JSE-listed Allied Electronics (Altron) sees South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP) as a key strategic avenue of growth for its electrical engineering subsidiary Powertech.
Altron CEO Robert Venter told Engineering News Online that the programme’s local content requirement of between 30% and 40% opened up opportunities for the subsidiary to supply transformers, cables and industrial and system integrators to the turnkey contractors of the large solar and wind project bidders over the next few years.
A total of 47 projects, valued at R46-billion and accounting for 2 400 MW of the 3 725 MW power capacity, were approved during the first two REIPPP bidding rounds.
Some of the bidders included the Powertech product range within their bids and as the financial closure of the bidding rounds nears, Powertech would initiate discussions surrounding supply.
Venter commented that Powertech’s possible market share and growth could not yet be calculated as the financial closure of the bidding rounds were required to accurately assess potential.
However, he expected the renewable-energy projects to account for 10% of the products' market in South Africa, which would be shared between the company and its competitors.
The Department of Energy announced on Tuesday that, under the REIPPP, it would move to secure an additional 3 200 MW renewable energy capacity, bringing the total to more than 4 360 MW of capacity available for future bidding rounds.