State of renewable energy in SA

Since we last reported on the matter, there has been considerable progress made towards an envisaged low carbon energy future for SA, in support of green buildings and sustainability in general. Here, we report on the current renewables landscape in South Africa.

SOLA Group

The Ibhayi Brewery (SAB) - new microgrid by SOLA.

Recent milestones at a strategic governmental level have included the long-awaited release of the government’s Integrated Resources Plan 2019 (IRP). Shortly thereafter, the Minister of Minerals and Energy alluded to certain rights being given to independent power producers to generate and supply electricity direct to users, especially with reference to the mining industry. This is the first time that a senior cabinet minister has referred to the passing of legislation that could directly mitigate the monopoly that Eskom has over the supply and distribution of electricity to consumers, including municipalities.

This was backed by President Cyril Ramaphosa, who in his State of the Nation Address specifically referred to the renewable energy sector.

In his SONA, the President said that a Section 34 Ministerial Determination will give effect to the Integrated Resource Plan 2019, enabling the development of additional grid capacity from renewable energy. However, the South African Wind Energy Association (SAWEA) has commented that this is only the first step in delivering new power into the grid.

‘Thereafter, the industry will wait for a Request for Proposals (Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme – acronym REI4P), the announcement of a preferred bidders; and financial closure period (which takes about 12 months), before the power purchase agreements are signed. Then construction can commence, with new projects reaching commercial operation date within 18 to 24 months,’ says a statement issued by SAWEA CEO, Ntombifuthi Ntuli. ‘The President has (also) actively prioritised regaining investor confidence and specifically set an investment growth target of R1 trillion over the next five years, which the REI4P will help deliver,’ says Ntuli.

‘With 14.4GW of wind having been allocated in the IRP (for implementation by 2030), giving wind energy 18% of the total capacity allocation, the wind industry views the commitment to 1.6GW per annum as a positive step by government as this allocation will allow Original Equipment Manufacturers and first tier suppliers to commit to local manufacturing of certain components, which contributes directly to job creation,’ concluded Ntuli.

Although he could not be contacted for comment within deadlines, the South African Photovoltaic Industry Association (SAPVIA) Chief Operating Officer, Niveshen Govender, was reported by ENGINEERING NEWS to have welcomed the fact that the energy crisis had been prioritised in the SONA, arguing that this demonstrated that government had grasped the seriousness of the situation. The solar industry was ready and waiting for the Section 34 Ministerial Determination, as well as future rounds of the REI4P, he told the publication.

Environmental consideration and regulation The Department of Environmental Affairs (DEA) committed some years back to contribute to the implementation of the renewable energy plans by undertaking Strategic Environmental Assessments (SEAs) to identify adaptive processes that integrate the regulatory environmental requirements for Strategic

Integrated Projects (SIPs) while safeguarding the environment. This resulted in identified areas where large scale wind and solar PV energy facilities can be developed in a manner that limits significant negative impacts on the environment, while yielding the highest possible socio-economic benefits to the country. These areas are referred to as Renewable Energy Development Zones (REDZs). The CSIR is a research partner in this process with the DEA.

Subsequently, in its second phase, the Strategic Environmental Assessment (SEA) for wind and solar photovoltaic (PV) energy in South Africa proposes three additional Renewable Energy Development Zones (REDZs) for wind and solar photovoltaic energy projects.

Renewable energy projects that could be developed in these new REDZs have the potential to make significant contributions to mine rehabilitation and to support a just energy transition in the specified areas including where 12GW of existing coal power stations are planned to be decommissioned by 2030.

‘The IRP 2019 has identified the requirement for at least an additional 14.4GW of wind and 6GW of solar PV by 2030 amongst a range of other new-build capacity including coal, gas, imported hydro and storage’, says a statement by the CSIR. To Build spoke to Dom Wills, CEO of the SOLA Group, one of successful participants in the REI4P BW1,3 and 4. They are also downstream operators in the PV value chain. The SOLA Group also specialises in microgrid systems across the continent.

According to Wills, an amendment to the Act which gives Eskom its privileged status to generate and distribute electricity in South Africa is essential. This view was echoed by SAPVIA, which stated that the DMRE and Nersa need to finalise changes to Schedule 2 of the Electricity Regulation Act so as to expedite self-generation projects.

‘The key to this vision is that the grid becomes independently operated. An independent grid operator can run an energy market on a willing buyer willing seller basis. This market can have a spot price for energy sales, but there could also be futures, derivative products, etc. A completely open market will allow economics to dominate and multiple sellers of energy to enter the market. This is a robust solution, as there are multiple companies who provide energy to the country instead of relying on one which is the case currently,’ says Wills.

GRI Renewables – wind turbine factory, Atlantis.

INNOVATION building recycling compounds FLOORING FOOTWEAR

PVC pipes

TRENDS CHALLENGES markets health phthalates windows

hospitals clingfilm imports

SUSTAINABILITY COMPLIANCE LEGACY ISSUES product stewardship packaging

circular economy

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