Eastern Cape Business 2017 edition

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