Green Economy Journal Issue 64

Strive for Net Zero and energy security, and save money at the same time!

Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy available to the energy customer in South Africa.

Blue Sky Energy is an expert in the design, procurement and construction of such plants.

Battery energy storage installations provide access to solar energy daily during peak hours when the sun is not shining and enable users to bridge their primary energy needs through grid interruptions.

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Agrivoltaics and Solar Carports

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Email: enquiries@blue-sky.energy

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Dear Reader,

Government wants solar panels and batteries to be manufactured in South Africa to drive industrialisation and thus job creation and is using local content rules in bid documents to advance this outcome. If job creation is the end goal, let’s first unpack the number of jobs being created at various points of the extended value chain:

Solar and battery installers and EPCs. Labour-intensive business with skilled and unskilled workers. There are many EPCs.

Solar and battery distributors. They obtain agencies from integrators and assemblers to represent their brands, they procure locally and internationally. They employ many people in marketing, sales and logistics and they supply locally and nationally. There are many distributors.

Solar and battery integrators or assemblers. These can be labourintensive industries that assemble and integrate often complex equipment but can also be more automated. They supply nationally and regionally. There are few integrators.

Solar and battery primary component manufacturers. These are sophisticated, high-volume manufacturers, usually with highly automated processes who supply globally, and who employ few workers. There are very few primary manufacturers.

Local content rules favour these in reverse order, but job creation flows in the opposite direction. Strict local content rules could stifle the market by eliminating competition at the distributor level undermining job creation at the source – solar and battery installers and distributors.

Just an observation.

Publisher PUBLISHER’S NOTE

EDITOR’S NOTE

This edition is themed Urban Decarbonisation. From initiatives aimed at promoting food security ( page 40) and socioeconomic development, to programmes focused on helping individuals and projects to protect wildlife and preserve biodiversity, the concessions we make in the name of sustainability have a bearing on the world around us.

Municipal bulk services, which encompass essential functions provided by local governments, have varying levels of carbon intensity influenced by energy choices, system management practices, transportation options and regional policies. Efforts to transition bulk services systems to cleaner energy and sustainable practices are crucial for minimising their impact on the environment ( page 8).

SANRAL plays a vital role in fostering sustainable development and improving the quality of life for communities along its respective routes. Ultimately, building resilient infrastructure will balance the continuing need for new development and will be a greater asset for future generations to enjoy ( page 16).

Certification holds tangible proof of a building’s commitment to green principles. Certifications like Green Star and EDGE provide frameworks for stakeholders to validate their sustainability claims, ensuring that projects embody environmental responsibility throughout their lifecycle ( page 18).

On page 22 , EDGE speaks about the UK-IFC bilateral partnership and its Market Accelerator for Green Construction programme, which is a blended concessional finance initiative that works to accelerate the construction of certified green buildings.

Etana Energy is helping decarbonise the grid by impelling the deployment of new renewable energy capacity. Being a Nersa-licenced electricity trader, it can wheel electricity to Eskom and municipal customers where municipalities have a wheeling policy and tariff in place (page 26).

The future of African mobility is electric. Not just in urban areas, but in rural ones too. Ampersand E-Mobility has partnered with Akagera National Park to provide sustainable transport options in their effort to reduce carbon emissions and protect the area for savannah-adapted species ( page 38).

EVs have been up-and-coming since the 2010s, but it is battery technology that made this possible. While regulatory pressure and climate change act as drivers for the market, newly developed batteries have unlocked the potential for EVs to accelerate their progression ( page 36). It is up to us all to accelerate decarbonisation.

Economy

EDITOR: Alexis Knipe alexis@greeneconomy.media

CO-PUBLISHERS: Gordon Brown gordon@greeneconomy.media

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PUBLICATION DATE: June 2024

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Alexis Knipe Editor

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.

NOA GROUP ANNOUNCES STRATEGIC ACQUISITION AMBITIONS

NOA Group has announced the acquisition of the Khauta Solar PV Facility, comprising 350MW from PNE. Located near Welkom in the Free State, this addition brings NOA’s total grid-secured assets to around 500MW. These solar PV assets are on track for financial close and the commencement of construction by Q4 2024.

“With $180-million in equity financing already secured for development, we are scaling our operations, which includes an extensive pipeline of projects. By the end of this year, we expect to have approximately 450MW of our fleet of renewable energy facilities under construction,” said Karel Cornelissen, CEO of NOA Group. These projects are situated outside the REDZ 5, with the overhead line connecting to the Leander Substation within Eskom’s transmission corridor.

ACHIEVING SA’S ENERGY OBJECTIVES

SAWEA is encouraged by the approval of the Electricity Regulation Amendment (ERA) Bill by the National Council of Provinces (NCOP). “Key provisions of the ERA Bill, such as establishing an open market platform for competitive electricity trading and creating a transmission systems operator, are poised to unlock new opportunities for wind energy development,” says Niveshen Govender, CEO of SAWEA. “These measures should streamline grid access and facilitate more electricity transactions, enabling greater integration of new wind power into South Africa’s energy mix.”

Additionally, the enhanced role of NERSA in licensing entities and overseeing the transition to a competitive market ensures regulatory clarity and stability. “The defined role of the regulator will require leadership and vision to ensure control mechanisms within a free market, safeguarding an affordable and reliable future supply of electricity,” adds Govender.

With the establishment of the National Transmission Company of South Africa (NTCSA) in a liberalised market, the Bill will set the stage for a structured energy landscape. SAWEA eagerly awaits the president’s consideration, which will shape the energy landscape for generations to come.

PRESIDENT URGED TO SIGN ERA BILL

“The Bill will open the market to electricity suppliers and bring us closer to a competitive market. Crucially, the Bill allows for the systematic unbundling of Eskom into a transmission system and market operator and accelerates investment into additional generation capacity and supporting infrastructure.

“It will make energy cheaper, cleaner and more reliable. We hope President Ramaphosa will sign this legislation into law,” says Dr Rethabile Melamu, CEO of SAPVIA.

The Bill creates access for IPPs to the grid facilitating more investment into the industry and provides a national framework for wheeling which is the distribution of electricity between private players.

Enel Green Power South Africa (EGP South Africa) has announced the awarding of another bursary through its Garob Wind Farm, an initiative aimed at empowering South African youth from previously disadvantaged communities that EGP South Africa operates with opportunities to further their education.

The Enel bursaries are available to tertiary students in any field of study and high school students from grades eight to 12 from the Northern Cape, Western Cape, Limpopo and Free State provinces. To date, the programme has awarded 177 bursaries to students from various communities where EGP South Africa operates.

Tertiary applicants must have completed their Matric qualifications with university exemption or be currently enrolled at a tertiary institution, while those in high school must be in grades eight to 11.

All applicants are expected to have achieved a minimum overall pass rate of 65% and must come from a household with an income of less than R357 000 per annum. Candidates with disabilities are encouraged to apply.

www.enelgreenpower.com

SUSTAINABLE SMALL WIND TURBINES

With the inauguration of four LS Double Helix small wind turbines, the renowned V&A Waterfront and LuvSide GmbH, a German manufacturer of small wind turbines, are setting an example for a sustainable energy alternative.

Cape Town, known as the “windy city”, is predestined for such a solution and is an example for other cities to follow in making small wind turbines conventional in metropolitan areas. The small wind turbines installed in the V&A Waterfront are part of a pilot project of the Renewable Energy Solutions Programme (RES Programme) of the Federal Ministry for Economic Affairs and Climate Action’s German Energy Solutions Initiative.

The four installed LS Double Helix 1.0 turbines of LuvSide offer an energy yield of several thousand kWh per year, depending on the wind power. As the location in the V&A Waterfront in Cape Town shows, the vertical wind turbines fit perfectly into an urban environment.

Karel Cornelissen, CEO, NOA Group.

Niveshen Govender, CEO, SAWEA

SUSSED IN SUSTAINABILITY

Sunlands Primary’s Lego Explore Robotics teams presented their knowledge of hydroelectric, wave, solar and wind energy, as well as Lego models of their design demonstrating these renewable energy resources at Enlit Africa 2024.

Lego Robotics coach, Jennifer Kirchoff, says that the learners aged between eight and 10 years started their Lego Robotics journey in January this year as part of a free extra-mural programme at the school. “Our learners spent every week building models, researching different types of renewable energy and learning skills that will set them up for success in the fourth industrial revolution.

For our learners to be invited to present at such a grown-up event will be a core memory for all of them.”

GAS MASTERPLAN AND THE ROAD AHEAD

HYDROGEN SKILLS RESEARCH REPORT

The “Identification of Skills Needs for the Hydrogen Economy” report, prepared for the Department of Higher Education and Training’s Labour Market Intelligence (LMI) Research Programme, addresses the critical skills requirements for South Africa’s transition to a green hydrogen economy. Minister of Higher Education and Science Innovation, Dr Blade Nzimande, says the LMI, in response to the needs of the economy and the labour market, undertook a project to identify skills for the hydrogen economy.

The hydrogen economy is expected to grow phenomenally in South Africa, and R319-million of the R1.4-trillion of the Just Energy Transition investment plan has been targeted for this sector.

The Minister says South Africa commands high respect from the International Labour Organisation (ILO), the EU, World Bank and OECD for the research conducted through the LMI projects.

“We are now moving towards supporting provincial level skills planning as well as industry-specific planning tailored to the specific needs and policy context of South Africa in the 21st century,” the Minister says.

The report identifies 138 new roles in the green hydrogen value chain, including engineers, technicians, tradespeople, specialists as well as managerial and elementary-level occupations.

The Chemical Industries Education & Training Authority (CHIETA) in collaboration with the Mining Qualifications Authority (MQA) and Transport Education Training Authority (TETA), will establish a Centre of Specialisation for Green Hydrogen Skills to close the hydrogen skills gap by 2025.

Prashaen Reddy, a partner at Kearney, says the Southern Africa region has recently been fortunate with several gas finds (Mozambique, South Africa and Namibia) that allow for developing indigenous resources to drive industrialisation, social development and economic growth.

Today, the industry employs at least 70 000 people and contributes between R300-billion and R500-billion a year to South Africa’s GDP based on the existing indigenous gas supply.

“To maintain and grow the industrial base there are few substitutes readily and economically available for gas in the energy-intensive industries, and hence industrialisation may further decline should no gas solution be found in the years ahead,” says Reddy.

Gas-to-power is another critical enabler to stabilising the power sector as we balance our energy mix from primarily coal-driven to other technologies as outlined in the recent IRP.

“Our research on balancing energy security with sustainability explores how natural gas plays a pivotal role in the global energy transition. To support the transition to a cleaner energy mix, there is a need for intermittent reliance on cleaner hydrocarbons (such as natural gas) for energy security, until such time that renewable/nuclear capacity (or other baseload technologies) can be built up and installed,” he says.

Natural gas is the cleanest and most emission-friendly fossil fuel suitable for peak generation shaving and baseload provision. It is a good enabling partner for more variable renewable energy sources due to higher operational flexibility and lower capital costs.

Conversely, natural gas still produces GHG emissions and is limited by inadequate gas infrastructure. This highlights the need to abate GHG emissions from natural gas production and usage which can be done through carbon capture, utilisation and storage (CCUS). Significant international and regional financial investments are required to address the lack of critical gas infrastructure.

RENEWABLE ENERGY: BEYOND THE RUSH TO SOLAR IN SA

The alleviation of loadshedding at the beginning of 2024 has been a welcome relief, particularly as we approach the high-demand winter. The reasons behind this respite, given the known challenges of our country’s energy sector, are important for businesses as they consider their future energy procurement plans.

By comparing weekly electricity demand in 2023 (about 4 200GWh) with the current weekly demand in 2024 (about 4 100GWh), it is evident that economic activity, as gauged through electricity use, has remained consistent. There is also no significant improvement in the national energy availability factor in 2024 compared with 2023, which is a positive indication considering the ongoing maintenance and ageing of Eskom’s fleet.

It is likely that the private market for renewable energy also played a role. Despite the limited number of new utility-scale wind and solar facilities commissioned in 2023, the embedded or rooftop solar market has installed more than 3GW of generation capacity. The cost savings of solar over Eskom and municipality tariffs, as well as diesel generation, have therefore helped to provide some relief for the country.

But is this strong reliance on solar the right strategy for businesses in South Africa?

Since the inception of Discovery Green in October 2023, we have analysed more than 300 business locations and assessed more than 30 renewable energy generation sites. Our findings indicate a prevalent error in renewable energy procurement strategies among businesses aiming for a clean energy transition.

Whether the driving force behind the transition is for commercial or ESG reasons, a common misstep involves an initial rush towards solar energy procurement with an assumption that future energy needs can be seamlessly and cost-effectively integrated at a later stage. While solar allows businesses to initially offset up to half of their grid-drawn electricity consumption, it is not a comprehensive long-term solution.

Businesses often reach a tipping point of wasted generation after meeting half of their total energy needs through solar capacity. At this point, leftover consumption patterns shift dramatically to a heavy off-peak profile, which renewable energy technology can either not match, or can only match at a prohibitive cost. As a result of this tendency to procure solar first, South African companies are winning the battle but losing the war when it comes to running fully on renewable energy. Once a business is heavily invested in solar, future procurement of renewable energy becomes more expensive and difficult.

A solution that is often suggested is the use of batteries to store excess solar energy, with distribution of stored energy during the evening off-peak period. The economic outlay, however, for implementing a battery and solar combination to cover 70% of energy requirements, is more than twice the cost of traditional utility power from Eskom. A solar and battery storage solution is more viable in high loadshedding scenarios where the reliance is on diesel, but it is still not a cost-effective solution. Wind generation, although more cost-effective than batteries, presents a similar economic challenge, since it can only cover about 65% of needs before energy is wasted. South Africa also lacks a liquid market for renewable energy, further complicating the procurement of renewable energy to offset shortfalls.

POSSIBLE SOLUTION

There is, however, a proposed solution that is simple yet profound: diversification. By combining industries that have different consumption patterns, and renewable energy technologies we can create a portfolio that optimises renewable energy use. This approach not only reduces costs but also enhances competitiveness and sustainability as it unlocks the future for greater private procurement.

For instance, a manufacturing company that halts operations during summer holidays could partner with the hotel industry that experiences increased demand during this period to use its excess energy. By combining different industries and different consumption profiles, we have found that a portfolio can achieve a much higher percentage of renewable energy use for everyone, without generating wasted energy.

Our analysis reveals that while one industry might achieve 50% renewable penetration individually, collaboration among three diverse industries can elevate this figure to about 75%. The incorporation of more industries further amplifies these percentages, ensuring more reliable and price-certain renewable energy.

