The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants.

The investment in the manufacturing facility in Cape Town aims to boost the capacity of the solar power industry in a bid to help address the country’s growing energy crisis, create jobs and transfer skills and technology.

The SMA Solar Technology factory was opened last month by Deputy Minister of Trade and Industry Deputy Minister Mzwandile Masina, together with Western Cape Premier Helen Zille and SMA Solar Technology South Africa MD Thorsten Ronge.

“This is the third renewable-energy component manufacturing facility opening in a short space of time and is testament to the growing importance of the green economy in general and the renewable energy industry in particular,” said Masina.

SMA develops and manufactures inverters for PV systems of all sizes, power classes and grid specifications – from kilowatt to megawatt, grid-connected or off-grid.

Solar inverters also have a grid-stabilisation functionality when it comes to voltage spikes.

“With the energy crisis and ongoing load shedding amidst rising energy demand, we see an excellent opportunity to solar-power South Africa,” Range told Engineering News.

SMA is also adapting to government’s increased local content requirements for solar energy in its renewable-energy programme. Local content requirements have moved from a threshold of 35% in bid window one to a threshold of 45% in bid window four. Government is targeting 65% local content in window four.

“The intention is to continue increasing local content levels until optimum levels are reached in order to attract even more investments into local manufacturing,” says Masina.

SMA was a key inverter and medium-voltage solutions supplier for several projects in the first two rounds of the procurement programme. The company is in discussions with project developers, engineering procurement and construction (EPC) companies, banks and due diligence companies about rounds three and four. But it has not been without challenges.

“What has made things quite difficult for all players involved is that government so far has not adhered to timelines regarding the announcement of preferred bidders and financial close,” says Ronge.

Despite the delay, Ronge is confident about SMA’s prospects in South Africa and sees South Africa as strategically important to the Germany-based company.

“The need for business to contain the risk of power shortages and government’s policy framework towards a low-carbon future are making photovoltaics a financially attractive investment for independent power producers and commercial, agricultural and infrastructure users.”

Zille considers the SMA investment as part of a welcome ‘crowding in’ of green investments to the Western Cape.

“By unlocking the potential for decentralised, renewable energy, the Western Cape and South Africa may be able to decouple its economic growth from nonrenewable-energy consumption in order to grow its economy.”

Ronge said it made good business sense to locate SMA’s inverter factory within the Western Cape’s green cluster, close to both the supply chain and Cape Town harbour. Its SMA Solar Academy will help to train customers on SMA products and PV in general. Ronge says, among others, many Eskom employees have signed up for the first course starting early this year.

SMA currently employs 25 staff in South Africa. The Germany-based SMA Group generated sales of more than €930-smillion in 2013 and is represented in 21 countries.