SolarQuarter - Africa Sep-Oct Issue 2023

EMPOWERING, INSIGHTFUL, ENGAGING

POWERING PROGRESS: SOUTH AFRICAN MINES EMBRACE CLEAN ENERGY

VOL 3 | ISSUE 5

Africa

SOLAR ENERGY REVOLUTION: HOW SOUTH AFRICA IS EMBRACING SUNSHINE TO POWER ITS FUTURE

Sep Oct 2023

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Leadership Awards

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The Champions Corner 31

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Industry Opinion 21-26 South Africa’s Energy Paradigm Shift Powering Progress: South African Mines Embrace Clean Energy Battery Energy Storage in Africa: Powering a Sustainable Future An Overview Of Nigeria's Renewable Energy Landscape And Its Potential

Knowledge Bytes 22-24 Solar Energy Revolution: How South Africa Is Embracing Sunshine To Power Its Future The Renewable Energy Independent Power Producer Procurement (REIPPP) Program

MiddleEast Research 20 COVER STORY 27 TECH STORY 28 POLICY RESEARCH 29 CURRENT AFFAIRS 30 MARKET RESEARCH

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AFRICA NEWS Sep-Oct 2023

Investment >

Enfin’s Solar Financing Solution Receives Vital Adenia Investment In South Africa

ABO Wind Concludes Sale Of 100MW Photovoltaic Project Rights In South Africa

Adenia Partners, a private markets investment firm with a focus on responsible investing in Africa, has completed a majority investment in Enfin, a solar financing solutions provider in South Africa. This investment marks the first from Adenia’s fifth flagship fund, known as “Adenia V.” The company provides funding, maintenance, and insurance for solar solutions, enabling clients to reach their sustainability goals without capital expenditure or risk. Over the next five years, Enfin plans to own, build, and operate more than 100MW of solar assets, potentially mitigating over 200,000 metric tons of CO2 emissions annually.

ABO Wind has successfully concluded the sale of project rights for a photovoltaic project in South Africa, marking the third photovoltaic facility in a 300-MW cluster. This specific project boasts a nominal capacity of 100 MW and spans 450 hectares of privately owned land in South Africa’s North-West Province.

Notably, ABO Wind had already sold the remaining 200 MW within the cluster in 2022. Rob Invernizzi, General Manager of ABO Wind’s South African subsidiary, expressed pride in the project’s development, highlighting the efforts of the development, finance, and sales teams. ABO Wind’s South African business model centers on large-scale wind, solar, battery storage, hybrid projects, and potential green hydrogen production sites.

Currently, their Cape Town office employs 19 individuals dedicated to a pipeline of over 4,600 megawatts of renewable energy capacity.

South Africa’s Equites Expands Solar Capacity To Diversify Revenue And Cut Emissions South African property group Equites is planning to expand its solar capacity to diversify its revenue streams and enhance its environmental sustainability, according to the company’s Chief Operating Officer, Riaan Gous. This expansion, requiring an investment of 136 million rand ($7.09 million) over the next 18 to 36 months, is an addition to the 9 MW announced in May. It is expected to reduce the company’s carbon emissions by approximately 20%.

IFC and OCP Secure 100 Million Green Loan to Construct Solar Power Plants for Environmentally Friendly Fertilizer Production The International Finance Corporation (IFC) and OCP Group, the world’s largest phosphate-based fertilizer producer, have joined forces to accelerate the production of low-carbon fertilizers using solar energy. This collaboration aims to enhance global food systems while reducing vulnerability to fluctuations in hydrocarbon prices. At the Annual Meetings of the World Bank Group and the International Monetary Fund in Marrakech, the partnership was unveiled. Under this agreement, IFC will extend a €100 million green loan to OCP towards the construction of two solar power plants in the mining towns of Benguerir and Khouribga, Morocco. These plants, with a combined capacity of 400 megawatts peak (MWp) and up to 100 megawatt hours (MWh) of battery storage, represent the largest integrated solar photovoltaic project in North Africa and the first in Morocco.

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CEI Africa Grants $3.1 Million To Nuru For Expansive Solar Mini-Grid Project In DRC Stichting Clean Energy and Energy Inclusion for Africa (CEI Africa) has announced its commitment to award a results-based financing (RBF) grant of up to $3,087,600 to Nuru, a green minigrid (GMG) developer in the Democratic Republic of Congo (DRC).

The grant will support the creation of a 3.7 MW solar mini-grid that will provide approximately 5,146 connections to underserved communities in the Goma region of the DRC. Building upon the success of Nuru’s initial 1.3 MW metro grid in Goma, this new project will elevate Nuru’s total installed capacity to 5 MW.

Standard Bank South Africa Leads In Sustainable Finance And Renewable Energy Investment Standard Bank South Africa is making significant strides in its commitment to sustainable finance and renewable energy initiatives, solidifying its position as one of the country’s largest investors in green energy. Since launching its climate policy in March 2022, Standard Bank has been ahead of its target to raise between R250 billion to R300 billion for sustainable finance by the end of 2026. In 2022, the bank exceeded its goal, executing 29 sustainable finance transactions worth R55 billion. The bank’s 2023 run rate is also higher compared to the same period last year, indicating progress towards this year’s R50 billion mobilization targets.

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Investment > SOLA Group Secures Financing For 132 MWp Solar Project In South Africa With African Rainbow Energy SOLA Group, a local independent power producer (IPP) in which African Rainbow Energy (ARE) holds a 40% stake, has finalized financing agreements with banks for the construction of a 132 MWp solar project situated in North West Province. This project marks the third significant renewable energy venture completed

by SOLA in just six months, bringing its total construction capacity to 390MW, encompassing 588,000 solar panels over an expanse of 750 hectares. With this recent project and two others under development in North West Province, the region has received investments worth R6.4 billion. Additionally, ARE has now invested in one gigawatt of renewable energy projects.

African Development Bank Approves $104 Million For Ethiopia’s Eastern Power Transmission Project The African Development Bank Group approved $104 million in financing to the Ethiopian government for the financing of a transmission project to improve power supply in the eastern part of the country. The financing includes a $52 million grant from the African Development Fund, the Bank Group’s concessional lending arm, and a $52 million soft loan drawn from Korea’s Economic Development Cooperation Fund under the Korea – Africa Energy Investment Framework Agreement. The agreement was signed in June 2021 between the African Development Bank and the Government of the Republic of Korea with the main objective of contributing to sustainable economic and social development and promoting economic cooperation in African member countries.

Okra Solar Raises Over $12 Million To Expand Mesh -Grid Technology For Global Electrification Okra Solar, a pioneer in mesh-grid technology, has successfully closed its Series-A funding round, securing over $12 million in fresh financing, comprising both debt and equity. Of the total, $7.85 million was raised in equity, led by At One Ventures, with participation from FMO, Susquehanna Private Equity Investments LLLP, Autodesk Foundation, and King Philanthropies. The debt financing was provided by EDFi. Mesh grids have emerged as a promising solution for off-grid energy markets where scalability depends on cost viability. Unlike traditional grid extension or mini-grid systems, mesh grids generate solar power at individual homes, redistributing excess energy through smart algorithms from one connection to another to optimize utilization.

Masdar And Africa50 Partner To Accelerate Clean Energy Projects In Africa

South African Solar Startup ‘Wetility’ Raises $48 Million; To Expand Solar Energy Portfolio South African solar startup Wetility has successfully secured R903 million (approximately $48 million) in funding, combining both debt and equity. The CEO, Vincent Maposa, revealed that these funds will be directed towards accelerating expansion plans and growing the company’s customer base. This funding round consists of R180 million in convertible debt and a total debt amount, which includes a R600 million commercial debt package involving entities such as Sanlam and prominent commercial and development banks.

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Masdar, one of the world’s largest clean energy companies and the largest in Africa, committed US$2 billion of equity as part of the UAE finance initiative, which was announced during the Africa Climate Summit by HE Dr Sultan Al Jaber, Chairman of Masdar and COP28 President-Designate. The initiative brings together public, private, and development capital from UAE institutions, notably from the Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power.

Africa50 is expected to also join this initiative as a strategic partner. Masdar has committed a total of US$10 billion in clean energy finance, of which US$2 billion will be generated from equity, with an additional US$8 billion mobilized from project finance. This landmark investment will target the delivery of 10GW of clean energy capacity in Africa by 2030.

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AFRICA NEWS Sep-Oct 2023

Investment > UAE Commits $4.5 Billion To Catalyze Africa’s Clean Energy Potential At COP28 African Climate Summit

GCF Commits $50 Million Equity Investment To Boost Renewable Energy In Sub-Saharan Africa Through REPP 2

The COP28 President-Designate, HE Dr Sultan Al Jaber, announced a UAE finance initiative that will provide US$4.5 billion to help unlock Africa’s clean energy potential. The announcement was made during a keynote address at the inaugural African Climate Summit in Nairobi, Kenya. The landmark initiative brings together vital public, private, and development capital from UAE institutions, notably from Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power.

Africa50, which is an investment platform established by African governments and the Africa Development Bank (AfDB), has also joined the UAE finance initiative. Africa50 was founded to help solve the continent’s critical infrastructure challenges and will help identify initial projects and connect to local implementing entities.

The Green Climate Fund (GCF) has approved an equity allocation of USD 50 million to REPP 2, a newly established debt fund aimed at fostering investments in Sub-Saharan Africa’s rapidly growing renewable energy sector. REPP 2 is being developed by climate and impact fund manager Camco as a USD 250 million fund designed to generate significant climate, economic, and gender impacts while ensuring sustainable returns for investors.

South Africa’s IDC And Bank Of China Forge Green Energy Investment Deal At the BRICS summit in Johannesburg, South Africa’s Industrial Development Corporation (IDC) and the Bank of China (BoC) inked a crucial Framework Agreement aimed at strengthening regional trade and investment. This agreement sets the stage for a R10 billion funding package over the next five years, primarily directed toward tangible projects spanning various sectors, including energy, infrastructure, manufacturing, agriculture, and mining. IDC CEO TP Nchocho expressed optimism about the agreement’s potential to bolster regional economic prospects. He emphasized that this framework agreement would facilitate capital mobilization, technology cooperation, and other benefits, ultimately promoting the integration of regional economic and industrial development across the continent.

Green Climate Fund Commits 50 Million for Camco’s New Blended Finance Fund for Africa, REPP 2 In a groundbreaking move aimed at accelerating renewable energy access in Sub-Saharan Africa, the Board of the Green Climate Fund (GCF) has given its nod to invest $50 million in equity into REPP 2. Developed by climate and impact fund manager Camco, REPP 2 is a pioneering $250 million fund strategically designed to make significant strides in climate impact, economic growth, and gender equality while ensuring sustainable returns for investors.

Husk Power Systems Raises $43 Million To Drive Renewable Energy Expansion In Africa And Asia Husk Power Systems, a leader in rural electrification through renewable energy in Sub-Saharan Africa and South Asia, has successfully secured $43 million in Series D funding. This funding, the largest-ever equity raise in the minigrid industry, underscores Husk’s pioneering work in electrifying underserved communities.

The Series D round includes participation from new investors STOA Infra & Energy, the US International Development Finance Corporation (DFC), and Proparco, along with existing investors Shell Ventures, Swedfund, and FMO.