Businesses often reach a tipping point of wasted generation after meeting half of their total energy needs through solar capacity.

Embracing a diversified portfolio approach to renewable energy procurement can unlock the potential for higher renewable energy percentages, benefiting both individual companies and the economy.

Courtesy Daily Maverick [by Andre Nepgen, Discovery Green]

Battery energy storage powered by renewable energy is the future, and it is feasible in South Africa right now!

Sodium-sulphur batteries (NAS® Batteries), produced by NGK Insulators Ltd., and distributed by BASF, with almost 5 GWh of installed capacity worldwide, is the perfect choice for large-capacity stationary energy storage.

A key characteristic of NAS® Batteries is the long discharge duration (+6 hours), which makes the technology ideal for daily cycling to convert intermittent power from renewable energy into stable on-demand electricity.

NAS® Battery is a containerised solution, with a design life of 7300 equivalent cycles or 20 years, backed with an operations and maintenance contract, factory warranties, and performance guarantees.

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DECARBONISING

municipal bulk services

Municipal bulk services, which encompass a variety of essential functions provided by local governments, have varying levels of carbon intensity.

BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST

Carbon intensity is a measure of how clean electricity is. It measures how many grams of carbon dioxide (CO₂) are released to produce a kilowatt hour (kWh) of electricity.

Electricity that’s generated using fossil fuels is more carbon intensive, as the process by which it’s generated creates CO₂ emissions. Renewable energy sources, such as wind, hydro or solar power, produce less CO₂ emissions, so their carbon intensity value is much lower and often zero. Using electricity with a low carbon intensity value will reduce carbon emissions overall – especially if it is used during times when the largest amounts of clean electricity are being generated.

However, an argument can be made that developing alternative and innovative delivery systems together with radical changes

to land-use patterns will make a significant contribution to decarbonising bulk services.

Municipal services often rely on electricity for operations such as street lighting, water reticulation and treatment, sewage reticulation and treatment, transportation management systems as well as waste collection, treatment and disposal.

The carbon intensity of these services depends on the energy sources used. As stated previously, electricity generated from fossil fuels (such as coal or natural gas) tends to be more carbon-intensive due to the associated CO₂ emissions during power production. Some municipalities however have prioritised renewable energy sources (like wind, solar or hydroelectric power) to reduce their carbon footprint.

WASTE MANAGEMENT

Municipal waste services, including collection, disposal and recycling, contribute to carbon emissions. Collection trucks, landfill operations, and waste incineration all release greenhouse gases. Efforts to improve waste management practices, such as recycling and composting, can mitigate the carbon impact. Municipal waste management can vary significantly in its carbon intensity depending on the methods employed for collection, transportation, treatment and disposal.

Collection and transportation. The carbon intensity can be influenced by the type of vehicles used for waste collection and transportation. Diesel-powered trucks, for example, emit more CO₂ than electric or hybrid vehicles.

Network size and transportation emissions. A comprehensive waste collection system often involves transporting waste from various locations to treatment facilities or landfills. The more extensive the system, the greater the distance waste needs to travel, leading to higher transportation emissions, particularly if fossil fuel-powered vehicles are used.

Waste treatment. Different methods of waste treatment have varying carbon footprints. Landfilling, for instance, produces methane, a greenhouse gas, as organic waste decomposes

anaerobically. Incineration also releases CO₂ and other pollutants into the atmosphere, though modern facilities often have pollution control measures in place.

Recycling and composting. Recycling and composting typically have lower carbon footprints compared to landfilling or incineration because they avoid the emissions associated with waste decomposition or incineration. However, the carbon intensity of recycling can vary depending on factors such as the energy required for processing and transportation.

Energy recovery. Some waste-to-energy facilities generate electricity or heat from waste, which offset the use of fossil fuels and reduce greenhouse gas emissions. The carbon intensity of energy recovery depends on factors such as the efficiency of the facility and emissions control technology used.

Overall, municipal waste management practices range from carbon-intensive (eg landfilling without gas capture) to more carbon-neutral or even carbon-negative (eg recycling, composting, energy recovery with efficient pollution controls). Efforts to reduce the carbon intensity of waste management focus on boosting recycling and composting rates, improving waste collection and transportation efficiency and applying cleaner technologies for waste treatment and energy recovery.

Efforts to transition bulk services systems to cleaner energy and sustainable practices are crucial.

TRANSPORTATION AND INFRASTRUCTURE

Municipal transportation services (buses, trains, etc) play a significant role in carbon emissions. Infrastructure projects (road construction, maintenance, traffic management, etc) also have associated emissions.

The carbon intensity of public transport can vary depending on several factors, including the type of vehicles used, the fuel they consume, the efficiency of the transportation system and the source of the energy used to power the vehicles.

Vehicle type. Public transport includes buses, trams, trains and subways. The carbon intensity varies among these modes depending on factors like size, capacity and fuel efficiency. For example, electric trains powered by renewable energy sources tend to have lower carbon emissions compared to diesel buses.

Fuel type. The type of fuel used by public transport vehicles significantly influences their carbon intensity. Diesel-powered buses and trains emit more carbon dioxide per passengerkilometre than vehicles running on electricity, hydrogen or biofuels. Electrified public transport systems, especially those powered by renewable energy sources such as wind or solar, can have very low carbon emissions.

Efficiency and load factors. The efficiency of public transport systems impacts their carbon intensity. Systems that operate with high occupancy rates and frequent services are more efficient per passenger-kilometre travelled, reducing carbon emissions per passenger. Efficient route planning, scheduling and maintenance practices also contribute to lower carbon intensity.

Energy source. The carbon intensity of public transport is influenced by the source of energy used to power the vehicles. Electric buses or trains charged with electricity generated from coal-fired power plants have higher carbon emissions.

Network size and urban sprawl. Sprawling cities typically have lower population density and spread-out infrastructure, leading to longer commute distances between residential areas, workplaces and amenities. This reliance on automobiles for transportation results in higher fuel consumption and increased emissions of greenhouse gases such as CO₂ and nitrogen oxides (NOx). Urban sprawl often requires construction of new roads, highways, and utility networks to accommodate dispersed development.

The construction and maintenance of this infrastructure need significant energy and resources, contributing to carbon emissions both directly through construction activities and indirectly using materials like concrete, which has a high carbon footprint.

Urban sprawl encroaches upon natural habitats and green spaces, leading to deforestation and habitat loss. Trees and vegetation play a crucial role in sequestering CO₂ from the atmosphere through photosynthesis. The loss of green spaces reduces the capacity of urban areas to absorb carbon emissions and mitigate the urban heat island effect, leading to higher energy consumption for cooling and increased carbon intensity.

Sprawling development patterns often result in larger, less energy-efficient buildings and homes, as well as longer utility networks for supplying electricity, water and other services. This leads to higher energy consumption for heating, cooling and lighting, increasing carbon emissions associated with electricity. Urban sprawl makes it challenging to establish efficient public transportation systems due to low population density and dispersed land use. This further exacerbates dependence on private vehicles, leading to higher carbon emissions from transportation.

Addressing urban sprawl and its associated carbon intensity requires comprehensive urban planning strategies that prioritise compact, mixed-use development, promote transit-oriented development, preserve green spaces and encourage sustainable transportation options such as walking, cycling and public transit. Additionally, policies to incentivise energy-efficient building design and land-use regulations that discourage sprawling development can help mitigate the environmental impacts of urban expansion.

Efforts to reduce the carbon intensity of public transport often involve transitioning to cleaner and more efficient vehicles, improving infrastructure to support electrification, increasing the use of renewable energy sources, optimising routes and schedules to maximise efficiency and promoting modal shifts to public transport from more carbon-intensive modes of transportation like private cars.

WATER TREATMENT AND DISTRIBUTION

Water treatment facilities consume energy for pumping, filtration and distribution. Again, the carbon intensity depends on the energy mix powering these facilities. The carbon intensity of municipal water reticulation, which refers to the distribution of water through a network of pipes, vary depending on several factors:

Energy use. The primary driver of carbon intensity in water reticulation is often the energy used to pump and treat the water. Pumping water from its source (eg reservoirs, groundwater) to treatment plants and then distributing it through the network requires energy, typically from electricity. The carbon intensity of this energy depends on its source (eg fossil fuels, renewables).

Infrastructure efficiency. The efficiency of water distribution infrastructure influences carbon intensity. Older systems with leaky pipes or inefficient pumps may require more energy to maintain water pressure and flow, increasing carbon emissions per unit of water delivered. Upgrading infrastructure to improve efficiency reduces carbon intensity.

Water treatment. The carbon intensity of water treatment processes also contributes to overall emissions. Methods such as filtration, disinfection and desalination require energy, chemicals and sometimes heat, all of which produce carbon emissions depending on their source and efficiency. The network size and the volume of wastewater treated influence the energy requirements and carbon intensity of wastewater treatment operations.

Water source. The source of the water impacts its carbon intensity indirectly. For example, treating and distributing groundwater typically requires less energy compared to surface water sources like rivers or reservoirs. However, if groundwater extraction leads to energy-intensive pumping or requires desalination, its carbon intensity may increase.

Network size and urban sprawl. The size of the water treatment network, including the distance water needs to be transported and the scale of treatment facilities, affects the energy required

Upgrading infrastructure to improve efficiency reduces carbon intensity.

for these processes. Larger networks or those serving dispersed populations may require more energy-intensive pumping and treatment, leading to higher carbon intensity.

Some water treatment processes involve the use of chemicals like chlorine for disinfection or coagulants for sedimentation. The production, transportation and application of these chemicals contribute to carbon emissions. The size of the network can influence chemical usage, with larger networks potentially requiring more chemicals for due to longer transport distances or higher water demand.

Building and maintaining water treatment infrastructure, which includes treatment plants, pipelines and reservoirs, requires materials and energy. The carbon intensity of infrastructure construction is affected by material choice, construction techniques and transportation of materials to the site. Larger water treatment networks require more extensive infrastructure, leading to higher carbon emissions associated with construction and maintenance activities.

Waste management. The carbon intensity of waste management practices associated with water treatment can also be a factor. For example, disposing of sludge generated during treatment processes may involve transportation and disposal methods that produce emissions.

Optimising the design and operation of water treatment networks to minimise energy consumption, chemical usage, water loss and infrastructure impacts help reduce carbon intensity. Strategies such as investing in energy-efficient treatment technologies, reducing water loss through leak detection and repair as well as implementing decentralised treatment systems contribute to lower carbon emissions in water treatment operations.

Integrating renewable energy sources and improving overall system efficiency further mitigate the carbon footprint of water treatment networks. Efforts to reduce the carbon intensity of municipal water reticulation focus on improving energy efficiency in pumping and treatment processes, transitioning to renewable energy for powering infrastructure, reducing water losses through leak detection and repair, enhancing treatment methods to minimise energy consumption, optimising network efficiencies and scale, introducing smart grids and promoting water conservation measures to reduce overall demand and energy requirements.

LAND USE PATTERNS

Land use patterns have a significant impact on carbon intensity, affecting both carbon emissions and carbon sequestration.

Urbanisation and development. Urban areas have higher carbon intensity due to factors like energy consumption in buildings, transportation and infrastructure. Urban sprawl, characterised by low-density development and extensive land use for roads and parking lots, exacerbate carbon intensity by increasing vehicle miles travelled and energy demand for bulk services reticulation, heating, cooling and transportation.

Urban forest and natural ecosystems. Urban forests, grasslands, wetlands and other natural ecosystems can act as carbon sinks, sequestering CO₂ from the atmosphere through photosynthesis and storing it in biomass and soils. Land-use changes such as deforestation, degradation and conversion to agriculture or urban areas can release stored carbon and reduce the capacity of ecosystems to sequester carbon.

Land use planning and management. Effective land use planning and management strategies help mitigate carbon intensity by promoting compact, mixed-use development patterns that reduce the need for driving and energy consumption, protecting and restoring natural ecosystems to enhance carbon sequestration and reducing the network scale and extent of bulk services.

Overall, land use patterns play a critical role in determining carbon intensity by influencing emissions from various sectors such as energy, transportation and land management, as well as the capacity of ecosystems to sequester carbon.

Sustainable land use planning and management practices that prioritise carbon sequestration, emissions reduction and resilience to climate change can help mitigate carbon intensity and promote environmental sustainability.

Involve citizens in sustainability initiatives.

ELECTRICITY CONSUMPTION OF PUBLIC SECTOR

SOUTH AFRICA

The energy sector plays a crucial role in South Africa’s economy. Electricity consumption data is typically collected by different sectors as described below.

Industry sector. The industry sector is the leading electricity consumer in South Africa, accounting for approximately 56% of the total consumption. Industries rely heavily on electricity for manufacturing, production and other processes.

Residential sector. The residential sector follows, consuming 19% of the total electricity. Residential energy use includes households, apartments and other residential buildings.

Services sector. The services sector (which includes commercial buildings, offices and public facilities) contributes approximately 14% to the overall consumption. This sector encompasses services such as healthcare, education and administration.

Public sector. The public sector (government offices, schools, hospitals and other public facilities) also consumes electricity. However, specific data on the percentage of electricity used by the South African public sector as a proportion of the total national consumption is not readily available in my current resources. Data is, however, available for the Western Cape province.

REDUCTION MEASURES

Some effective strategies that municipalities can adopt to reduce their carbon footprint and promote sustainability are: Promote renewable energy sources. Transition to clean energy by investing in solar, wind, hydroelectric and geothermal power. Encourage residents and businesses to use renewable energy.

Energy efficiency measures. Retrofit municipal buildings with energy-efficient lighting, insulation and HVAC systems. Promote mini-grids and distributed grids to reduce dependence on national grid networks and distribution losses. Implement smart grid technologies to optimise energy distribution.

Green transportation. Expand public transportation networks with electric buses and trains. Develop bike lanes and pedestrianfriendly infrastructure. Encourage carpooling and ridesharing.

Waste reduction and recycling. Promote recycling programmes for paper, plastic, glass and electronic waste. Educate residents about proper waste disposal and composting.

Urban planning and green spaces. Construct walkable neighbourhoods with mixed land use. Create parks, green roofs and urban forests to absorb CO₂. Implement mini-grids and decentralised treatment systems.

Efficient water management. Repair leaks in water systems. Use water-saving technologies for irrigation and landscaping. Promote rainwater harvesting and recycling.

Building codes and standards. Enforce energy-efficient building codes for new constructions. Encourage green building practices and certifications. Retrofit existing municipal buildings with energy efficiency technologies.

