for promoting sustainability and responsible business practices across various industries: • • • • • • • • •

ISO 14001 - Environmental Management Systems: This standard focuses on environmental management, helping organisations minimise their environmental impact. ISO 50001 - Energy Management Systems: A standard designed to improve energy performance, reduce energy consumption, and lower greenhouse gas emissions. ISO 37001 - Anti-Bribery Management Systems: Focuses on combatting corruption and ensuring effective anti-bribery management systems. ISO 22301 - Business Continuity Management (BCM): A system to safeguard an organisation’s existence during emergencies, ensuring uninterrupted critical processes. Sustainability Report Assurance (ESG): Involves the external review of an organisation’s sustainability report to ensure credibility and trustworthiness, upholding the AA1000 Assurance standards and GRI guidelines. AA1000 Online Training: Provides knowledge and tools for effective sustainability reporting and stakeholder engagement, with a program consisting of three modules. Aluminium Stewardship Initiative (ASI) Certification: Signifies a commitment to social, environmental, and ethical standards in the aluminum industry, evaluating organisations across the aluminum value chain. FSSC 24000 Certification - Social Management System Scheme: Focuses on establishing and enhancing a Social Management System, addressing social issues in manufacturing and processing industries. ResponsibleSteel™ Certification: A non-profit organisation promoting responsible steel production, setting sustainability standards in the steel industry.

To learn more about our services, please visit our website at www.dqsglobal.com

SKILLS DEVELOPMENT

How to make the

GRASS GREENER

for the other side South Africa’s diverse skills development needs require a well-coordinated, inclusive and integrated post-school system. Green Economy Journal looks at the skills that are needed for and after the Just Transition. Sector skills plans for energy, water, metals, engineering and related services.

he National Plan for Post-School Education and Training (NPPSET), which derives its mandate from the White Paper for Post-School Education and Training (WPPSET), is a roadmap to 2030 for the development of post-education and training. The plan acknowledges that we do not have adequate education opportunities for school leavers (on completion of grade 12 or earlier). Central to the plan is the recognition that post-school opportunities are needed outside the higher education sub-system.

METALS AND ENGINEERING

In January 2022, the metals and engineering sector outlook was positive. Policy developments to improve business operation conditions in SA include the steel masterplan. Coupled with this policy, the automotive sector will see increased investments in production, resulting in growth potential for the stainless-steel sector. It is imperative to increase confidence in the sector’s outlook through efforts to reduce corruption and ensure implementation of the reimagined industrial plan which incorporates reconstruction and recovery efforts by government. The positive outlook is hampered by the Russia/Ukraine conflict, which has had negative consequences in terms of inflation on food and commodities, particularly the increased fuel price. Loadshedding and energy constraints have further negatively impacted the sector.

AUTOMOTIVE SECTOR

The automotive sector contributes 4.9% to the GDP derived from manufacturing and retail, and accounts for 26.7% of SA’s manufacturing output, with almost 16% of exports. According to the National Association of Automobile Manufacturers SA, the sector slowed in the fourth quarter of 2021. New vehicle sales increased 0.8%, much lower than the 3.5% experienced in the fourth quarter of 2020. Vehicle production reflected a decline of 16.5% compared to the production in the same quarter of 2020. Vehicle exports declined by 21.3%. These results came on the back of several domestic disruptions including civil unrest in July 2021, a cyberattack on Transnet, a three-week strike in the metals sector and lockdown restrictions. The Russia/Ukraine conflict hampered global supply chains due to Europe’s strategic position in the auto ecosystem. The depressed outlook was short-lived as new vehicle sales and exports rose in February 2022, indicating traction in sector recovery. In February 2022, new car sales rose by 18.4% and exports rose by 12.3%. Electric and hybrid vehicle sales increased in January 2022 (216 vehicles were sold versus 34 in January 2021). These trends bode well for the manufacturing sector. Despite the KZN flooding in April 2022, the sector’s sales remained robust, and the sector saw increases in production and exports.

SKILLS DEVELOPMENT PLASTICS SECTOR

The plastics sector accounted for around 60 000 jobs and exported converted 1.8-million tons of polymer into products in 2018. The sector has a multiplier potential of 3.7% for each job created and 3.5% for each rand invested. As part of government’s reimagined industrial policy, a plastics industry masterplan has been developed to ensure the industry’s growth trajectory. Key objectives are to reduce the trade deficit to less than 10% of the total value of the industry by 2035, maintain or improve the tons pe employee which equated to 30 tons per formal job in 2018, reduce visible amounts of plastic litter in the environment and increase recycling rates to 60%. Realising the masterplan’s aspirational vision requires institutional coordination and regulatory intervention. Even though the sector has been earmarked as a priority, expedience in investment and political will is required to boost the industry’s economic trajectory. Plastics SA states, “The negative impacts of a national economy that has not grown at any meaningful rate for over a decade, losses suffered because of the industrial action taken by striking workers, a weakening rand/dollar exchange rate, competing against cheap imports; high electricity costs and unreliable supply have forced many of our manufacturers and recyclers to lose the fight for survival. Some companies have had to dramatically scale down operations, while others have had to close their doors permanently.”

ENVIRONMENTAL SUSTAINABILITY

The notion of the green and circular economy as it relates to climate change and environmental sustainability tends to drive business processes and skills required to meet these. Internationally, there is a big push for net-zero carbon emissions by 2050. There will be an ever-increasing demand for clean technologies and energy solutions will become important for mer sectors and energysavvy consumers. New solar-powered products and efficient fuel cells are a significant input into the future of all citizens – the transport industry will move to cleaner engines and autonomous vehicles; this will require infrastructure and support for localised production. A concern among stakeholders is the lack of clear training intercessions and talent development in line with the opportunities presented by green economies.

The merSETA’s research in green skills is being driven by the private sector on topics that are related specifically to their business environment. There needs to be a concerted effort to raise new opportunities for occupations in spaces such as waste management, renewable energy and the circular economy. Design for the environment, critical thinking and problem-solving are crucial skills raised by stakeholders in this area as well as the need to embark on producing green products and processes. The Global Eco-Industrial Parks Revitalisation Programme was launched in SA in 2020 (partnership between the DTIC, NCPC-SA and UNIDO). Eco-industrial parks are hubs in which businesses cooperate with each other and the local community to reduce waste, share resources and achieve sustainable development. This model of collaboration to ensure that businesses work with the design of the environment provides a blueprint for further collaboration in the manufacturing sector. merSETA should implement research in this area to understand the skills required.

RECOVERY PLAN

The Economic Reconstruction and Recovery Plan (ERRP) sets out to stimulate equitable and inclusive economic growth in SA, which requires a substantial structural change to enable development. The goal is for SA to realise massive mobilisation of resources and efforts in economic activities that would place the economy on a sustainable recovery trajectory. Addressing issues that have hindered the progress of the local economy such as sustained low levels of investment and growth, downgrades, including those of state-owned enterprises (SOEs), increasing associated costs of borrowing, revenue leakages and maladministration of state funds, increasing budget deficit and a rising stock of debt requires an effort in implementation of the ERRP. Aggressive infrastructure investment; employment-orientated strategic localisation, reindustrialisation and export promotion; energy security; tourism recovery and growth; gender equality and economic inclusion of youth; green economy, mass public employment and macro-economic interventions; as well as food security have been emphasised in the ERRP. Green industrialisation will support energy, water, electricity supply and food security.

Infrastructure investment is a vital driver of the future growth of our economy.

SKILLS DEVELOPMENT

Design for the environment, critical thinking and problemsolving are crucial skills.

It is imperative that former plans are not abandoned by government. Renewables must be a central focus for the long term which supports a sustainable energy future, since diversification of the energy mix remains a priority as expressed in the Integrated IRP which encourages new entrants and capacity in the energy space. Green economy mediations are envisaged to support energy security, which will in turn foster cleaner energy transitions, create new green jobs and support industries. Liquefied Natural Gas is one of the cleanest fossil fuels available and the gas-to-power energy solution will become a major contributor to the national power grid while offering a cheaper alternative to diesel. Increased capacity in any form will require an intensified supply of the most appropriate skills in response to significant energy needs. Partnering with respective constituencies must remain a priority for the EWSETA in ensuring the provision of skills in responding to new sectoral developments and related opportunities. The EWSETA must continue to produce the required competencies and knowledge through education and training to inspire a generation geared towards sustainable, effective, efficient and green long-term solutions.

ENERGY

SA’s requirement for energy remains an important topic based on much-needed infrastructural reconstruction and development. Despite the many challenges faced by SA from a resource point of view, it still holds true that the energy sector has seen an increase in the percentage of households connected to mains power supply over the years. Conventional thermal power is the dominant source of energy for the foreseeable future. Deemed as a basic requirement for the sustainability, stability and growth of the economy, the ERRP posits energy security as critical for meeting objectives with respect to reconstruction and recovery. Energy demand has by far exceeded supply, as can be seen with the ongoing power shortages across the country. Enhancement and diversification of the current infrastructure must be geared towards the reliability of energy supply. Given our current heavy reliance on coal for electricity generation as well as liquid fuel production, the energy transition will require many new skills in areas currently not prioritised in SA. The transition brings many risks and significant opportunities since it impacts all sectors in all countries and is of critical importance to SA. The move away from coal to lower carbon-based technologies will inevitably impact communities that are dependent on the existing infrastructure. By ensuring that the transition is “just”, the process must actively drive opportunities for social upliftment. The transition covers decarbonisation, digitisation, decentralisation and deregulation.

The energy transition will require many new skills in areas currently not prioritised in SA. WATER ACCESS AND SANITATION

Between 2002 and 2019, household access to water in the dwelling increased from 4.5-million to 7.7-million. Significantly more houses had access in 2019 than 18 years ago. Through the continued efforts of government, support agencies and stakeholders, households with access to improved sanitation increased by 20.4% between 2002 and 2019 (from 61.7% to 82.1%). Achievements owed to the installation of pit toilets with ventilation pipes. Without water engagement, SA will continue to face serious water threats that will compromise long-term human and environmental health. Supply and quality of water are determined by dominant factors such as demand and use; however, the freshwater cycle boundary is strongly affected by climate change. It is projected that SA will have a water deficit of 17% by 2030 and physical water scarcity by 2025 based on current usage trends and the aggravating effects of climate change. In February 2021, Ramaphosa announced an intention to establish the National Water Resources Infrastructure Agency, which has been in the making for years and will oversee the development of the systems that are crucial for SA’s water security. This will include operations of the existing dams and main transmission pipelines that are currently run by the Department of Water and Sanitation (DWS); as well as of specialist infrastructure such as treatment of acid mine drainage currently operated by DWS and the Trans Caledon Tunnel Authority (TCTA). The agency will ensure funding for the construction of water systems upon which large water users such as metro municipalities, public utilities and big companies are dependent. This approach is aimed at averting maladministration and irregular expenditure of resources identified for this purpose. The agency will streamline procurement and recruitment using processes already proven by the TCTA, especially for hiring and retention of much-needed specialists and new graduates. The National Water Act (NWA) and the Water Services Act of 1997 provide a framework for sustainable water resource management while enabling improved service delivery. The National Water and Sanitation Masterplan sets out priorities to be addressed by the water sector until 2030, which includes measurable outcomes such as responsibilities, time frames and associated estimated costs. Examples of these priorities include building a water-secure future based on five key objectives that define a “new normal” for water and sanitation management in SA: a. Resilient and fit-for-use water supply. Rethinking how our cities, provinces and country must become resilient depends on the ability to conceptualise and implement a water-sensitive urban

SKILLS DEVELOPMENT design. This will create jobs and prompt the need for new skills. b. Universal water and sanitation provision. Achieve 100% sustainable sanitation and reliable water supply provision by 2030. c. Equitable sharing and allocation of water resources. Access for all while maintaining a reliable supply of clean, potable water remains paramount for government planning and management activities based on limited water resources in the country. d. Effective infrastructure management, operation and maintenance. Planning for, developing and maintaining water infrastructure is a basic requirement in realising effective operations across the water sector. e. Reduction in future water demand. The curbing of water demand will require reliable water infrastructure to support reduced need for supply through reuse, recycling and reduction of wastage. The national capacity to operate, maintain and manage water supply and sanitation services requires urgent attention. Vital actions include implementing a long-term plan for the turnaround of water supply and sanitation services; planning for effective disaster management; revisiting levels of service for water supply and sanitation against issues of affordability; investigating alternative service delivery models such as build, operate, train and transfer; management contracts and concessions; providing

The right to access sufficient water is accorded to everyone: water is a basic human right for all. direct water services development planning support to WSAs; and implementing provincial water services delivery masterplans. Determining the right skills, knowledge and expertise required to respond to the desperate need for a resilient water infrastructure in SA will require mutual collaboration across all government spheres, the EWSETA and related stakeholders.

SUSTAINABLE INFRASTRUCTURE

The Sustainable Infrastructure Development Symposium (SIDSSA) brings together critical role-players in the infrastructure investment space that are galvanised around a critical goal of accelerating an infrastructure-led economic recovery plan. Infrastructure investment is a vital driver of the future growth of our economy. Providing superior quality infrastructure allows an economy to be more efficient, improves productivity and raises long-term growth and living standards. SA requires the right kind of infrastructure investment that will not only contribute to higher long-term development but should address spatial disparities, transform the economy and create much-needed jobs. SIDSSA is a platform to explore partnerships between the public and private sectors and investment opportunities in infrastructure. The symposium is intended to shape the conversations about regulatory reforms, innovative funding models and investing in infrastructure for shared prosperity. SIDSSA will help government identify regulatory impediments before final, costly decisions are made. A well-coordinated and institutionalised infrastructure delivery mechanism involving the public and private sectors will ensure we support projects that can leverage private sector funding.

