Eastern Cape Business 2017 edition

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OVERVIEW Energy Gas and renewable energy are creating a new energy landscape. SECTOR INSIGHT A large LNG plant has been allocated to the Coega IDZ. • Wind power projects have mushroomed in the Eastern Cape. Anumber of major projects are transforming the energy sector in the Eastern Cape. Between October 2015, when the 335MW Dedidsa peak power plant started operating within the Coega Industrial Development Zone outside Port Elizabeth, and October 2016, when the national Department of Energy announced that the same site had been chosen to be location of a 1 000MW Liquefied Natural Gas (LNG) plant, hundreds of megawatts were connected to the national grid as the province’s many new wind farms kicked into operational mode. The Liquefied Natural Gas Independent Power Producer Procurement Programme is part of the broader programme of the Department of Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Fully a quarter of the projects so far approved in this national programme have been allocated to the Eastern Cape with 91% of these being wind projects and the balance solar photo-voltaic. A vast new industry has been created in a very short space of time, and it is clear that investors still have appetite for more. Gas The Dedisa power plant is one the first gas-fired plants in the country to be run by a private consortium. Engie (formerly French firm GDF-Suez), Legend Power Solutions, Mitsui (Japan) and the Peaker Trust which represents local residents, have jointly signed a 15-year power purchase agreement with Eskom. The new LNG facility will not only inject some R25-billion into the regional economy, but confirm a shift to gas as a power source which is one of national government’s recently announced objectives. Large commercial gas companies such as Afrox and Air Products have plants within the Coega IDZ. First Automobile Works has established its motor assembly plant next door to Air Products’ air separation unit, allowing it ready access to the industrial gas that it needs. Liquid oxygen and nitrogen play important roles in the metals processing sector for cutting and laser applications. The company believes that having these gases readily available plays strategically into the provincial government’s industrial development strategy. EASTERN CAPE BUSINESS 2017 44
OVERVIEW Renewable energy If the power produced through the REIPPPP were to be consumed where it is made, the Eastern Cape would soon be producing 60% of its own needs (the power is in fact sent to the national grid for redistribution). The province consumed 8 358GWh of electricity in 2015 or 3.7% of the national total. The average lead time in the 11 projects that have so far been approved in the province is two years, with local content averaging out at about 47%. When the projects are complete, R142.9-billion will have been spent on procurement, R65.7- billion of which will be local. Wind projects in the province include Globeleq’s 138MW Jeffrey’s Bay facility, the 140MW Cookhouse project (African Clean Energy Developments) and two run by Cennergi at Tsitsikamma (94MW) and Bedford (134MW). Cennergi is a joint venture between South African resources company Exxaro and Indian company Tata Power. There are a number of other projects with capacities ranging from 20MW to 97MW. Scatec Solar has commissioned a plant in Burgersdorp. The 75MW plant has panels mounted on single axes, enabling them to track the sun and optimise electricity generation by a further 20%. The Coega IDZ is working on positioning itself as a renewable energy hub. The Department of Trade and Industry (dti) offers various green technology incentives. Electrawinds, Universal Wind and DCD Wind Towers are three RE companies with a presence in the Coega IDZ. The energy sector is also creating potential for manufacturers. In the East London Industrial Development Zone (ELIDZ), for example, Spanish firm ILB Helios is producing solar panels units for use in the South African market. Other Eskom is pursuing plans for more nuclear power to be added to the national grid. One of the possible sites is Thyspunt near Cape St Francis. There is strong opposition from archaeologists and environmentalists. The discovery of shale gas reserves in the Karoo Basin may offer another opportunity but the topic is almost as controversial as the nuclear option, as opponents of “fracking”, as the recovery process is called, argue that underground water supplies might be contaminated. Small-scale hydropower projects have some potential in deep rural areas. The largest of the province’s four hydropower stations, Colley Wobbles in the Mbashe catchment area (maximum capacity 42MW), has been ineffective due to rising silt levels. The Umzimvubu Dam project is expected to add power to the grid. Two bio-digesters have been commissioned in the Keiskammahoek area. A community training centre runs the project which supplies fertiliser and gas for cooking. A bio-ethanol project intended for Cradock has been delayed for some time by uncertainty about what feedstock to use. The Eastern Cape Rural Development Agency, supported by the Industrial Development Corporation, is working on a plan to incentivise producers without affecting food security. ONLINE RESOURCES Coega IDZ: www.coega.co.za Department of Trade and Industry: www.thedti.gov.za East London IDZ. www.elidz.co.za IPP Projects: www.ipp-projects.co.za National Department of Energy: www.dme.gov.za Southern African Biofuels Association: www.saba.za.org South African Photovoltaic Industry Association: www.sapvia.co.za South African Renewable Energy Association: www.sarec.org.za Southern Africa Solar Thermal and Electricity Association (CSP): www.sastela.org South African Wind Energy Association: www.sawea.org.za 45 EASTERN CAPE BUSINESS 2017
Page 1 and 2: EASTERN CAPE BUSINESS THE GUIDE TO
Page 3 and 4: Amatola t:HhAAU:(d wde,,1,, k / ..
Page 5 and 6: UIF SAVING JOBS THROUGH SOCIALLY RE
Page 7 and 8: CREDITS Publisher: Chris Whales Pub
Page 9 and 10: MESSAGE competitive labour costs an
Page 11 and 12: SPECIAL FEATURE The Umzimvubu Multi
Page 13 and 14: SPECIAL FEATURE Chris Hani District
Page 15 and 16: SPECIAL FEATURE from the east offlo
Page 17 and 18: SPECIAL FEATURE renewable energy an
Page 20 and 21: PROFILE The Nelson Mandela Bay Busi
Page 22 and 23: PROFILE Border-Kei Chamber of Busin
Page 24 and 25: Skills development Skills training
Page 26 and 27: ADVERTORIAL Nedbank’s new brand p
Page 28 and 29: ADVERTORIAL Expertise in small busi
Page 30 and 31: The Masisizane Fund was established
Page 33 and 34: KEY SECTORS Overview of the main ec
Page 35 and 36: OVERVIEW the east. Improving the ag
Page 37 and 38: OVERVIEW population, as South Afric
Page 39 and 40: Aquaculture Fish from the Karoo wil
Page 41 and 42: OVERVIEW strategy. RED hubs will su
Page 43 and 44: OVERVIEW Swedish concern Fagerhult
Page 45: OVERVIEW in East London. Mercedes-B
Page 49 and 50: OVERVIEW delivered water from the O
Page 51 and 52: FOCUS Sanitation to fast-track the
Page 53 and 54: OVERVIEW environment, but it is now
Page 55 and 56: OVERVIEW now operates in 32 countri
Page 57 and 58: OVERVIEW means the company can move
Page 59 and 60: OVERVIEW cial tourism body’s info
Page 62 and 63: LISTING Eastern Cape Provincial Gov
Page 64 and 65: Raymond Mhlaba Local Municipality T
Page 66 and 67: INDEX INDEX Amatola Water .........

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