Community engagement and education. Raise awareness about climate change and individual actions. Involve citizens in sustainability initiatives.

Carbon offsetting and sequestration. Invest in projects that offset emissions (such as tree planting projects). Explore carbon capture and storage technologies.

Collaborate with other entities. Partner with neighbouring municipalities, businesses and nonprofits. Share best practices and resources.

WESTERN CAPE

Total energy consumption for the Western Cape for 2015/16 was 299 401 470GJ, with total energy-related GHG emissions of 38 901 581tCO2e. The City of Cape Town accounts for nearly 60% of all energy used in the province.

As noted in their report, most energy-related emissions in the Western Cape come from electricity. This report which collects data per sector, includes local government as a sector. This is noteworthy as similar data sets were not found for other municipalities. For the 2015/16 year, the local government sector of the Western Cape consumed 1 561 of the total 299 401TJ consumed in the province as a whole. With regards to electricity consumption, local government accounts for 2% of the overall total in the same period.

ELECTRICITY CONSUMPTION

In the context of municipal electricity consumption, the proportion of electricity used for municipal bulk services reticulation is an important metric.

Municipal bulk services reticulation. This is the distribution of electricity within a municipality, including infrastructure like substations, transformers and power lines that deliver electricity to various municipal facilities (such as streetlights, water treatment plants, public buildings, etc).

Total municipal electricity consumption. This encompasses all electricity consumed by the municipality, including residential and non-residential usage. The percentage of electricity used for municipal bulk services reticulation varies significantly depending on the size of the municipality, its infrastructure and the efficiency of its electricity distribution system. Unfortunately, the exact percentage relative to the total national, provincial and local government consumption would require further investigation from official reports or energy authorities.

Data gaps. To fully understand the carbon intensity of municipal bulk services more specific data will be needed. The extent to which carbon intensity varies relative to the nature of the service, the scale and extent of the service, the size of the municipality, the condition of its infrastructure and the efficiency of its bulk

reticulation systems would be valuable to determine to adopt effective mitigation strategies. To do this the exact percentage relative to the total national, provincial and local government consumption would require further investigation from official reports or energy authorities.

CONCLUSION

Municipal bulk services, which encompass a variety of essential functions provided by local governments, can have varying levels of carbon intensity. The carbon intensity is influenced by energy choices, system management practices, transportation options as well as regional policies. Efforts to transition bulk services systems to cleaner energy and sustainable practices are crucial for minimising their impact on the environment. The effective decarbonisation of bulk municipal services will require more accurate and disaggregated data per service to assess the decarbonisation value of alternative infrastructure delivery paradigms, including innovative technologies and distributed smart grids.

REFERENCES

1 National Grid, 2024. “What is carbon intensity?” Retrieved from: https://www.nationalgrid.com/stories/energy-explained/what-is-carbon-intensity Downloaded: April 7, 2024.

2 South Africa: electricity consumption by sector | Statista. https://www.statista.com/statistics/1221769/electricity-consumption-in-south-africa-by-sector/

3 Ibid.

4 Ibid.

5 WCPG 2016. Energy Consumption and CO₂ Emissions Database for the Western Cape. Cape Town: Western Cape Government: Environmental Affairs & Development Planning.

6 Ibid.

BIBLIOGRAPHY

South Africa: Electricity Consumption by Sector | Statista. https://www.statista.com/statistics/1221769/electricity-consumption-in-south-africa-by-sector/ Energy in South Africa - statistics & facts | Statista. https://www.statista.com/topics/7539/energy-in-south-africa/ Factsheet on the Energy Market South Africa. https://www.energypartnership.org.za/fileadmin/user_upload/southafrica/media_elements/EP_Energy_Market_Factsheet_South_Africa__October_2022.pdf

2021 South African Energy Sector Report. https://www.energy.gov.za/files/media/explained/2021-South-African-Energy-Sector-Report.pdf

2022 South African Energy Sector Report. https://www.energy.gov.za/files/media/explained/2022-South-African-Energy-Sector-Report.pdf What Is Carbon Intensity? | National Grid Group. https://www.nationalgrid.com/stories/energy-explained/what-is-carbon-intensity Utility-Specific Carbon Intensity Of Electricity. https://apps.ecology.wa.gov/publications/documents/2414014.pdf

MISSION

To see ourselves becoming the key pioneers of the concept of reasonable designing and constructing for our time and the future, thus becoming the leader in the electrical contracting field.

OUR VISION

Visionary

To promote designing and constructing approaches that allow the participation of stakeholders and leading them to their future.

Inspirational

To be part of the dream of our clients and other stakeholders and inspire them to achieve more.

Leadership

To be strategic partners to our clients in the planning and constructing the roadmap to achieving their endeavours.

Tel: 087 897 2720 | 076 099 7150

Email: ramaja@adoforcesa.co.za

Website: www.adoforceSA.co.za

27 Maasdorp Street, Old East-End Bloemfontein 9301

Ramaja Dingaan Director

Lucas

INFRASTRUCTURE NATURE CROSSROADS and at a

Relentless global population growth and the resulting increase in road usage has made it impossible to ignore the importance of understanding how the development of roads infrastructure and nature impact each other – and what we can do to mitigate it.

BY MPATI MAKOA, SANRAL*

In short, sustainable road-building practices aim to minimise the impact of road construction on communities and the environment, while reducing the direct effects of climate change on roads. This is a complex process which includes designing roads with the aim of lessening environmental damage, such as habitat loss, while safeguarding biodiversity. It also includes using a combination of road design and sustainable road materials to combat the impact of climate-related events and extreme weather on road conditions, while improving safety with more durable surfaces.

Importantly, considering the impact that the development of roads can have on culturally significant and ecologically sensitive areas, sustainable road-building practices require collaboration and partnership-building with local stakeholders.

SUSTAINABLE SOLUTIONS

Talking about these issues is one thing, but walking the talk can be quite another. The South African National Roads Agency Limited

(SANRAL) is committed to playing its part in ensuring that the ongoing development and maintenance of roads in the country takes place within a sustainable strategic framework. We achieve this by integrating environmental, social and governance considerations with our daily operations, evaluating and mitigating their impacts and identifying ways to create ongoing value.

SANRAL’s sustainable practises include the commitment to preserve the environment for future generations. We make every effort to preserve fauna, flora and heritage assets that may be affected by road construction activities. This includes working collaboratively with communities and researchers to preserve and safeguard valuable cultural and archaeological sites. We conduct environmental awareness training programmes and build stakeholder partnerships.

In addition to the use of local resources and labour, we focus on improving the lives of local communities. Through more than 700 projects rolled out over the last five years, local citizens have been empowered to work with us, impacting well beyond the small

businesses they set up, bringing benefits deep into the heart of marginalised communities. This helps to drive economic growth, job creation and poverty relief, a philosophy that goes hand in hand with SANRAL’s transformation agenda, which seeks to ensure meaningful participation of black South Africans in the opportunities it generates.

FROM RESEARCH TO REALISATION

SANRAL actively drives its Natural Capital agenda while aligning with the global Sustainable Development Goals (SDGs). In partnership with the South African Roads Forum, we developed the Sustainable Roads Forum (SuRF) rating tool, which rates our road development and maintenance practises on a sustainability scale. Economic feasibility analyses are conducted using HDM-4 software, developed by HDM Global for the World Bank. SANRAL has calibrated this software for South African conditions to ensure that the most cost-effective and sustainable solution is selected, and thus the overall impact on the environment is minimised.

In addition to recycling road construction materials, maintenance also has an important role to play. Implementing sustainable repair methods can increase the lifespan of roads, bridges and culverts, while the construction and maintenance of walls and agricultural underpasses help to keep stray animals from busy roadways, and cleaning initiatives reduce litter on the road reserves, improving safety at the same time.

During the design stage of road projects, going above the thresholds defined in the Environmental Impact Assessment Regulations, specialist studies and assessments are conducted to identify environmental impacts and mitigation measures. Relevant authorities are consulted, and environmental control officers are appointed. Thus, further initiatives are regularly put in place to mitigate the environmental impact of projects and improve their sustainability.

SUBSIDIARY SUPPORT

Aligned with these objectives, SANRAL’s concessionaires, N3TC, Bakwena and TRAC, play a vital role in fostering sustainable development and improving the quality of life for communities along the respective routes under their management. From initiatives that promote food security and socioeconomic development, to programmes focused on helping individuals with disabilities and projects to protect wildlife and preserve biodiversity, the concessionaires make a meaningful contribution to ensuring a sustainable future for roads.

THE ROAD AHEAD

In collaboration with road agencies, material suppliers and contractors it is important to apply sustainable practices throughout the road construction process, from design to construction and maintenance. This means selecting the best pavement structure and materials based on environmental conditions, traffic loading and cost-effectiveness, as well as reducing waste generation. To achieve this, investments in and funding of sustainable roads infrastructure development that mitigates the impact of climate change remains essential.

In recent years, the impact of natural disasters on our roads has led to a heightened awareness of the need to plan for the impact that these extreme weather events can have on our road network. Ultimately, building resilient infrastructure will balance the continuing need for new development and will be a greater asset for future generations to enjoy.

*Mpati Makoa is SANRAL’s environmental manager.

The N7 in the Northern Cape.

SANRAL

The Green Building Council South Africa (GBCSA) stands as a beacon for sustainability, championing environmentally conscious practices across South Africa and beyond. Through collaborative efforts with a diverse membership community, GBCSA has fostered a culture of sustainability in design, construction and operation within commercial, residential and public sectors.

The critical nature of certification Certification has emerged as a cornerstone in the journey towards sustainable building practices. It is much more than just a badge. It holds tangible proof of a building’s genuine commitment to green principles. Certifications like Green Star and EDGE provide frameworks for stakeholders to validate their sustainability claims and combat greenwashing, ensuring that projects embody environmental responsibility throughout their lifecycle.

The year 2023 marked a historic moment for GBCSA and the broader green building movement in South Africa, achieving the 1 000th certification, which is testament to the significant shift towards sustainable practices within the local sector. However, there is still a long way to go, and an ongoing need for improvement and advancement, urging stakeholders to strive for excellence in sustainable design and construction.

Green Star ratings and EDGE Certification explained The Green Star rating system is awarded for a variety of building types and development scales, from small scale interiors to expansive urban precincts and from existing structures to brand new greenfield projects. It has served as a pivotal tool in evaluating a building’s sustainability performance, with higher ratings signifying industry leadership in green building practices. There are various levels, from 4-Star, indicating industry best practice; to 5-Star which is considered South African excellence; to 6-Star,

The future of

GREEN BUILDING INNOVATION in South Africa

Georgina Smit, executive director at the GBCSA, shares her insights into green building practices, the importance of certification and the future trajectory of sustainable practices in the built environment.

which signifies world leadership in green building. While the increase in buildings achieving higher ratings is encouraging, only a small percentage (5%) of the portfolio currently achieve a 6-Star Green Star rating, so there is undoubtedly room for growth and advancement.

IFC’s EDGE certification, rewards resource efficiency as it focuses on significant improvements in energy, water and embodied carbon savings. There have been exciting developments within the residential sector, where several projects achieved preliminary EDGE status in 2023. This is particularly impactful as the residential sector accounts for a substantial portion (20% to 30%) of energy consumption in South Africa. Homeowners have benefitted immensely, including utility savings and improved living conditions through strategic architectural design, which can lead to cost reductions and a positive environmental impact.

Georgina Smit, Head of Technical and Executive Director, GBCSA.

Bosco Verticale, Milano, Italy.

Demystifying the cost of green building

A prevalent misconception is the presumed high cost of adopting green building practices. Initially, green buildings were thought to be significantly more expensive, but recent studies show that the premium has decreased from 5% to an average of 3.5%. When examining the more cost-effective end of the spectrum, we observe green buildings achieving certification with a premium of less than half a percent. This shows the feasibility of sustainable construction practices at minimal additional cost, showcasing the efficiency and affordability of green building initiatives.

International trends influencing local practices

Global trends, such as the Net Zero movement and the C40 Net Zero Carbon Buildings Declaration, have underscored a collective commitment to reducing carbon emissions and combating climate change. South Africa’s pledge to achieve net zero carbon status in buildings is a critical step towards meeting the Paris Agreement’s climate change targets and preventing global warming from surpassing the 1.5-degree Celsius threshold, signalling a transformative shift towards sustainability.

Under the C40 Net Zero Carbon Buildings Declaration, major metropolitan areas in South Africa have pledged to embrace the Net Zero goal. They’ve committed to ensuring that by 2030, all new constructions will meet the net zero carbon criteria, aligning with both local and global objectives. The ambition extends further, with a vision that by 2050, all buildings will operate with net zero carbon emissions. This initiative is a testament to the global commitment to transform our built environment.

There has been increasing significance regarding the prevalence of ESG criteria in Real Estate Investment Trusts (REITs) and the listed sector. The ESG conversation is emphasising the need for businesses to assess and prepare for the impacts of climate change on their operations and property portfolios. The built environment is well positioned in this regard because of the foundational role of green buildings, dating back to the 1970s, in embodying principles of sustainable design that respond to changing environmental conditions.

Investing in sustainable developments

The integration of ESG criteria into investment strategies has led to the development of sustainable financing options by banks and financial institutions. These options often provide benefits or incentives to investors who choose to support green projects, such as lower interest rates or favourable loan terms. This shift underscores a growing recognition of the importance of sustainable practices in real estate and construction, encouraging the allocation of capital towards projects that are not only profitable but also environmentally responsible and socially beneficial.

Who are the global leaders in sustainability?

Innovation in sustainability is highly contextual, with countries like the US, Australia and those in Scandinavia at the forefront of green building practices. There is a global focus towards sustainable building which is a collective effort, with South Africa and other African nations also playing significant roles in using sustainable building practices to address social impacts and to build resilient communities.

A forthcoming initiative

GBCSA is in the process of a major update to the Green Star tool specifically designed for new buildings. This innovative tool is set to serve as a comprehensive guide for architects and professionals in the built environment who are keen on embracing sustainable design and construction practices. A significant aspect of this tool is its focus on the selection and sourcing of materials, ensuring that the environmental impact is minimised right from the procurement stage.

By challenging misconceptions and highlighting real-world examples of affordable and sustainable housing, GBCSA strives to ensure that no building is left behind in our collective journey towards a more sustainable and equitable future. Together, we can chart a course towards a built environment that not only meets the needs of today but also preserves the planet for generations to come.