HYDROGEN FUEL CELLS ECONOMY

SA’s Hydrogen Valley will identify concrete project opportunities to kickstart SA’s hydrogen activities in promising hubs. The proposed hydrogen valley will stretch approximately 835km from AngloAmerican’s Mogalakwena PGM mine in Limpopo, along the industrial corridor to Johannesburg and Durban. The aim is to boost economic growth and job creation, drive the development of new industries, increase value-add to SA’s platinum reserves and reduce our carbon footprint. The DSI is leading the process of developing a hydrogen society roadmap that sets out a vision for an inclusive SA hydrogen society to enable the development of a compact between government, industry, labour and communities. EWSETA has embarked on a partnership to facilitate skills development and quality provision guidance in terms of hydrogen fuel cell technology.

OPERATION PHAKISA

Launched in 2014 by government, Operation Phakisa was positioned to unlock various energy options, and designed to boost economic growth and create jobs in the context of the NDP. The Department of Mineral Resources intends to replace the production of 80% of SA’s oil and gas imports. Several national and international companies have expressed interest in investing in SA drilling. Gas condensate found in 2019 and 20202 near Mossel Bay presents opportunities for the EWSETA to develop skills and capacity within this sector.

*This article is an excerpt from both the merSETA and EWSETA sector skills plans.

SKILLS DEVELOPMENT

REIAoN partners with

GREEN

SOLAR ACADEMY

to train members

ecognising the immense potential of the renewable energy sector in Namibia, the Renewable Energy Industry Association of Namibia (REIAoN) has taken proactive steps to ensure that the country’s workforce is ready for the impending green energy boom. REIAoN is partnering with GREEN Solar Academy to equip their members with the knowledge and skills necessary to excel in the solar industry. The GREEN Solar Academy courses in Namibia cover the entire spectrum of solar technology, encompassing aspects such as design, installation, maintenance and financing. This collaboration will not only enhance the capabilities of Namibian installers but will also contribute to the growth of the country’s green energy sector. Namibia is a country with relatively low industrialisation. Green hydrogen, says James Mnyupe, economic advisor to the president of Namibia, could potentially allow the country to leapfrog the carbonheavy stage of industrialisation and go straight to a low-carbon industry, emerging as an international energy player able to establish lucrative foreign markets. Mnyupe explained in mid- 2023 that “the project is so large and so significant, that it actually enables other industries to flourish… it’s a

harbinger of prosperity for the rest of the country.” A sophisticated capital market in Namibia allows for the construction of various financial instruments that allow for the deployment of blended financing; this helps lower the cost of capital required for the construction of these projects and makes Namibia an attractive place to consider building green hydrogen assets. Call for professional PV installers And when those green hydrogen assets are PV solar systems, there is going to be a huge call for professionals to undertake the installation. Filling the skills and knowledge gaps of service providers will be the key to unlocking the full potential for investment in PV in Namibia, and this partnership has opened the doors to world-class training and empowering individuals with the expertise required to contribute to a sustainable energy future. For more information on the Renewable Energy Industry Association of Namibia (REIAoN) and GREEN Solar Academy Namibia, please visit the following links: REIAoN Website GREEN Solar Academy Namibia

SKILLS DEVELOPMENT

CAREERS IN RENEWABLE ENERGY

THE WIND INDUSTRY INTERNSHIP PROGRAMME

Following the successful launch of Wind Industry Internship Programme in January 2022, which placed 15 interns within SAWEA member organisations for a year-long internship, the programme expanded its efforts in 2023, providing over 20 interns with realworld experience, some of whom have already transitioned into permanent positions. It is clear to see the value of this industry internship, as it helps to bridge the gap between academic knowledge and tangible application. The mentorship they receive through the Wind Industry Internship Programme (WIIP) is unprecedented. The WIIP continues to offer invaluable hands-on experience to dedicated South African students aspiring to build careers in the renewable energy sector. Its primary objective is to provide recent graduates and those currently enrolled in graduate programmes with a unique opportunity to gain practical work experience aligned with their educational backgrounds and interests, while immersing them in work related to sustainable energy. “The highlights of this programme are numerous, from the opportunity to work alongside industry experts to gain hands-on experience in the renewable energy industry, and attending informative industry events that are shaping the future of our planet. I have not only expanded my knowledge but also built a strong professional network that will last a lifetime,” says Lorata Boihang, an intern on the SAWEA team.

FOCUS AREAS

The wind industry encompasses a wide array of skills across its value chain, with specific emphasis on the following broad skill areas: • Engineering • Natural Sciences and Mathematics • Administration and Management • Social Sciences/Humanities • Information Technology Funded primarily by the Energy and Water Sector Education Training Authority (EWSETA), in partnership with SAWEA, WIIP plays a crucial role in developing the renewable energy workforce of the future. SAWEA foresees an increasing demand for professionals across diverse sectors, such as manufacturing, logistics, finance, construction and operations, as more renewable energy projects go live through the REIPPP bid windows and private offtake initiatives. These roles encompass a wide spectrum of functions, including professional and business services and sales. Key prerequisites for these positions include qualifications in engineering, project management, project development as well as proficiency in environmental authorisations, among other essential skills. Already, several companies in the renewable energy sector have initiated employment drives generating direct job opportunities and contributing to the sector’s growth.

Kangnas Wind Farm.

2023 Management Development Programme participants.

RENEWABLE SECTOR LEADERSHIP PROGRAMME

The 2023 Management Development Programme for Women in Renewable Energy’s inaugural intake of 20 women is driving sector diversity to equip future leaders of South Africa’s energy landscape. “The global energy transition is not only an opportunity to change the energy sector but to also expand economic opportunities for women, and this calls for streamlined development. Hence, the renewable energy industry’s Gender Diversity Working Group’s key objective is to pioneer the sustainable development of women, equip them with the relevant skills, increase their confidence to become effective employees, decision-makers and entrepreneurs and advance to leadership positions in the sector,” explains Nomfundo Mbijekana, chair of the SAWEA and SAPVIA Gender Diversity Working Group. Research underpins this drive for increased diversity, in fact, around 32% of women are employed in the wind industry globally, with far fewer being represented in STEM jobs, compared to administrative positions, as reported by the International Renewable Energy Agency, 2020. Candidates have reported on the value of the content, opportunities for both career and personal development and the importance of peer collaboration that will no doubt benefit the advancement of the industry, which is critical at this time in the country’s rapidly evolving energy landscape. In alignment with the requirements of SAWEA and SAPVIA, the content-rich programme was tailored for the industry by Wits Business School. It offers depth – a challenging and comprehensive experience that will contribute to the growth of the sector. The aim of the course is to equip women, who are currently in lower and middle management in the sector with the skills necessary to accelerate their growth and development into senior and executive positions (for technical and non-technical positions). “It is encouraging that feedback from participants suggests that the content is necessary for their growth in the industry, which is in line with the mandate of addressing gender diversity matters within the renewable energy industry, to ensure sector gender diversity objectives are met. This includes improving gender representation and reducing barriers to entry and progression that adversely affect women. The structure of the content is proving to encourage new ways of thinking and strategising which the candidates may not have been exposed to before,” says Morongoa Ramaboa, chief communications officer at SAWEA. The Management Development Programme is fully endorsed and co-funded by the EWSETA, as well as industry, showing commitment to working together.

SKILLS DEVELOPMENT

ACCELERATING the integration of YOUTH in the renewables sector Recognising the importance of integrating SA’s youth to achieve a sustainable renewable energy future. BY BTE RENEWABLES

nitiated and hosted by South African Wind Energy Association (SAWEA) and South African Photovoltaic Association (SAPVIA), the inauguaral “Generation Renew” event recently took place. Key conversations were driven by industry stakeholders covering four imperatives, designed to provide valuable guidance for youth looking to thrive in the renewable energy industry and contribute to a sustainable future. These areas include mentorship, youth taking initiative in entrepreneurship, finding one’s unique place in the industry and conducting informed research to stay ahead. Included on the panel were Sanele Zulu, MD, Green Youth Network; Celiwe Mabaso, senior social performance manager, BTE Renewables; De Wet Taljaard, technical specialist, SAPVIA; Nandipa Tshuma, energy consultant, Sinani Energy; Mandilakhe Qavane, solar solutions engineer, Changing Visions of Energy; and Mathage Mathunyane, portfolio manager, Lombard Insurance. Mabaso opened the conversation around challenges experienced when emerging as a young professional into the renewable energy space. She also addressed the barriers to entry, in particular, gender disparities, and how youth are impacted by the lack of knowledge regarding employment opportunities.

What are the opportunities within the area of ESG? Celiwe Mabaso: ESG is vast and looks at various areas to ensure the sustainability of the business. I focused on the “S” (social) which is my area of expertise and the “E” (environmental), which is an area of interest. As a social performance practitioner, one has to have a knack for communications and the ability to develop strategies for growth; both these skills require practice and continuous reading and research skills. I am a Bachelor of Commerce, marketing graduate and I have found that my learning in economics and strategy development has come in handy in my day-to-day job as it requires a lot of data and trend analysis to determine the problems and develop possible solutions in the form of programmes. The “E” is an area that is closely linked to my work and one of the main areas that BTE Renewables is known for through our ShutDown-on-Demand programme. Environmental management is a key component for renewable energy projects, from development to plant end of life. Why it is important to give youth access to industry knowledge at this stage in the country’s energy transition? As we work towards a more sustainable and greener future, it is important to develop the skills that are required to help meet our decarbonisation targets. We have many students and soonto-be students who are looking for more exciting opportunities and I believe renewable energy is an important industry that will continue to evolve and provide meaningful employment. What do you believe is one of the biggest barriers to entry for the youth now, and how is the industry assisting them in overcoming this challenge? A lack of understanding and availability of information about the sector and the opportunities available is the biggest barrier. For those seeking STEM-related jobs, limited access to quality STEM learning in high school and sometimes even primary school leads to them being excluded by non-qualification.

Celiwe Mabaso, Senior Social Performance Manager, BTE Renewables.

I believe renewable energy is an important industry that will continue to evolve.

SKILLS DEVELOPMENT

SA’s engineering skills need

INFRASTRUCTURE MOMENTUM

Consistent infrastructure investment over decades is the key to South Africa developing and maintaining a solid foundation of in-country engineering expertise. BY SRK CONSULTING

he role of consulting engineers is essential in maintaining standards of excellence in project planning and execution, according to SRK Consulting managing director Andrew van Zyl. These professionals deliver highly specialised technical and strategic services to various industries, providing input that underpins project quality and ensures clients – whether in the private or public sector – receive value for money.

UPWARD TRAJECTORY

“It, is really only a sustained and upward trajectory of broader economic growth that will secure South Africa’s vital skills base in the consulting engineering sector,” he says. “It is becoming an urgent necessity that public sector spending on infrastructure rises and stabilises; this will support the creation of a firmer foundation for the country to maintain and further develop its expertise among consulting engineers.” The quality of the consulting engineering industry in any country relies on the steady growth of experience across multiple disciplines over decades, not just years. “Here in South Africa, we have been struggling to generate and retain these skills,” Van Zyl notes. “Many specialisations are in high demand internationally, so we are also competing with other countries for these scarce skills.”

HIGHS AND LOWS

The mining sector is by its nature cyclical, and this creates regular fluctuations in the demand for specialised consulting engineering input. This often makes it challenging for companies to retain and foster the expertise required by mines, especially during commodity price slumps. It is therefore important that other sectors of the economy are also vibrant to help temper the highs and lows of the commodity cycle. “Buoyant commodity prices in recent years have kept consulting engineers very busy – with considerable scarcity in some disciplines,” he says. “However, the construction and infrastructure sector remain subdued, and this has depressed the demand for important skills that the infrastructure sector will need in the long term.” Returning to the vital role that consulting engineers play in both the public and private sectors, he adds that these experienced professionals provide independent advice on how to plan and implement quality engineering solutions for a modern economy.

expertise, and where careers can be built. “It should be remembered that consulting engineers really drive the implementation of global best practice in a range of sectors that must compete on the international stage,” he says. “Only by keeping up with these global benchmarks can South Africa’s economy remain competitive and aligned with the expectations of investors and regulators.”

EVOLVING MANDATE

The mandate of consulting engineers is also evolving. Today, it is necessary not only for engineering structures to be technically sound, cost-effective and safe, they must also be environmentally and socially responsible. These latter aspects of projects are now an essential requirement for businesses to operate globally. “This approach also ensures that economic development occurs within a sustainable and responsible framework – including complying with legal regulations and other compliance requirements. By applying these factors, consulting engineers contribute to building an inclusive and job-creating economy; at the same time, they help ensure that business is transparent and predictable – which are important considerations for investors.” SRK has built its expertise in the ESG field, including issues like climate change resilience, water stewardship and decarbonisation. The consulting engineering field has also embraced the opportunities offered by digital technologies, with SRK investing in its data science capabilities to enhance the application of scientific and engineering skills. Van Zyl notes that the consulting engineering sector is resilient, and despite years of underspending in public infrastructure, South Africa still retains a high level of skill and capability that in many respects compared well globally.

NURTURING BEST MINDS

“The disciplines for these solutions take decades to nurture, and invariably demand some of the best students the educational system can generate,” Van Zyl explains. “We need to be cultivating these skills and interests among the country’s best students, which means supporting students and mentoring graduates.” He highlights that, in practice, this could only be successfully accomplished in a growing economy that can make full use of this

Not only must engineering structures be technically sound, cost-effective and safe, they must also be environmentally and socially responsible.

Invest in Industrial Efficiency • Long term sustainability through resource savings • Economic growth • Environmental compliance • Contributes to social development

Services include: Green skills development

National Cleaner Production Centre South Africa A national industrial support programme that partners with industry to drive the transition towards a green economy and save money.