Ener-G-Africa’s R135 Million Investment Boosts South Africa’s Energy Landscape The CEO of Ener-G-Africa, Mr. Andre Moolman, has reported that their R135 million investment, announced during the South African Investment Conference in April, is already having a significant impact. This investment is poised to revolutionize the energy sector and uplift communities across South Africa.

Circadian Technologies Secures 1.25 Million Euros in Funding BayWa r.e. Energy Ventures, an investment firm under BayWa r.e.’s venture capital arm, led a 1.25 million Euro investment round in Berlin-based startup Circadian, aiming to accelerate the energy transition in developing markets. This funding received support from Rockstart Energy, Persistent Energy Capital, Great Stuff Ventures, Tofino Capital, and Ralicap Climate.

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AFRICA NEWS Sep-Oct 2023

Investment >

Tender > Ghana’s Energy Access Boost: Bids Invited For 35 Solar Mini-Grids Installation Project The Ministry of Energy of Ghana has invited bids for the “Design, Supply, and Installation of 35 Mini-Grids for Island/Lakeside Communities in Ghana” as part of the Ghana Mini Grid and Solar PV Net Metering Project (SREP). The project, funded by the African Development Bank, the Climate Investment Fund, and the Swiss Government through SECO, aims to enhance energy access in rural and lakeside areas of Ghana through the deployment of mini-grids and solar PV systems.

Jamaica Launches Tender For Up To 100 MW Of Renewable Energy Capacity

Nedbank Drives Sustainable Finance With R2.1Billion Green Private Power Bond Nedbank, a financial services firm, has completed an R2.1-billion Green Private Power Tier 2 Bond, which is listed in the sustainability segment of the JSE. The funds from this bond will be directed towards supporting private renewable energy projects in South Africa. These private renewable energy projects encompass both commercial and utility-scale initiatives with private corporate off-takers. The primary objective is to expand renewable energy capacity, expedite the transition to a lowcarbon economy, and align with the sustainability goals of the involved corporations.

AfDB/SEFA Invests $10 Million In CrossBoundary Access To Scale Solar Mini-Grids In Africa CrossBoundary Access, Africa’s first blended finance facility for mini-grids, has secured $10 million in funding from the African Development Bank (AfDB) Sustainable Energy Fund for Africa (SEFA). This investment will further boost CrossBoundary Access’s efforts to bring clean energy to rural Africa through solar minigrids. These solar-powered mini-grids combine solar and batteries to offer 24/7 grid-quality power to households and businesses. The initiative aims to bridge the electricity access gap in rural areas of Africa, where nearly 580 million people lack access to electricity, hindering economic growth and poverty reduction.

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The Jamaican government has initiated a tender for acquiring renewable energy capacity of up to 100 MW. The tender invites proposals for the construction of new power plants, expansion, or repowering of existing ones. Bidders can propose projects ranging from 5 MW to 50 MW capacity, using technologies like wind, solar, or hydro, either as standalone or hybrid projects with or without energy storage. Solar projects must be operational within 24 months, while others have up to 30 months. Successful bidders will enter into a 20-year power purchase agreement with the Jamaica Public Service Company.

Government Of The Gambia Seeks Bids For 1,100 Solar PV Systems The Sustainable Energy Services Company (SESCO), acting on behalf of the Government of The Gambia, is soliciting sealed bids for various aspects of a solar PV energy project encompassing healthcare facilities and schools in The Gambia. The project includes the design, supply, installation, operation, and maintenance of up to 1,100 solar PV energy systems. The bidding deadline is October 31, 2023, at 2 p.m. The bidding process adheres to international competitive procurement standards, following the European Investment Bank’s (EIB) procurement guidelines, with a One-Stage, two-envelope bidding Procedure.

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AFRICA NEWS Sep-Oct 2023

Project > Syrah Resources Achieves Full Operation Of Solar And Battery Hybrid System In Mozambique Syrah Resources, a graphite mining company, has achieved complete operation of its solar and battery hybrid system at its Balama operations in Mozambique. This system comprises an 11.25 MWp solar photovoltaic (PV) array, integrated with an 8.5 MW/MWh battery energy storage system (BESS). The solar and battery setup is expected to meet at least 35% of Balama’s average power needs, resulting in significant reductions in diesel consumption and associated cost savings.

Algeria’s Ambitious Solar Power Project Attracts 73 Bids For 2,000 MW Generation Capacity Algeria has received 73 bids, both domestic and international, for 15 solar power projects with a total capacity of 2,000 megawatts (MW). Sonelgaz, the state-owned electricity and gas distribution company, oversaw the bidding process. Initially, 90 companies were pre-qualified, but this was narrowed down to 73 bids. The project involves constructing 15 solar power plants across 12 provinces, with capacities ranging from 80 MW to 220 MW each.

Teranga Niakhar Storage To Build 30 MW Solar Power Plant With 15 MW/45 MWH Storage In Senegal The Board of Directors of the West African Development Bank (BOAD) convened for its 137th ordinary meeting, chaired by Mr. Serge Ekue, President of BOAD. During the meeting, several significant decisions were made, including the approval of loans for various projects aimed at advancing clean energy and infrastructure development in the West African region. Among the approved loans, a noteworthy project is the construction and operation of a 30 MW photovoltaic solar power plant with a 15 MW/45 MWH storage system by Teranga Niakhar Storage in Senegal. This solar power plant is set to enhance the country’s power supply, contributing to a more reliable and secure energy grid.

AMEA Power Signs 20-Year PPA For 25MWp Solar Project In Uganda Dubai-based AMEA Power LLC has secured a 20-year power purchase agreement (PPA) for a 25-megawatt peak (MWp) solar project in Uganda in collaboration with Uganda Electricity Transmission Company Limited (UETCL). Additionally, AMEA Power has entered into an implementation agreement (IA) with Uganda’s Ministry of Energy and Mineral Development (MEMD).

AfDB, AMEA Power, IFC, and SEFA Launch Tunisia’s First Privately-Financed 120 MW Project South Africa’s PIC Expanding Renewable Energy Investments Amid Power Crisis The Public Investment Corporation (PIC) is planning to boost its investment in renewable energy amid South Africa’s ongoing power crisis. The PIC, Africa’s leading fund manager overseeing about R2.6 trillion in assets, has invested in renewable energy projects, contributing over 2,000 MW to the grid. Additionally, the PIC is exploring solar panel installations on suitable properties.

South African IPP Red Rocket Secures $160 Million To Expand Renewable Energy Ventures South African independent power producer (IPP) Red Rocket has secured $160 million in fresh capital to support its business growth initiatives and expand its presence. The funding round received support from Bill Kilgore Investments, a vehicle managed by the company’s shareholders, as well as an international consortium of investors that includes existing supporter Inspired Evolution, along with new partners STOA, an investment fund, and Dutch entrepreneurial development bank FMO.

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Algeria, an OPEC member, plans to release a tender soon for the construction of its inaugural solar power village as part of its strategy to expand renewable energy usage and reduce natural gas consumption, as reported by a newspaper. The Ministry of Environment and Renewable Energy is set to issue this tender for the project in the southeastern desert province of Illizi, according to the Arabic-language daily Elkhbar.

South Africa’s African Clean Energy Developments Achieves 1.4 GW Milestone In Renewable Energy Projects African Clean Energy Developments (ACED) has successfully brought to life 1.4 gigawatts (GW) of new renewable projects, with a combined investment exceeding R35 billion ($1.8 billion). The company has completed over 700 megawatts (MW) of wind projects and 500 MW of solar projects through the Renewable Energy Independent Power Producer Procurement Programme under the Department of Mineral Resources and Energy.

Additionally, ACED is currently constructing 170 MW of wind and 30 MW of solar projects for private clients.

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Projects >

Mozambique Inaugurates Tetereane Solar Power Plant, Bringing Renewable Energy To Thousands The Tetereane Solar Power Plant, inaugurated by Mozambican President Filipe Nyusi, is set to provide renewable electricity to approximately 21,000 residents in Cuamba, a city in the northern Mozambican Province of Niassa. Valued at $36.2 million, this project aims to address the growing demand for electricity in Niassa by increasing power generation. It is the country’s thirdlargest solar power plant, expected to create over 500 jobs and supply electricity to northern Mozambique, generating 15 megawatts with a six-megawatt per hour energy storage system.

Scatec Unveils Cameroon’s Solar Hybrid and Battery Storage Facilities in Grand Inaugural Ceremony Scatec, a leading renewable energy company, celebrated the inauguration of its solar hybrid and battery storage plants in Cameroon today. In 2021, Scatec entered into a lease agreement with ENEO, a prominent electricity provider, to deliver two cuttingedge solar facilities with a combined capacity of 36MW solar and 20MW/19MWh of storage. These pioneering plants are located in Maroua and Guider, situated in the Grand North region of Cameroon.

South Africa’s Vergelegen Wine Estate Goes Off The Grid With Solar Power Plant Vergelegen Wine Estate, located in Somerset West, has implemented a solar power plant that has made the winery building independent of the conventional electricity grid. The solar installation consists of six solar tables equipped with 500 panels covering an area of 1,400 square meters, along with three inverters and a 1 MWh battery. This setup ensures that the wine cellar can operate using stored energy from the battery, even when sunlight is unavailable.

AddWatt Power Successfully Commissions Its Inaugural Utility-Scale Solar PV Project in Africa Oya Energy’s 128MW Hybrid Renewable Project Advances In South Africa Oya Energy (Pty) Ltd secured a 20-year power purchase agreement with South African state utility Eskom and an Implementation Agreement with the country’s Department of Mineral Resources and Energy (DMRE). Once operational, Oya Energy is set to deliver vital dispatchable energy and capacity to the South African grid. Developed through a collaboration between G7 Renewable Energies, ENGIE, Meadows Energy, and Perpetua, the 128MW Oya Energy Facility, situated in the Karoo, attained Preferred Bidder status in the RMIPPPP in March 2021.

This ambitious project integrates 86.4 MW of wind energy, 155 MW of solar Photo Voltaic arrays, and 94MW/242MWh lithium-ironphosphate battery storage at a single site, managed by a unique hybrid plant controller.

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AddWatt Power, a leading solar PV company, has made a significant entry into the African solar market with the successful commissioning of its inaugural utility-scale project on the continent. This achievement represents a pivotal moment for both the company and the renewable energy sector in Africa. The project has been funded by the EXIM Bank of India, and the generated power will be drawn at 22kV in CEB’s Henrietta Substation.

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AFRICA NEWS Sep-Oct 2023

Projects > Zambia’s Shantumbu Combined School Gets Green Energy Boost from 34 MW Ngonye Solar Farm Pupils at Shantumbu Combined School in Kafue, Zambia, were previously lacking access to clean and modern restroom facilities and running water. However, with the assistance of the Ngonye Solar Farm, this issue has been resolved. The Ngonye Solar Plant, a 34MW facility operated by Enel Green Power, is located nearby in the Lusaka Multi-facility Economic Zone (LSMFEZ) and supplies electricity to the national ZESCO grid.

PUMA Energy Zimbabwe Set To Deploy 300 Solar Systems By The End Of 2023 Puma Energy Zimbabwe has ambitious plans to deploy around 300 solar systems throughout its retail network by the end of 2023.

This initiative aims to bolster the reliability of its power supply while contributing to the global shift toward clean energy sources.