THOUGHT [ECO]NOMY

greeneconomy/report recycle

THE STATE OF SUSTAINABLE BUILDING PRACTICES WITHIN SOUTH AFRICA | Rainmaker Marketing podcast series

Within the podcast series, various topics are covered by experts in different fields on trends and insights that impact development and the property sector in general. In this instance, Georgina Smit’s insights into the state of sustainable building practices within South Africa explores what is possible to achieve within our very own building and development sectors.

Nanjing International Youth Cultural Centre, China.

Cultivating

ECONOMIC GROWTH

Founded in 1979, the National African Federation for the Building Industry is the oldest and largest building and construction industry federation in South Africa.

WOMEN’S FORUM

The National African Federation for the Building Industry (NAFBI) has a Women’s Forum that represents the interests of women in all sectors of business. NAFBI’s Women Forum enters into its business deals, facilitates opportunities for women and gives them all the skills they need to succeed. Meetings are held monthly.

BUSINESS OPPORTUNITIES

NAFBI has monthly meetings at which various strategic projects are discussed. Members are able to get a step ahead and hear about these projects first-hand.

NAFBI is a member of:

• Business Unity South Africa (BUSA)

• CIDB (National Stakeholder Forum)

• Construction Charter Council

• Presidential Infrastructure Planning Committee

NAFBI works closely with the:

• Department of Human Settlement

• Department of Trade, Industry and Competition

• Department of Public Works and Infrastructure

• Department of Economic Development

• Department of Small Business Development

• Department of Forestry, Fisheries and the Environment

• Department of Basic Education (schools, universities and TVET colleges)

• Local government

2024 NATIONAL CONFERENCE

The NAFBI 2024 Annual Conference theme is “Cultivating economic growth through mentorship, incubators and health and safety”.

Our key focus for 2024 is on economic growth underpinned by empowering SMMEs through mentorship and business incubators, ensuring they succeed and are sustainable.

The increasing number of construction site incidents warrants that NAFBI focuses on health and safety issues. In partnership with the Federated Employers Mutual Assurance Company, the Department of Employment and Labour and various industry stakeholders NAFBI will host an OHS Summit on 4 June 2024 as part of the conference programme. We declare zero tolerance for incidents.

Safety

This award recognises companies that show commitment to excellent standards of health, safety and wellbeing management on sites. NAFBI will pay special attention and focus on the improvement of these aspects on all member company sites and the industry at large through various practical interventions and programmes including:

• Developing safety files

• Safety audits

• Medicals

• Wellness campaigns

• Safety training

Our health and safety teams and trainers are visible on civil, general building and all construction sites including roads, electrification and water plants, etc.

MENTORSHIP

NAFBI recognises the importance of mentorship in construction projects. Mentors are responsible for providing technical and management guidance to contractors, SMMEs and project management candidates. Through effective mentorship, SMMEs can produce quality workmanship, complete work packages on time, realise profits on projects and manage their staff effectively. Candidate construction managers and project managers are also empowered to understand various elements of the management role they perform, prepare for their tests and interviews with various councils, develop their POE and submit on time. This ensures that more candidates get their professional registration timeously. Mentors who have excelled in the year 2023/2024 will be recognised and awarded at the NAFBI 2024 Leadership Conference for outstanding contributions to the empowerment and transformation of the sector.

GREEN ECONOMY AND RENEWABLES

The challenge of energy in the country will be a key focus area of the NAFBI 2024 Conference. The need for private sector investment in renewable energy cannot be over-emphasised. This booming market, both domestically and globally, presents an opportunity for South Africa to foster economic development, employment creation and social transformation. The fast-rising rollout of renewable energy and storage technologies opens the door for both demandand supply-side opportunities. The development of industrial value claims, leveraging South Africa’s existing manufacturing and service provision capabilities is one such opportunity. The push for a more inclusive rollout of renewable energy and storage, notably to the benefit of all, is another

NAFBI’s objective is economic access facilitation, enterprise development and building capacity.

Aubrey Tshalata, President of NAFBI.

What is EDGE?

An innovation of International Finance Corporation (IFC), EDGE helps property developers build and brand green quickly, easily and affordably. EDGE is supported by free software that offers solutions to reduce energy, water and the carbon embodied in building materials by at least 20%. The EDGE certification is recognised by the major green finance standards and streamlines green debt reporting requirements. The simplicity and low cost of EDGE, plus its focus on quantifying emission reductions makes it invaluable to map and track a path to zero carbon. The following donors have generously supported the programme: Switzerland, the UK, Austria, Canada, Denmark, the Energy Sector Management Assistance Programme (ESMAP), the EU, Finland, the Global Environment Facility, Hungary, Japan and the Netherlands.

Why EDGE?

Green buildings offer a commercially viable decarbonisation opportunity for building owners and financial institutions. Today’s buildings generate close to 40% of global annual GHG emissions from energy use and by 2060, the industry is expected to double, driven by construction in emerging markets. EDGE empowers clients to easily determine the most costeffective ways to build green while catalysing investment, while simplifying design decision-making and impact reporting required for green finance. Since its start in 2015, EDGE delivered value for over 10 000 projects and 476 000 housing units, saving over 2M tons of CO 2. To date, more than 80-million square meters of floor space have been certified with EDGE worldwide.

Tell us about EDGE’s growth in Africa.

To date, EDGE has certified 7.4-million sqm in the region, including 42 000 green housing units. South Africa is the leading African country with 2.3-million sqm of EDGE-certified projects (close to $8-billion of private sector investment). The South African market has evolved to 13% of new builds 1 certified green with EDGE in just seven years (2015 to 2022).

These are examples of EDGE-certified projects across Africa and commitments from African companies:

1. Balwin Properties have committed the largest residential pipeline for EDGE certification globally (six-million sqm in total). 2 To date, it has certified 9 753 housing units with 728 000 sqm of floor space. Examples of EDGE-certified projects include Greenlee , Green Parks , and Green Bay .

2. Sterling Bank HQ Office, Lagos, Nigeria : This 17-storey, 12 246sqm building is wrapped with solar panels, making it the solar tower in Africa. It achieved EDGE Advanced certification for its energy efficiency.

3. The LMI Holdings Mega Warehouse, Tema, Ghana: This 78 000 sqm construction was the first EDGE-certified warehouse in the country.

4. Centum RE in Kenya has certified 1 500 housing units in their Mzizi Affordable housing project. The company is committed to EDGE certifying all their future projects.

What is the Market Accelerator for Green Construction (MAGC) programme and how does it align with EDGE?

The MAGC is a blended concessional finance programme that works to accelerate the construction of certified green buildings. The programme aims to mobilise $2-billion in investments to help mitigate climate change and reduce greenhouse gas (GHG) emissions that have been directly linked to the construction sector.

The UK government’s contribution of £138-million includes £102-million for blended finance investments into financial intermediaries in emerging markets. As of March 2024, MAGC had facilitated $1 136-million in investments in green building projects for financial institutions (FIs) across eight countries, out of which $473-million were invested in Africa, including CIB (Egypt), Nedbank (South Africa), Absa Bank Limited (South Africa), BPL (South Africa), CRDB (Tanzania) and IHS (Kenya).

The MAGC programme also includes £26-million for advisory services to support business strategy, capacity building, market enabling and research to scale green construction finance.

What does the IFC gain from starting this partnership?

MAGC is the first UK-IFC bilateral partnership in blended concessional finance for climate change mitigation. This partnership leverages the climate-focused development strategies of both IFC and the UK government.

IFC staff supports financial institutions in creating finance products for green construction through technical assistance for developers, knowledge-sharing workshops and capacity building to evaluate regional green construction opportunities. In addition, the MAGC programme supports market-level technical efforts to promote the adoption of green construction and certification practices. The funds from the UK government are used to catalyse construction markets by incentivising the development of green buildings through certification with EDGE and other leading certifications.

Please explain the MAGC alignment with IFC’s strategy. Expanding access to finance for an inclusive transition to lowcarbon and resilient economic growth is a priority for IFC. In the last financial year ending 30 June 2023, IFC committed a record $14.4-billion in climate finance globally, mobilising $6.8-billion of additional capital alongside our own investment of $7.6-billion to help client countries address the climate crisis. IFC’s cumulative commitment to climate in Africa has grown 6.9-fold since 2017 to reach US$1.6-billion.

IFC has a longstanding mandate to work with financial institutions to catalyse systemic change around key economic sectors. With the MAGC programme, IFC and the UK government are assisting financial institutions in creating financial products that allow their clients to decarbonise their real estate portfolios and thereby futureproofing them against increased energy costs, stricter regulation and changing occupant preferences. MAGC funds are also being leveraged to tap the growing demand for green finance and claim leadership in alignment with the Paris Agreement. By adding green buildings to their pool of eligible green assets, financial intermediaries can develop a material asset base to issue green bonds. This is a win-win goal for all.

What financial instruments will MAGC use?

Concessional finance is deployed alongside IFC financing to lower the cost of capital, extend tenor or reduce a portfolio’s risk profile if needed. This is done to help a bank grow its certified green building investments in new construction or refurbishment,

Expanding access to finance for an inclusive transition to low-carbon and resilient economic growth is a priority for IFC.

and/or incentivise borrowers to strive for ever-greater decarbonisation levels. Recipient banks may help IFC access data about the performance of the underlying assets, which expands the evidence base of the commercial and environmental advantages of green buildings and green building finance.

Please tell us about the IFC green building offering. In alignment with the World Bank Group Climate Action Plan 2021-2025, IFC is committed to aligning 85% of its new investment projects with the objectives of the Paris Agreement starting 1 July 2023, and 100% of these investments starting 1 July 2025. Since 2005, IFC has invested US$1 379-million in transactions related to green buildings in Africa. By June 2023, this region was the sector’s second-largest recipient of IFC investment.

IFC’s programme to transform the market of green buildings aims at:

a) Supporting government fiscal and non-fiscal incentive structuring to encourage green buildings.

b) Financing green assets in key economic sectors including social housing and schools.

c) Promoting the use of EDGE as a voluntary certification.

d) Promoting the use of the Building Resilience Index (BRI) to meet the needs for climate resilience in the built environment.

e) Training local capacity to design resource-efficient project.

Note: All $ amounts are indicated in USD.

MAGC IN SOUTH AFRICA | A partnership between IFC and the UK government

ENERGY ONE STOP SHOP The

The Energy One Stop Shop, a national Energy Action Plan initiative, offers a single-entry point for energy project applications by coordinating processes across government. Green Economy Journal speaks to Lester Bouah from the dtic.

Please provide an overview of the Energy One Stop Shop.

The Energy One Stop Shop (EOSS), launched on 27 July 2023 and based at the Department of Trade, Industry and Competition ( the dtic ), is an initiative of the National Energy Crisis Committee (NECOM) to mitigate challenges and bottlenecks encountered by energy project developers with the various competent authorities (national departments, SEOs, municipalities, government agencies, etc).

How does the EOSS work?

Energy developers/independent power producers (IPPs) contact the EOSS to discuss the challenges they encounter and to determine if the assistance required is within the ambit of the EOSS mandate. If so, the developer/IPP registers on the EOSS portal to be included in the projects pipeline for unblocking the identified challenges with the relevant competent authorities.

Please name some EOSS developments that we will see in the coming year?

The EOSS is currently developing the Single Window Application Process (SWAP) in collaboration with all the relevant competent authorities at national level with the support of the International Finance Corporation (IFC), a subsidiary of the World Bank Group. The pilot system will be tested in the last quarter of the 2023/24 financial year ie January to March 2025. Municipal processes will also be integrated with the SWAP as that is a key component in energy projects permits.

Please discuss the progress made by the partnership between government and business to address key challenges in energy. Through the support of Business Unity South Africa (BUSA), the EOSS has received support to participate at various forums and platforms which include players in the energy sector. The EOSS also has close working ties with Provincial Investment Promotion Agencies to assist developers and business.

Lester Bouah, Chief Director: Investment Mobilisation, Head: Energy One Stop Shop, Invest South Africa, Department of Trade, Industry & Competition.

ENERGY ONE STOP SHOP OBJECTIVES

• Fast track and unblock regulatory challenges encountered by energy project developers.

• Serve as a conduit between government and independent power producers to assist with fast tracking the requisite authorisations and approvals for energy projects.

• Provide a “Single Window Application Process” where developers can find all the necessary information as well as electronically lodge applications for relevant permits and licences for their projects.

• Provide administrative and technical advisory services to developers and serve as a knowledge sharing body with stakeholders and partners through the Technical Working Group.

Please outline the regulatory challenges and policy uncertainty impeding investment in South Africa. In addition, what can be done to overcome these challenges?

Some regulations are too onerous, are marred with red tape and require duplication of effort by the developers thus resulting in lengthy application and approval processes and turnaround times. Structures have been set up to look into processes that delay approvals, eg the Legal and Regulatory Workstream, which is responsible for assessing the legal and regulatory environment to shorten approval timeframes within legislative requirements.

The EOSS, in partnership with the IFC, has mapped the application processes of the relevant competent authorities and have streamlined some of the processes doing away with duplications, this will be developed into a navigable checklist allowing easy access and online application abilities.

Please discuss South Africa’s potential to build a significant hydrogen economy.

South Africa’s Green Hydrogen Commercialisation Strategy that was approved in 2023, indicates that green hydrogen production and development will be driven by two distinct markets: i) export demand driven by the international trade of green hydrogen and derivatives between countries and regions; and ii) domestic demand driven by switching from other fuel sources to green hydrogen for the mobility and transport sector, industrial processes, agriculture and power.

South Africa’s vast renewable energy resource, our lengthy coastline and ability to desalinate water for hydrogen production, the largest global concentration of platinum group metals and the country’s expertise with the production of power fuels and our proximity to both the European and Asian markets provide the

country with a strategic advantage to become a global producer of green hydrogen.

Although the economy is currently highly carbon intensive due to dependence on coal-based electricity generation and petrochemical production, South Africa does possess advantages in the development of the green hydrogen (GH2) value chain, including the existing industrial and specifically petrochemical base and production, storage and transportation of grey hydrogen and associated chemicals.

South Africa also has access to key production technologies and related skills and resources, a robust financial system, a globally recognised renewable energy procurement programme and the inclusion of green hydrogen as a key element in government’s energy transition plans.

The green hydrogen industry has the potential to establish South Africa as a green export economy and future energy market global trader that will assist in securing foreign direct investment and contributing to economic growth and development through the export of products such as green steel and green chemicals including green hydrogen derivatives such as green ammonia, sustainable aviation fuels and marine bunkering fuel.