Industry and sector knowledge sharing Company technical support

THA 23-2023

www.ncpc.co.za ncpc@csir.co.za

Funded by the dtic, hosted by the CSIR

RESOURCE EFFICIENCY

Assisting South African

CHEESE AND DAIRY PLANTS

transition to better water and energy efficiency practices

he recently released report, Resource Efficiency for the Cheese and Yoghurt Dairy Sector in South Africa, provides insights and recommendations for companies engaged in agricultural processing transition to better water and energy efficiency practices. The South African cheese and yoghurt dairy sector is a major water user, utilising an estimated 8.7-million kilolitres of water each year. The report identifies several energy and water opportunities for cheese and dairy plants and outlines practical measures to improve resource efficiency. The report was developed as part of a resource efficiency benchmarking study for the South African cheese and yoghurt dairy sector that was conducted by the International Federation Corporation (IFC), in partnership with the National Cleaner Production Centre South Africa (NCPC-SA) and the Swiss State Secretariat for Economic Affairs (SECO). “The South African dairy sector has an opportunity through the adoption of both efficiency and sustainable technologies to significantly reduce its environmental impact, specifically pertaining to resource utilisation and carbon footprint,” explains Lindani Ncwane, NCPC-SA senior project manager. The study benchmarked the water and energy usage of six dairies across the country against local and international best practices. Two large dairies were from the Eastern Cape and have a variety of products including cheese, an additional two medium-sized cheese factories were also from the same region. The final two, one medium-sized with a variety of products including yoghurt and milk, and the other, a small cheese factory, were from the Western Cape. The report provides the cheese and yoghurt dairy industry with

practical examples that can be implemented to address water losses, educate employees on water management, and ultimately, save plants money. “A dairy plant could reduce its water consumption by over 40% by implementing a number of water efficiencies measures and a further 20% by implementing recycling and re-use measures,” reiterates Ncwane. The potential savings if South African cheese and yoghurt dairy plants would implement resource efficiency practices across the board amount to: • Water consumption could be reduced by up to 69%, resulting in savings of six-million kilolitres nationally per annum with savings of around R138-million and R200-million annually. • Electrical energy consumption could be reduced by 25% to 50%, resulting in savings of 200 000MWh to 400 000MWh per annum with a cost saving of around R250-million to R500-million per annum. • Fuel consumption could be reduced by up to 30% and a 50% reduction in GHG emissions of fossil fuels (assuming a 50% uptake in a switch in fuels) which would result in a R180-million saving per annum. Ncwane encourages the South African cheese and yoghurt dairy industry to download copies of the report so, “They will learn and be able to identify opportunity areas for savings within their factories.” Report copies can be downloaded from the NCPC-SA website (www.ncpc.co.za). The NCPC-SA is a national industry support programme managed by the Council for Scientific and Industrial Research (CSIR) on behalf of the Department of Trade, Industry and Competition (the dtic). The NCPC-SA’s mandate is to support the transition of South African industrial and selected commercial sectors to a low-carbon, green economy.

EQUIPMENT

LIFTING

Keep your business

this holiday season with Masslift: forklift rentals and expert technician support The holiday season is upon us, and while certain industries quieten down, other businesses experience their most demanding times during the festive period. Whether dealing with increased inventory, higher production demands or a surge in customer orders, having a reliable forklift partner can make all the difference.

asslift Africa is your standout choice to ensure your operations run seamlessly during the festive season and beyond. Focusing strongly on rentals and the support of our dedicated technicians, Masslift is your key to a successful holiday season. Forklift rentals: unmatched flexibility Masslift Africa has built a reputation for offering a comprehensive range of forklift rental options customised to cater to your specific needs. What truly sets us apart is our commitment to being there for you, even during the festive season, a service not offered by all our competitors. Our availability extends throughout the year, and in those exceptional cases, when we close from December 22 to January 8, we partner with a call centre to manage breakdowns over the festive period. They swiftly dispatch standby technicians to assist you with your rental forklifts. Short-term rentals When your rental requirements are short and sweet, our short-term rental options offer the ideal solution. You can rent our forklifts for a day, a week or even an extended period, all at competitive rates. Long-term rentals For more extended solutions, Masslift’s long-term rental agreements are the answer. These flexible options span one to 10 years, allowing you to align your rental periods with your business needs. We can even customise rental periods to match your unique operational requirements. With our extensive fleet of forklifts at your disposal, our team is ready to assist you in selecting the perfect forklift to meet your holiday season operational needs. We understand the importance of keeping your operations efficient and productive. Our commitment to excellent service is reflected in our guaranteed four-hour response time during regular working hours. However, we always aim to exceed that benchmark by addressing breakdowns even more swiftly. Expert technicians: your 24/7 support During the holiday season, operational demands are relentless. Unexpected technical issues can disrupt your workflow at the most inconvenient times. This is where Masslift’s expert technicians come to the rescue. Our team of skilled technicians is available around the clock, ensuring your equipment runs at peak performance and minimising downtime.

At Masslift Africa, we specialise in repairing and maintaining all types of forklifts, including diesel, electric and warehouse forklifts. We have made service a priority and culture at Masslift Africa. Your success is our priority The holiday season can be a pivotal time for many businesses, and we’re committed to ensuring that you have the support you need, precisely when you need it. Masslift Africa stands by your side, assisting during the busiest time of the year. If you’re navigating a surge in demand, managing fluctuating workloads or dealing with seasonal variations in your equipment requirements, Masslift’s holiday support is your dependable partner. We offer flexible rental terms and round-the-clock technical assistance, allowing you to adapt to changing conditions and seize opportunities, making us the standout choice for your business. Make the right choice for your business As you prepare for the holiday season, make the choice that will empower your business to navigate and thrive during this pivotal time of year. Masslift Africa is more than just a service provider; we’re your trusted partner offering forklift rentals specifically designed to put your business at the forefront, especially during the holiday season – the busiest and most challenging time of the year for many enterprises. Partnering with Masslift Africa is a strategic decision, resulting in seamless and profitable operations. We’re not just here to meet your needs; we’re here to exceed your expectations. Whether it’s short-term rentals for quick demand surges or long-term agreements that provide stability, we have the solutions you need to thrive during the holiday season. Our 24/7 technician support ensures your equipment runs at peak performance, minimising downtime, and allowing your business to remain in constant motion. Contact us today to discuss how we can tailor our services precisely to your unique holiday season needs and see the difference Masslift Africa can make for your business.

MOBILITY

THE FUTURE OF EVs Evolution of the automotive industry and electrification beyond cars

2023 has proven another momentous year for the electric vehicle market. Growth in 2023 was hampered by the poor performance of plug-in hybrids in Europe. However, even with less aggressive growth than in previous years, many will agree that EVs are the future, especially for the passenger car market. So, what else can be learned about the future of electrification? BY IDTechEx

IDTechEx

hile the electric vehicle (EV) has become an everyday term that the public is now aware of, there are still certainly large technological and market trends occurring in the automotive market. Beyond this, many other vehicle segments are seeing electrification take off; these include various vehicles on the road (vans, trucks, buses, two-wheelers, three-wheelers, microcars, etc), but also off-road segments like construction vehicles and trains. It isn’t just vehicles on land either, with marine sectors and aerial vehicles like air taxis gaining increased interest and market traction. Each vehicle category is at a different stage of electrification and has its own technology and market demands depending on technical feasibility, consumer acceptance, government policy and several other factors.

Electric vehicle sales and battery demand to 2026.

IDTechEx predicts a moderate two-fold increase in the yearly sales of EVs across all the segments mentioned above by 2034; this is partly due to the sales of electric two- and three-wheelers already stagnating in some major markets. However, the battery demand increased by over 7.7 times in the same period, driven by the car market, but with the other segments making a significant contribution. Technology companies becoming automotive suppliers Tesla is undoubtedly a leader in the EV space, and it has changed the way that many think about the car as a product. The sales process is more akin to purchasing any other consumer electronics product than what is typically thought of when buying a car. In addition to this, the ownership is taking that form too; many EVs now offer over-the-air updates to keep a car’s systems up to date, whereas, for example, many traditional automakers would have had to do this during a service and have been known to require hefty fees to update satellite navigation maps, something that is becoming standard to update for free remotely. Several vehicles now come with features that can be purchased or subscribed to later. With this transition to cars looking more like a mobile phone than a traditional car, major technology companies have taken an interest in the car market and, rather than supplying small components, are looking at providing the whole car. Huawei was an early example of this approach and started selling its SERES SF5 in China in 2021. After many years of exhibiting automotiverelated technology, Sony has entered a partnership with Honda to provide vehicles with production scheduled for 2026. Other examples that have announced projects include Xiaomi, Baidu (a joint venture with Geely), Foxconn, and others. Apple scaled back a fully autonomous car project, but rumours continue on an electric car project.

MOBILITY One of the key issues Tesla had initially, was not with the core vehicle technology but the scaling up and quality control of manufacturing cars in large numbers, something that traditional automakers tend to do very well. This will be a big part of why these tech companies have often partnered with traditional automakers or other large manufacturers with experience. This sort of approach could see another key shift in how the automotive market is structured, with traditional OEMs manufacturing the vehicle and tech companies providing the software and integration. The benefit for the end user would be a well-built vehicle that integrates seamlessly with all their other electronic devices.

EVCIPA (China), EAFO (Europe), AFDC (US). Compiled by IDTechEx.

Charging infrastructure growth required to meet EV demand The global EV charging infrastructure market is growing steadily. There were 2.7-million public charging points worldwide in 2022. Nearly 960k chargers were installed globally in that same year. It is estimated that 222-million chargers will be needed by 2034 to support the growing global EV fleet and that the cumulative global investment in global charging infrastructure will exceed US$123-billion by 2034 (hardware cost alone). There is undoubtedly a huge push to build global public DC fast charging networks. China is leading the race with 1.797-million total public chargers deployed, taking ~70% of the global market share. The US government is providing more than $5-billion in funding and incentives to build a coast-to-coast fast charging network under The National Electric Vehicle Infrastructure (NEVI) Formula Program. The Alternative Fuels Infrastructure Regulation (AFIR) in the EU is similarly driving the growth of public charger installations by mandating a station every 60km along highways. DC fast chargers are forecasted to exhibit a higher growth rate in the coming decade, although AC chargers will dominate by unit volume in terms of deployment.

Global charging infrastructure installations. Data shown as of April 2023.

The global EV charging network remains fragmented, with many charge point operators battling for market share across regions. Leading automakers recently adopted Tesla’s North American Charging Standard (NACS) charging connector for their US models. Tesla operates the largest global public DC charging network, and in North America NACS outnumbers combined charging standard (CCS) two to one, which explains the switch to Tesla’s standard. Furthermore, the network is more reliable and has 20% to 70% lower deployment costs than their competitors due to in-house design and manufacturing of components. From a technical standpoint, Tesla’s connector is lightweight, supports both AC and DC through shared pins, and can support higher amperage due to immersion-cooled cables. Cars and EV supply equipment supporting CCS in the US will make up less than 50% market share by the end of the decade, although it will remain the dominant standard across the EU and UK regions.

*Authors: Dr James Edmondson, principal technology analyst, and Shazan Siddiqi, senior technology analyst, IDTechEx.

MOBILITY

ENABLING E-MICROMOBILITY

expansion in African cities

The merits of low-cost tactical cycling lanes

Africa will account for 86% of urban population growth in the next 40 years. This unprecedented pace of urbanisation brings unique challenges and opportunities for micromobility solutions best suited to bolstering African cities’ expansion efforts. A white paper for the Rosebank e-Micromobility Pilot Project by CityConsolidator Africa and Mobility Centre for Africa | [September 2023]*

lready, congestion within South African cities is becoming more pronounced. Cape Town and Johannesburg are at the top of the list with motor vehicle drivers in both cities losing 60 hours to 80 hours in traffic every year. It is imperative for us to effectively address the pressures placed on our environment, economy and society at large as a result. E-micromobility, encompassing electric bicycles and scooters, has garnered notable attention for its potential to provide cost-effective, efficient and eco-friendly transportation choices suitable for formal and informal economy participants residing within urban landscapes. To fully harness the advantages offered by e-micromobility, while ensuring widespread adoption across different demographics of society, it is essential to prioritise infrastructure development aligned with such goals. Tactical cycling lanes emerge as a concept (figures 1 and 2). There are several benefits of deploying affordable yet effective tactical

cycling lanes tailored towards supporting economic growth efforts and scaling up prospects pertaining to e-micromobility within African cities. Effective tactical cycling lanes: 1. Increase safety by preventing road fatalities. 2. Lower transport costs for people by reducing car dependence with a safe, affordable alternative to driving – a key benefit for youthful African countries with high unemployment rates. 3. Save cities money through fewer healthcare costs from traffic accidents; less congestion and unproductive time spent in traffic; and a decrease in air pollution and emissions that contribute to climate change. 4. Create jobs and economic opportunities in related industries like waste recycling, manufacturing, tourism, shared micromobility, goods delivery and street vending, etc. 5. Facilitate more frugal futures by enabling less car ownership or the avoidance of ownership altogether. Axil Maas, 2023

Figure 1. Current depiction of Kommetjie Road for Safe Passage between Masiphumelele and Fish Hoek that is unsafe for both cyclists and pedestrians.

Axil Maas, 2023

MOBILITY

Axil Maas, 2023

Figure 2. Future depiction of Kommetjie Road for Safe Passage 02 between Masiphumelele and Fish Hoek to make it safer for both cyclists and pedestrians by extending the pavement and using tactical cycling lanes.

Axil Maas, 2023

Figure 3. Current depiction of a non-motorised transport (NMT) route from Langa to Athlone, part of Safe Passage 01, Langa to the CBD where it is dirty, unsafe and dilapidated with few activations.

Figure 4. Future depiction of an NMT route from Langa to Athlone, part of Safe Passage 01, Langa to the CBD, where there is safety through lighting, maintenance and activations like a soccer field.

