South African Business 2018 edition

OVERVIEW
nuclear power station supplies about 5% of the nation’s needs and has
been operating since 1984.
South Africa’s long-term energy plan is underpinned by the Integrated
Energy Plan of which the electricity-specific Integrated Resource Plan
(IRP) forms a part.
There is considerable debate about the methodologies and scenarios
which underpin the Draft 2016 Integrated Resource Plan Base Case.
The South African Renewable Energy Council represents four industry
associations, one of which is the South African Photovoltaic Industry
Association (SAPVIA). The CEO of SAPVIA, Mike Levington, had this response
to the new plan: “The biggest issue with the draft IRP2016 is that
it artificially limits the amount of renewable energy that can be added
to the grid over the next 20 years with no rationale for imposing them.
Under this constrained scenario there will be greater allocations given to
nuclear and coal in the IRP at significantly more expensive cost than new
solar and wind energy.”
Proponents of coal and nuclear argue that there are some hidden costs
that renewable energy advocates don’t reveal. They also argue that coal
and nuclear are necessary to provide stable supply. There are also questions
about the ability of the grid to cope with multiple sources of energy.
Two recent reports (a “Flexibility Study” and a CSIR study) have concluded
that South Africa’s grid could be flexible enough and renewables supported
by gas could provide base load.
ONLINE RESOURCES
IPP Projects: www.ipp-projects.co.za
National Energy Regulator: www.nersa.org.za
National Department of Energy: www.dme.gov.za
South African National Energy Association: www.sanea.org.za
South African Nuclear Energy Corporation: www.necsa.co.za
South African Photovoltaic Industry Association: www.sapvia.co.za
South African Renewable Energy Council: www.sarec.org.za
South African Wind Energy Association: www.sawea.org.za
Strengths
The Northern Cape is South Africa’s
hotspot for solar power and the
Eastern Cape has attracted most of
the approved wind power projects.
Although KwaZulu-Natal
received few REIPPPP bids,
the Richards Bay Industrial
Development Zone is positioning
itself to be a hub for renewable
energy, with the proximity
of the rich gas fields off the shores
of Mozambique a major selling
point. The huge forestry, timber,
paper and pulp industries of the
province can provide feedstock for
the renewable energy sector.
KwaZulu-Natal’s most widely
grown crops, sugar cane and sugar
beet, are among the most efficient
and cost-effective feedstock for the
creation of biofuel.
The Provincial Government
of the Western Cape is another
entity prioritising energy and this
includes generation (gas, biogas
and renewables), distribution and
energy-saving. In the REIPPPP, the
Western Cape has so far been allocated
11 projects, six wind projects
and five photo-voltaic solar power
projects.
Western Cape Minister of
Economic Opportunities Alan
Winde says that Cape Town alone
has 2 000 private producers. These
range from a solar panel on the
roof of a single household to major
installations in the Waterfront.
Winde is lobbying for the allocation
of a gas-to-power plant to
Saldanha Bay where there are already
bulk power consumers like
ArcelorMittal Steel. This could be a
catalyst for the use of gas in many
other sectors.
SOUTH AFRICAN BUSINESS 2018
78