South Africa can be positioned as a leader in the energy transition and could become a critical player in the new global GH2 economy. This will require a strong partnership between government, the private sector and civil society to create an enabling environment for investment into this exciting industry. South Africa will also be able to position itself as a global equipmentmanufacturing hub in the green hydrogen value chain by targeting the manufacturing of electrolysers, fuel cells, renewable energy components and equipment, battery storage components and associated components.

RETURN Energy

on energy

INVESTED

Benjamin Franklin attested that energy and persistence conquer all. Green Economy Journal speaks to Evan Rice, CEO of Etana Energy, whose narrative is weaved by energy, persistence and conquering all.

Evan, you were appointed as CEO of Etana Energy in January this year. Please share your career trajectory to this point. I have been working in energy and cleantech across a broad range of roles spanning consulting, investing, advocacy and working for OEMs since 2007, both in South Africa and Europe. I have been incredibly fortunate through these experiences to get to see how the energy transition is unfolding in various parts of the world, and I am now looking to apply some of that to making a contribution in South Africa.

Who is Etana Energy?

Etana is a majority black-owned licenced electricity trader that supplies renewable energy to business customers in South Africa through the grid. Our diversified wind and solar independent power producer (IPP) generation portfolio allows us to cover a high percentage of our customers’ electricity needs with costcompetitive, low-carbon energy.

Please define renewable energy trading. We buy the output of renewable energy generators across South Africa and sell this to business customers using wheeling over the national electricity grid.

Large industrial businesses consume almost half of South Africa’s electricity.

Evan Rice, CEO, Etana Energy.

issued with an electricity trading licence by NERSA.

What gave you the foresight and tenacity to apply for the energy trading licence?

Our shareholders are major investors into large scale renewable energy in South Africa. A couple of years ago, we saw a strategic opportunity to create another way to build much-needed new wind and solar generation projects in the country. We saw a confluence of three factors that convinced us that the timing was right:

a. The declining cost of renewable energy technology and increasing cost of electricity tariffs meant renewables were becoming the lowest-cost new generation available and costcompetitive for customers.

b. Eskom’s and South Africa’s balance sheet was not able to keep signing long-term offtake agreements for the scale of new generation capacity required over the next couple of decades.

c. Businesses increasingly need a solution to reduce their carbon footprint to stay relevant and competitive on the global stage, and South Africa’s grid electricity comprises the biggest share of most business Scope 1 and 2 emissions.

We teamed up with partners with the necessary experience to pursue the opportunity.

Etana Energy is fast becoming a history-maker and will soon be South Africa’s principal green utility. How so?

We are not making any such claims, but certainly hope to make a meaningful contribution to helping solve our electricity challenges in South Africa by accelerating the deployment of new renewable energy capacity, while delivering value for customers and helping decarbonise the grid.

How do Etana tariffs compare to Eskom and municipalities? Our pricing is linked to customer power purchase agreement (PPA) term and typically provides customers with a discount to the cost of grid tariffs at the start of the PPA, with higher savings for longer contracts. Our tariffs increase annually with consumer price index (CPI), which provides forward price certainty. So, if grid tariffs increase above inflation, customer savings increase over time.

In November 2023, Growthpoint Properties signed a milestone PPA with Etana to wheel electricity to its commercial property buildings across the country. Please expand.

Being a Nersa-licenced electricity trader, we can wheel electricity not only to Eskom customers, but also to municipal customers where municipalities have a wheeling policy and tariff in place.

This has allowed Etana to partner with Growthpoint to supply 70% of their larger buildings connected to Eskom and some of the major metros’ grids. This will be supplied by a combination of hydro, wind and solar from Etana’s generation portfolio.

What is clear is that traders are critical to enabling mid-sized businesses to participate in the renewable energy opportunity.

This deal led to your agreement to trade energy supplied by Serengeti’s hydroelectric plant, which has reached financial close and is under construction. Please provide background. Growthpoint will buy all the output from the Boston Hydro plant through Etana, and the balance of the contracted energy will come from our wind and solar portfolio. The hydro will provide some 24/7 electricity, allowing Growthpoint to have some buildings that are supplied 100% with clean power in real-time.

A couple of years ago, the Nelson Mandela Bay Business Chamber’s renewable energy cluster amassed its highest energy users to find a common solution for procuring clean power. Etana was selected as the preferred renewable energy supplier. Autocast SA is the first of more than 30 of these energy users to sign a deal with Etana.

Using Autocast as an example, why do you view this initiative as a blueprint for industrial customers to enable energy generation capacity in South Africa.

Until now, it has been almost impossible for companies that cannot consume the output of a whole solar or wind farm to access renewable energy other than putting solar panels on their roofs. Most customers do not want to take the risks associated with a typical bilateral PPA, and most IPPs don’t want to negotiate and contract with 20 customers for one project.

The Nelson Mandela Bay Business Chamber (NMBBC) initiative overcame this challenge. It involves multiple mid-size and large industrial electricity users in Gqeberha combining their demand and agreeing a framework deal to procure cost-competitive wheeled renewable energy through an electricity trader.

By sitting around the table, we were able to understand the needs of the various businesses and develop a standardised offering that delivers great value for the NMBBC members and minimises risks for them to sign long-term contracts of 10 to15 years. And their combined demand equates to the output of two large wind or solar projects, which enables us to add much-needed capacity to the grid in South Africa with our IPP partners.

The NMBBC adopted a cluster approach to enable local businesses to combine their resources to implement solutions for a range of issues. How can this cluster approach help South Africa’s energy crisis?

We believe that it is a model that that be replicated in metros nationally, and Etana is excited to work with other clusters around the country to do so. Importantly, industrial clusters have a

Etana Energy was the third entity in South Africa to be

Etana can wheel electricity not only to Eskom customers, but also to municipal customers.

strong voice with municipalities, so they help get the necessary policies and tariffs in place to enabling wheeling, and this can be done in a way that serves as a win-win for businesses and the municipality. Designed properly, municipalities are financially no worse off from wheeling, since they still get paid for the use of their distribution network, but no longer pay Eskom for the energy businesses buy from a trader.

Does regulation hamper your objectives or impede your business in any way?

Not really at this stage. Wheeling isn’t yet available to all customers everywhere in South Africa, but that is not a regulatory issue – it is more a function of policy, capacity and IT systems within our utilities. But there is already a huge addressable market just in what is possible today – large industrial businesses consume almost half of South Africa’s electricity.

What are the opportunities and challenges of wheeling electricity in South Africa?

It’s a huge opportunity for the country – we can use the buying power and balance sheets of commercial and industrial businesses to enable new generation infrastructure to get built, while delivering value for those businesses. It takes financial pressure off National Treasury and Eskom, while ensuring infrastructure that benefits the whole country gets built.

The biggest challenges remain the lack of a consistent wheeling framework and tariff methodology, and the IT systems to manage the additional billing complexity. But both issues are solvable in the near term.

BIOGRAPHY

Jan 2024 to present: CEO, Etana Energy

Mar 2023 to present: Business Development, H1 Holdings

Feb 2022 to present: Advisor (energy markets), Plentify

Oct 2021 to Jan 2024: MD, Locaso

May 2017 to Sep 2021: Director, EMEA: Energy Products, Tesla

Would you agree that producers in the South African market have created the demand for trading as a service solution tailored for PPAs and risk?

I’d say it’s more a combination of the macro factors mentioned before that have created the opportunity, rather than just the producers. In addition, what is clear is that traders are critical to enabling mid-sized businesses to participate in the renewable energy opportunity. And having got our customer portfolio to scale, we are now able to add on new business customers and grow the generation portfolio accordingly, simply and quickly.

Jan 2016 to May 2017: Business Development Manager, Sub-Saharan Africa: Energy Products, Tesla

Oct 2014 to Dec 2015: Board member, International Cleantech Network

Jun 2014 to Dec 2015: CEO, GreenCape

WHEELING IN SOUTH AFRICAN MUNICIPALITIES | Overview and status of progress | South African Local Government Association | [July 2023]

Wheeling is the delivery of electrical energy from a power producer to an end-user through a distribution or transmission network. Wheeling allows IPPs to sell electricity directly to customers, or offtakers, while paying for the use of the electricity grid owned by a third party (eg a municipal distributor or Eskom) through use-of-system (UOS) charges. It is important to note that wheeling is not a new concept. Eskom has had wheeling contracts through municipal grids for years, and when a municipality procures energy from an IPP this could entail wheeling across Eskom’s grid. In South Africa, the term “wheeling” has come to denote the set of transactions between IPPs, traders and offtakers that involve use of public distribution grids. This report forms part of the Municipal Embedded Generation Support Programme and is a collaborative effort by the South African Local Government Association (SALGA), Sustainable Energy Africa (SEA), the Western Cape Government, GIZ, GreenCape, Eskom and the AMEU.

ENVIRONMENTAL HURDLES REDUCED

for lower-sensitivity renewable projects

In a significant move to support the development of renewable energy, South Africa recently adopted new norms to simplify and speed up the authorisation process for solar photovoltaic facilities and battery energy storage systems.

BY SRK CONSULTING

According to Sam Leyde, a senior environmental consultant at SRK Consulting, the Forestry, Fisheries and Environment minister Barbara Creecy has exempted solar PV and battery energy storage systems (BESS) facilities that are developed or expanded in areas of low or medium environmental sensitivity from having to obtain environmental authorisation (EA) under the National Environmental Management Act (NEMA).

Leyde notes that, while the draft Integrated Resource Plan of 2023 promotes the development of renewables in South Africa subject to the requisite environmental approvals, the obtaining of such approvals has typically involved lengthy environmental impact assessment (EIA) processes of up to 18 months – making the rapid delivery of renewables difficult. He pointed out that the new norms do not apply to wind farms, which often have more significant impacts – notably to avifauna.

“These norms aim to ease the deployment of PV and BESS facilities while still upholding the NEMA objectives. This presents renewable energy developers and Environmental Assessment Practitioners (EAPs) with an alternative legislative process to consider during the planning and authorisation phase of a project.”

Applying the norms

The new norms apply to proposed solar PV or BESS facilities in areas where four biodiversity themes and agriculture are of low or medium environmental sensitivity. SRK Consulting environmental consultant Kelly Armstrong points out that the sensitivity of a proposed site is assessed by using the DFFE screening tool to generate a coarse sensitivity rating, and by appointing independent qualified specialists to verify site sensitivity in accordance with the norms.

“If both steps confirm low or medium sensitivity for all five

The adoption of these

norms

has the potential to accelerate the transition to renewable energy in South Africa.

themes, then the exclusion applies and a registration process can be initiated,” says Armstrong. “SRK’s experience is that projects may struggle to meet these criteria to trigger exemption, since all renewable projects have large footprints, and many cannot always be located in less sensitive areas.”

While the introduction of the norm may fast-track permitting processes, it is likely to introduce some uncertainty for developers until such time that the environmental sensitivities of a project site are verified.

Registration application

“If a project does not need EA, it stills need to be registered through a shorter, formal process,” she explains. “The norm requires that a registered EAP must compile a Site Sensitivity Verification Report and an Environmental Management Programme to manage the impacts associated with the proposed facility. Stakeholders must also be consulted and given the opportunity to review and comment on these reports.” A registration application, including evidence of the consultation process, is then submitted to the DFFE, who have 10 days to register the facility or inform the applicant of any deficiencies. As with an EIA process, stakeholders must be notified of the decision and are entitled to appeal.

Leyde says that the adoption of these norms has the potential to accelerate the transition to renewable energy in South Africa, improving energy security and diversity while reducing greenhouse gas emissions.

SOLAR SYNERGY South Africa in

Menlo Electric South Africa, a growing distributor of solar components, has partnered with Huawei Digital Power. This strategic collaboration marks a significant milestone in its mission to deliver cutting-edge solar technology.

Currently, the solar market is flooded with hundreds of new products from just as many manufacturers making it difficult to recognise quality products without a ton of research.

“We are excited to join forces with Huawei Digital Power as its official distributor,” says Heino Louw, general manager of Menlo Electric South Africa, “Huawei products will be great additions to our range of products because of Huawei’s commitment to innovation in improving solar systems. It is a privilege to add them to our portfolio.”

Huawei Digital Power, a global OEM, has chosen Menlo Electric for its excellence in renewable energy distribution and exceptional customer service. Menlo Electric will now offer Huawei Digital

Power’s PV products to its clientele, providing them with access to state-of-the-art solar energy solutions and helping to cut through the noise in the market.

Huawei Technologies, a forefront leader in the renewable energy sector, is no doubt thrilled to unveil its exciting new partnership with Menlo Electric South Africa as an official distributor of its revolutionary products. The two companies are united by their commitment to delivering top-quality solutions to meet the nation’s energy needs.

By integrating Huawei’s technology into its offerings, Menlo Electric reaffirms its position as a leader in delivering high-performance solar solutions tailored to meet the evolving needs of residential as well as commercial and industrial clients.

Heino Louw, General Manager, Menlo Electric South Africa.

Daryn Stewart, Head of Sales, Menlo Electric South Africa.

Historical and mid-scenario forecast for global PV installations.

SAPVIA has played a facilitating role in South Africa’s gradual adoption of renewable energy from solar PV, especially the rapid uptake seen in the past couple of years. In particular, the solar PV industry in South Africa has experienced significant growth in 2023, with installed capacity growing by 3.3GW overall, of which private sector solar additions accounted for 2.6GW.

This growth has also had a substantial economic impact and is linked to the creation of more than 20 000 jobs – mostly in the PV installation sub-sector. “For communities, businesses, and industries across the continent, increasing accessibility to solar PV could significantly alter energy generation and consumption patterns,” says SAPVIA’s solar energy technical specialist, De Wet Taljaard. “The declining cost of solar PV technology is one of the drivers of the shift we’re seeing across Africa’s energy landscape. As solar PV becomes more affordable, it’s creating opportunities for a wider range of sectors to adopt this clean energy solution. In combination with battery energy storage systems (BESS), it presents a compelling solution to some of Africa’s energy access challenges.

“Solar PV and BESS in synergy are helping us solve the issue of getting power in regions where grid infrastructure is limited or unreliable. These technologies offer a decentralised energy solution, allowing communities and businesses to achieve a measure of energy independence,” he explains.

THOUGHT [ECO]NOMY

greeneconomy/report recycle

THOUGHT [ECO]NOMY

PODCAST | RESIDENTIAL SOLAR TRENDS TRANSFORMING SA

| Menlo Electric South Africa | GreenEconomy.Media | [2024]

Government is actively furthering the uptake of new rooftop solar by easing regulations and with targeted policy. These legislative changes have transformed the market. Rooftop solar is now more accessible to more households, enabling people to become more independent with their electricity usage and to grow the green economy from a base level.

greeneconomy/report recycle

Listen to the full episode and uncover:

• Challenges associated with sharp spikes of demand in growth

• To what extent is current demand linked to loadshedding?