International Solar Alliance Inaugurates Solar Projects Across Africa, Advancing Clean Energy Access The ISA has provided grants for these projects, which include the solarization of rural healthcare centers and primary schools. In Uganda, the projects involved the installation of an 8.5-kilowatt peak solar capacity and a 17.2-kilowatt-hour battery storage system at USD 48,835, benefiting underserved areas with no prior access to energy. Similarly, Comoros witnessed the solarization of two rural healthcare centers with a combined capacity of 15kilowatt peak and a 33-kilowatt-hour battery storage system at a total cost of USD 49,999. In Mali, three rural healthcare centers in Koula, Sinzani, and Doumba were solarized, with a combined capacity of 13-kilowatt peak and a 43-kilowatt-hour battery storage system, all achieved at a total cost of USD 49,995.

South Africa’s Absa Partners With Sun Exchange To Power Bizweni Campus With Solar And Battery Solution Absa, one of South Africa’s leading financial services groups, has joined hands with its employees and Sun Exchange, a global solar leasing platform, to make a substantial investment in sustainable energy. The partnership has facilitated the funding of a solarwith-battery system for the Bizweni Campus, which includes both a pre-primary school and a primary school. The newly implemented 29kW solar system, coupled with a 44 kWh battery, is now operational and supplying clean and uninterrupted electricity to power the Bizweni Campus.

Static Power Completes 1.1 MW Solar PV System At ACTOM Manufacturing Facility In Gauteng, South Africa After meticulous planning and the installation of alternatingcurrent and direct-current solutions, Static Power, a standby equipment manufacturer, has successfully commissioned a 1.1 MW solar photovoltaic (PV) grid-tied system at its ACTOM Medium Voltage Switchgear manufacturing facility in Knights, Gauteng, following a year-long effort.

South Africa Advances With 203 MW Hybrid Renewable Energy Projects South Africa’s Minister of Mineral Resources and Energy, Mr Gwede Mantashe, signed project agreements with two preferred bidders selected under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). These two hybrid renewable energy projects, totaling 203 MW, encompass solar PV, onshore wind, and battery storage technologies.

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International Solar Alliance Inaugurates Solar Projects Across Africa, Advancing Clean Energy Access The ISA has provided grants for these projects, which include the solarization of rural healthcare centers and primary schools. In Uganda, the projects involved the installation of an 8.5-kilowatt peak solar capacity and a 17.2-kilowatt-hour battery storage system at USD 48,835, benefiting underserved areas with no prior access to energy. Similarly, Comoros witnessed the solarization of two rural healthcare centers with a combined capacity of 15kilowatt peak and a 33-kilowatt-hour battery storage system at a total cost of USD 49,999. In Mali, three rural healthcare centers in Koula, Sinzani, and Doumba were solarized, with a combined capacity of 13-kilowatt peak and a 43-kilowatt-hour battery storage system, all achieved at a total cost of USD 49,995.

Kenya Power Nears Completion Of Solar Mini-Grid Project On Wasini Island Kenya Power is in the final stages of launching a solar mini-grid project on Wasini Island, located in Mukwiro village within Kwale County in Kenya’s southern region. The mini-grid has a solar plant capacity of 737kWp and includes a 70kVA diesel generator. It features 1,820 solar panels and 247 lead-acid batteries with a total capacity of 2276kWh and is expected to benefit 468 residents. This project, funded by the World Bank in collaboration with the county government, represents the first electrification of the area since independence.

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Projects >

Think Tank > South Africa’s Solar Energy Market Surges With 29.91% CAGR – Report

Sturdee Energy Powers Botswana: COD Achieved For Shakawe And Bobonong Solar Plants Sturdee Energy has achieved a Commercial Operation Date (COD) on October 12, 2023, as stipulated in the Power Purchase Agreements with Botswana Power Corporation (BPC) for the Shakawe (1MW) and Bobonong (3MW) Solar Plants in Botswana.

These projects are Botswana’s first independent renewable energy power producers and mark a significant milestone in the nation’s transition towards clean energy.

Mozambique Announces Preferred Bidders For 30 MW Solar PV Projects ARENE, Mozambique’s energy regulatory body, has revealed its choice of four preferred bidders for the development of two 30MW solar PV projects. These projects were tendered to Independent Power Producers (IPPs) in November of the previous year and encompass the complete development, financing, design, construction, operation, and maintenance of each facility. The chosen bidders were selected through a competitive tender with prequalification, with ARENE acting as the Procuring Authority.

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The solar energy market in South Africa is set to experience significant expansion in the coming years, with Technavio’s latest research predicting a substantial increase of 2307.36 thousand toe from 2022 to 2027. This growth momentum is expected to maintain a robust CAGR of 29.91% during the forecast period. The South African solar energy market is gaining traction due to the nation’s advantageous geographic location, which provides ample sunlight. The government’s supportive policies and investments in renewable energy initiatives are contributing to the increased focus on solar energy solutions. As the demand for energy rises, South Africa is turning to solar power as a viable solution, thereby pressuring conventional power generation plants. The market is primarily segmented by application, with grid-connected systems taking the lead. Grid-connected solar PV systems allow for the direct supply of solar energy to buildings, reducing the need for energy storage systems.

Global Distributed Solar Power Generation Market Set for Robust Growth: ResearchAndMarkets Report The report predicts a substantial growth of USD 7.33 billion in the distributed solar power generation market between 2022 and 2027, with a notable CAGR of 19.09% during the forecast period.

This comprehensive report offers an in-depth analysis of the distributed solar power generation market, encompassing market size, forecasts, emerging trends, growth drivers, challenges, and vendor analysis featuring approximately 25 key players. Key findings from the report indicate that increasing investments in renewable energy, the decreasing cost of solar photovoltaic (PV) panels, rising electricity demand, and the high cost of grid expansion are driving the distributed solar power generation market. The market is segmented by end-users into commercial, industrial, and residential categories and by geographical landscape into APAC, Europe, North America, South America, and the Middle East and Africa.

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Think Tank >

Green Hydrogen >

IEA and AfDB Collaborative Report Charts Path for Doubling Clean Energy Investment in Africa

HDF Energy Initiates Development Of Pioneering Green Hydrogen Power Plant In Kenya

A groundbreaking report released at the Africa Climate Summit in Nairobi by the International Energy Agency (IEA) and the African Development Bank Group (AfDB) emphasizes the urgent need to double clean energy investment in Africa by 2030. The IEA report, titled ‘Financing Clean Energy in Africa,’ identifies real and perceived financial barriers hindering the continent’s clean energy ambitions. These barriers, coupled with rising borrowing costs due to the COVID-19 pandemic and geopolitical conflicts, have restricted Africa’s access to affordable capital. The IEA report’s analysis draws from over 85 case studies conducted across the continent and more than 40 interviews with key stakeholders. It underscores the imperative to reduce the cost of capital and facilitate the creation of attractive investment projects. Achieving this requires the expansion of various financial instruments, including early-stage financing and risk mitigation tools to attract private investment. Public and private sector collaboration, along with support from both foreign and domestic institutions, is deemed essential to make these solutions viable.

HDF Energy (Hydrogène de France), a company specializing in large-scale green hydrogen infrastructure and high-power fuel cells, has announced the commencement of development studies for the first green hydrogen power plant in Kenya. The announcement was made during the Africa Climate Summit held in Nairobi. After a year of prospecting in Kenya, the development studies have started for this proposed large-scale green hydrogen power plant, which will be the first of its kind in Kenya and located in the coastal region. Typically, these projects involve two years of development and two years of construction.

Cleanergy Solutions Namibia And CMB.TECH’s Green Hydrogen Breakthrough: Harnessing Solar Power For A Sustainable Future Cleanergy Solutions Namibia is a partnership between the Ohlthaver & List (O&L) Group and CMB.TECH has celebrated the groundbreaking of Africa’s inaugural public green hydrogen refueling station. Located in Walvis Bay, Namibia, this state-ofthe-art facility harnesses solar energy for on-site hydrogen production. Expected to be operational by mid-2024, it will supply hydrogen to trucks, port equipment, and railway applications, marking a significant step toward sustainable transportation. The Cleanergy Solutions Namibia project encompasses a 10-hectare solar park featuring a hydrogen production facility equipped with a 5-megawatt Proton Exchange Membrane electrolyzer and a 5megawatt hour battery. This innovative setup directly utilizes solar energy to produce green hydrogen. The electrolyzer converts electricity from the solar park and energy stored in the Battery Energy Storage System (BESS) into green hydrogen.

South Africa Urged To Prioritize Domestic Hydrogen Needs Before Global Exports South Africa’s Solar Energy Market Surges With 29.91% CAGR – Report The solar energy market in South Africa is set to experience significant expansion in the coming years, with Technavio’s latest research predicting a substantial increase of 2307.36 thousand toe from 2022 to 2027. This growth momentum is expected to maintain a robust CAGR of 29.91% during the forecast period. The South African solar energy market is gaining traction due to the nation’s advantageous geographic location, which provides ample sunlight. The government’s supportive policies and investments in renewable energy initiatives are contributing to the increased focus on solar energy solutions. As the demand for energy rises, South Africa is turning to solar power as a viable solution, thereby pressuring conventional power generation plants. The report mentioned South Africa’s solar energy market is on a trajectory of substantial growth, driven by a supportive government, increasing energy demand, and a favorable geographic location. The increasing adoption of grid-connected solar systems, along with governmental initiatives, is expected to further boost the solar energy sector, making it a key player in the country’s future energy landscape.

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As South Africa moves forward with its hydrogen strategies to combat climate change and enhance energy security, it’s crucial to first focus on domestic needs before considering global exports.

Muze Shange, the COO of the Richards Bay Industrial Development Zone Company, emphasized this during the Hydrogen Africa conference in Johannesburg, highlighting the importance of addressing South Africa’s internal energy requirements and infrastructure challenges.

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AFRICA NEWS Sep-Oct 2023

Green Hydrogen > South Africa And Japan Unite For A Green Hydrogen Future South Africa is making significant strides in its pursuit of a hydrogen-based economy, with Minister of Higher Education, Science, and Innovation, Dr Blade Nzimande, set to lead a delegation to Tokyo, Japan, starting on September 25, 2023. The visit is aimed at showcasing South Africa’s commitment to hydrogen energy and fostering collaboration, investment, and innovation in this vital sector. The Hydrogen Society Roadmap, launched by the DSI in 2022, is a national framework designed to facilitate the integration of hydrogen-related technologies across various sectors of the South African economy. It plays a crucial role in stimulating economic growth, in line with the Economic Reconstruction and Recovery Plan. One of the key objectives of the roadmap is to establish a manufacturing sector for hydrogen products and components.

Northern Cape Aims To Derisk Green Hydrogen Projects And Support Renewable Growth Shawn Modise, the acting project management unit manager at the Northern Cape Economic Development, Trade, and Investment Promotion Agency, has stated that the government intends to play a crucial role in reducing the risks associated with green hydrogen projects while supporting the Northern Cape’s green hydrogen ambitions and facilitating industry growth.

Speaking at a conference in Johannesburg, Modise highlighted the Northern Cape’s inherent advantages that position it as an ideal hub for a national green hydrogen ecosystem. These advantages include a high renewable energy potential, with solar and wind capacity factors averaging around 23% and 37%, respectively.

Morocco’s Green Hydrogen Project Poised For 2024 Launch Morocco announced its intention to initiate a green hydrogen initiative next year in response to the growing global demand for clean energy. Green hydrogen is an eco-friendly energy source generated through water electrolysis using renewable sources like wind or solar power. According to a government statement, the ‘Morocco Offer’ green hydrogen project is set to be finalized in 2024 for potential investors, although the statement didn’t provide specific project details.

