Limpopo Business 2016-17 edition
The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province. Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
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OVERVIEW<br />
Renewable energy<br />
Solar and bio-mass have the greatest potential in <strong>Limpopo</strong>.<br />
SECTOR INSIGHT<br />
Two big events have changed the energy landscape in <strong>Limpopo</strong><br />
province: firstly, the giant Medupi power station started delivering<br />
power to the national grid in August 2015; secondly, <strong>Limpopo</strong><br />
became the site of three projects that are part of the national<br />
programme to encourage independent power producers to build<br />
capacity in that field.<br />
At this stage the former event is much more significant than<br />
the latter: Unit 6 at Medupi on its own will generate 794MW and<br />
the plan is to have all six units doing the same. Compared to these<br />
volumes of energy, the amount so far allocated to <strong>Limpopo</strong> in the<br />
renewable energy field is really small. And there is no doubt that<br />
coal-fired power stations such as Medupi will mean that South Africa<br />
will continue to rely on coal for many years to come – but this means<br />
that the coal fields and power stations of <strong>Limpopo</strong> will also continue<br />
to remain significant.<br />
However, the shift away from a carbon-economy is happening,<br />
and it is happening at astonishing speed (and there is also the fact<br />
that Medupi and Kusile, the other big power station, have been<br />
delayed for a very long time and, at time of going to print, a date for<br />
full functionality remains, at best, a guess).<br />
The Matimba Power Station nearby will continue to hold its title as<br />
the world’s largest dry-cooling plant only until such time as Medupi<br />
is commissioned. Matimba functions close to 3 700MW capacity.<br />
Although <strong>Limpopo</strong> has only been allocated three projects so far,<br />
the national Department of Energy’s Renewable Energy Independent<br />
South Africa’s independent<br />
renewable energy power<br />
producers’ programme has<br />
attracted R53.2-billion in<br />
foreign investment.<br />
• Medupi power station<br />
is feeding power to the<br />
national grid after long<br />
delays.<br />
• Nine biogas digesters are<br />
running as part of a pilot<br />
project.<br />
• <strong>Limpopo</strong> is home to a<br />
large silicon smelter and<br />
silicon is a component of<br />
solar panels.<br />
Power Producer Procurement<br />
Programme (REIPPP) has been<br />
astonishingly successful in a very<br />
short period of time. Local and<br />
foreign companies have been<br />
bidding in a “closed envelope”<br />
process to build renewable<br />
energy plants (solar, wind, biomass,<br />
hydroelectric) and the<br />
Department of Energy (DoE) selects<br />
the winning company or<br />
consortium, which then gets to<br />
build the plant and sell what it<br />
generates into the national grid<br />
at a competitive price.<br />
Over the four bidding “windows”<br />
to September 2015, a total<br />
of 92 contracts have been signed<br />
to supply electricity with a nameplate<br />
capacity of 6 327MW and<br />
LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />
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