• What will drive demand in the future?

• Loadshedding and the costs of infrastructure and electricity prices

• Liberalisation of the energy market

• The future role of battery energy storage and inverters

Host, Gordon Brown, publisher, GreenEconomy.Media, speaks to Heino Louw, general manager, and Daryn Stewart, head of sales, Menlo Electric South Africa.

GREEN TECH FOR A BETTER FUTURE | Huawei Digital Power

RADICAL STEPS DECENTRALISED ENERGY GRID needed to support a

Radical steps must be taken to secure our energy supply – and solar will be key in driving this. This was the clear message shared by GoSolr in its first quarterly solar update. Their “light paper” distils the current conversations about solar, interrogates the latest stats and shines a light on the energy generation issues that face South Africa.

BY GOSOLR

“We developed the GoSolr quarterly solar update to intentionally interrogate what is happening across the renewable energy space. We wanted to identify the issues and opportunity therein to tackle not only the ongoing energy crisis, but also to look ahead for better ways to power our vibrant nation,” says GoSolr co-founder, Andrew Middleton.

“South Africa has an energy problem. We don’t produce enough, it costs a lot of money and what we produce has a profoundly bad impact on the environment. Solar offers a viable solution to mitigating tackling this crisis and without it, our energy crisis would be much worse,” he continues.

In the first quarter of 2024, the country experienced 68 days of loadshedding out of a total of 89 days as the nation’s insurmountable energy continues. The paper shows that without rooftop solar alleviating demand on the national grid, the energy shortfall in 2023 would have 44% worse than it was.

“South Africa ranks third in the world as having the best solar potential, and it’s becoming accessible to more people. The scope for growth and benefits are incredible – cost savings, clean and secure energy, job creation and more. We are however being hampered by inconsistent and fragmented national policy, regulations and tariffs,” Middleton says.

GoSolr co-founder and CEO, Andrew Middleton.

In the first quarter of 2024, the country experienced 68 days of loadshedding out of a total of 89 days.

The index points to outdated national policy that is governing the industry and the many players that are driving the implementation of it. Policy currently also differs from province to province and this is unlikely to change soon.

“Radical steps must be taken to secure our energy supply and policymakers must align and take bolder steps. We must take immediate action measures to support a more robust and decentralised energy grid, reduce dependency on centralised power, sources and mitigate the impact of loadshedding,” says Middleton.

The index is not all doom and gloom though. The paper sheds a light on the developments in renewable energy solutions, innovations in how we use power and increased scope for cleaning clean, sustainable energy that can directly impact the continued energy crisis.

“The burgeoning solar industry in South Africa stands as a beacon of opportunity, powered by abundant sunlight, technological advancement and declining costs. By harnessing the power of the sun and enacting robust policies, South Africa could lead the way and illuminate a path towards a greener, more prosperous future for all,” Middleton concludes.

KEY FINDINGS

The state of solar. A total of 5 440MW of energy derived from rooftop solar has been added to the grid as of March 2024, yet in 2023 South Africa’s electricity demand exceeded supply by some 16 000 000-megawatt blackouts.

The reality of regulatory changes. With NERSA, government, Eskom and 257 metropolitan, district and local municipalities operating in a near-siloed manner, the many players and inconsistent regulatory frameworks have resulted in a patchwork policy problem, while energy tariffs and electricity prices continue to rise. From obstacles to opportunities. While there are 17.8-million homes in South Africa, only about 124 000 (0.69%) of these have rooftop solar, yet South Africa ranks third in the world as having the best solar potential. If we successfully moved the industry in the right direction, decarbonising South Africa’s power sector could create ±145 000 net jobs in the next two+ decades, while opening key business ventures needed for installation, maintenance and managing end-of-life of solar solutions.

The burgeoning solar industry in South Africa stands as a beacon of opportunity.

CASH FOR POWER

GoSolr facilitates the ability to feed in excess energy for all Cape Town customers. The scheme from the City of Cape Town gives residential households the opportunity to further leverage the benefits of their solar power systems, selling excess generated energy back to the city for cash instead of credits against municipal bills. Through the “Cash for Power” programme, the city intends to source as much excess solar energy from businesses and residential properties to feed back into the city’s grid.

A little less conversation,

A LITTLE MORE BATTERY, PLEASE

Climate change denialists are finding fewer straws to grasp at as the overwhelming evidence of a climate crisis stacks up, increasing in intensity each year. Yet, despite this, our very own government inexplicably continues to fall back on pumping inordinate amounts of carbon into the atmosphere to keep our lights on.

BY LANCE DICKERSON, REVOV*

The year 2023 was the hottest year on record. This means that since record-keeping began in 1850, last year was the warmest, a full 1.18 degrees Celsius hotter than the 20th century average. If you consider that Johannesburg, as a city, was founded 36 years after climate record-keeping began, it will help bring home the message of just how significant a milestone this is.

Writing an opinion piece in News24 in May 2024, Ronald Richman, chief actuary at Old Mutual Insure said: “The ominous rumblings of climate change have reached the insurance industry’s doorstep, and the forecast is troubling. While the country used to be a Catastrophic Event (CAT)-free zone, the scale and magnitude at which disasters have taken place recently means we are now experiencing a dramatic shift in the CAT landscape.”

Climate change, and the devastation it causes, is here. Yet, despite this, Minister of Public Enterprises, Pravin Gordhan, recently revealed that Eskom has spent just shy of R65-billion on diesel in the past five years, more than a third of that in the past year alone.

Yes, but the lights need to be on, we will hear. At the time of writing, the country is on its longest loadshedding-free streak in a very long time and while many are suspiciously drawing links between this respite and the looming elections, others are assuming, most likely correctly, that the lower demand is due to private electricity generation – mostly solar – and a fall-back on diesel generators when the capacity can’t meet the demand and the utility switches to emergency power generation. Reports about a decline in planned maintenance reducing loadshedding, paint a frightening picture.

Instead of running huge diesel generators, the country could effectively use electricity it has already produced.

Large-scale battery energy storage systems (BESS), deployed at scale, could quite literally change the situation. If banks of batteries and inverters were located in the right place (to be able to benefit from adequate distribution network infrastructure) and configured correctly for the amount of energy being produced at solar or wind farms, instead of simply being wasted when demand meets supply,

excess power produced could be saved and used during the peak times of 6am to 9am and 6pm to 9pm or during the night. Think about that carefully – instead of running huge diesel generators, the country could effectively use electricity it has already produced that wasn’t needed at the time.

Based on the amount of money that Eskom has spent on diesel, in one year we could have deployed 2GWh of battery backing using just half of that money.

Billions are being spent on solar farms, yet too few investors understand the gold they would be sitting on if they invested in the requisite battery backup. The country could have outlaid a third of the solar investment to date – for the same impact – had it added BESS to the projects. Just imagine the potential of where we would have been had there been a widescale investment in BESS, with full knowledge of the capability of properly backed-up systems to buffer against peak demand periods and higher stages of loadshedding.

Eskom knows about the power of batteries. It announced last year that it launched its Hex BESS pilot site in Worcester, Western Cape. At the time it said: “The Hex site is specifically designed to store 100MWh of energy, enough to power a town such as Mossel Bay or Howick for about five hours. It forms part of Phase 1 of Eskom’s BESS project which includes the installation of approximately 833MWh additional storage capacity at eight Eskom distribution substation sites in KwaZulu-Natal, Eastern Cape, Western Cape and Northern Cape. This phase also includes about 2MW of solar PV capacity.”

If the government were to divert more of the money being spent on diesel, which is contributing to the climate crisis, Eskom would have been much further down this road. Private industrial users are starting to understand the power of BESS investments, and this is driving a massive uptick in interest for 2nd LiFe BESS installations across industries. As an industry, we are all on the ground, helping power-sensitive businesses develop their own freedom from the unstable grid. Eventually there will be too much momentum for Eskom to continue dragging its feet, but until then we simply need to keep applying pressure.

REVOV is a leading provider of lithium iron phosphate batteries and BESS in Southern Africa.

ELECTRIFYING THE FUTURE

Sustainable High Voltage Battery Solutions

BLOW and the sun doesn’t

BATTERY INNOVATION

Innovation is a great buzzword within the battery industry, with many future possibilities for new designs and deviations from current materials for use in electric vehicles, consumer electronics, power tools and electricity grid markets.

BY IDTechEx

Electric vehicle (EV) cost, range, charging times and performance are all factors heavily affected by the battery inside the car. EVs have been up and coming since the 2010s, but it is battery technology that made this possible. While regulatory pressure and climate change act as drivers for the market, with combustion engines being huge contributors to global warming and greenhouse gases, newly developed batteries have unlocked the potential for EVs to succeed. As batteries have developed to become more energy-dense with faster charging while being safer and cheaper to manufacture, they have become the perfect fit for the high demand of EVs.

BATTERY ADVANCEMENTS

Cell designs and materials used in battery manufacturing are consistently evolving within the sector. Silicon anode materials replacing graphite within batteries is a successful innovation that can improve vehicle range and fast charging capabilities. This is because silicon has a much higher capacity to store lithium in comparison to graphite. A small amount of silicon is already added to graphite in some batteries and the next generation of silicon materials and cell designs are currently being developed to enable a higher percentage to be used in the anode. Companies are advertising longer run times and faster charging as key benefits, benefitting not only EVs but also household and electronic devices.

Solid-state batteries are on the horizon to replace liquid electrolytes, removing the highly flammable liquid material commonly used in the industry, making batteries safer. Longer run times and ranges for EVs are achieved with solid electrolytes, as they allow the use of more energy-dense materials such as lithium metal, which replace the typically used graphite. For more in-depth analysis, see IDTechEx’s report Solid-State and Polymer Batteries 2023-2033: Technology, Forecasts, Players

Challenges with solid-state batteries still exist, such as maintaining contact between cell components and low manufacturing costs, but with the increased safety and potential for improved energy density, many automotive manufacturers consider it a key technology of the future.

RENEWABLE ENERGY

Pumped-hydro-energy storage has been a reliable source of renewable power and energy storage capacity for electricity grids for a long time, but a relative scarcity of suitable geographical sites has opened a window for batteries and other alternative energy storage technologies. Li-ion batteries are being used as an alternative to pumped-hydro and can be charged up from solar or wind power, storing energy at times of high electricity demand or excess production to limit curtailment.

Batteries provide a more reliable source of energy to make up for the intermittency of nature. In the case of a natural disaster and for improved grid capabilities for self-sufficient energy, batteries will play a huge role. IDTechEx predicts that the stationary energy storage market will grow at a faster rate than the EV sector due to its critical role in electricity grid and energy decarbonisation, as well as its growth from a much lower base.

There is space for innovation within this sector of alternative battery chemistries and energy storage technologies which includes various flow battery chemistries, zinc- or iron-air batteries, compressed-air energy storage systems, among other technologies. The benefit of these systems often stems from their ability to scale energy storage capacity more easily than in Li-ion batteries. For example, where Li-ion batteries are contained within a single cell, redox flow batteries can keep the power generation and energy storage components separate as storage capacity is contained within the electrolyte,

which is then flowed through an electrochemical cell to generate power. This allows energy capacity to be increased by increasing the size of the storage tanks and the electrolyte contained within them, offering the possibility of lower-cost energy storage capacity.

SUSTAINABILITY

Transparency within the supply chain is imperative within the battery industry so customers can ensure energy is being stored as cleanly as possible and with minimised waste. Mining of materials, including cobalt, lithium, nickel and graphite, comes with social and environmental issues, but efforts are being made to make improvements.

Batteries supplied to the EU will start to require greater due diligence of supply chains, including information on carbon footprints, with the potential of a penalty upon failing to meet this standard. For grid-scale batteries, alternative technologies play an important role in diversifying supply chains and utilising more abundant materials. Large-scale batteries and grid batteries are key factors in environmental efforts to reduce CO 2 emissions.

The future of battery technology is set to be one of success and diversification, with companies offering varying solutions for higher-performing, more sustainable, and lower-cost batteries.

LI-ION BATTERY TECHNOLOGIES 2024-2034

The global market for Li-ion battery cells alone is forecast to reach US$380-billion by 2034, driven primarily by demand for battery EVs. Improvements to battery performance and cost are required to ensure widespread deployment of EVs and to enable longer runtime and functionality of electronic devices and tools, leading to strong competition in the development of next-generation Li-ion technologies.

For the potentially lucrative EV market, longer range, short charging times and lower costs and prices are still key to widespread adoption. The battery electric car market is a prime target for many battery technology developments, offering the opportunity to supply a market where battery demand is forecast to grow beyond 2 700GWh by 2030.

Cell and battery design

Developments to cell and battery pack design play a similarly important role in ongoing performance gains. At the cell level, electrode structure, current collector design, electrolyte additives and formulations, as well as the use of additives such as carbon nanotubes continue to play a role in maximising Li-ion performance across various applications. At the pack level, cell-to-pack designs are becoming increasingly popular for EVs to optimise energy density.

More innovative battery management systems and analytics represent a key route to battery improvement, offering one of only a few ways to improve performance characteristics including energy density, rate capability, lifetime and safety simultaneously – a feat that is notoriously difficult to achieve.

ANODES

Transparency within the supply chain is imperative within the battery industry.

New anode materials offer the chance of significantly improved battery performance, particularly energy density and fast-charge capability. Two of the most exciting material developments to Li-ion are the development and adoption of silicon anodes and Li-metal anodes, the latter often but not always in conjunction with solid-electrolytes.

The excitement stems primarily from the possibility of these anode materials significantly improving energy density, where improvements of 30% to 40% over current state-of-the-art Li-ion cells are feasible. Enhancements to rate capability, safety, environmental profile and cost are being highlighted by developers. However, shifting from the use of silicon oxides as an additive to higher weight percentages, and the use of lithium-metal anodes have posed serious problems to battery cycle life and longevity, which limited commercial adoption so far.

CATHODES

While new cathode materials are expected to provide improvements over incumbents and direct competitors, they are likely to be small and unlikely to push the performance envelope of Li-ion batteries significantly. Instead, cathode development helps to optimise and minimise the trade-off inherent in deploying one chemistry over another. Material costs and supply chain concerns play a critical role in the development of next-generation cathodes materials.

Li-ion demand forecast.

&CONSERVATION E-MOBILITY

Ampersand E-Mobility, Africa’s first electric transport energy company, has partnered with Akagera National Park to provide the park’s first two specially designed electric motorcycles as sustainable transport options to improve efficiency through silent operations.