Kenya Launches Green Hydrogen Strategy And Roadmap With EU And Global Gateway Support For Clean Energy Transition At the inaugural African Climate Summit in Nairobi, President of the European Commission Ursula von der Leyen and President of Kenya William Ruto unveiled the Green Hydrogen Strategy and Roadmap for Kenya, in collaboration with Global Gateway, Europe’s investment initiative for global sustainability. The comprehensive roadmap, developed with expertise from the European Union, outlines Kenya’s ambitions for the green hydrogen sector from 2023 to 2032 and beyond. It highlights domestic market development, exports, emission reduction goals, job creation, and direct investments.

South Africa Gives Green Light To Green Hydrogen Commercialisation Strategy Cabinet has given the green light for the implementation of the Green Hydrogen Commercialisation Strategy (GHCS), as announced. Minister in the Presidency Khumbudzo Ntshavheni emphasized that this move aims to position South Africa as a major producer and exporter of green hydrogen. The government has identified potential funding sources for green hydrogen projects, building on the extensive feedback received on the draft Green Paper from stakeholders. The GHCS is aligned with the Hydrogen South Africa Strategy, approved by the Cabinet in 2007, to prepare the nation for a hydrogen-based economy.

Phelan Green Energy To Invest ZAR 47 Billion In South African Green Hydrogen And Ammonia Plant Phelan Green Energy, an independent solar power producer, has announced its intention to invest ZAR 47 billion (approximately USD 2.5 billion or EUR 2.37 billion) in constructing a green hydrogen as well as ammonia production plant in South Africa’s Western Cape province. The subsidiary Solar Capital will oversee the facility’s installation, with expected annual revenues exceeding ZAR 6 billion from green fuel exports.

South Africa Advances Green Hydrogen Projects Through Provincial Collaboration The provinces of Eastern, Northern, and Western Cape have joined forces. These provinces are hosting potential multibillion-dollar green hydrogen projects and have been working individually to develop strategies. However, they have recognized the benefits of cooperation over competition in areas such as infrastructure, skills development, and policy and regulation development. They are also open to extending this collaboration to include greenhydrogen aspirant Namibia, creating a Southern African Development Community hydrogen corridor. This collaboration is formalized in a memorandum of understanding (MoU) to advance green hydrogen initiatives.

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SEP-OCT Issue 2023

Special Feature | success story

Dyness Breaks Through Limits in the South African Market with Enhanced Energy Storage Solutions Dyness, a global leading provider of advanced energy storage solutions, has achieved successive remarkable milestones in the South African market, demonstrating its commitment to innovation and technological advancement. The company's cutting-edge products, including the Dyness B3 battery module and residential product, PowerDepot H5B, have surpassed previous limitations, empowering local households and communities with reliable and sustainable energy solutions.

One such success story unfolds at a farm in South Africa, where the Dyness B3 battery module, with its enhanced parallel capabilities, has played a pivotal role in transforming the farm's energy infrastructure.

The Dyness B3 battery module, known for its modular design and intelligent Battery Management System (BMS), has revolutionized energy storage capabilities. Breaking free from the previous maximum limit of 40 parallel connections, Dyness and local installer has successfully achieved stable communication with 48 modules, totaling 172.8 kWh, in the farm project. This breakthrough not only showcases the exceptional performance of the Dyness B3 module but also highlights its flexibility and scalability in meeting diverse energy storage needs.

By deploying Dyenes's products, the farm has experienced improved power reliability, reduced maintenance requirements, and significantly lowered overall energy bills. In South Africa, the agricultural sector, with its increasing reliance on electricity for various applications such as fish farms, poultry production, vegetable cultivation, and food processing facilities, stands to benefit greatly from Dyness' advanced energy storage solutions.

By providing reliable and sustainable power supply, Dyness enables agricultural operations to enhance productivity, reduce operational costs, and contribute to the socio-economic development of the region.

In another significant achievement, Dyness and its local distributors have successfully accomplished parallel communication with eight units of the PowerDepot H5B,

surpassing the previous limitation of five units. This remarkable feat opens new avenues for larger energy storage projects, enabling households and communities to harness the full potential of Dyness' advanced energy storage solutions.

"We are thrilled to witness the successful deployment of our advanced energy storage solutions in the South African market," said Dyness director in South Africa. "These achievements not only demonstrate our commitment to pushing the boundaries of energy storage technology but also reflect our dedication to supporting the energy transition and sustainable development in South Africa."

Dyness continues to collaborate closely with its partners and customers in South Africa, delivering innovative energy storage solutions tailored to meet the unique needs of the market. With a focus on scalability, reliability, and safty, Dyness remains at the forefront of the energy storage industry, driving positive change and empowering household and communities with advanced energy solutions.

Situated at the heart of South Africa, Dyness is not merely providing energy solutions; it is actively rewriting the script of reliability, scalability, and sustainability. Each successful milestone achieved is a testament to Dyness's unwavering commitment, illuminating a path towards a future where advanced energy storage is synonymous with progress, unwavering reliability, and a catalyst for positive change.

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SEP-OCT Issue 2023

project feature

JA Solar's n-type module shows its power generation advantages in yield test in Hainan PV yield test projects are one of the most important ways to evaluate the performance of PV modules and PV systems, and thus have attracted extensive attention from the industry in recent years. JA Solar and TÜV Rheinland recently reported the results of a one-year energy yield test at the national outdoor yield test base for PV products in Qionghai, Hainan, China. The test aimed to study and verify the power generation performance of different types of modules, especially n-type modules and ptype modules.

Project Information The field test project is located in Qionghai, Hainan, which is typical of a tropical monsoon climate with a hot and humid environment. Average annual peak hours are about 1550kWh/m2 (horizontal level), average annual sunshine hours are about 2155 hours, and the average annual temperature is about 24 ℃ . The field test project is shown in the picture below.

approximately 5kW (as measured by the lab) for each set and an inverter of 6kW for each set. The project used a fixed support installation method (tilt Angle 19°), with the long frame of the module fixed on the vertical purlin, to ensure that the back of the module is not shielded. The module is about 1 meter above the ground. In addition to the environmental monitoring system, the project was equipped with high-precision irradiance meters, highprecision DC meters and temperature sensors.

For the PV system design and module energy yield analysis, only data from the DC meter was used for the analysis in order to avoid the effect of inverters on the power generation performance of different modules.

Comparison of power generation performance From February 2023 to July 2023, the average daily energy yield of the n-type modules and p-type modules was 4.32kWh/kW and 4.20kWh/kW respectively, with n-type modules surpassing the ptype modules by about 2.9%. The power generation capacity of PV modules depends on power degradation, temperature coefficient, operating temperature, bifacial generation performance, low irradiance performance, etc. While both types of modules are based on half-cut bifacial solar cells, the energy yield difference are mainly due to cell technology performance.

Regarding power degradation, due to the natural advantage of ntype modules for LID-free and better LeTID performance versus ptype modules, JA Solar provides a 30-year linear power output warranty with less than 1% degradation in the first year and less than 0.4% annual degradation in the following years. Calculations show power generation gain in the service lifetime to be up to 1.8% and first-year degradation data shows power gain of up to 1%.

The field test plant is equipped with a set of DeepBlue 4.0 series n-type bifacial modules (with Bycium+ cell based on n-type passivated contact technology, hereafter referred to as n-type modules) and a set of p-type PERC bifacial modules (hereafter referred to as p-type modules), with installed power of

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As for high temperature energy yield performance, mainly related to the temperature coefficient and module operating temperature, theoretically higher cell open-voltage means better temperature coefficient. The open-circuit voltage of n-type Bycium+ cell can reach 725mV, and temperature coefficient of ntype modules is -0.3%/ ℃ , while p-type modules is -0.35%/ ℃ .

During hot weather days, assuming module operating temperature is 55 ℃ (ambient temperature 30 ℃ ), power degradation loss of n-type modules is 1%-1.5% lower than p-type modules. With module operating temperature continually increasing, high temperature performance of n-type modules will be significantly better. Simultaneously, due to the higher conversion efficiency of the n-type modules, the heat conversion of the absorbed light energy is correspondingly reduced, thereby reducing the operating temperature of the modules. Combined with the excellent temperature coefficient and low operating temperature, the power generation of n-type modules is about 1.52% higher than that of p-type modules under high temperature conditions.

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project feature

Furthermore, the n-type module has 80% bifaciality which is much higher than the 70% of p-type modules. Assuming irradiance under the rear side is 100~150 W/m2 condition, the 10% bifaciality difference can bring n-type module energy gain 1%~1.5%, when in different ground environment (albedo of 20%-30%), combined with different array height, front and rear array spacing, and backside mounting with or without shading, the n-type module's power generation gain ranges from 0.8% to 1.2%.

As for the low irradiance energy yield performance, mainly with a shorter carrier lifetime, open-circuit voltage, sheet resistance, under 600W/m2 conditions, such as morning or night fall, simulation shows the n-type energy yield gain to be about 0.2%.

Analysis of factors affecting n-type energy yield gain In different climatic conditions, different weather conditions, different project types, and different ground environments, the power generation gain of n-type modules was also different than that of p-type modules. JA Solar Yinchuan one-year outdoor field test data (JA Solar and TÜV North, in the CPVT Yinchuan National PV outdoor field test Base from February 2021 to February 2022) shows that the energy yield of n-type modules based on Bycium+ cell is about 3.9% higher than that of p-type modules, and the energy yield gain is about 3.5% from February to July, which is slightly higher than that of the Hainan field test project.

From February 2021 to July 2021, the daily energy yield of the ntype module in Yinchuan is 5.31kWh/kW, and from February 2023 to July 2023, the daily energy yield of the n-type module in Hainan is 4.32kWh/kW. In the nearly same months in the past two years, the daily energy yield of Yinchuan's field test n-type module is about 23% higher than Hainan's field test, which is mainly caused by the difference of irradiance resources between the two sites. In

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the following, the energy yield data of two sunny days (high irradiance, July 7 and July 13) and two cloudy days (low irradiance, February 26 and April 12) of the Hainan field test project are selected for comparative analysis, By normalizing the instantaneous power of the measured power of the module in the lab, it can be clearly seen that the energy yield gain of the n-type module is relatively larger when the irradiance is higher, which is 4.01% and 4.06% on July 7 and July 13, respectively. When the irradiance is lower, the n-type module energy yield gain is relatively smaller, which is 1.60% and 1.32% on February 26 and April 12, respectively. The above data shows that when the irradiance is high, excluding the influence of other factors, the ntype module's power energy yield gain is larger. The ground albedo and array height of Yinchuan field test and Hainan field test are basically the same, and the difference in energy yield gain mainly depends on the intensity of irradiance, the comparison data of the two projects further proves the n-type module's excellent power generation performance.

Summary From February 2023 to July 2023, we tested the power generation capacity of n-type modules and found it to be about 2.9% higher than that of the p-type modules—under theoretical analysis— mainly due to the superior power degradation, higher temperature yield, bifacial energy yield performance, and low irradiance yield features of the DeepBlue 4.0 series modules. Under high irradiance conditions, the energy yield gain of n-type modules is more prominent, so the power generation performance is better for ntype modules in high irradiance environment and high temperature areas. This field test will be continuously tracked in the future, and will provide the technical basis for the selection of PV product technical roadmaps and module selection for customers.