MOBILITY LAST-MILE DELIVERIES

ITDP

Last-mile deliveries occupy a crucial role in urban logistics by facilitating the transportation of goods from central distribution centres to their final destinations. However, relying solely on motorised vehicles is costly, limits accessibility and contributes to traffic congestion and greenhouse gas emissions. Tactical cycling lanes create safe and efficient last-mile delivery options by separating micromobility devices (including NMT) from larger vehicles travelling at high speeds and pedestrians walking slowly (figure 4). Investing in these lanes brings about reduced travel times for last-mile deliveries using e-bikes as it facilitates more deliveries to be accomplished almost matching, and in certain circumstances surpassing, those delivered by motorised vehicles. E-bikes navigate congested areas better than larger vehicles. Currently, in Cape Town and Johannesburg, last-mile deliveries are made mostly by motorised vehicles with an average speed of 20km per hour. This speed is the same as most bicycles in cities, while e-bicycles are on average limited to 25km per hour in cities. By implementing dedicated lanes that are connected and protected at intersections, last-mile delivery companies like Green Riders in Cape Town can, along with other NMT users, overcome traffic congestion and bolster decarbonisation in the land-use and transportation sectors. The city of Chennai, India, spent the last seven years implementing dedicated bicycle lanes which have successfully benefited the local last-mile delivery economy. It started with small policies and tactical cycling lanes in 2014 and remained dedicated to this effort, even by increasing its tactical lanes investment in 2020. Chennai served as an example for other cities, such as Pune, which later planned to transform 300km of streets into new bicycle lanes. Since 2020, over 100 cities in India have developed their own cycling programme following the Cycles4Change Challenge set by the national government.

Figure 5. Before and after tactical lanes in Chennai, India.

Furthermore, tactical cycling lanes support endeavours toward sustainability by promoting eco-friendly practices. E-micromobility devices emit fewer emissions than traditional motorised vehicles, aligning with sustainability goals and reducing the carbon footprint of a city while mitigating the consequences of climate change. Operation costs are reduced, particularly for businesses engaged in last-mile delivery, which is one of the main drivers for African cities adopting the lane infrastructure. E-micromobility vehicles are more economical to purchase and maintain compared to motorised vehicles.

They require less fuel, entail lower maintenance expenses and do not subject companies to costs related to parking or congestion charges. Such cost advantages enable delivery companies, particularly SMEs, to operate more competitively by improving profit margins while creating youth-focused, green and local jobs.

AFFORDABILITY AND EFFECTIVENESS

On average, building a kilometre of urban highway costs the same as building 150km of bicycle paths and 10 000km of tactical cycling lanes. Cape Town, which has an insignificant NMT budget and outdated approach to cycling facilities, is ripe for innovation in mobility planning. Unlike large-scale infrastructure projects that demand extensive financial investments and lengthy implementation periods, tactical cycling lanes can be quickly executed at a fraction of the cost. The affordability stems from their adaptable nature, created using temporary materials like paint, bollards, kerbs and signage. The cost-effective approach allows cities to pilot and test cycling infrastructure before committing to permanent installations. By observing user feedback and usage patterns, adjustments can be made to ensure optimal efficiency. Tactical cycling lanes can also be implemented incrementally starting with key corridors before expanding as demand increases. That is exactly how South America’s Bogotá, Columbia, could expand its bicycle network of over 80km to the already existing 550km in just a few hours. They used temporary materials that they could easily move, allowing them to test other locations. They tried three different locations within three days. This phased and agile approach reduces the initial investment required while immediately benefiting e-micromobility users. It enables cities to allocate resources efficiently by focusing on areas with the highest demand and significant impact on last-mile deliveries and movement of people. The effectiveness of tactical cycling infrastructure lies in its ability to create a connected network of dedicated lanes for e-micromobility. Strategic planning ensures seamless connectivity between crucial destinations such as residential areas, commercial districts and transportation hubs. The comprehensive network encourages the adoption of e-micromobility by providing safe and efficient routes throughout journeys. In addition, these lanes maximise their effectiveness by repurposing underutilised road space or reallocating lanes from motorised vehicles. This optimisation minimises conflicts between different road users without requiring extensive construction or disrupting traffic flow. The city of Jakarta, Indonesia, is a great example. During the pandemic, temporary bicycle lanes were implemented and modified to be the most effectively used. The result was an increase of 50% to 500% of cyclists. The city is now focused on using shared e-micromobility for first/last mile solutions to attract more people. In this example, the scalability of tactical cycling infrastructure is worth noting. As the demand for e-micromobility increases alongside last-mile deliveries, cities can expand the network of cycling lanes accordingly. Protected intersections are usually forgotten in cycling lane design. Despite the radical increase in separated cycling lanes in the last decade globally, unprotected cycling intersections are enough to

MOBILITY discourage cycling. Intersections that include slip lanes are widespread across major African cities with wide-turning radii for cars creating very unsafe spaces for cyclists and pedestrians alike. In the City of Melbourne, research indicates a stark contrast in cyclist confidence levels based on intersection protection. Only 16% of riders report feeling confident cycling through unprotected intersections, compared to a significant 73% who feel secure with protected intersections. This disparity is more evident when comparing confidence levels associated with protected lanes versus merely painted lanes: 22% versus the low 16% for intersections, respectively. Rather than new infrastructure projects that can be expensive, time-consuming and potentially divisive, tactical urbanism deploys quick, often temporary, solutions to test and refine urban interventions. In the context of intersection redesign, tactical cycling lanes offer flexible, incremental ways to redesign an intersection in several forms.

Figure 6. Example of a tactical intersection to protect both cyclists and pedestrians.

The scalability of tactical cycling lanes extends beyond physicality by incorporating smart technologies and data-driven solutions to enhance user experience and optimise operational efficiency. By utilising real-time data on e-micromobility usage patterns, cities can strategically place charging stations, identify areas with high demand and plan future infrastructure developments accordingly.

PUBLIC-PRIVATE PARTNERSHIPS

Public-private partnerships present a new opportunity to build muchneeded infrastructure for the economy. It is clear from research that safe and dedicated cycling lanes have a catalytic role to play but the question then becomes how do we build this tactical intervention in the background of a collapsing state? Tactical cycling lanes that are cheaper, experimental and effective allow for the private sector through the Safe Passage Programme to make big changes to South African roads. An example of such is

a partnership between the Suppliers Development Initiative (SDI) Micro-Enterprise Trust and Young Urbanists NPC, which seeks to empower the micro-economy through fleet partners like Green Riders by creating safe infrastructure for them to access markets. The Safe Passage Programme, with its focus on connecting informal and formal areas, is in the process of putting down more than 800 tactical bollards in Cape Town on existing cycling lanes to make it safer for green riders and the public. The City of Cape Town’s Department of Urban Mobility approved the assessment in early 2023 and construction is set to take place during the latter parts of 2023 with the funds being secured through the SDI Micro-Enterprise Trust. This is only phase 01 of the first Safe Passage that will look to complete a safe route between Langa and the CBD of Cape Town (Figures 2 and 4 refer). Other planned Safe Passages include Masiphumelele to Fish Hoek, Cape Town and Mamelodi to Pretoria East with CityConsolidator Africa. Masiphumelele to Fish Hoek is another big opportunity where more than 20% of the residents of the township are cyclists, while the primary mode is taxis, followed by walking. Mamelodi to Pretoria East also showcases a considerable healthy portion of the population using cycling to get to work in both areas, research has shown cyclists from these areas cite unsafe infrastructure followed by crime as being the biggest barriers in their commute. Both areas can be used for fleet partners like Green Riders and other companies to train and hire local youth when the implementation of safe cycling lanes commences. African cities confront unique challenges driven by rapid urbanisation. This necessitates proactive strategies to address the associated strains on society and the economy. E-micromobility presents a low-hanging fruit solution to Africa’s transportation challenges fully unlocking its potential hinges on aligning infrastructure development with these goals. Tactical cycling lanes come to the fore as pivotal catalysts for this expansion. By fostering the growth of tactical cycling infrastructure, policymakers, transport engineers and urban planners can create an interconnected network of efficient routes. This urbanism approach combined with resources sourced through public-private partnerships reduces the financial burden and enables cities to respond swiftly to evolving needs. By investing in infrastructure and harnessing the potential of e-micromobility, African cities can pave the way toward an enduring, and all-encompassing urban transportation system.

*Written by Roland Postma and Brice de Meester

REFERENCES

E-micromobility presents a lowhanging fruit solution to Africa’s urban transportation challenges.

Germán A. Carvajal, Olga L. Sarmiento, Andrés L. Medaglia, Sergio Cabrales, Daniel A. Rodríguez, D. Alex Quistberg, Segundo López. 2020. Bicycle safety in Bogotá: A seven-year analysis of bicyclists’ collisions and fatalities. Accident Analysis & Prevention. 144: 1 – 12. Pishue, B. and Brainard, A. 2023. 2023 INRIX “Return to Office” Report. Rosas-Satizábal, D. and Rodriguez-Valencia, A. 2019. Factors and policies explaining the emergence of the bicycle commuter in Bogotá. Case Studies on Transport Policy. 7 (1): 138-149. Schleinitz, K., Petzoldt, T., Franke-Bartholdt, L., Krems, J.F., & Gehlert, T. 2017. The German Naturalistic Cycling Study – Comparing cycling speed of riders of different e-bikes and conventional bicycles. Safety Science. 92: 290 - 297. https://africa.itdp.org/actionable-steps-towards-reclaiming-streets-in-africa/ http://e-micromobility.africa/our-approach/ https://www.fiafoundation.org/media/xmwls4t2/cc-protected-oct201022.pdf https://nacto.org/publication/dont-give-up-at-the-intersection/ https://repository.up.ac.za/bitstream/handle/2263/14739/Bechstien_Cycling%282010%29.pdf?sequence=1 https://www.bikeutah.org/tactical-urbanism https://www.itdp.org/publication/economics-of-cycling/ https://www.esi-africa.com/news/a-need-for-a-just-energy-transition-that-uses-e-mobility/ https://www.iol.co.za/news/environment/pics-empowering-youth-and-transforming-last-mile-delivery-in-south-africa-39c9413a-0823-41ed-8740-543843d3d107 https://www.itdp.in/some-paint-few-brushes-kids-young-old-sringeri-mutt-roads-tale-of-transformation/ https://www.itdp.org/wp-content/uploads/2021/09/CyclingisBoomingST33092021.pdf https://www.news24.com/citypress/business/npc-government-incapable-of-implementing-ndp-20230917 https://www.weforum.org/agenda/2020/08/a-vision-for-post-pandemic-mobility-in-african-cities/

STORAGE

The beauty of a

FULL CHARGE How energy companies can power up against supply chain risks in battery energy storage systems.

It’s a gut response of our modern era: the assurance we feel from an icon lit with green bars, telling us a battery is fully charged. Wouldn’t it be great if industries dependent on battery energy storage systems saw that icon light up regularly to indicate a steady, reliable supply of lithium and other essential raw materials? BY KEARNEY CONSULTING*

that have become fundamental business issues. For industries in the renewable energy sector, risks to the battery energy storage systems (BESS) supply chain and its need for raw materials can turn from orange to red quickly, jeopardising considerable value. But there are ways to proactively reduce the risks to ensure a secure and sustainable battery supply. It’s a matter of understanding the risks and then adopting strategies for mitigating them in the short and longer term.

Article courtesy of Kearney Consulting

ithium-ion batteries are currently the dominant storage technology for the automotive industry, utilities and renewables developers. Yet key ingredients pose risks to the battery storage supply chain, the most daunting of which influence cost, supply and ESG matters. Global disruptors ranging from volatile geopolitics and inflation to technological acceleration are reshaping supply, causing shortages

CEA, BofA, Benchmark Mineral; Kearney analysis

STORAGE

The automotive industry’s dominance in lithium-ion battery demand strains supply and impacts prices. OEM reactions (vehicle withdrawals) to material shortages can positively impact supply and prices. The recovery of lithium prices eases the situation, reducing short-term risks, but prices remain high. Uncertain price development and forecaste increases from 2025 onward create long-term price risk. Figure 1. Lithium’s cost influences battery prices significantly, and although prices have partially recovered, future trends remain uncertain. 1Lithium carbonate equivalent: battery grade lithium. 2Lithium-iron-phosphate.

Lithium-ion batteries have become the technology of choice for battery energy storage due to their high energy density, long cycle life, fast charging and widespread availability. These advantages have created a huge demand for them. The automotive industry, which accounts for 80% of demand, and electric vehicle makers are the hungriest, followed by renewable-focused energy companies and the needs of vital energy infrastructure and the military. The strain has impacted prices, supply and issues surrounding ESG for materials including lithium, graphite, nickel and cobalt. Kearney’s research indicates that the price of lithium has risen 500% from 2020 to 2023. As global demand for the material grows, the compound annual growth rate (CAGR) for lithium-ion batteries could go up by 33% in the next three years, and by 2030, lithium demand could see another 400% increase. We believe a comprehensive approach to the entire battery supply chain is needed to address the rising risks. Among concerns voiced by renewable-energy developers is their dependency on China, which accounts for 75% of battery manufacturing, an oligopolistic sellers’ market, the auto industry’s dominance over demand, raw materials shortages, further price volatility and failure to comply with ESG expectations.

The price for lithium has risen 500% from 2020 to 2023.

Achieving supply chain control doesn’t happen overnight.

THE THREE LEADING RISKS

Cost risk. Lithium prices have fluctuated a great deal recently, having rocketed upward by a factor of 15 from 2021 to 2022 (figure 1). They have recovered, but we see them remaining at a high level, creating long-term price risk. This is significant because lithium comprises approximately 40% of battery cell costs, and passing on the rising expense is difficult, especially for utilities. Supply risk. The supply chains for raw materials are complex, long and span multiple continents, often reaching across South America, China and Europe. China, for example, controls the refinement of most of the world’s raw materials for batteries (including 70% of the needed graphite). Its dominance comes in part from the cost advantages the country enjoys, along with vertical integration. However, the risk here is political. If global demand outweighs supply, the country could prioritise Chinese companies, with political tensions leading to an embargo for battery manufacturers beyond its borders. Chronic lithium supply shortages are already emerging. If the desire for EVs continues to rise, demand could overwhelm mining companies’ ability to extract enough lithium to keep pace. Conversely, inflation and slowing demand for new EVs could ease the need for lithium. However, we believe the forecasted supply shortage and China’s control over the supply chain will pose significant risks (figure 2).