The national park, located in northeastern Rwanda, is the largest protected wetland in Central Africa. Home to diverse landscapes and wildlife, including elephants, lions and rhinos, one of the major benefits of these electric vehicles is the reduction in operating costs leading to increased effectiveness in protecting these species. E-motorcycles from Ampersand produce very little noise and no exhaust fumes, which reduces disturbance to the animals and enhances the tracking teams’ efficacy.

“Our partnership with Akagera National Park is a great example of how e-mobility can be a sustainable solution for everyone. The future of African mobility is electric. Not just in the cities, but in the rural places and the parks. The e-motorbikes provided to the Park were carefully crafted with extensive research as the foundation of our design process: we built a prototype model for off-road tracking and an upgrade of our base model for the staff to conduct important liaison work with the local communities,” says Josh Whale, CEO and founder of Ampersand. “We are proud to be part of this effort to reduce carbon emissions and protect the area for savannah-adapted species.”

Akagera National Park is a leader in wildlife resettlement, with black rhinos re-introduced and white rhinos introduced to the park in recent years. The ability to track these animals to understand their movement, monitor their welfare and protect them from poaching with a minimum of disturbance is essential to this work.

“Poaching in Akagera National Park has significantly decreased thanks to the park’s robust law enforcement and community engagement efforts. Daily patrols and vigilant tracking are crucial, particularly for high-value species such as rhinos. Unfortunately, according to most sources, Africa still loses at least one rhino every day. Without immediate action, we risk witnessing their gradual extinction. That is why tracking and monitoring these magnificent creatures is crucial to ensure their protection.

Ampersand started 2022 with just 50 electric motorcycles and ended the year with 770 in Rwanda. Today the company has 2 028 e-motos in Rwanda and an additional 548 in Kenya.

Josh Whale, Ampersand.

The incorporation of Ampersand’s electric motorcycles will improve the Park’s ability to track and monitor these endangered animals while also reducing operating costs and environmental impact,” adds Luke Davey, operations manager at Akagera National Park.

Nsengiyaremye Fidel, a member of the rhino monitoring unit, says, “As someone who has been riding Ampersand’s electric motorcycle for the past 12 months, I’ve experienced many of its advantages. First, it’s automatic, so I don’t stress about the gears; second, they are powerful electric motorcycles with the ability to climb steep roads; third, this e-moto aids us in approaching specific animals and leaving them undisturbed in their natural behaviour. Although inherently quiet, Ampersand has incorporated sound

THOUGHT [ECO]NOMY

greeneconomy/report recycle

The future of African mobility is electric.

speakers on the bikes so that when initially approaching, the animal can be made aware of the motorcycle without being disturbed by it. The design is perfect for our needs.”

Developing these two electric motorcycles for Akagera’s challenging terrain allows Ampersand’s Kigali-based R&D team to stress-test the company’s vehicle design, components and battery packs and advance vehicle development.

Using electric vehicles means Akagera “walks the talk” on the critical linkage between climate change and conservation. Yet by working closely together to develop these vehicles, Akagera goes a step further: directly helping to accelerate Ampersand’s mission to replace the 30-million petrol motorcycles in Africa with durable, affordable electric motorcycles.

Ampersand was founded in 2016, and since then, it has grown to be best in class for technology and performance, with a presence in Rwanda and Kenya. By powering commercial transport with reliable electrical energy, Ampersand is paving the way for affordable, lower-carbon public transport, creating a wide variety of high-tech green jobs in the heart of Africa. Since the end of 2021, Ampersand has grown from around 100 employees to over 450 with the majority of the staff being East African and working in STEM roles including battery manufacturing and maintenance, swap station operations, fabrication and assembly.

The two Ampersand electric motorcycles at Akagera National Park.

WATCH AMPERSAND E-MOBILITY IN ACTION AT AKAGERA NATIONAL PARK

A PERFECT STORM for disaster

Can we feed the world and meet climate targets?

Producing enough food sustainably while meeting climate targets is a significant undertaking. It will require rethinking how we produce and consume our food and the pressure it places on other utilities. In turn, it will redefine where we invest.

BY FELIX ODEY, SCHRODERS*

Food production is currently responsible for a quarter of the world’s greenhouse gas emissions and is the largest driver of deforestation, as well as accounting for 70% of global freshwater use. The United Nations (UN) estimates that the global population will reach 11-billion people by 2050, which would involve an approximately 50% increase in the amount of food produced today. This means that more food production will be required in the next 30 years than we have produced over the entire course of human history.

According to the Worldwide Fund for Nature (WWF), the annual economic value of water and freshwater ecosystems is estimated to be around $58-trillion, or 60% of global GDP. Yet the world’s freshwater ecosystems are in a downward spiral due to climate change, posing an ever-growing risk to these economic values.

We also see more extreme weather, which is starting to have a very real impact on food production. For example, even in a 1.5-degree variance scenario, the yield of produce such as corn and wheat is expected to decline by between 12% and 14%. Weather variability is also having an impact on our ability to predict what food production levels are going to be.

Policymakers awaken to the looming challenge

At its current rate, the world’s food system is set to devour the globe’s entire 1.5 to two-degree carbon budget – a threshold target that was established in the 2015 Paris Agreement. The challenge of feeding the world sustainably and meeting climate targets has dawned on policymakers. At 2023’s COP28, heads of state and governments signed a declaration that recognised the grave threat climate change poses to our ability to produce sufficient food.

What this means for investors

The crux of the investment case for sustainable food and water is that demand will continue to grow, land usage will become more competitive (with sustainable fuels, renewable development and urbanisation) and food production will become increasingly challenged, by desertification, declining soil quality and increased weather volatility.

This means that food inflation long term is likely to be higher than it has been in the past, and we need to materially change the way we produce, distribute and consume food and water in the coming decades to keep food inflation at manageable levels. This creates challenges for investors, as it has implications for longterm interest rates.

However, it also creates investment opportunities. We believe there are structural growth opportunities for the companies involved in alternative proteins, sustainable packaging, smarter irrigation and water management solutions, sustainable aquaculture, precision farming equipment and lower-carbon fertilisers. Like any other change in history, the adoption of these technologies will be driven by the relative cost, consumer demand and supportive policy.

Over the last few years, companies in this space have been contending with cyclical pressures and macro headwinds. Farmer incomes have fallen from record highs in 2022, consumer spending has been challenged by price inflation outpacing wage inflation, and higher interest rates have resulted in higher costs of capital for companies globally. This exacerbated weakness in consumer-exposed subsectors, as companies of all sizes sought to preserve capital by destocking their inventories.

The good news is that valuations have reset materially in the food and water space, and we do not believe they reflect their longer-term growth potential or the nearer-term demand recovery we expect as real wage inflation recovers, and interest rates start to normalise. The sustainable food and water universe has not looked this cheap relative to the wider market for over 10 years. Moreover, the destocking across the agricultural inputs, food and beverage packaging, food technology ingredients and vitamin space, could result in some restocking volume recovery in 2024.

More food production will be required in the next 30 years than we have produced over the entire course of human history.

The

sustainable food and water universe has not looked this cheap relative to the wider market for over 10 years.

Having exposure to this theme allows investors to mitigate some of the risks around food inflation and be positioned for the growth opportunities that will arise from the structural changes the food and water system needs to undergo. This exposure also offers diversification to the wider market given its value characteristics at this point.

Where could investors focus?

Historically, the widespread adoption of new technologies has created winners and losers. Investors would be well-served to look for companies that are adapting their own operations and end products to meet both consumer demands and the growing environmental imperatives. Many of the technologies needed to reduce GHG intensity, water usage and waste already exist in the market today and are cost-competitive.

Recently, there have been a couple of key shifts across the food industry. We’re seeing the adoption of technologies that make the system more resource-efficient, increasingly plant-based

* Felix Odey is the global resource equities portfolio manager at Schroders.

global diets and a rising consciousness around the need to reduce food waste. Consider that the amount of food produced each year should easily be enough to feed the world; however, one-third of food produced for human consumption is lost or wasted globally, according to the World Food Programme data in 2020.

Technology will play a significant role, and regenerative and sustainable farming will have a place as well, given that we are beginning to see ecosystems collapse because of monocultures that have developed around the world. However, it is equally critical to consider the potential yield collapse from stopping the use of fertilisers. It may be better to lower the carbon intensity of fertilisers and make sure they are being applied appropriately, through technologies like precision agriculture and equipment, rather than trying to just get rid of all this overnight.

If we’re going to bridge the calorie gap that we see emerging out to 2050, we will need these technologies and the investment to fund them.

We understand that disposing of waste in a legally sound manner can be confusing. This is why we've created a nationwide take-back scheme that focuses on electronic equipment, batteries, lighting and lighting equipment, paper and packaging, as well as lubricant oil. DISPOSING YOUR WASTE LEGALLY

For your convenience, we've established carefully located waste drop-off points and you'll also have access to our pick-up service, which can be scheduled with one of our accredited waste management and recycling partners. This way, you can dispose of your used products and packaging without even leaving your home or office.

WE TAKE YOUR WASTE TO THE RIGHT PLACE!

By putting the ‘difficult’ work in the hands of waste experts, you are relieved of the burden of ensuring that your waste is managed in an environmentally sound manner and kept out of landfills where it causes immeasurable damage to the environment.

What happens to waste in a

CIRCULAR ECONOMY?

Investing in the circular economy offers a multi-decade structural growth opportunity. It enables investors to gain exposure to companies that offer attractive growth and returns, and that have long-lasting positive outcomes for people and planet.

BY SCHRODERS*

The circular economy is a change in the economic system. It means moving away from “take-make-waste” practices, where we buy, use and discard things. Instead, a circular system is one where products and materials are kept in use and production follows a sustainable path that reduces the consumption of raw materials. The key aim of the circular economy is to decouple economic growth from virgin resource consumption. The simple reason is that the world is running out of resources.

We already use 1.7x the resources that the planet naturally regenerates each year, and this figure will grow as the global population expands. We are living way beyond our means.

Waste is defined as “material or resources that are discarded, unused or considered to be of no value”. However, waste is but a lack of imagination. There is very little “waste” in the modern world that is of no value; it is more about having the right infrastructure, regulations and will to capture that value. This gives us hope that we can improve current waste management practices. On a global level, we currently sit at a powerful intersection of forces – affordable and efficient technology, supportive regulations and consumer and

business demand – that will work to improve circularity, albeit at differing speeds at a regional level.

There are many sources of waste. In this piece, we will focus on municipal solid waste.

What is municipal solid waste (MSW)?

MSW is rubbish from households or businesses (restaurants, hotels, offices). It typically consists of papers, plastics, discarded food, garden waste and other discarded items. The world generates c.2-billion tons of MSW annually. This is the equivalent of 111-million rubbish trucks per day. As economies and incomes grow in emerging markets, this number increases rapidly.

By 2050, with a global population of c.10-billion, it is expected that the world will produce 3.4-billion tons of MSW annually (a 70% increase from today). This, however, doesn’t tell the entire story, as averages often hide the underlying dynamics.

We

already use 1.7x the resources that the planet naturally regenerates each year.

On one end of the spectrum, you have the North American region with c.530kg per capita per annum and at the other you’ve got 168kg per capita in sub-Saharan Africa. The issue therefore is that if everyone in the world produced waste at the same rate as the average person from North America, then global waste production would hit c.4.1-billion tons pa (or 210-million rubbish trucks per day).

Waste generation per capita is very highly correlated with income levels. It is a problem if we cannot decouple economic growth from resource consumption. Countries low on the income scale have ambitions to move up, and it is these countries that tend to see the highest growth in populations as well.

Why is waste a problem?

The biggest issue is how waste is disposed of because that can generate negative impacts on climate change, pollution and biodiversity. There is also the issue that by not properly recycling our waste, we create demand for more virgin resources when we are already over-consuming.

Most waste globally is either openly dumped (c.33%) or landfilled (c.37%) with only 19% being either recycled or composted. About 11% of waste is disposed of via incineration (known as waste-to-energy).

Landfills alone account for c.10% of human activity-related greenhouse gases (GHGs) through the release of methane gas as waste decomposes. This is before considering the other negative externalities like water pollution, soil degradation and the impact on local wildlife and biodiversity. There is also the issue of resource wastage, as a lot of what goes to landfill is of value.

The best way to reduce the negative impacts of landfills is to avoid using them. However, this isn’t always possible. The next best thing is to ensure that the methane emissions aren’t released freely into the environment. There is increased focus in regions such as the US for this approach by capturing these landfill gases and converting them into renewable natural gas.

There is very little waste in the modern world that is of no value.

Regulations are forcing change in the industry

We see increasing “polluter pays” regulations to increase the costs of poor disposal methods (eg landfill). There is also the further development of “extended producer responsibility” across many waste sectors, which puts more of the burden of the cost of physical collection and disposal on the producer.

For example, the roll-out of deposit return schemes across the EU and parts of the US will help to improve recycling rates for

The best way to reduce the negative impacts of landfills is to avoid using them.

single-use containers (eg plastic bottles, aluminium beverage cans).

A lot of regulation aims to either reduce waste at source (ie by being more efficient) or to increase the use of recycled, recyclable or bio-based materials. This is creating a supportive regulatory environment for companies that can supply products based on sustainable biomaterials or ones that can offer a high degree of recycled materials.

We’ve also seen countries like China implement bans on the import of certain types of waste to ensure they are only importing higher-quality waste streams. No longer can countries as easily “export” their waste problems.

These factors result in the need for more developed waste management infrastructure in much of the developed world, with a particular emphasis on recycling capabilities.

Locally, the amended Extended Producer Responsibility (EPR) regulations, which became effective in late 2020, requires manufacturers and product importers in the packaging industry to contribute towards the recycling of product packaging, with a significant impact on waste levels thus far.

One area yielding positive outcomes has been the implementation of a 50% organic waste ban to landfill in the Western Cape, which is set to rolled out countrywide by 2027 and further increased to 100%. According to a recent article , the Department of Forestry, Fisheries and the Environment has included the ban as part of the licencing requirements of the landfill, to ensure compliance.

A $1.3-trillion investment opportunity

As investors in the circular economy, across both the listed and private markets, we recognise the enormity of the challenge that the global economy faces in changing our linear waste management practises to more circular ones. However, we are extremely excited by the significant investment opportunities arising from this challenge.

As of 2022, the global waste management industry was valued at $1.3-trillion and is expected to grow significantly over the coming decade.