SEP-OCT Issue 2023

INCOVERSATION From Sunlight to Success: Mesama Energy's Solar Project Showcase

Melusi Tshabalala Founder and Chief Executive Officer

Mesama Energy KEY HIGHLIGHTS Rapid market evolution occurred through bid windows 1-4, leading to the construction of several solar PV projects.

Mesama Energy assesses low-hanging opportunities to support government plans for power supply.

Various funders offer competitive funding structures, with some EPCs taking equity interests during project construction.

Can you describe your experience with solar market development in South Africa and Africa?

It has been both an interesting and exciting period to experience the development of the solar market, especially from a South African context.

While South Africa initially experienced load shedding back in 2008, renewables were initially adopted to reduce carbon emissions as a first priority, due to the carbon intensive power generation assets and other intensive users of power that have assets that are carbon intensive in South Africa. The first sizeable project was a 50MW CSP project, situated in the Northern Cape province of South Africa, where the solar resource is best in the country, back in 2011 through the national Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). The market quickly evolved from 2011 to about 2015/2016 through bid windows 1 – 4, which saw a number of solar PV projects being constructed in this period with various other industries that form part of the value chain being established and while others grew. This meant various job opportunities, socio economic & enterprise development activities took place, all this being in line with governments’ initiatives to create jobs and alleviate poverty by encouraging economic participation from previously disadvantaged communities. From 2016 to about 2020, the REIPPPP experienced a slowdown and one of the reasons one can cite would be the change of leadership at the Department of Minerals and Energy (DMRE) ministry as such changes can come with some delays as the new minister takes over, amongst many other reasons. This caused destabilization in the market, with many localization efforts through local manufacturing, such as solar panel and inverter manufacturing being

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compromised as there weren’t many orders coming through and some of these manufacturers had to close down their factories. The increasing demand of power and load shedding intensified over the years, which caused an uproar from citizens and the business community who were experiencing major losses in revenue due to load shedding, didn’t stop. The REIPPPP made a comeback in 2020 at the face of increasing impact of load shedding, with an additional programme called the Risk Mitigation IPP Programme (RMIPPP) as an attempt to procure power at a faster rate than what a normal REIPPPP can.

Further to this, followed major regulatory reforms, allowing privately owned companies and to procure power/energy from IPPs, and also for small scale projects and allowing for roof top solar installations to take off. This has yielded to a very high demand on the solar pv market as the rush to solve for load shedding increases. As Mesama Energy, we have had the pleasure to experience these changes since sizeable solar pv projects came online from various perspectives OEM, EPC, IPP, DFI etc. From what we have seen, a lot of other African states seem to have taken influence from the programmes and models South Africa has deployed, and come up with their own programmes that are specific to their individual needs as countries. In the Southern African region, we have worked with governments to support their initiatives in taking advantage of the strong solar resource that is available as they decarbonize and mix their own energy supply.

real on the ground experience from different perspectives that feed into the value chain of such projects. We have supported governments in the Southern African regions depending on their specific needs. Countries like eSwatini and Namibia have different challenges and different resources of renewable energy. Our role has been to asses which are the low hanging fruits that can help enable the fast tracking of governments’ plans regarding power supply. Our advice always come from a perspective that supports growth for the economies which are inline with the capabilities of these states and innovative approaches which will further invite investment across many other sectors of the economy which would have been encouraged by energy security supply

The solar market in South Africa and Africa has become a beacon of opportunity for addressing power supply challenges and driving economic growth."

What strategies have you employed to navigate regulatory and policy hurdles in the region?

Mesama Energy is part of various working associations that work closely with government and its agencies to provide

SEP-OCT Issue 2023

INCOVERSATION

For most African states, policies encourage that investors must create opportunities for previously disadvantaged communities, in the form of ownership, skills transfer, job opportunities and enterprise development."

Can you describe your experience with solar market development in South Africa and Africa?

In our experience, the financing of solar projects has become “easier” due to the fact that the technology has been tried and tested over the years. We are connected to various funders including local, regional and international DFIs, private equity firms, investors & commercial banks. All these funders have different interests of funding, but a lot of them are comfortable with funding projects that have been significantly derisked, meaning most of the project development work must have been completed, while there are very few that are willing to put up risk capital for the project development activities. From a local IPP/project developer’s perspective, this can be challenging due to the limited resources, where most local IPP and developers face when it comes to funding these activities, however, the larger international IPPs can easily deploy such investments. Within our Mesama Energy owned projects, we like to partner with local and international IPPs to develop our projects to bankability, especially because our solar pv project pipeline is at least 2GW and is growing. Other local IPPs/developers often come to us for support in securing funding for their projects and we are able to tap into our relationships with key industry players across the board, depending on their funding needs, which to date, we have raised over ZAR 6BN worth of funding for our clients. We have seen competitive funding structures coming from various local and international funders that help create competitive projects, including some EPCs taking an equity interest on projects mostly during the construction phase of the project development process. We have had the pleasure of working with various international investors & IPPs who have interest in participating in solar pv projects within the region by bringing them investment opportunities and provide them with context regarding the solar pv market in the region.

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Can you provide an example of a successful solar project you've overseen in South Africa or Africa, including the challenges faced and the solutions implemented?

How do you plan to drive growth and profitability in a competitive solar market while considering the unique socio-economic factors in South Africa and Africa?

Within our team, we have a combined experience amounting to 55 years within the energy generation, transmission and distribution sector. The solar market took shape in South Africa in 2011 and we have been participating ever since, with specific focus to solar pv and CSP technologies. The team has been involved in many other technologies that are clean and renewable.

Some of the key challenges we faced were around the first projects where the country as a whole had limited experience where solar projects were concerned. The bill from consulting firms from international entities was hefty but provided us with the correct training and experience as we got capacitated through working with them.

The regulatory frameworks were still quite challenging at the time for projects that fell outside the REIPPP programme as they had to get a ministerial determination, and that process wasn’t well understood at the time, albeit a few projects were executed under those challenging circumstances. Other challenges we are consistently faced with especially with some industrial clients, is that they require solutions that can safeguard them from load shedding, high escalation rates from utilities and to decarbonise their operations. This often means that projects must be hybrid offerings due to the fact that solar alone cannot safeguard against load shedding, which can eventually push up the tariff. We consistently educate our clients because through our studies and offers, we can see that there is cost benefit for the client as early as 2-3 years, depending on the project merits. We have been involved in various projects some of the utility scale projects our team has had experience is are Xina CSP, Khathu CSP, Jasper Solar Park, Paleisheiuwel Solar Park, Kalkbult just to name a few.

Mesama Energy’s core business is to provide tailor made solutions for the clients that we are servicing. In projects where we are the IPP, for example, we have good working relationships with EPCs, for example, which help us negotiate pricing on their equipment, funding terms with investors and commercial banks are also key to ensuring a successful, profitable and competitive project. In projects where are providing consultancy services for deploying manufacturing facilities in the region, we look at all the elements of the value chain and identify low hanging fruits based on the capabilities of the project sponsors and the demand of the products they intend to manufacture. We help with strategies relating to “go to market” and analysis for them to best tap into the markets they are willing to participate in.

What governs all of the project is key studies that are relating to socio economic needs where projects will be operating from. For most African states, policies encourage that investors must create opportunities for previously disadvantaged communities, in the form of ownership, skills transfer, job opportunities and enterprise development. These are quite key especially for most DFIs who will most likely look at all these factors before they can commit to funding a particular project

SEP-OCT Issue 2023

COVER STORY

THE SOCIOECONOMIC AND ENVIRONMENTAL IMPACT OF SOLAR ENERGY ADOPTION South Africa, a country with abundant sunshine, is increasingly turning to solar energy as a means to address its energy needs, promote socioeconomic development, and reduce its environmental footprint.

This transition towards solar power has not only created a sustainable energy solution but is also positively impacting communities across the nation.

Solar Energy's Socioeconomic Impact The adoption of solar energy in South Africa has sparked economic growth and job creation, particularly in regions that have historically faced high levels of unemployment. The solar industry has provided opportunities for skilled and unskilled labor alike, from manufacturing solar panels to installing solar systems.

Access to Energy in Rural Communities One of the most significant socioeconomic impacts of solar energy adoption is the expansion of energy access, particularly in remote rural communities. Many of these areas lacked access to reliable electricity from the national grid, which hindered economic activities and limited educational opportunities.

Solar power offers a decentralized and off-grid solution, making it possible for communities in remote locations to generate their own electricity. This not only enables households to enjoy basic amenities such as lighting and refrigeration but also supports local businesses and essential services like healthcare and education.

Local communities have benefited from solar projects through job opportunities, both during construction and in ongoing operations and maintenance. This not only bolsters household incomes but also contributes to the overall economic development of these areas.

Moreover, the solar sector's growth has led to a burgeoning market for solar-related businesses, spurring entrepreneurship and fostering economic resilience.

In South Africa, solar microgrids and standalone solar systems have been pivotal in providing electricity to underserved areas.

These systems can be tailored to meet the specific needs of each community, fostering a sense of ownership and self-reliance.

In addition to job creation, solar energy projects often prioritize local procurement, which further boosts the local economy. This includes sourcing materials, equipment, and services from nearby suppliers and manufacturers. By doing so, solar projects stimulate a ripple effect of economic activity that extends beyond the immediate installation.

While the benefits of solar energy adoption in South Africa are undeniable, challenges remain. The upfront costs of solar installations can be a barrier for many households and businesses. Access to financing and subsidies are essential to make solar energy more accessible to a broader range of communities.

Environmental Benefits of Solar Adoption South Africa's commitment to solar energy aligns with its broader sustainability goals. The environmental benefits of solar power are substantial, as it is a clean, renewable energy source that produces minimal greenhouse gas emissions. By harnessing the power of the sun, South Africa reduces its reliance on fossil fuels, which not only mitigates climate change but also improves air quality and public health.

Solar energy systems also have a low environmental footprint compared to conventional power generation methods. They require less water for cooling, reducing strain on local water resources, which is especially critical in arid regions. Furthermore, the minimal land use for solar installations allows for coexisting land utilization, such as agriculture or wildlife conservation, without significant disruption.

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Challenges and the Path Forward

Additionally, the intermittency of solar power requires effective energy storage solutions for continuous supply, especially during nighttime or cloudy days. Technological advancements in battery storage are crucial to address this challenge.

In conclusion, the adoption of solar energy in South Africa is not only revolutionizing the energy landscape but also transforming the lives of its people. By creating jobs, improving access to electricity in remote areas, and reducing environmental impact, solar energy is a catalyst for positive change. As the nation continues to invest in solar power infrastructure and overcome challenges, it is poised to reap the long-term benefits of a sustainable and equitable energy future.

SEP-OCT Issue 2023

Industry Opinion

South Africa’s Energy Paradigm Shift

NITIN SHARMA CEO,

Several key energy policies could include enhanced focus on dispatchable renewable resource with energy storage; and focus on distributed energy resources. Energy markets will need to be created and policies drafted to generate a market mechanism for peak and demand side management. South Africa is a net importer of petroleum products, and back-up power usage of DG alone could be contributing approximately 1 billion USD of Diesel consumption.

Newen Systems

South Africa is a young and growing nation with growth aspirations to match. With 2/3rd of its population below 35 years of age and high literacy rate, the country has huge potential for accelerated growth. South Africa is one of the top 3 economies with GDP growth rate amongst top 5 in the Africa Continent. However, South Africa is impacted by effects of climate change and dwindling water reserves.