Inter Actanalysis, CEA, BofA, Benchmark Mineral; Kearney analysis

STORAGE

Figure 2. The forecasted lithium supply shortages and China’s control over the supply chain, including dominance in refining, pose significant supply risks. 1LCE is lithium carbonate equivalent. 2Possible quantities that can be recovered in the future.

What’s more, supply is not easy to influence. Countries and mining companies can increase production capacity and open new mines, but this is a slow process, taking years to achieve. Even so, there are countries and companies looking to build supply chains beyond China, but it will continue to dominate for the near future. ESG risk. There is a real risk to reputation related to societal, investor and governmental expectations for adherence to ESG values and requirements. This risk extends throughout the BESS value chain and should be closely monitored and addressed. Lithium mining and refinement pose a significant environmental impact. Extraction takes two forms. Brine extraction in lithium mining in South America and China consumes large amounts of water, which can lead to shortages. Spodumene extraction done in Australia and China leads to high CO2 emissions because it is energy-intensive and uses fossil fuels to generate high-temperature reactions, contributing to climate change. Socially, the limited options for audits of labour conditions can have a serious humanitarian impact. Child and forced labour, for example, is present in the supply chain for lithium-ion batteries, with recent reports of such abuse coming out of China affecting Uyghurs in the Xinjiang region. Labour abuses seem to occur less so for the LFP cells (lithium-iron-phosphate batteries) commonly used in BESSs, but for other cell chemistries, such as NMCs (the nickel-manganese-cobalt

batteries used in EVs), labour abuses are a major issue, especially in the cobalt value chain. In Australia, indigenous peoples are pushing the government to recognise violations of their ancestral rights and ability to control their lands when companies come in to mine for lithium. Finally, dependence on China has multiple implications for governance impact. China’s centralised political system could see further instability that affects the supply chain. So, too, could geopolitical tensions between China and other nations such as Japan, Taiwan or the US. Trade tensions could extend their influence, including the US-China trade war, which has resulted in tariffs on Chinese battery imports, increasing prices and potentially disrupting supply.

SMART STRATEGIES

Powering up the battery storage supply chain takes a combination of short- and longer-term strategies that reduce exposure to risks. Kearney has developed three overarching strategic approaches and targeted measures for each to mitigate the risks and build stronger BESS supply chains (figure 3). We focus on areas of the greatest value, starting with quick wins and progressing to increasingly proactive steps: 1) demanding and contracting; 2) measuring and auditing; and 3) strategic actions and counteractions to influence risk.

China’s centralised political system could see further instability that affects the supply chain.

Kearney analysis

STORAGE

Figure 3. Industry leaders have defined risk mitigation strategies that address price, volume and ESG risks.

DEMANDING AND CONTRACTING

These are the fastest ways to get that battery icon to green. For this stage, Kearney has developed best practice contractual requirements such as supply chain protocols and a chain of custody that align with the latest market standards. • Standard terms and conditions. Require tier-1 suppliers to sign off on consistent contractual terms. • Supply transparency and penalties. We use insights into the supplier structures of top industry players to achieve tier-1 transparency. The security of raw material flow is paramount, so we talk to suppliers’ suppliers, all the way back to mining. If tier-1 suppliers fail to hit their contractual marks, strict penalties kick in. If their raw material prices rise above agreed-to levels, they absorb the difference. • Updated pricing mechanism. We look at commercial terms and pricing mechanisms to make sure they’re in line with market rates. We can implement standardised pricing agreements that follow clear rules and automated update cycles. • ESG contracting. If companies do not already have ESG terms in their contracts, we make sure they add them. These clauses should address issues including guarantees that suppliers’ value chains do not involve forced or child labour.

MEASURING AND AUDITING

We achieve further focus by evaluating risks along the supply chain, along with ways to reduce them. • ESG auditing. The ESG audit covers the value chain, including visits to mines and refineries.

STRATEGIC ACTIONS

This is the stage when companies can influence industry risks and outcomes proactively. Identify those opportunities through supplierrelated measures, such as development programmes, ESG audits and contractual penalties. Look for ways to integrate vertically. • Demand bundling and supply chain diversification. Companies increase buying power by bundling suppliers and contracts or even building buying consortia. They diversify sources by buying from a variety of suppliers, especially outside China. Energy players, for example, are aiming to reduce their reliance on Chinese batteries and augment supply by going to alternate sources. Some plan to manufacture their energy storage products as well. • Hedging with derivatives. Companies can address price changes and secure pricing for lithium or other materials by establishing in-house hedging.

•

upply chain integration. A company actively integrates into the S value chain, through investments in mines or refineries via equity or long-term financing. A company secures the right to needed lithium through a long-term contract that stipulates how lithium is refined, delivered or used in manufacturing batteries, for example.

First market participants in the automotive industry have achieved a high degree of vertical integration, from mining and refining lithium at sites they own outright or through joint ventures to producing EVs and batteries in factories they own around the world. Among energy companies, some are using offtake agreements to partner with suppliers to acquire battery-grade materials for manufacturing cells, in one case co-locating operations.

THE FUTURE

Achieving supply chain control doesn’t happen overnight, of course. Not all companies seek thorough vertical integration, but even less extensive supply chain protection calls for a thoughtful approach. We suggest companies use a three-step process for profiling and mitigating the risks affecting BESS supply chains: 1. Develop a detailed risk profile. Achieve a thorough understanding of internal battery demand, including spend and specifications for battery types. Map the value chain and stages and look closely at suppliers and specific risks. 2. Define fit-for-purpose actions for risk mitigation. Outline procurement mitigation strategies, develop material-specific risk-reduction approaches and look for ways to reduce risk beyond procurement. 3. Decide on risk-reduction actions and develop a plan. Prioritise risk approaches at a high level, draw up business cases and create a risk mitigation plan. In our experience, profiling risks and defining actions is a fiveto six-week process. Overall, steps one through three can take 10 to 12 weeks. By the time a company completes them, it should have an excellent idea of how far to take execution beyond that period. In that step, the plan is activated, with monitoring done regularly to ascertain effectiveness. The process requires commitment, but the payoffs are many. Not only can a company reduce its supply chain risks involving lithium and other raw materials, but it can also enhance the chain’s resilience, achieve cost savings, improve ESG performance and satisfy stakeholders – all of which leads to that much-desired green light.

*Authors: Dominik Leisinger, Hanjo Arms, partners, Oskar Schmidt, principal, David Buchmayr, consultant.

ENERGY

Virtual

WHEELING 101 Eskom has run a successful pilot of virtual wheeling, which will enable companies with multiple offtake sites to connect to generators using Eskom or municipal grids. BY WEBBER WENTZEL*

lectricity wheeling mechanisms play a key role in facilitating the optimal integration of renewable energy resources into the grid. Wheeling across high and medium-voltage lines has been the focus of Eskom’s wheeling strategies to date, but the proposed introduction of virtual wheeling, a new product offering by Eskom, opens opportunities for companies with multiple smaller and lowvoltage loads scattered across various geographies in South Africa to participate in the market.

What is wheeling? Wheeling is the delivery of energy from a generator of renewable energy to an end-user (the off-taker or buyer) situated in another area. This is achieved using Eskom’s existing transmission or distribution networks, or existing municipal distribution networks. In South Africa, wheeling arrangements have traditionally been concluded between larger generators and buyers of electricity connected at medium and high voltages (higher than 1kV). Under this approach, there is a direct relationship between the generator and the buyer. Eskom charges the generator and the buyer for the use of the Eskom grid and credits the buyer’s bill for the electricity delivered to the buyer but not supplied by Eskom at the end of each month. The traditional wheeling methodology works for larger buyers. However, it needs to be adapted for two primary reasons. The first is that the traditional wheeling mechanism is designed to service large consumers of electricity, typically one generator selling to one or two buyers. It does not adequately cater for several low to mediumvoltage consumers. The second reason is that traditional wheeling has been inaccessible to buyers in most municipal distribution networks. Many municipalities lack the necessary wheeling protocols, including use-of-system tariffs, and do not have the infrastructure to accommodate the necessary billing, metering and data processing systems for wheeling transactions using both Eskom and municipal

distribution networks to a buyer supplied by the municipality. To overcome these complexities, in July 2023 Eskom announced a new product, the virtual wheeling platform.

How will virtual wheeling work? The virtual wheeling platform connects buyers that have multiple offtake sites to generators via Eskom or municipal grids. This requires an automated process to collect, aggregate and report time-of-use data for energy generated and consumed by generators and buyers in order to provide a refund to the buyer for wheeled energy delivered to all of its offtake sites on a consolidated basis. We have identified three key differences between the traditional wheeling mechanism currently being implemented and the virtual wheeling platform introduced by Eskom: 1. Instead of processing a credit to an account for each offtake site of a buyer for the electricity sold by a private generator, a buyer must settle its Eskom bill in full and at the end of the month a single refund will be processed to one account of the buyer. A consolidation exercise will be undertaken through Eskom’s virtual wheeling platform to measure the energy produced by generators and used by buyers. The platform will enable Eskom to aggregate time-of-use energy generation and consumption data across multiple distributed offtaker sites for the purpose of calculating the monthly refund payable to the buyer. In summary, it will facilitate access to wheeling for low to medium energy buyers and offtakers with a distributed consumption base. 2. The virtual wheeling platform will be able to aggregate energy generation and consumption data into Eskom time-of-use periods (standard, peak and off-peak) in hourly intervals. Traditionally, energy generation and consumption data has been aggregated at monthly intervals. Eskom has stated that it is developing an API interface to generate hourly data which will be used for calculating refunds.

ENERGY 3. According to Eskom, to participate in virtual wheeling, buyers will be required to conclude a Virtual Wheeling Agreement and a back-to-back Virtual Wheeling Platform Agreement with a virtual wheeling platform vendor, who is appointed by the buyer and certified by Eskom to inter-operate with Eskom’s systems. This differs from traditional wheeling, which requires an amendment to the buyer’s Electricity Supply Agreement and the generator’s Connection and Use of System Agreement to identify the generator and the buyer, and to provide for the tariff offset. Under virtual wheeling, these documents remain in place and are referenced in the Virtual Wheeling Agreements. What requirements will the buyer be required to satisfy? In addition to the Virtual Wheeling Agreements mentioned above, buyers will be required to establish meter access for Eskom and the virtual wheeling platform with generators under their existing power purchase agreements. Meters will need to be linked to the virtual wheeling platform via Eskom’s meter vendor cloud. The buyer will be expected to run pre-production verification testing and produce a report for Eskom’s approval. The report will be required to show that: (i) each consumption site has a live meter reading over a defined test period; and (ii) the existing business rules are aligned with the contracted business rules agreed with Eskom. Once approved, a production account will be activated and the virtual wheeling platform will automatically begin producing scheduled monthly reconciliation reports. These reports will decide the refund to be paid to the buyer at the end of the month. When will virtual wheeling be rolled out by Eskom? In August 2023, Vodacom signed Eskom’s first Virtual Wheeling Agreement after a successful pilot phase and rigorous testing. Some of the issues that Eskom is still considering include municipal wheeling structures, the status of buyers and municipalities in debt to Eskom, tariff and use of system charges. While Eskom will continue to offer traditional wheeling as a product, the addition of a virtual wheeling option has the potential to accelerate access to alternative energy sources and introduce much-needed additional capacity into the grid.

Wheeling is the delivery of energy from a generator of renewable energy to an end-user situated in another area.

WHY THE SHIFT?

The introduction of virtual wheeling will enable buyers with multiple smaller and low to medium-voltage offtake sites across various geographies to benefit from wheeling mechanisms. IPPs will have greater opportunities to sell surplus generation which may otherwise go to waste.

GRID ALLOCATION CHANGES THE SOLAR WHEELING GAME SolarAfrica has announced the successful issuance of an Eskom budget quote for the company’s utility-scale solar PV project in the Northern Cape. This is a massive leap towards making wheeled energy available to South African businesses that couldn’t access it before. The rules have changed. Eskom recently levelled the playing field for projects participating in the Renewable Independent Power Producer Programme (REIPPP) with a “first ready, first served” approach – giving shovel-ready power generation projects priority in the queue over the “first come, first served” projects that used up valuable capacity allocation but weren’t ready to proceed. For a project to be approved, it must undergo stringent evaluations before it can obtain a budget quote (BQ), which confirms that the project has been allocated capacity on the national grid. As one of the first private-sector providers to receive a BQ since the new rules were implemented, SolarAfrica worked meticulously to meet all of Eskom’s strict criteria, the most important of which is having customers signed up and ready to consume wheeled energy via Virtual Power Purchase Agreements (VPPA). Vantage Data Centres, Attacq and NCP Chlorchem have signed up to SolarAfrica’s VPPAs. “Securing this type of grid capacity for wheeled energy is a gamechanger,” says David McDonald, CEO of SolarAfrica. “Typically, a vast majority of grid capacity is already allocated to mega institutions and large-scale, energy-intensive operations.” McDonald says. McDonald says: “A precedent has now been set in the sector that the government acknowledges the role that private enterprises play

in advancing sustainable practices and sends a strong signal that the nation is serious about expediting the transition to renewable energy. This efficient approach to decision-making not only instils confidence in investors but also showcases a willingness to adapt and embrace modern energy solutions.” In terms of customer confidence, the BQ issuance carries several compelling reasons for instilling trust. “In light of Eskom’s new rule, the BQ serves as a stamp of endorsement, reassuring our customers that we have lived up to the benchmarks we set for ourselves as a company, as well as the promises we have made to our clients. We committed to provide power, and now we can live up to that as we start construction to wheel energy by 2025.” While wheeling is not an overnight solution to loadshedding, it will go a long way in relieving power generation pressure off the state utility. “By partnering with the private sector, Eskom can also benefit from the infrastructure investment and technological advances that independent power producers bring to the table. This means that more and more providers can wheel energy into the existing grid, minimising disruptions, enhancing the overall efficiency of the energy system, and promoting the use of renewables,” McDonald says. Once completed, the site will allow SolarAfrica to wheel solar energy generated in De Aar to various commercial and industrial businesses across South Africa before the company commences Phase 2.

