South African Business 2018 edition
Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.
Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za.
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.
First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.
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OVERVIEW<br />
nuclear power station supplies about 5% of the nation’s needs and has<br />
been operating since 1984.<br />
<strong>South</strong> Africa’s long-term energy plan is underpinned by the Integrated<br />
Energy Plan of which the electricity-specific Integrated Resource Plan<br />
(IRP) forms a part.<br />
There is considerable debate about the methodologies and scenarios<br />
which underpin the Draft 2016 Integrated Resource Plan Base Case.<br />
The <strong>South</strong> <strong>African</strong> Renewable Energy Council represents four industry<br />
associations, one of which is the <strong>South</strong> <strong>African</strong> Photovoltaic Industry<br />
Association (SAPVIA). The CEO of SAPVIA, Mike Levington, had this response<br />
to the new plan: “The biggest issue with the draft IRP2016 is that<br />
it artificially limits the amount of renewable energy that can be added<br />
to the grid over the next 20 years with no rationale for imposing them.<br />
Under this constrained scenario there will be greater allocations given to<br />
nuclear and coal in the IRP at significantly more expensive cost than new<br />
solar and wind energy.”<br />
Proponents of coal and nuclear argue that there are some hidden costs<br />
that renewable energy advocates don’t reveal. They also argue that coal<br />
and nuclear are necessary to provide stable supply. There are also questions<br />
about the ability of the grid to cope with multiple sources of energy.<br />
Two recent reports (a “Flexibility Study” and a CSIR study) have concluded<br />
that <strong>South</strong> Africa’s grid could be flexible enough and renewables supported<br />
by gas could provide base load.<br />
ONLINE RESOURCES<br />
IPP Projects: www.ipp-projects.co.za<br />
National Energy Regulator: www.nersa.org.za<br />
National Department of Energy: www.dme.gov.za<br />
<strong>South</strong> <strong>African</strong> National Energy Association: www.sanea.org.za<br />
<strong>South</strong> <strong>African</strong> Nuclear Energy Corporation: www.necsa.co.za<br />
<strong>South</strong> <strong>African</strong> Photovoltaic Industry Association: www.sapvia.co.za<br />
<strong>South</strong> <strong>African</strong> Renewable Energy Council: www.sarec.org.za<br />
<strong>South</strong> <strong>African</strong> Wind Energy Association: www.sawea.org.za<br />
Strengths<br />
The Northern Cape is <strong>South</strong> Africa’s<br />
hotspot for solar power and the<br />
Eastern Cape has attracted most of<br />
the approved wind power projects.<br />
Although KwaZulu-Natal<br />
received few REIPPPP bids,<br />
the Richards Bay Industrial<br />
Development Zone is positioning<br />
itself to be a hub for renewable<br />
energy, with the proximity<br />
of the rich gas fields off the shores<br />
of Mozambique a major selling<br />
point. The huge forestry, timber,<br />
paper and pulp industries of the<br />
province can provide feedstock for<br />
the renewable energy sector.<br />
KwaZulu-Natal’s most widely<br />
grown crops, sugar cane and sugar<br />
beet, are among the most efficient<br />
and cost-effective feedstock for the<br />
creation of biofuel.<br />
The Provincial Government<br />
of the Western Cape is another<br />
entity prioritising energy and this<br />
includes generation (gas, biogas<br />
and renewables), distribution and<br />
energy-saving. In the REIPPPP, the<br />
Western Cape has so far been allocated<br />
11 projects, six wind projects<br />
and five photo-voltaic solar power<br />
projects.<br />
Western Cape Minister of<br />
Economic Opportunities Alan<br />
Winde says that Cape Town alone<br />
has 2 000 private producers. These<br />
range from a solar panel on the<br />
roof of a single household to major<br />
installations in the Waterfront.<br />
Winde is lobbying for the allocation<br />
of a gas-to-power plant to<br />
Saldanha Bay where there are already<br />
bulk power consumers like<br />
ArcelorMittal Steel. This could be a<br />
catalyst for the use of gas in many<br />
other sectors.<br />
SOUTH AFRICAN BUSINESS <strong>2018</strong><br />
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