Electrification and Decarbonization are two key components of countries' growth plan to reduce carbon intensity. The idea is to electrify more processes and generate electricity from renewable sources. Currently more than 3 out of 4 units of electricity is generated using Coal. South Africa is rich in coal; however, the quality of coal is not one of the best and this leads to more intensity of carbon emissions.

South Africa is also rich in Solar insolation and good Wind potential along the coastline. However, South Africa needs substantial investments in grid infrastructure. Recent trends in load shedding and black out point towards the need for more energy, as well as resilient infrastructure.

As South Africa develops its strategy for the second quarter of the 21st century, energy and infrastructure are essential to utilize demographic dividends and push towards sustained growth. There will be a need for 100s of Billion USD, and the country will require clear and consistent strategies for investors to invest.

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Adoption of Electric vehicles will further enhance the need for resilient grid and distributed charging infrastructure. Electrification of mining and agricultural equipment will need robust distributed energy resources to create positive impact for large contributors of GHG emissions within the economy.

Within this complex chess board of energy, I believe that storage is like a horse that can perform in all directions and in multiple steps.

Storage can provide grid resilience while doubling up with substation infrastructure to delay the upgradation requirement, while ensuring quality power output. Storage plays a critical role in transforming renewables into firm power and managing peak loads.

Storage plays a critical role across complete value chain of electricity, right from generation to transmission and distribution, as well as consumption points behind the meter. Every storage technology is unique, and its significance is based on the use case suitable to a specific geography and environmental conditions.

South Africa is rich in mineral resources and the country can look at different incentive structures to develop the local storage market.

The country can develop an incentive system to manufacture batteries suitable for local applications and the availability of minerals such as Vanadium.

In summary, South Africa has challenges, but also the opportunity to utilize available energy resources strategically to enable young citizens to co-create world class infrastructure and business environment.

SEP-OCT Issue 2023

KNOWLEDGE BYTES

Solar Energy Revolution: How South Africa Is Embracing Sunshine To Power Its Future South Africa, known for its breathtaking landscapes and abundant sunshine, is on the cusp of a solar energy revolution.

With its vast solar potential, the nation is harnessing the power of the sun to drive a sustainable energy future that not only addresses its growing electricity demands but also contributes to reducing carbon emissions.

The Solar Potential of South Africa Located in the southern hemisphere, South Africa enjoys a unique geographical advantage—a high level of solar irradiance. The country receives an average of around 2,500 hours of sunlight per year, making it an ideal location for solar energy generation. This solar potential has not gone unnoticed, and South Africa is now leveraging it to diversify its energy mix and reduce its reliance on fossil fuels.

Solar Farms and Renewable Energy Procurement One of the key drivers of South Africa's solar energy revolution is the Renewable Energy Independent Power Producer Procurement (REIPPP) program. Under this program, private companies are awarded contracts to develop renewable energy projects, including solar farms. These solar installations are being built across the nation, from the Northern Cape to the Free State, and are transforming the energy landscape.

These solar farms, equipped with photovoltaic panels or concentrated solar power technology, have significantly expanded South Africa's renewable energy capacity. The program not only attracts substantial private sector investments but also supports job creation and skills development in the renewable energy sector.

Solar Energy's Socioeconomic Impact The solar energy revolution in South Africa is not just about generating electricity from the sun; it is also driving socioeconomic development. Job opportunities have emerged at various stages of solar projects, from manufacturing solar panels to installing and maintaining solar systems. Local communities benefit from these solar projects through job creation, and this contributes to the overall economic development of these areas.

Moreover, the REIPPP program places a strong emphasis on local economic development. Solar projects are required to source a percentage of their components and services locally. This approach stimulates economic growth in the regions where the projects operate, bolsters local industries, and fosters community engagement and support for renewable energy initiatives.

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Environmental Benefits The environmental benefits of South Africa's solar energy revolution are substantial. Solar power is a clean and renewable energy source that produces minimal greenhouse gas emissions.

By harnessing the power of the sun, South Africa is reducing its reliance on fossil fuels, mitigating climate change, and improving air quality. This transition to cleaner energy aligns with the nation's broader sustainability goals.

Additionally, solar energy systems have a low environmental footprint compared to conventional power generation methods.

They require less water for cooling, which is especially critical in arid regions, and the minimal land use allows for coexisting land utilization, such as agriculture or wildlife conservation.

The Path Forward South Africa's embrace of solar energy represents a promising step towards a more sustainable and greener future. As the solar energy revolution continues to unfold, the nation will likely reduce its carbon emissions, enhance energy security, and create more opportunities for its citizens. However, challenges remain, including grid integration and energy storage. Addressing these challenges will require continued investment, technological innovation, and supportive government policies.

In conclusion, South Africa's solar energy revolution is not just about generating electricity; it's a multifaceted transformation that touches on economic development, environmental preservation, and sustainable energy generation. With its abundant sunshine and a commitment to harnessing its solar potential, South Africa is poised to lead the way in Africa's renewable energy transition, setting an inspiring example for the rest of the world.

The Role of Renewable Energy Policies in Shaping South Africa's Solar Power Industry South Africa's solar power industry is experiencing significant growth, driven in large part by the country's commitment to renewable energy policies. These policies play a pivotal role in shaping the landscape of solar energy adoption and are instrumental in the nation's transition to a more sustainable and environmentally friendly energy mix.

SEP-OCT Issue 2023

Industry Opinion

Powering Progress: South African Mines Embrace Clean Energy

DR. RICHARD DOYLE

involve and benefit local communities, and skill shortages in the renewable energy sector must be addressed. Regulations, while capable of driving progress, can also cause project delays, as seen in the complexity of environmental and water use licensing in South Africa.

Managing Director,

JUWI Renewable Energies South Africa The JUWI team in South Africa has had the privilege of witnessing the transformation of energy solutions for mines in South Africa in recent years. Rooted in history since the 1886 gold rush, the sector is rapidly adopting renewables, like solar, to balance profits with emissions reductions and ensure operational continuity during energy shortages.

Rising energy costs, estimated to reach 12.5% of mining expenses by 2024, and the pressing need to reduce greenhouse gas emissions are major challenges for the sector. Export conditions and associated carbon taxes mean that lower carbon solutions become a license to operate for mines. To address these challenges, South African mining companies currently have a pipeline of 7.5 GW of clean energy capacity that will unlock investment of over ZAR 150 billion (USD 8 billion).

Indeed, mines responded swiftly after restrictions on private energy generation were lifted by the government. Pan African Resources (PAR) and JUWI led the way with a 9.8 MW solar plant at the Elikhulu Tailings Plant in 2021, with plans to expand the plant to 22 MW soon. JUWI is also constructing an 8.75 MW solar plant at PAR’s Barberton mine, while the mine has secured a wheeling agreement for another 40 MW. Notably, the company achieved a 6.01% renewable energy consumption rate in 2023 and anticipates ZAR 100 million (USD 5.3 million) annual cost savings and 80,000 tonnes of carbon emissions reductions with an eventual installed solar capacity of 30 MW. The transition to renewable energy in mining is not without challenges, however. Issues such as land availability, how to

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Another challenge is how to choose the best solution and partners.

Early partnerships with renewable energy developers have been shown to lead to more customized finance contracts and systems, offering greater value to mining operations.

Grid capacity is another significant challenge that mining projects face. Grid access is vital for projects relying on wheeled solutions from remote locations. Existing grid infrastructure was not originally designed to accommodate the substantial energy inputs from privately owned large-scale renewables in the Northern Cape and other provinces. The mining and renewable energy industries are eagerly awaiting the electricity minister's plan to expand the South African transmission network, set to be presented to Cabinet in 2023.

In conclusion, the clean energy transition in mining is well underway in South Africa, driven by several factors but super-charged by the current energy crisis. Mines recognize the benefits and are making substantial commitments and investments in clean energy. While challenges related to partners, finance, and solutions exist, they are not insurmountable. The main obstacles to harnessing the private sector's enthusiasm lie in the enabling environment and grid capacity.

To fully unlock the potential of renewable energy in mining, unwavering political determination and a strong partnership between the government and the private sector are crucial. The government must play a pivotal role in expanding and streamlining the grid infrastructure, simplifying regulations, and fostering an investment-friendly environment. South Africa's mining industry stands on the brink of a significant shift toward sustainability, with government support being the linchpin for realizing its full potential.

SEP-OCT Issue 2023

KNOWLEDGE BYTES

The Renewable Energy Independent Power Producer Procurement (REIPPP) Program At the heart of South Africa's solar energy revolution is the Renewable Energy Independent Power Producer Procurement (REIPPP) program. This groundbreaking initiative has been the driving force behind the development of utility-scale solar projects across the country. Under the program, private companies are awarded contracts to develop renewable energy projects, including solar farms. These projects have added substantial solar capacity to the national grid, reducing the country's reliance on fossil fuels.

The REIPPP program has not only attracted significant private sector investment but has also created jobs and spurred economic development in the renewable energy sector. By offering long-term power purchase agreements (PPAs), the program provides financial stability and incentives for companies to invest in solar energy infrastructure.

Financial Incentives and Tax Credits To encourage solar energy adoption, South Africa offers financial incentives and tax credits to both residential and commercial consumers. These incentives can significantly reduce the upfront cost of installing solar panels and systems, making them more accessible and financially appealing. By reducing the payback period for solar investments, these policies drive greater adoption across the board.

Grid Access and Integration Environmental Sustainability Goals South Africa's policies have also focused on improving grid access and integration for solar energy. This involves expanding the transmission infrastructure to connect remote solar farms to the main grid, ensuring that solar-generated electricity can be efficiently distributed across the country. These grid enhancements are crucial for the effective integration of renewable energy sources like solar, helping to stabilize the grid and reduce transmission and distribution losses.

Energy Storage Incentives Another vital aspect of South Africa's renewable energy policies is the promotion of energy storage solutions. These systems, such as advanced battery technology, allow excess solar-generated electricity to be stored and used during periods of low sunlight.

The government offers incentives and support for the deployment of energy storage solutions, enhancing the reliability and efficiency of solar energy systems.

South Africa's renewable energy policies also align with its broader environmental sustainability goals. By reducing carbon emissions and promoting clean energy sources like solar power, the country contributes to global efforts to combat climate change. These policies signal South Africa's commitment to achieving a greener and more sustainable energy future.

Economic Development and Job Creation Beyond environmental benefits, renewable energy policies also foster economic development and job creation. The growth of the solar power industry has created a wide range of employment opportunities, from manufacturing and installation to maintenance and support services. Local communities often benefit from these projects through job creation and local economic development, strengthening support for renewable energy initiatives.

Conclusion South Africa's solar power industry owes much of its success to well-designed renewable energy policies. These policies have spurred significant investment, improved grid infrastructure, incentivized energy storage solutions, and promoted solar adoption across the country. As South Africa continues on its path towards a sustainable energy future, these policies will remain instrumental in shaping the nation's solar power industry and contributing to a cleaner and more environmentally responsible energy landscape.

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SEP-OCT Issue 2023

Industry Opinion

Battery Energy Storage in Africa: Powering a Sustainable Future ANRÉ GUSTAV GOUS Managing Director,

Energy shortages and blackouts are a common occurrence in parts of Africa. BESS can serve as an efficient backup power source during such crises, ensuring that essential services, like healthcare facilities, data centers, and critical infrastructure, continue to function. This resilience enhances economic stability and public safety.