*Written by Jason Van Der Poel, partner, and Hannah Milner, candidate attorney, at Webber Wentzel.

ENERGY

SHIFTING CURRENTS SA businesses must balance equity

and innovation in the renewable energy surge

Our local energy crisis is playing out against a global backdrop of an accelerated energy transition, driven by climate and ESG imperatives, trade and supply chain trends, as well as financial structures. BY SCATEC*

hese system-wide forces ensure that the option to lean heavily into our fossil fuel reserves for rapid socio-economic development is increasingly untenable in the prevailing global landscape. Moreover, as South Africa grapples with the ongoing energy crisis, businesses are pivoting to meet the urgent need for a reliable supply of cheap, clean energy to operate. Over the last few quarters, it’s become increasingly clear that renewable energy, especially photovoltaics and battery energy storage systems (BESS) solutions represent a cheaper, faster alternative to coal-based options. These technologies are now accepted as part of a viable trajectory towards a just transition. Developments in BESS technologies, including the rapidly scaled production of plant-ready lithium-ion batteries, have been a gamechanger effectively mitigating the “erratic” nature of first-generation PV-based tech and rendering renewable energy a price-competitive viable alternative to fossil fuels. In recent years, we have seen a cohort of multinationals and local companies looking to unlock the abundant solar potential in the region to power at utility, commercial, industrial and residential levels. With South Africa’s energy transition becoming a matter of high politics, polarising opinions on governance models have emerged, in which the debate is often over-simplified to a binary in which coal is equated with socialist ideals, and renewable energy framed within the context of privatisation and capitalism. Renewables’ antagonists have overlooked the immense potential of the industry to ignite economic prosperity, job creation and collective ownership schemes. However, given the realities of the current situation in South Africa, a viable route may lie in nuanced private investment into key infrastructure, coupled with strategic community investment by public enterprises. This ensures energy sustainability and the imperative collective ownership of the renewable energy transition in the country. One of the key takeaways from the 2023 Budget Speech was a rallying cry for investments in renewable energy, at all levels, as a fundamental commercial decision. This came after a massive investment from the African Development Bank, which in 2022 committed R2.3-billion in funding towards solar developments in the Northern Cape. However, the seventh REIPPP bid window is still in limbo – one of the reasons

*Written by Jan Fourie, executive vice president for Scatec in Sub-Saharan Africa.

for this, as we have seen clearly from the sixth round, is the need to align projects with geographic areas’ expected demand, supply and regional grid capacity. This is a conundrum we urgently need to address in South Africa. Our traditionally resilient grid accommodated fossil fuel-based electrification, especially via the historic, north-west to south-east running high voltage transmission pipelines. However, massive commercial and utility-scale developments are now commonplace, including the likes of Scatec’s Kenhardt trio of projects, which boasts a cumulative capacity of 540MW in solar production and 1 140MWh in battery storage. These burgeoning renewable projects necessitate an upgrade to our power transmission infrastructure. We are in the process of “reversing” the grid’s historic architecture, as we now need to channel high-voltage energy from the sunshine- and wind-rich south and western regions to the more populous north-eastern ones – historic hubs for the fossil fuel industries’ regional activities. As we move forward with this transition, we should be mindful of societal implications and work to bring about energy equity. Therefore, a balanced approach that prioritises both technical efficacy and social equity is crucial as we navigate these upgrades. We want to see a renewable energy-enabled grid that serves as a conduit for shared prosperity. Launched earlier in 2023, South Africa’s Renewable Energy Masterplan (SAREM), offers a promising tentative blueprint for diversifying the country’s energy mix, in which a sizeable chunk of the national electricity demand is expected to be met via renewable energy by 2030 with solar expected to be a cornerstone. Notably, the plan calls for community ownership, aiming for social upliftment alongside technological progress. Solar power in South Africa is not merely a passage to renewable energy; it is a promising solution to the prevailing energy crisis, catalysing a clean energy transition with profound implications for businesses. Moreover, the embrace of solar energy dovetails with many businesses’ ESG and CSR objectives, heralding a vibrant landscape of developments in the solar sector, in turn catalysing economic rejuvenation, business sustainability and job creation. But we need to overcome regulatory challenges and grid capacity constraints.

ENERGY

SAWEA

set to advocate for the nation’s wind energy sector at COP28

Niveshen Govender, CEO of SAWEA.

The South African Wind Energy Association proudly announces its accreditation to attend the United Nations Climate Change Conference, COP28, in the United Arab Emirates. BY SAWEA

een to amplify the voice of the country’s wind energy sector on a global platform, this is the first time that the association will actively participate in this conference, seizing a significant opportunity to advocate for the wind energy sectors role in the country’s energy mix, while showcasing the achievements and challenges of the country’s wind energy initiatives. Niveshen Govender, leading the association’s delegation, emphasises the importance of the attendance, stating, “The conference’s robust agenda will provide SAWEA with invaluable insights, aligning its programmes with international standards while considering the unique needs of the South African context. Additionally, our presence at the conference will allow us to share achievements and position South Africa as an attractive investment destination for renewable energy infrastructure projects that will assist the country with its energy crisis and strengthen our role in South Africa’s Climate Change agenda, a significant priority for our developing nation.”

SAWEA strongly believes that wind power has a vital role to play, to ensure that we are back on track to meet our national and global commitments. It is two years since South Africa released its nationally determined contribution under the Paris Agreement, committing to new 2030 emissions reduction targets that shifts the country’s commitments closer to what is needed globally, to limit warming to 1.5 degrees Celsius, according to criteria used by Climate Action Tracker. Furthermore, the association will join the Global Wind Energy Council in several critical roundtable discussions, further engaging with energy authorities, policy makers and industry thought leaders in response to COP28’s campaign focused on tripling renewables by 2030, an ambitious target of 11 000GW of global power capacity.

Dubbed the “Global Stocktake”, this year’s conference focuses on assessing global progress on the Paris Agreement, a pivotal benchmark in climate action and will help to unpack South Africa’s current emission trends. The results are expected to be sub-optimal and should encourage governments around the world to accelerate climate action. SAWEA strongly believes that wind power has a vital role to play, to ensure that we are back on track to meet our national and global commitments. The conference will tackle the collective global advancements towards fulfilling the objectives of the Agreement, with a specific focus on fostering action support and international cooperation. For the SAWEA team, this presents a unique opportunity to analyse potential shifts and adjustments to rectify the current trajectory, delve into wind infrastructure investment and promote global collaborations. Additionally, the team will engage in knowledge exchange, skills development, global policy alignment and collaborative efforts in wind energy research, among other key areas. Govender asserts, “Renewable energy, particularly wind energy continues to lead the energy transition to a low-carbon renewable energy future by producing 46.4TWh, powering 3.6-million average households annually in South Africa alone. It is evident that wind energy offers a clear pathway to achieving necessary emission cuts swiftly, being a safe, reliable, affordable, widely available, and emissionfree technology.” In conclusion, the association reiterates that its delegation looks forward to COP28’s dialogues, fostering collaborations, and advancing the adoption of renewable energy technologies on the global stage. “Engaging with stakeholders globally will fortify our efforts in promoting and advocating for renewable energy adoption, to help address climate change challenges,” concludes Govender. South Africa is a party to both the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol, having acceded to the Convention in 1997 and ratified the Kyoto Protocol in 2002.

ENERGY

Key considerations when selecting

SOLAR PRODUCTS for

RESIDENTIAL PROJECTS There are over 350 solar PV module and 1 250 inverter manufacturers worldwide and they all produce different ranges of products. Put that way, it is daunting to think about finding the appropriate products to use for your home solar project. Luckily, there is a science to it. BY MENLO ELECTRIC

dentifying the type of project you are embarking on will go a long way in helping you narrow down your choices, as there are different considerations for residential, commercial and industrial or utility-scale projects. Residential solar is now more affordable than ever with big banks recently adding solar loans to their portfolios. Now that the financial part is covered, let’s deep dive into the more technical aspects.

N-TYPE OR P-TYPE SOLAR PV MODULES

When looking to power a home with solar, you will find there is more to PV panels than meets the eye. Solar cells, the tiny units that make up a solar panel, come in two main types: N-type and P-type. Each has its own set of strengths and factors to watch out for. N-type cells are like the star athletes of solar cells. They are good at what they do – turning sunlight into electricity – even when the weather’s not perfect or it is hot outside. They have a long lifespan too, so they are great if you want something that will keep going year after year. The downside? They are usually more expensive, and may not be as available as P-type PV modules. P-type cells are more common as they have had more research and development dedicated to them historically. They are easier to make, which usually means they are cheaper. They are also tougher and can bend a bit more without breaking. This makes them easier to install. The trade-off is that they are not as good at converting sunlight when weather conditions aren’t ideal, for example if it gets hot or the light isn’t as strong. They might not last quite as long as the N-types before they start to show their age.

72-CELL AND 60-CELL MODULE SIZES

When it comes to outfitting your home with solar panels, it’s like picking out accessories for a new outfit – you want the perfect match. With 60-cell and 72-cell options, there is a bit more to consider than just size and power. It’s also about compatibility with the inverter, the device that turns the sun’s energy into electricity for your home. Think of 60-cell solar panels as the regular-sized chocolate bar – not too big, not too small, just enough to satisfy. They are designed to fit snugly on most roofs, avoiding the awkwardness of a panel that is too large for the space.

ENERGY These panels produce just the right amount of power that most residential inverters can handle without breaking a sweat. 60-cell panels are less likely to result in a waste of any power because the inverter can use all the energy the panels produce, even when they’re basking in full sunlight. Now, the 72-cell modules are like the king-sized chocolate bar. They are larger and have more cells, which means they can usually produce more power. But bigger isn’t always better, especially when it comes to fitting them onto a home-sized roof. These panels are better suited for places where there is lots of space, like commercial buildings or ground-mounted solar farms. You might still say the 72-cell solar panels can produce more power – that’s a plus, right? Well, not always. The higher power of 72-cell panels is great, but if your inverter isn’t up to it, it’s like trying to pour a bucket of water into a cup. The excess just spills over. In solar terms, this means the inverter might “throttle down” the power, capping that it takes in. This is why it is best practice to use 60-cell panels for home installations. They match well with residential inverters, making sure you get to use all the power they produce. It is about being smart with your solar – getting all the energy you can without letting any go to waste.

HYBRID INVERTERS AND BATTERIES

Inverters are like the energy traffic controllers of a system. They direct current flow and the system to be monitored to ensure things are running smoothly. These devices aren’t about converting solar energy, they are about revolutionising how we manage and use that power in our homes. Most modern high-voltage hybrid inverters come with all the essentials already packed in the box. From energy meters to Wi-Fi dongles and every connector in between, everything you need for a satisfactory experience is included. Gone are the days of complex setup procedures. Today’s hybrid inverters are designed for simplicity, installing one is as straightforward as setting up a new gadget. With the user-friendly interfaces and clear instructions, getting your solar system up and running is a breeze. High-voltage hybrid inverters stand out by operating within a higher battery voltage range, facilitating more efficient energy conversion and reducing energy loss during power transfer. These inverters use insulated gate bipolar transistors (IGBTs). In contrast, low-voltage hybrid inverters, operating at lower

Inverters are like the energy traffic controllers of a system. battery voltage ranges, often depend on traditional transformerbased technology. Just as the solar module industry is increasingly leaning towards the more efficient N-type cells, a similar trend is unfolding in the world of hybrid inverters. Manufacturers are progressively shifting their focus towards high-voltage models. High-voltage inverters, with their higher battery voltage ranges, are akin to N-type cells in that they both represent the latest advancements in their respective fields. They bring the benefits of improved energy conversion efficiency, just as N-type cells enhance solar panel performance. This industry shift towards high-voltage technology is a clear indicator of the ongoing pursuit of efficiency and cutting-edge innovation in solar energy systems.

COST SAVINGS AND WARRANTY

One of the biggest perks of the of the latest batch of high-voltage hybrid systems is the warranty coverage. Many manufacturers now offer 10 years warranties on the inverters and batteries, reflecting the reliability and longevity of these products. More well-established manufacturers will make sure you are not sure you are left in the dark for too long though, for example, Sungrow guarantees a 48-hour turnaround time. The most compelling aspect of HV hybrid inverters and batteries is their cost-effectiveness. Offering high-end performance without the premium price tag, these systems are making solar energy more accessible than ever. FoxESS’s hybrid range has been found to be up to 20% more affordable that similar setups. It’s about getting the best of both worlds – quality and affordability in one package. There is a lot of extra security that comes from selecting wellestablished manufacturers, however a lot of them do not sell directly to an end-user or event installer. To access these top products, it is best to go through an official distributor, like Menlo Electric, who imports the products and safely delivers them to the end destination. Remember, picking solar products isn’t about specs and numbers; it’s about finding the perfect solar companions that fit a home’s energy lifestyle.