The expansion in both recovery and recycling is creating growth opportunities for companies across the industrial spectrum

*Authors: Jack Dempsey, Fund Manager, Paul Lamacraft, Head of Sustainability Private Equity and Samuel Thomas, Sustainable Investment Analyst from Schroders. Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation

technical SEEKING between disciplines

INNOVATION

When the founders of SRK Consulting started the business 50 years ago in Johannesburg, they applied their stamp of innovation from day one. The company has redefined this focus as times changed, giving us a leading role in applying sustainability thinking across all our engineering and scientific disciplines.

BY ANDREW VAN ZYL, MD, SRK CONSULTING

Innovation was not necessarily a buzzword in the 1980s, but Oskar Steffen, Andy Robertson and Hendrik Kirsten formed a mining consultancy when the very idea was novel. South Africa’s mining houses were the pillar of the economy and invariably employed all their own experts. Nonetheless, these three engineers believed they had yet more value to add and were proved correct, as the company steadily grew both locally and abroad. Among the many innovations developed and embraced by SRK was our early recognition that environmental and social aspects of engineering were vital to project success. Indeed, we may have been the first consulting engineering firm in the country to bring a social scientist on board – as early as the 1990s.

INTEGRATING DISCIPLINES

However, adding new disciplines to the team was not in itself the achievement, as these skill sets are only useful insofar as they can contribute towards managing clients’ risk and building sustainability into their business model. The real innovation only starts when you get the right professionals together; they then need to find effective ways of integrating their insights to create the best solution for the job.

This has really been the story of SRK’s first 50 years and is likely to be an ongoing theme. Among the fields in which the company established its early reputation was in tailings management, where its geotechnical expertise is highly regarded. This capability has not only endured but has evolved and matured considerably. By the time the Global Industry Standard for Tailings Management (GISTM) was published a few years ago, SRK was already at the leading edge of this field. As the GISTM emphasised, the focus of tailings management had expanded to include a range of environmental and social factors which are expected to form part of the technical solution. With our many years of experience in applying an interdisciplinary approach, SRK has been a crucial support to mining companies in the quest for GISTM alignment.

INNOVATION WORKSHOPS

In many ways, our innovation drive was initially an implied factor in everything we did, as we tended to engage professionals who were both well-versed in good practice and curious about how to improve it. More recently, we have made this focus more formal, by creating the space and encouragement for our colleagues to work together more closely.

Andrew van Zyl, Managing Director, SRK Consulting.

The real innovation only starts when you get the right professionals together.

We hold innovation workshops at national and global levels, for instance, to ensure that we share what we are doing with others. We reach beyond the boundaries of traditional professions – so that engineers learn about ESG and data scientists become familiar with engineering practice. It is here, at the intersection of disciplines, that considerable innovation can occur.

POWER OF DIGITAL

The digital age has demonstrated this starkly, as our scientists and engineers make increased use of big data – and the tools that generate, collect and analyse these data. At SRK, we have embraced the power of digital technology by encouraging our experts to even develop their own in-house tools. Our innovation workshops ignite that collaboration, to drive solutions developed by experienced practitioners relying on accurate and reliable empirical evidence.

While we revel in the usefulness of digital tools, there is also the need to be cautious about certain unintended impacts. Artificial intelligence (AI) gives us capability to aggregate data and extract valuable conclusions to inform our recommendations. At the same

to ESG practices,

time, it is leading us in directions which are more ambiguous. The ability to generate news, reports and other forms of information using AI is a recent development, but one that will require careful attention as it has the potential to impact mines’ social licence to operate.

Mining – among other industries – is working towards more responsible methodologies and approaches that engage other stakeholders. Our experience in conducting activities such as community engagement for our clients highlights that accurate communication and mutual trust are foundational elements for successful projects. AI tools could potentially blur the lines between what is genuine content and what is fake and misleading, damaging the trust relationship that is so vital.

Social media makes it easy to distribute any kind of information widely, whether true or false. In the ESG space, stakeholders will need to innovate effective ways to communicate truthfully and in good faith – to maintain the social compact on which beneficial projects can be built and nurtured.

50 YEARS OF INNOVATION

Celebrating its 50th year in business, SRK Consulting is an independent, global network of consulting practices. With its initial services focusing on soil and rock mechanics, as well as tailings disposal, the company quickly grew its offerings to mine planning, environmental engineering, groundwater, hydrology, water quality and geographic information systems. Within a dozen years, staff numbers had reached 300 in offices including South Africa, Canada, the US and the UK.

Today, SRK employs about 1 700 people in over 40 offices worldwide – having completed more than 30 000 projects around the globe. Its services today continue to grow in alignment with client needs, and cover offerings in strategy and advice; studies and audits; design, engineering, resources and monitoring as well as compliance and authorisations.

Its engineers and scientists work with clients in multi-disciplinary teams to deliver integrated, sustainable solutions across a range of sectors from mining, water and environment to infrastructure and energy.

With many years of experience in applying an interdisciplinary approach, SRK Consulting has been a crucial support to mining companies in the quest for GISTM alignment.

SRK’s reflections over five decades include a commitment

addressing global issues from climate change to responsible sourcing in the mining industry.

GREEN ECONOMY Leadership for a

As environmental challenges intensify, the call for leaders who can guide us toward a sustainable future grows increasingly urgent. Leaders in a green economy guide organisations and communities towards practices that promote economic growth.

BY BUSINESS SCHOOL NETHERLANDS

CORE COMPETENCIES OF GREEN LEADERS

Vision and long-term thinking. Green leaders like Elon Musk demonstrate vision by pushing forward in sectors such as renewable energy and electric vehicles. This long-term thinking is crucial for overcoming the imminent environmental challenges and setting a sustainable course for future generations.

Innovation and creativity. Companies like Puma have led the way in innovation by developing biodegradable materials, reducing environmental impact and showcasing how industries can evolve towards more sustainable practices through creative solutions.

Adaptability and resilience. The capacity to adapt and remain resilient is essential in the green economy. For instance, companies facing regulatory changes in environmental policies have shifted towards renewable energy sources to not only comply with new standards but also to gain a competitive edge in the market. This adaptability involves anticipating market trends and regulatory shifts, and swiftly adjusting business models to align with environmental sustainability goals.

Education and continuous learning. Educational programmes are foundational in cultivating green leadership. The MBA at Business School Netherlands, for example, integrates sustainability into its curriculum, which prepares students to think critically about environmental impacts and develop sustainable business strategies. Embodying the ethos of BSN, the programmes focus on “learning in order to make a lasting impact”. This approach encourages students to apply what they learn to real-world situations, enhancing their ability to drive meaningful change in their organisations and communities.

BSN’s in-company training programmes are customised to embed sustainable practices directly within organisations, ensuring that learning translates into actionable results that align with the company’s specific needs and goals. These tailor-made programmes enhance the practical application of knowledge.

Stakeholder engagement. Effective green leaders recognise the power of collaboration across all levels of business, from internal teams to external partners, customers and the wider community. For instance, strategies like IKEA’s People & Planet Positive demonstrate how businesses can involve a broad spectrum of stakeholders. This strategy incorporates customers and suppliers into IKEA’s sustainability efforts and engages them in meaningful dialogues to co-create solutions that benefit both the environment and the economy. Such approaches ensure transparency and foster trust.

Moreover, by actively involving stakeholders, companies can leverage diverse insights and innovations that drive forward more sustainable practices. This collective effort amplifies the impact of environmental initiatives, setting a standard for industry-wide changes and inspiring other organisations to follow suit.

Policy advocacy. Advocacy for supportive policies is crucial for sustainable practices to be adopted and integrated across all levels of business and governance. Green leaders actively participate in

policy discussions and work to influence the implementation of key legislation. By influencing such policies, leaders help establish frameworks that promote environmental responsibility.

SUSTAINABLE LEADERSHIP IN ACTION

Dr Olumide Ajayi has played a significant role in advocating for sustainable industrial practices across Africa. His approach includes promoting the transition from exporting raw materials to creating higher-value-added products.

In his capacity as director at Business School Netherlands Nigeria, Dr Ajayi actively promotes the integration of sustainability into business education. He ensures that future leaders are well-prepared to implement environmentally conscious and economically viable strategies within their professional spheres. By doing so, he influences both current and future policy frameworks, paving the way for legislative and financial support for sustainable development initiatives.

GREEN LEADERS

Navigating economic constraints and technological limitations are significant challenges for green leaders. Successful case studies include businesses that have transitioned to circular economy models, effectively reducing waste and improving sustainability. Leaders in industries heavily reliant on natural resources have also pivoted towards more sustainable practices by investing in innovative technologies that reduce environmental footprints while maintaining profitability.

The journey towards a sustainable future is complex but crucial, and leadership plays a pivotal role in this transition. By integrating sustainability into their core strategies, leaders enhance their organisation’s market position and contribute significantly to the planet’s wellbeing. As we face ongoing environmental challenges, the collective effort towards sustainability is more important than ever. How will you contribute to this vital cause?

Dr Olumide Ajayi, Director at Business School Netherlands, Nigeria.

Our in-company programmes seamlessly integrate sustainable practices directly into your business strategy.

Website: www.bsn.eu

Address: Herenstraat 25, 4116 BK Buren, Netherlands

Telephone: +31 (0)34 457 9054 +27 (0)82 688 7399 (WhatsApp)

Email: international@bsn.eu

Want to spark a movement within your organisation?

The imperative for organisations to champion sustainability and uphold ethical practices is clear. At Business School Netherlands, we are poised to be your partner on this transformative journey. Our tailored in-company training programmes are specifically designed to confront the unique challenges your company faces, propelling you towards sustainable growth and strengthened corporate social responsibility.

Why opt for standard training when you can empower your team with skills that foster sustainable success? Our programmes are distinguished by their ability to seamlessly integrate sustainable practices directly into your business strategy. Utilising a dynamic action learning model, we go beyond individual growth to catalyse profound organisational transformation. This practical methodology ensures that the solutions devised are not only theoretical but also immediately actionable, resulting in tangible and enduring benefits.

Envision a training programme that does more than educate – it transforms. By choosing BSN, you’re not merely investing in training; you’re gearing up to lead the movement towards a more sustainable and equitable global economy.

Are you ready to redefine the future of your business? Discover how we can assist you in making this vital transition.

That’s how you spark change.

Shaping WORKFORCE FUTURE the of the

The renewable energy sector is brimming with exciting career paths for the next generation. How do we bridge the gap between South Africa’s young workforce and the renewable energy sector’s growing labour needs?

BY PIERRE BEKKER*

The urgency behind our transition to renewable energy is heightened by an ongoing energy crisis. The crisis highlights the need for a more sustainable, secure energy system and renewable energy offers a viable solution to power the nation.

Stats from Eskom data show that South Africa’s installed solar PV capacity increased by 349% in a little over a year (2022 to 2023).

The number of renewable energy projects has skyrocketed in recent years, so much so that the capacity to train a proficient workforce has been outstripped. Local and foreign investments are pouring into the sector, catalysing its growth and intensifying the need for skilled professionals. Additionally, the energy transition necessitates a new spectrum of expertise and experience, across solar, wind and energy storage technologies.

By 2029 at least 19.28% of all energy used will be from renewable sources. This is an industry that will keep growing, with the private sector actively leading the expansion. Positively, this growth in the renewable energy sector offers significant career prospects for the youth, which is important in light of data released by Statistics South Africa in 2023 showing that the total number of

unemployed youth aged 15 to 34 years is 4.9-million (46.5% of the country’s employable population).

The sector’s long-term stability ensures consistent employment opportunities with certain renewable energy projects likely to span several decades. Being part of a flourishing industry presents a chance to be at the forefront of innovation and development, with ample room for career and skill enhancement. Contributing to renewable energy initiatives allows individuals to make a tangible impact on mitigating climate change and fostering a sustainable future for generations to come – a factor that has proven to be important with the upcoming Gen Z workforce.

With roles spanning across various disciplines such as engineering, project management, research and development and policy advocacy, young individuals will be able to contribute to the design, installation and maintenance of renewable energy systems, lead project initiatives, drive innovation, influence policy decisions or venture into entrepreneurship.

For unskilled workers, opportunities presented by the renewables sector offer a gateway to gainful employment and provides valuable

skills development prospects. In terms of specific roles in high demand within the renewable energy industry, there are many avenues available to individuals with varying skill levels. From engineers to electricians, civil works professionals to project managers, the sector offers an unimaginable array of career paths. Construction projects associated with renewable energy infrastructure serve as learning platforms, imparting essential skills such as workplace safety practices, technical capabilities and project management expertise. As the industry matures, there will be a growing need for workers in operations and maintenance roles, which will provide long-term employment prospects for young individuals that gain the necessary specialised skills.

The decentralised nature of renewable energy projects means that opportunities are not limited to urban centres but extend to rural areas, which contributes to inclusive economic growth and development across the country.

Growing industry with growing challenges

Despite the sector’s remarkable growth, several challenges loom large. Inadequate training opportunities hinder the development of a skilled workforce, exacerbated by the fast-paced project timelines that leave little room for comprehensive training. The evolving nature of renewable energy technologies demands specialised skills, such as those required for concentrated solar power or wind turbine maintenance, along with an increase in the demand for certain trades, such as electricians and qualified health and safety professionals.

Building a fit-for-purpose workforce

Companies operating within the renewables energy sector can contribute toward the advancement of their workforce by getting involved in targeted programmes through the development of specialised training courses in areas like solar PV, wind and CSP to equip individuals with the necessary skills for immediate project deployment, along with focusing on skills transfer. This can be done by designating specific roles within projects where skilled professionals can mentor and upskill local workers to ensure that knowledge remains within the community for future endeavours.

Temporary Employment Services (TES) providers have invested significantly in building their talent pools and establishing extensive networks of skilled labour across the country. Companies that are planning renewable energy projects can tap into these networks and bypass the traditional time-consuming search for skills. For projects that are in outlying areas, companies will benefit from partnering with a TES provider who already has experience working in remote locations, leveraging their existing databases to identify and recruit skilled personnel from nearby areas and engage with surrounding communities to ensure operational continuity.

Being part of a flourishing industry presents a chance to be at the forefront of innovation and development.

These skills can be mobilised from one part of the country to another on demand, allowing skilled resources to be shared across multiple project sites which is a cost-effective short-term solution. In the longer term, TES providers can assist with upskilling the workforce, offering targeted training focused on specific renewable energy technologies, enabling individuals to quickly acquire the necessary skills. By deploying skilled professionals on temporary contracts, TES providers can facilitate knowledge transfer to local workers, ensuring a sustainable talent pipeline.

*Pierre Bekker is a manager at Quyn International Recruitment & Staffing Solutions.