ACES

Supporting Industrial Growth: Enhancing Productivity Africa faces a unique set of challenges and opportunities in the realm of energy supply and access. The continent is home to a diverse range of countries, each with its own energy infrastructure and development needs. While access to reliable electricity remains a pressing concern for many Africans, there is a growing recognition of the role that battery energy storage systems (BESS) can play in addressing these challenges and catalysing sustainable development across the continent.

Energy Access: Bridging the Gap Africa has long grappled with energy poverty, where a significant portion of its population lacks access to electricity. According to the International Energy Agency (IEA), around 580 million Africans lacked access to electricity in 2019. BESS offers a promising solution by providing reliable, off-grid power sources that can illuminate homes, power schools, clinics, and promote economic growth in remote areas.

Intermittent Energy Sources: Stabilising the Grid Many African countries are increasingly turning to renewable energy sources, such as solar and wind, to meet their growing energy demands. However, these sources are inherently intermittent, dependent on weather conditions, and not always available when needed. BESS can store excess energy generated during sunny or windy days and release it during periods of high demand or when renewable generation is low, thus stabilising the grid and ensuring a continuous power supply.

Rural Electrification: Empowering Communities Rural electrification is a top priority for many African governments aiming to reduce poverty and spur economic development. Mini-grids powered by BESS are particularly wellsuited for this purpose.

These localised, off-grid systems can bring electricity to remote areas where extending the central grid is cost-prohibitive. By powering agricultural machinery, lighting homes, and supporting small businesses, BESS-driven mini-grids can transform the lives of rural communities.

Mitigating Energy Shortages: Reliable Backup Power

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A reliable and sustainable power supply is critical for industrial growth and foreign investment. BESS can help stabilise energy supply and reduce the reliance on expensive and polluting diesel generators. This can lower operational costs for businesses and attract investments in manufacturing and other energy-intensive industries.

Integration with Renewables: Maximising Clean Energy Potential Africa is blessed with abundant renewable energy resources, such as abundant sunlight and wind. BESS can play a pivotal role in optimising the integration of these clean energy sources into the energy mix. By smoothing out fluctuations and storing excess renewable energy, BESS can help countries meet their renewable energy targets and reduce greenhouse gas emissions.

Grid Infrastructure and Investment: Cost Savings Expanding traditional grid infrastructure can be prohibitively expensive and time-consuming. BESS can offer a cost-effective alternative by deferring the need for costly grid upgrades and expansions. Moreover, BESS can attract private investment and partnerships, accelerating the deployment of energy storage solutions across the continent.

Environmental Sustainability: Reducing Emissions As Africa seeks to industrialise and modernise, it must do so while minimising its environmental footprint. BESS, when coupled with renewable energy sources, offers a sustainable and low-carbon approach to meeting the continent's energy needs. Reduced reliance on fossil fuels translates into lower greenhouse gas emissions and a cleaner, more sustainable future.

Environmental Sustainability: Reducing Emissions Battery energy storage systems represent a transformative solution to many of Africa's energy challenges. They offer the prospect of universal energy access, grid stability, economic growth, and environmental sustainability. To harness this potential fully, African governments, international organisations, and the private sector must collaborate to develop robust policies, foster investments, and facilitate the adoption of BESS technologies. By doing so, Africa can embark on a journey towards a brighter, more energy-secure, and sustainable future for all its citizens.

SEP-OCT Issue 2023

Industry Opinion

An Overview Of Nigeria's Renewable Energy Landscape And Its Potential CHIDI OBIKE Founder & CEO,

sector. So far 103 minigrids has been deployed via the REA totaling 5.8Megawatts, and providing a total of 46,661 verified connections made to households, MSMEs, and public facilities, impacting over 230,000 people, with additional 281,578 connections in progress.

This connections provide for brighter futures, improved livelihoods, and opportunities for growth.”

Powerup Renewables Ltd.

Nigeria is the most populous country and largest economy on the African continent. It is home to one of the fastest-growing populations globally, which has led to a rapidly increasing demand for energy services that will be key to unlocking economic development. This presents a substantial opportunity to develop the country’s rich natural renewable energy resources and unlock low- carbon economic growth.

Nigeria vast renewable potential is currently underexploited though she has made some promising strides towards increasing the domestic deployment of renewable energy. The major renewable energy resources in Nigeria are solar power with potential estimated at 210,000MW (IRENA), Hydropower potential of 24,000MW and Waste-to-energy. Solar power deployments stands at around 50MW, wind power stands at 1900MW, while waste to energy has not taken off, this clearly shows Nigeria has not scratched the surface when it comes to renewable energy deployments.

For over four decades Nigeria has been struggling with very unreliable & inadequate power supply from the grid.Now Solar is the most viable means of solving this huge power problem, in that is the cheapest power source, quickest to deploy, can be deployed onsite where it is needed.

The solar energy landscape is divided into Commercial &industrial solar, Minigrid, Utility Scale Solar and Residential Solar.

The C&I sector has market size of 7900MW, which translates to annual revenue potential of $10billion. Most C&I companies across West-Africa are struggling with unreliable and inadequate power supply, this causes productivity losses of over $40billion annually . There is a flurry of activities/deployments of solar power in this sector to solve this problem, as C&I Solar Power is a very innovative solution that provides reliable power and with massive savings on their electricity costs. Also reduces their exposure to constant increases in diesel/gas prices, grid electricity prices and product scarcity, hence providing them with long-term energy security, which is critical for their business profitability and survival.

The mini-grid sector is experiencing a significant progress bolstered by the success of incentives such as the results based grants and promotion activities of the Rural Electrification Agency and world bank. The performance based grants has cataysed the inflow for private investments to the mini-grids

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Utility scale solar refers to large scale solar systems deployed to serve whole cities or states. The current market size of utility scale solar stands at 8,000MW, with an annual revenue potential of $10billion. The sector is still at a very nascent stage as only about 10MW of utility scale solar has been deployed mostly in the northern Nigeria.

Residential solar sector refers to solar deployments for homes. The current market size is around 10,000MW. The sector is experiencing gradual growth bolstered by installment payments options offered to home users by solar companies and some commercial banks. Due to the general difficulty of people to purchase solar systems upfront.

POLICY AND REGULATORY DEVELOPMENTS The government has come to the key realisation point that the abundant renewable energy resources of this region especially solar power, must be capitalized on to build a sustainable energy system to meet the growing energy needs of its population and address their socio-economic challenges. To this end she has developed strategic policies and laws to foster the transition to renewable energy especially solar power for example the Energy Transition plan in Nigeria and The Electricity Act 2023 which contains innovative provisions including feed-in tariffs, rural fund for renewable electricity projects, a renewable purchase obligation for bulk traders of power, and it stipulates that NERC should simplify licensing process and create cheaper licensing fees for renewable energy projects, the Act also mandates NERC to provide incentives to support independent power producers who invest in the energy sector such that they are able to fund their activities while allowing for the generation of reasonable revenue to implement their operations.

A very powerful provision in the Electricity Act 2023 is that it allows decentralisation of the Nigeria’s power system, permitting state governments to generate, transit and distribute power within their states. This throws up huge opportunities nation-wide for utility scale, embedded minigrids, standalone minigrids and C&I Solar.

Solar companies are already taking advantage of this, such as the launch of Nigeria’s first interconnected minigrid of 352KW capacity by Powergen and Abuja Disco.

Proper implementation of the Electricity Act 2023 can position Nigeria as a leader in renewable energy, mitigating both electricity supply issues and climate change impacts.

SEP-OCT Issue 2023

TECH STORY

Empowering the Countryside Technological Innovations in Solar Energy for Rural Electrification in South Africa South Africa's rural areas have long grappled with a pressing issue: limited access to reliable and affordable electricity. The nation's vast and diverse geography, coupled with economic disparities, has made electrification in rural regions a formidable challenge. However, technological innovations in solar energy are emerging as a transformative solution, empowering rural communities and bridging the energy divide.

Off-Grid Solar Solutions One of the most significant breakthroughs in rural electrification is the development of off-grid solar solutions. These systems are designed to operate independently of the national power grid, making them ideal for remote and underserved areas. Off-grid solar solutions can range from small-scale standalone solar systems that power individual homes to larger microgrids that serve entire communities.

lifespans, and faster charging and discharging capabilities. These advancements ensure more reliable access to electricity, even during cloudy days or at night.

Smart Inverters: Advanced inverters are equipped with smart features, such as remote monitoring and control, which enhance system performance and ease of maintenance. They also facilitate the integration of multiple renewable energy sources, such as wind or hydropower, into the energy mix.

Pay-As-You-Go (PAYG) Models: Off-grid solar systems consist of several key components, including solar panels, batteries for energy storage, charge controllers, and inverters. Solar panels, typically mounted on rooftops or ground-mounted arrays, capture sunlight and convert it into electricity. This direct current (DC) electricity is then stored in batteries for later use when the sun is not shining.

Inverters play a crucial role by converting the stored DC electricity into alternating current (AC), which is compatible with household appliances and lighting.

These systems offer scalability, allowing rural communities to start with small installations and expand them as their energy needs grow. They are also relatively easy to install and maintain, reducing the need for extensive infrastructure development, which can be costly and time-consuming.

Technological Advancements Recent technological advancements in solar energy have made off-grid solutions even more efficient and cost-effective. Here are some key innovations driving the adoption of solar energy for rural electrification in South Africa:

Improved Solar Panels: Solar panel efficiency has seen remarkable improvements, allowing for better energy capture even in low-light conditions.

Innovations like bifacial panels and advanced coatings enhance energy production.

Energy Storage: The development of lithium-ion batteries has revolutionized energy storage solutions, offering higher energy density, longer

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Innovative payment models, like PAYG, allow rural residents to access solar systems through affordable installment plans. This democratizes energy access and ensures affordability for even the most underserved communities.

Energy Management Software: Software solutions enable efficient energy use by optimizing system performance and managing energy consumption in realtime. These systems are particularly valuable for rural electrification projects, ensuring that every unit of electricity generated is used efficiently.

The deployment of solar energy solutions in rural South Africa has far-reaching effects on local communities such as Education, Healthcare, Economic Growth, Agriculture, Quality of Life.

Government Initiatives and Partnerships The South African government, along with various international organizations and private sector companies, is actively involved in promoting solar electrification in rural areas. These initiatives include financial support, capacity building, and the development of policy frameworks that incentivize renewable energy adoption.

In conclusion, technological innovations in solar energy are revolutionizing rural electrification in South Africa, bringing muchneeded power to remote and underserved communities. This sustainable and scalable solution not only addresses energy poverty but also catalyzes socioeconomic development, fostering a brighter and more equitable future for rural South Africa.

SEP-OCT Issue 2023

POLICY RESEARCH

Illuminating Pathways Government Policies And Incentives Shaping Solar Energy Adoption In South Africa South Africa, with its abundant sunshine and vast untapped solar potential, is at a pivotal juncture in its journey towards a sustainable energy future. As the country grapples with the dual challenges of providing energy access to all and mitigating climate change, solar energy has emerged as a beacon of hope.

The government's policies and incentives play a pivotal role in shaping the trajectory of solar energy adoption across the nation.

Tax Incentives and Rebates National Integrated Resource Plan (IRP) At the core of South Africa's commitment to renewable energy lies the National Integrated Resource Plan (IRP). This policy blueprint outlines the country's energy generation mix and capacity targets for the medium to long term. In the latest iteration, IRP 2019, solar photovoltaic (PV) and concentrated solar power (CSP) feature prominently, with ambitious capacity targets. This not only underscores the government's commitment to solar energy but also provides a clear roadmap for its integration into the national energy landscape.