It is about being smart with your solar. 45

WASTE

GLOBAL PLASTICS TREATY

talks conclude in Nairobi, Kenya: with key issues unresolved

The recently held International Negotiating Committee on Plastics meetings aimed at crafting a landmark, legally binding global plastics treaty to combat plastics pollution, with specific reference to the marine environment, concluded in November 2023, with critical topics left unresolved. BY PLASTICS SA

mong the key issues left unresolved is the intersessional work required between the Negotiating Committee on Plastics (INC3) and the upcoming INC4, scheduled to take place in April 2024 in Canada. This intersessional work is crucial for laying the groundwork for more substantive talks at INC4. INC3 achieved progress by refining the Zero Draft document, incorporating additional elements necessary to achieve the agreement’s overarching goal – ending plastic leakage into the environment, with a particular focus on marine environments. The primary objective is to establish an equitable and implementable agreement that acts as a catalyst for plastics circularity, promoting better product design, reusability and improved waste infrastructure. Despite this step forward, the negotiations revealed a split between fossil fuel and resin producers, advocating for design improvements and recycled materials mandates as well as non-profit groups and consumer product companies, favouring limits on resin production. Plastics SA and the Chemical and Allied Industries Association (CAIA) were active participants in the Nairobi negotiations. Plastics SA represented the South African plastics industry. They supported the view held by Global Partners for Plastics Circularity, who underscored demand-side solutions, such as boosting recycled content and enhancing waste collection. Anton Hanekom, executive director of Plastics SA, was part of the South African delegation who are not supportive of calls made for a broader treaty, encompassing supply-side solutions like reducing plastics production and restrictions on “problematic” plastics or chemicals. “Modern life would be impossible without plastics. It is short-sighted and irresponsible to push for outright bans without taking into consideration each country’s socio-economic needs and unique challenges. It was clear from the emotive talks and appeals

to ban plastics, that many of these advocates are misinformed about plastics, the ingredients that are used to produce them and the huge progress we as an industry have made over the last two decades to create products that are safe, sustainable, responsible and recyclable.” Hanekom emphasised the plastics industry’s stance on advocating for national autonomy when it comes to developing plans to reduce packaging pollution. He highlighted the need for funding and supportive policies to unlock waste, especially in regions lacking adequate infrastructure, as ongoing challenges. “Nobody likes to see litter in the environment. But the solutions that we develop to solve this crisis must not end up creating bigger problems, nor must they end up harming the health and well-being of our people, the environment or putting thousands of jobs at risk. However, we are in support of the calls for the development of chemical management plans, chemical transparency and the promotion of design for recyclability,” added Deidre Penfold, executive director of CAIA. Negotiations concluded with no solid plan, as oil-producing countries and major plastic manufacturers created ripples of disagreement. The path forward underscores the complexity of balancing diverse interests to create an equitable and implementable global plastics treaty. The unresolved issues underscore the need for continued collaboration and dedication as the world strives to address the urgent challenges posed by plastic pollution. The focus now shifts to the intersessional work and preparations for INC4, where stakeholders anticipate more robust discussions and the formulation of concrete steps towards a comprehensive and impactful global plastics treaty. For more information, visit www.plasticsinfo.co.za.

CIRCULARITY

WASTE NOT, WANT NOT

The circular economy makes business sense

The 2023 World Circular Economy Forum conference explored fresh thinking about protecting nature. Protecting the environment and our future are at the heart of every discussion. So is capitalism. One thing’s for sure: there’s plenty of money to be made in not wasting resources. BY GEORGINA CROUTH

NEXT STEPS

“We believe that this has paved the way for the next steps, where nature loss – biodiversity loss – is going to be learnt (experienced) faster than what was the case with climate change.”

Looking at what the world has been doing to address biodiversity loss in recent decades, the classic answer has been to set up conservation areas. That might be important, but it is simply not sufficient. If the world ever reaches the United Nations’ sustainability goals to protect 30% of our water and land areas, we should question what happens to the most important issue – the 70% that is not envisaged to be protected: the built environment, agricultural, forestry and other areas, he said.

Within the next five years, biodiversity loss will become as big a political and economic issue as climate change is today.

Article courtesy Daily Maverick

ithout harvesting collective energies to drive this circular economy, Sitra (the Finnish Innovation Fund), Nordic Innovation and partners from around the world say they fear that within the next five years, biodiversity loss will become as big a political and economic issue as climate change is today. Sitra is a public foundation that operates directly under the supervision of the Finnish parliament. The foundation, which operates independently with the help of a healthy endowment, has reached the stage where investments in the circular economy have increased momentum and the government is wholeheartedly committed to the project. At first focused on problems in nature – pollution, the ozone layer, climate change – Sitra has now redirected its focus to nature loss and aims to encourage fresh thinking about the use of virgin resources and reducing the use of such dwindling resources in the system. Jyrki Katainen, the president of Sitra and former prime minister of Finland, told delegates at the plenary session that the private and public sectors have done a significant amount of work to address climate change.

CIRCULARITY

“Regulations are important, but a transformation to a sustainable future and to combat biodiversity loss cannot be done without industry adapting to this near future.” Küüsvek said 170 companies had participated in their programme for companies from all five Nordic countries to develop and implement a circular business model. It has been published in an open-source playbook to allow the rest of the world to see what and how it is being done in Scandinavia.

LINEAR ECONOMY IS FAILING PEOPLE

It’s for this reason that the attention needs to be shifted to the circular economy: how the market economy can produce more efficiently, in harmony with nature. “Without answering or finding solutions to these questions, we cannot address biodiversity loss. This is where the circular economy comes in because it is a significant answer to addressing biodiversity loss. “The more we reuse resources that have already been extracted, the less we need to use raw virgin material, which is why businesses need to be encouraged to change their business model towards circularity,” said Katainen. André Küüsvek, the president and CEO of Nordic Investment Bank, said the bank had run programmes for years on circularity and the circular economy, to assist companies in adapting their business models. In their experience, many companies wanted to participate in the circular economy, but they still lacked the knowledge, insight and understanding of how it could be done.

Valerie Hickey is the global director for environment, natural resources and the blue economy at the World Bank. She highlighted that we’re living in a world where primary resources are getting more scarce, overall goods and services are less affordable, and governments are in a debt crisis. “So, circularity is not just a nice-to-have. It’s an absolute must-have because, at the end of the day, it’s an efficiency and affordability agenda.” The World Bank, she said, is in the business of ending poverty and is committed to ending extreme poverty by 2030. But it is desperately failing at doing that. “We live in a world today where there are 828-million people who are going to go to bed hungry tonight. That number was 690-million people eight years ago. The numbers are getting worse, people are getting poorer, and our business is failing.” It’s because the linear economy is failing people and not delivering for everybody. “We’re in a doom and gloom loop that we have to get out of, and that’s the promise of a circular economy…” As Katainen pointed out, the circular economy is not about charity: it makes business sense from a purely capitalist perspective.

PACKAGING

MetPac-SA celebrates

RESOUNDING SUCCESS

MetPac-SA, a global leader in metal packaging solutions, held its fourth Annual General Meeting recently. The AGM served as a platform to celebrate the milestones MetPac-SA has reached in the past year, as well as outline the association’s goals for the future. Under the visionary leadership of CEO, Kishan Singh, the organisation has continued to thrive in the ever-evolving metal packaging industry. BY METPAC-SA

“T

he three main objectives of MetPac-SA are to operate as the appointed PRO on behalf of its members, by taking on part of its members’ EPR-related obligations and thereby to ensure its members’ EPR compliance; to reduce waste and improve recycling and re-use of metal packaging on an industry-wide basis and finally to be acceptable in form and operation to the relevant stakeholders, including the South African government and the metal industry. This year’s AGM was testament to the hard work, dedication and innovation of our entire MetPac-SA team. We are immensely proud of what we’ve accomplished and the positive impact we’ve had on metal in the packaging industry,” Singh said. He added that the Producer Responsibility Organisation (PRO) made significant strides in sustainability and environmental responsibility. It introduced several ground-breaking initiatives to increase the collection and recycling rates of both aluminium and ferrous (steel) packaging, minimise waste and promote eco-friendly practices throughout its supply chain. These efforts have garnered recognition from industry peers. “According to the declarations made by our members, more than 53 000 tons of aluminium packaging were placed on the local market during 2022. During this year, we managed to exceed both the product design (24%) and recycling targets (30%), and narrowly missed the collection target (60%) and energy recovery target (32%).” MetPac-SA created working groups that meet monthly to increase collection and recycling efforts for the next financial year, is involved in the development of an ongoing material flow analysis, has signed NDAs with identified stakeholders (buy-back centres, metal recyclers and waste-to-energy entities) and is collecting data on material placed in the market, collected, recycled and waste-to-energy/exported.

Kishan Singh (CEO)

“We are confident that we will continue to meet the S18 targets that have been set for us by government for this year,” Singh said. “We continue to work closely with our international and local counterparts as part of the PRO Alliance. Through the latter we are working hard to finalise a mechanism to register waste pickers on a national database, negotiating a service fee for waste pickers, driving national pilot studies and are looking at implementing the EPR online software strategy.” The association is also supporting various projects around the country aimed at raising awareness and understanding about the importance of recycling and making sure metal packaging remains in the circular economy. These include projects driven by Collect-aCan, Packa-Ching, CL Trading, The Metal Recyclers Association, PETCO and the Plant the Seed foundation. “We have achieved phenomenal successes with our “Trash 4 Treats” Schools Recycling Project, are proud to be a sponsor of the IPSA GoldPack Awards and will also be launching our own metal packaging survey over the next few months”. “This year’s Annual General Meeting was not just a reflection of our achievements this past year, but also a clear vision for the future. We are very excited about the journey that lies ahead. MetPac-SA is committed to being at the forefront of sustainable packaging solutions, as our members are dedicated to create metal packaging that are both functional and environmentally responsible. “Looking ahead, we believe MetPac-SA is poised for even greater achievements. Our strategic roadmap includes plans to expand our global and local presence, forge new partnerships with likeminded organisations, and continue pioneering advancements in sustainable packaging technology. These initiatives are in line with the association’s long-term vision to lead the industry in sustainability and innovation. With the support of our industry, we will continue making a positive impact on our planet while delivering exceptional value to our members.” For more information about Metpac-SA visit www.metpacsa.org.za

NEW BOARD OF DIRECTORS

Aluminium UBC performance against S18 targets.

The new Board of Directors tasked with leading the PRO in 2024, as selected by members are: • Kishan Singh (CEO) • Mark Helfrich of Nestlé (chairman) • Nozicelo Ngcobo of CCBA Group (vice-chairman) • Muhammed Darsot (Dürsots) • Roxanne Stegen of Hulamin • Karen-Dawn Koen of the Oceana Group • Josh Hammann of AB-InBev • Don MacFarlane of Woolworths

Shaping Tomorrow Sustainable and Responsible Metal Packaging Solutions

MetPacSA is dedicated to leading the way in creating a sustainable future by focusing on metal packaging. As the registered Producer Responsibility Organisation (PRO) with the Department of Forestry, Fisheries, and the Environment, we take our sustainability pledge seriously. Here's how we're doing our part: EPR Compliance: We offer our members support by taking on part of their Extended Producer Responsibility (EPR) related obligations. This ensures compliance with regulatory requirements and makes things easier for them. Recycle & Reuse: We aim to reduce waste management and encourage the recycling and re-use of metal packaging across the industry. This conserves resources and reduces the environmental impact. Stakeholder Acceptance: We collaborate with stakeholders, including the South African Government and the metal industry, to devise solutions that are both sustainable and acceptable in their form and operation.

www.metpacsa.org.za

WASTE

Solar panel and battery waste

Responsible

ACTIONS TODAY will

SAFEGUARD

TOMORROW

Looking back, 2023 will undoubtedly go down in history as the year that South Africa’s corporate and civil society went solar in a way never seen before. To avoid the crippling effect of loadshedding, hundreds of thousands of individuals and companies recently opted to invest in solar panels.

ccording to a recent BusinessTech report, South Africa’s imports of solar panels increased thrice from the previous quarter to an all-time high of R3.6-billion in the first quarter of 2023. “While this is good news for renewable energy, we also need to think about the long-term implications that even this ‘green energy’ will have on the environment,” cautions Dr Mark Williams-Wynn, KZN branch committee member of the Institute of Waste Management of Southern Africa (IWMSA). “In the coming years, we will have to deal with the recycling of millions of solar panels and batteries that are currently being imported into South Africa.” The challenge: millions of discarded panels and batteries Williams-Wynn says there’s now an estimate of between 20-million and 25-million solar panels in the country after the recent influx. Most have an expected lifespan of about 20 years and according to Williams-Wynn, South Africa should be ready for mass recycling in about 10 to 15 years’ time. “That is when we will see thousands of

panels having to be replaced with new ones, and when recycling the old products correctly will become critically important.” He explains that one of the challenges with solar panel waste is that they are banned from landfills, as they are potentially hazardous to both human and environmental health. “We need to adopt alternative waste management solutions, such as recycling, refurbishing and repairing, or reusing them in lower-demand applications,” he continues, adding that emphasis needs to be placed on the waste management of the batteries used in solar systems as well. “I believe this to be the bigger challenge,” Williams-Wynn warns. “The batteries in household solar panels are lithium iron phosphate batteries, also known as lithium ferrophosphate (LFP) batteries. The only material in this battery that has some value when recovered is lithium. The iron and phosphate is of such low value that it’s not really economically viable to try and recover them.” Furthermore, the product is highly flammable. “And once that fire starts, it is self-sustaining,” he warns. “They don’t need oxygen to

WASTE burn, and even when smothering burning batteries with foam they can continue to burn.” The solution: adherence and power of the customer’s voice The success or failure of South Africa’s solar waste story will depend on how responsibly we operate in the here and now, WilliamsWynn notes. “The methods for properly disposing of and recycling panels and batteries are constantly developing and improving – but if we do nothing now, we could face a catastrophe later. There is simply not enough adherence to the Extended Producer Responsibility (EPR) regulations which took effect in 2021 and hold producers (which includes manufacturers, importers, distributors and retailers) accountable for the end-of-life management of their products,” he says. “There are many reasons for this, including expenses, control

One of the challenges with solar panel waste is that they are banned from landfills. and enforcement, but in the end, the environment suffers – and it will be everyone’s problem in future.” According to Williams-Wynn, both the public and solar installers can change things. “Customers often don’t realise the collective power that they have. To ensure that our solar and battery producers are complying with the EPR regulations, we must all exert pressure on them. If that happens, South Africa will be equipped and ready when the solar waste wave strikes in a few years.”