Renewable Energy Independent Power Producer Procurement (REIPPP) Program The REIPPP program is a flagship initiative that has transformed South Africa's renewable energy sector. Through a competitive bidding process, independent power producers (IPPs) are awarded contracts to develop renewable energy projects, including solar PV and CSP. The program has not only attracted substantial private sector investments but has also facilitated job creation and skills development in the renewable energy sector.

One of the program's strengths is its commitment to local economic development. Projects are required to source a percentage of their components and services locally, stimulating economic growth in the regions where they operate. This approach not only bolsters local industries but also strengthens community engagement and support for renewable energy initiatives.

Carbon Tax and Carbon Offset Programs South Africa introduced a carbon tax in 2019 to incentivize emissions reduction and combat climate change. Solar energy, as a clean and low-carbon energy source, stands to benefit from this policy framework. Industries and organizations that reduce their carbon emissions through solar installations can mitigate the impact of the carbon tax, making solar investments financially appealing.

Additionally, the country has explored carbon offset programs that encourage sustainable practices, including renewable energy adoption. Solar projects that demonstrate emissions reductions can generate carbon credits, which can be traded or sold, further incentivizing solar development.

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The government offers tax incentives and rebates to promote solar energy adoption among residential and commercial consumers. These incentives often come in the form of tax credits, deductions, or rebates that reduce the overall cost of installing solar PV systems. Such financial incentives make solar installations more accessible and cost-effective for a broader range of consumers, fostering widespread adoption.

Net Metering and Feed-in Tariffs South Africa has also embraced net metering and feed-in tariffs as mechanisms to promote solar energy adoption. Net metering allows consumers with solar PV systems to feed excess electricity back into the grid, receiving credits or compensation for the surplus energy generated. Feed-in tariffs, on the other hand, guarantee a fixed payment rate for solar energy fed into the grid, providing income certainty for solar project owners.

These policies encourage consumers to invest in solar PV systems by not only reducing their electricity bills but also offering a potential source of income. They promote the concept of distributed generation, where individual households and businesses become active contributors to the national energy supply.

Challenges and the Road Ahead While South Africa's solar energy policies and incentives have made substantial progress, challenges persist. Regulatory hurdles, grid integration issues, and access to financing continue to be barriers to widespread adoption. However, the government's commitment to overcoming these obstacles, coupled with ongoing technological advancements and private sector engagement, paints a promising picture for the future of solar energy in the country.

In conclusion, South Africa's journey towards solar energy adoption is guided by a comprehensive set of policies and incentives that illuminate the path toward a sustainable energy future. As the nation navigates the complex terrain of energy access and climate change mitigation, solar energy stands as a beacon of hope, offering a brighter, cleaner, and more equitable future for all South Africans. Through continued policy support and collaboration, South Africa is poised to harness the full potential of its abundant solar resource.

SEP-OCT Issue 2023

CURRENT AFFAIRS

South Africa's Solar Dilemma Navigating Grid Integration Challenges South Africa's transition to renewable energy sources, particularly solar power, has gained significant momentum in recent years.

With an abundance of sunshine, solar energy holds tremendous promise as a clean and sustainable solution to the nation's energy needs. However, as South Africa embraces solar energy on a larger scale, it faces a complex challenge—how to effectively integrate solar-generated electricity into the existing power grid.

The Solar Surge South Africa has witnessed a remarkable surge in the adoption of solar energy. The Renewable Energy Independent Power Producer Procurement (REIPPP) program has been a driving force behind this surge, facilitating the development of utility-scale solar projects across the country. These solar farms, equipped with photovoltaic panels or concentrated solar power technology, have significantly expanded South Africa's renewable energy capacity and paved the way for a greener future.

Grid Integration Challenges Yet, the rapid expansion of solar installations has outpaced the development of the grid infrastructure needed to accommodate these intermittent energy sources effectively. This misalignment has given rise to a series of grid integration challenges that South Africa must navigate to harness the full potential of solar energy: Grid Congestion: Solar farms inject a substantial amount of electricity into the grid during peak sunlight hours. This influx can overload certain sections of the grid, causing voltage fluctuations and, in some cases, power outages. Managing this congestion and ensuring a smooth flow of electricity is a priority.

Grid Stability: Solar power's intermittent nature presents a challenge to grid stability. Cloudy days, sudden weather changes, or maintenance-related downtimes at solar farms can lead to fluctuations in energy supply. Maintaining grid stability in the face of such variations is crucial.

Storage Solutions: To balance supply and demand effectively, energy storage solutions are essential. While battery technology has advanced, deploying cost-effective and efficient energy storage solutions on a large scale remains a challenge. Storage capacity needs to match the intermittent nature of solar generation.

Transmission Infrastructure: Many solar farms are situated in remote areas, requiring the expansion of the transmission infrastructure to connect them to the main grid. However, this often involves lengthy approval processes, environmental considerations, and budget constraints that can slow down the development of new transmission lines.

Grid Codes and Regulations: Existing grid codes and regulations were not designed with renewable energy sources like solar in mind. Adapting these codes to accommodate the unique characteristics of solar power generation is essential for effective grid integration.

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Mitigating the Solar Grid Integration Challenge Effectively addressing South Africa's solar grid integration challenges necessitates a comprehensive and collaborative approach: Grid Modernization: Investment in grid modernization is paramount. Upgrading the existing infrastructure to handle higher capacities and accommodate renewable energy sources is crucial. Implementing smart grid technologies can help manage the flow of solar energy more effectively and reduce congestion.

Energy Storage: Accelerating the deployment of energy storage solutions is essential for storing excess solar energy during sunny periods and releasing it when demand peaks or solar generation is low. Government incentives can play a pivotal role in promoting energy storage adoption.

Hybrid Systems: Combining solar with other renewable energy sources like wind or hydropower can provide a more stable and consistent energy supply. Hybrid systems offer a way to overcome the intermittency of solar energy and ensure a more reliable energy mix.

Regulatory Support: Streamlining regulations and grid codes to facilitate the integration of renewable energy is essential.

Creating a supportive regulatory environment that incentivizes grid upgrades and the deployment of advanced technologies can help accelerate progress.

Public Awareness: Increasing public awareness about the benefits of solar energy and the challenges of grid integration can garner support for necessary investments and policy changes. Engaging communities in the transition to renewable energy can help build public support and understanding.

The Path Forward South Africa stands at a crossroads in its pursuit of a sustainable energy future. While the challenges of solar grid integration are formidable, they are not insurmountable. With a concerted effort from government, industry, and communities, South Africa can navigate its solar dilemma and harness the full potential of this abundant and clean energy source. By addressing grid integration challenges head-on, the nation can pave the way for a brighter, more sustainable energy landscape that benefits all its citizens.

SEP-OCT Issue 2023

MARKET RESEARCH

South Africa's Solar Power Milestone: Surpassing 6 GW of Installed PV Capacity in 2023 In the realm of renewable energy, South Africa has emerged as a frontrunner on the African continent. The year 2023 marked a significant milestone for the nation, as it surpassed 6 gigawatts (GW) of installed solar photovoltaic (PV) capacity. This achievement underlines South Africa's commitment to sustainable energy solutions, solidifying its position as a global player in the solar energy landscape.

South Africa's journey to reach 6 GW of installed solar PV capacity has been characterized by ambition, innovation, and determination. The nation first ventured into large-scale solar projects around a decade ago with the establishment of the Renewable Energy Independent Power Producer Procurement (REIPPP) program. This initiative aimed to diversify the energy mix, reduce carbon emissions, and promote economic development.

The REIPPP program facilitated the procurement of renewable energy projects, including solar PV, through a competitive bidding process. Independent power producers were encouraged to invest in and operate these projects, thereby fostering private sector participation in the renewable energy sector. Since its inception, the REIPPP program has been highly successful in attracting both domestic and international investments.

South Africa's commitment to solar energy has not only boosted the country's sustainability but has also generated economic benefits. The solar sector has created jobs and attracted investments, contributing to economic growth. It has also diversified the energy sector, making it more resilient and secure.

From an environmental perspective, South Africa's solar journey aligns with global efforts to combat climate change. The reduction in carbon emissions resulting from the increased use of solar power is a positive step in the direction of a greener and more sustainable future.

While the milestone of 6 GW of installed solar PV capacity is impressive, South Africa's solar energy sector still faces challenges.

Grid integration, energy storage, and the need for grid resilience are among the key challenges. The intermittency of solar power requires efficient grid integration and energy storage solutions to ensure a reliable power supply.

Energy storage technologies, like advanced batteries, are essential for storing excess solar energy generated during the day and releasing it when solar generation is low. These technologies can address the issue of solar intermittency and provide a consistent power supply.

South Africa's solar journey also presents an array of opportunities.

The nation's commitment to renewable energy, combined with its abundant solar resources, makes it a hub for further solar developments. The solar industry can continue to attract investments, create jobs, and lead the way in diversifying the energy sector.

South Africa's solar PV growth trajectory has been nothing short of remarkable. The country's abundant sunlight, particularly in regions like the Northern Cape, has made it an ideal location for harnessing solar energy. As a result, numerous solar PV projects have sprung up across the nation, ranging from utility-scale solar farms to smaller, distributed installations on rooftops and commercial properties.

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South Africa's achievement of surpassing 6 GW of installed solar PV capacity in 2023 is a testament to the nation's dedication to sustainable energy solutions. It represents a significant step toward a greener and more sustainable future, with economic benefits and a reduced environmental impact. As South Africa's solar journey continues, it is poised to play a pivotal role in the global transition to renewable energy sources, making it a shining example of what can be accomplished in the realm of solar power.

SEP-OCT Issue 2023

AWARDS

Congratulations to all the BUSINESS EXCELLENCE AWARDS WINNERS

20 23 Leadership Awards

Solar Company of the Year: Distributor (Solar Home Systems)

Sosten Ziuku Director: Energy Conservation and Renewable Energy, Ministry of Energy and Power Development

Edington Tapera Mazambani Chief Executive Officer Zimbabwe Energy Regulatory, Authority (ZERA)

SOLAR COMPANY OF THE YEAR: FINANCE Solar Company of the Year: Finance

Money Mart Finance Private Limited

BEST SOLAR PROJECT OF THE YEAR

Best Solar Project of the Year

Citi Solar

BEST RURAL ELECTRIFICATION PROJECT OF THE YEAR Best Rural Electrification Project of the Year

Namene Zimbabwe

Money Mart Finance PVT. LTD.

SOLAR COMPANY OF THE YEAR: DISTRIBUTOR

BEST SALES TEAM OF THE YEAR

Best Sales Team of the Year Solar Company of the Year: Distributor

Aurora Energy

Tenga Solar

AWARDS

Congratulations to all the BUSINESS EXCELLENCE AWARDS WINNERS

20 23 Leadership Awards

Presented to

Ms. Helvi Ileka Centre Head: Renewable Energy and Energy Efficiency, Namibia Energy Institute

SOLAR COMPANY OF THE YEAR: INSURANCE

BEST SOLAR PROJECT DEAL OF THE YEAR

Solar Company of the Year: Insurance

Best Solar Project Deal of the Year

Williams & Knight

Alensy Energy Solutions PTY Ltd