A CALL TO ACTION The rapid worldwide adoption of technology has undeniably delivered various advantages. However, it has also ushered in a troubling increase in the unlawful disposal of electronic waste (e-waste). This trend not only inflicts damage upon the environment but also exposes communities to serious health hazards. The producer responsibility organisation (PRO) Circular Energy is taking a strong stance against this growing issue and is calling on government, industries and consumers to collaborate in eradicating illegal e-waste dumping. Consumer behaviour crucial E-wasted, is a complex issue, exacerbated by the hazardous components within these items. Improper disposal techniques used in illegal e-waste dumping frequently have negative effects on the environment and human health. Patricia Schröder, spokesperson for Circular Energy emphasises that illegal e-waste dumping has far-reaching implications. “It poses a threat to the health of communities that are already susceptible. It also contaminates soil, water and air. To deal with this threat, fast action is required. For instance, government and businesses can work together to close regulatory gaps and impose severe fines on those responsible for illicit e-waste dumping. This will send a clear message that these actions will not be tolerated.”

THOUGHT [ECO]NOMY

READ REPORT

greeneconomy/report recycle

According to Schröder, consumer behaviour also plays a pivotal role in combating the issue. “Our choices as consumers hold immense power. By disposing of our electrical and electronic products responsibly, we can create a shift towards responsible recycling and discourage illegal dumping.” Proper disposal To facilitate responsible disposal, Circular Energy has partnered with Woolworths to establish drop-off points across the country (a list of which can be viewed here). “This initiative aims to make it easier for consumers to dispose of these items properly,” Schröder explains. “By utilising these drop-off points, consumers can contribute to responsible waste management and help prevent the escalation of illegal e-waste dumping.” To make matters even easier, consumers can also request collection through Circular Energy’s website, ensuring that responsible disposal is within everyone’s reach. “This service empowers consumers to be part of the solution without compromising convenience,” she concludes. “For instance, we recently received a call from a concerned citizen, informing us of illegally dumped fluorescent tubes in a roadside rubbish bin in Gauteng. Our team responded swiftly to remove these tubes and recycled them in a responsible manner.”

NATIONAL WASTE MANAGEMENT STRATEGY | Department of Forestry, Fisheries and the Environment | [2020] How a country manages its waste is a fundamental indicator of the extent to which that society is functional and being managed in a sustainable manner, and the implementation of this strategy must have a positive impact on the lives of all South Africans through shared socio-economic development. The National Waste Management Strategy (NWMS) provides government policy and strategic interventions for the waste sector and is aligned and responsive to the Sustainable Development Goals (SDGs) of Agenda 2030 adopted by all United Nations member states. It is also aligned and responsive to South Africa’s National Development Plan: Vision 2030 which is our country’s specific response to, and integration of the SDGs into our overall socio-economic development plans. The 2020 strategy has the concept of the circular economy at its centre. The circular economy is an approach to minimising the environmental impact of economic activity by reusing and recycling processed materials to minimise: (a) the need to extract raw materials from the environment; and (b) the need to dispose of waste. The circular economy is built on innovation and the adoption of new approaches and techniques in product design, production, packaging and use – industrial symbiosis, for instance, is a way of preventing waste in industrial production by redirecting waste from one production process to serve as raw materials for another production process. The strategy comes at a time when there is growing knowledge and awareness of the environmental consequences of human activity in relation to the climate and environmental pollution. The widespread impact of plastic packaging on our coasts, rivers and wetlands is a cause for great concern. – Minister Barbara Creecy, Minister of Forestry, Fisheries and the Environment

WATER

WATER MODELLING is key to managing SA’s scarce water resources

As a water-scarce country, South Africa will need to rely increasingly on the detailed modelling of water resources to help manage the needs of its population, industries and ecosystem – as well as to navigate the uncertainty of climate change. BY SRK CONSULTING

ccording to SRK Consulting principal hydrologist Kerry Grimmer, this modelling is vital to the rigorous planning and careful management of the country’s water resources. “Long-term water supply is assessed through hydrological and yield modelling of water resources to secure and maximise water availability and supply,” says Grimmer. “The yield of a dam, is defined as the maximum amount of water which it can supply; yield analyses are essential in developing operating rules for water supply systems, whether these are independent dams or interconnected water systems.” Growing demands from expanding communities and developing industry needs to be considered when sizing and designing a potential dam, and complex hydrological systems must be modelled to allow careful planning and operation. Adding to the complexity of this process over the past few decades are other crucial aspects to consider in water resources modelling – to reflect current and future conditions more accurately, and to protect the environment. “Reservoirs and water supply systems are generally sized and operated based on studies which used long-term historical hydrological data, most notably streamflow and rainfall data,” she explains. “From these studies, operating rules are developed, which help dam operators to manage their dams by maximising water resources, avoiding dam failure and protecting the environment.” This helps ensure the security of water supply for users, including domestic and rural consumption, agricultural food production, energy production and industry to sustain and develop the economy of the region. “Different user groups are supplied at different assurances of supply, and this is often determined in cooperation with the stakeholders within the area,” continues Grimmer. “For example, domestic use is supplied at a higher assurance level than agricultural because it is critical that people have access to water for basic human consumption.”

Other high priority users include strategic users such as energy generation facilities, international obligations such as transboundary watercourses and ecological water requirements. “To allow these users to obtain their water at a higher priority than other users, operating rules are developed through water resources modelling,” she says. “This modelling aids in prioritising supply to different user groups.” These rules are especially important during times of drought when water restrictions need to be implemented. During low rainfall or

Kerry Grimmer, Principle Hydrologist, SRK Consulting.

WATER

Different user groups are supplied at different assurances of supply.

The potential impacts of climate change increase the uncertainty of designing, planning and operating dams. drought periods, dam operators can refer to the existing operating rules and determine which of their users need to be curtailed and to what extent – depending on the current level of the dam. “This means that we can identify specific users of a system who will be the first to have water restrictions imposed upon them, and to what extent,” she says. In these analyses, the most important drivers are long-term historic measurements of rainfall and streamflow. In hydrological and yield analyses, scientists heavily rely on this historic data. Grimmer points out, however, that this data features the natural spatial and temporal variability for the preceding time period and does not yet fully incorporate the changes in climate. “Although climate change has been studied for decades by researchers, South Africans are beginning to see the effects of climate change in their own lives,” she says. “We only need to look back over the past 10 years to see examples of the devastating extremes of both droughts and floods in South Africa.” Historic rainfall and streamflow patterns may therefore no longer accurately reflect the current climate, which causes a greater uncertainty in predicting future hydrology. Stochastic models are used to analyse rainfall and streamflow, but they are limited to the base historic data. “Changes in the hydrological regime include variations in annual rainfall, rainfall patterns, intensity and distribution, such as seasonal shifts,” she says. “The cumulative impacts of these changes will significantly impact streamflow, and subsequently the yield of a dam or system.” It is therefore imperative that changes in climate be incorporated into water resources modelling by assessing various projected climate scenarios and determining the effect and consequences of these changes. “The potential impacts of climate change increase the uncertainty of designing, planning and operating dams,” explains Grimmer. “A certain amount of flexibility in operating rules is fundamental in addressing fluctuating and unpredictable hydrological conditions and reducing the associated negative implications.” She also highlights that designs of existing systems may no longer be optimal in the light of impending hydrological conditions. To address the expected changes in climate, studies need to be updated to ensure that these changes are incorporated into system analyses. “From this, we can project more accurate assessments of river flows and dam yields,” she adds. “We can also develop strategic responses and adaptation measures to the potential negative impacts of climate change, essentially with the goal of ’climate proofing’ our water resources.”

As part of its extensive portfolio of water management work, SRK’s contribution to water supply projects includes implementing the results of potential climate change into the system modelling – to determine changes and possible consequences. In a current study in Zambia, SRK’s climate change specialists have estimated that the rainfall in the project area is projected to decrease by approximately 4% in the medium term and up to 22% in the long term, while oneday flood events will increase. In addition, the relationship between rainfall and streamflow is not linear. “This means that if the rainfall decreases by 4%, the corresponding change in streamflow will be much greater than 4%, as the effect is amplified,” she adds. “It is crucial to incorporate this new data, which reflects the changing climate, into our models.” She notes that another important aspect of water resources modelling is the development of an approach which will aid in protecting natural water resources. South Africa needs to meet not only the demands of people, agriculture and industry, but also the needs of the ecosystem. “If we utilise our current water resources to the point that rivers and dams run dry, that will have catastrophic effects on the biodiversity of the environment,” says Grimmer. “For this reason, SRK includes ecological water requirements in our projects to ensure that we address and protect the environmental integrity of the river system under analysis.” Essentially, these are flows which need to remain in the river to sustain the natural ecosystem of that river, including vegetation, insects, amphibians and fish. Ecological water requirements are very specific to each system and must be determined individually for each river reach or site in a system. It is important to note that these flows are meant to mimic natural conditions, which includes droughts and floods, as these are natural events. “Although ’flooding’ often has negative connotations, some species of fish will spawn only during flood events, for example,” she explains. “Flooding also recharges groundwater and wetlands, so it is important to capture the natural variation within the climate when determining ecological water requirements.” “When determining the yield of a dam, the ecological water requirements represent the water that cannot be abstracted from the river; these flows must always remain in the river to sustain its biodiversity and ecological integrity,” she concludes. “This is a delicate balance between development and economic growth and the protection of our natural resources, and water resource modelling is a vital tool in achieving this result.”

WATER

South Africa’s year-end

WATER UPDATE

2023 has been a topical year for water. On the positive side, the crisis in the South African water sector has been brought to the fore and is receiving major attention by all spheres of government and the private sector – increasing the odds of resolution. However, it’s mostly still “talk shops” and “workshops” as all report. OPINION PIECE BY BENOÎT LE ROY, SA WATER CHAMBER CEO

n 2018, the Water and Sanitation Masterplan, published by the South African government, stated that it required R900-billion between 2020 and 2030 to return to a water secure economy. On average, R90-billion per annum would have to be spent. Since then, very little has been published outside the Western Cape on how this masterplan has been implemented. What we do know is in the latter part of this year the fiscus is facing serious liquidity issues and National Treasury has mentioned infrastructure spending curbs. In 2018, the masterplan mentioned a one-third funding shortfall. It is probable that this funding gap is now at 100%, which means that without private sector funding the masterplan will remain dormant. So, let’s unpack this funding conundrum first. The funding of urban water and sanitation infrastructure is sourced from local municipal client revenues and national government grants where both are under severe strain for various reasons. Local society has suffered from the severe economic decline and is unable to pay for water-related services. Stats SA reports that in 2018, 59% of society did not pay for these services compared to 50.8% in 2009.

Infrastructure has a finite life, and this lifespan is highly dependent on the judicious management thereof, which we know is not the case resulting in high levels of failure, not unlike the Eskom situation. A total of 97% of South Africa’s sewage plants do not comply to their own Green Drop standards. Sewage plant assets are not adequately operated and maintained, and non-revenue water (NRW) has increased from around 30% to 46% in the last decade. The majority of the NRW quantum are physical losses due to unmaintained water distribution systems. The higher the NRW trend the higher the non-payment of services and the higher the cost to the consumers as NRW is a pure form of inefficiency. One can logically conclude that water is 46% overpriced as 46% is lost to system delivery inefficiencies and not the consumer as often alleged. We are in a spiral towards total water security collapse unless these services are paid for by all, one way or another. Secondly, the fiscus is running dry as we all know, and this means that the state can longer bail out local water asset rejuvenation, which leaves the private sector as the last and only source of funding.

WATER National policy is clear on private funding and increased private sector funding but still at local government the embracing of this policy is yet to manifest itself demonstrably. What can be done to overcome this peculiar yet very crucial issue that is the backbone of a civilised and thriving society? Three things come to mind: 1. D epoliticise key basic services such as water, electricity and waste. 2. Civil society and business must start to hold local government accountable for delivering on its mandate. 3. Incentivise local government to embrace national government policies such as the National Infrastructure Plan 2050 (NIP 2050) via conditional grants for example and access to collective funding instruments available in the market via the Water Partnership Office (WPO) a vehicle established by government to address these problems. An industry workshop was recently held in the Western Cape to brainstorm ideas on how to better inculcate water security on the back of the current water crisis. I had the pleasure of being the first presenter, allowing the scene to be set with the topic “What government is doing, and what can industry do, to mitigate increasing threats to South Africa’s water security”. What is striking is the clear lack of industry leaders’ insight into what government has done over the past years to smoothen out policies and establish various solutions. So, the update shared with this gathering was not only way overdue but necessary to equip industry with the knowledge of where we are going and what interventions can be successfully embarked upon to secure dependable water. The concept of collaborating with government, a founding principal of the SA Water Chamber, was well-received. Presentations were made by a large food industry group with several large processing facilities that require significant volumes of good quality water to process their products where the local municipalities had failed to supply the required water. The only solution in the first processing plant was to secure water rights

and abstract directly from a river, purify its water for onsite use and reuse it through an effluent treatment system. This was done by bypassing the failed Water Service Authority (WSA), which resulted in the security of water supply and associated jobs at the facility. The clear loser is the WSA that has lost that water revenue forever and stands less chance of recovering itself to supply the rest of the over 100 000 citizens in its supply area. This is termed Independent Water Provision, as espoused in the NIP 2050, and like electricity, we see the private sector migrate away from state services that have collapsed. This will place further strain on local government’s mandate to provide water for all, including the growing indigent population consequently, like the Eskom situation. A metropolitan business chamber demonstrated how public-private collaboration can unlock economic security. Various basic public infrastructure assets for water and electricity were “adopted” by private business to secure the assets and involve the local community in its security of supply of services. The collaboration between public and private sector during these crises is encouraging. It bodes well for our future as we work towards reviving our economy and inculcating the required water security where growing population and climate change add existential threats to business as normal.

Infrastructure has a finite life, and this lifespan is highly dependent on the judicious management thereof. On the back of what has been a very problematic year for our country’s water security, the dire need to reform our practices has been acknowledged by all stakeholders. New ways of going forward are being explored, albeit at a very modest pace. We have started to move in the private sector and will do our best to collaborate with the pubic sector for a win-win outcome for our country.

Water is 46% overpriced as 46% is lost to system delivery inefficiencies. 59

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