https://www.engineeringnews.co.za

South Africa is pioneering renewable energy on the African Continent says report

INVESTING IN RENEWABLE ENERGY
Hydropower capacity is increasing on the continent with the implementation of The Grand Inga and Mphanda Nkuwa hydroelectric projects

INVESTING IN RENEWABLE ENERGY Hydropower capacity is increasing on the continent with the implementation of The Grand Inga and Mphanda Nkuwa hydroelectric projects

Photo by Reuters

7th February 2014

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

Font size: - +

The South African energy sector outlook is positive and one of the fastest- growing in Africa, owing to inter alia the introduction of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in South Africa, states corporate and commercial law firm Cliffe Dekker Hofmeyr director and national head of projects and infrastructure practice Kieran Whyte.

Cliffe Dekker Hofmeyr acts on behalf of clients and advises clients bidding on solar photovoltaic, concentrated solar power, onshore wind, hydropower, biomass and landfill gas projects. The firm has advised on 17 successful bids in the first round and on seven in the second, while it advised seven of the bidders that received preferred bidder status in the third round of the REIPPPP.

The REIPPPP and its Power Producer and Power Purchase Agreement Forum will be included as an official workshop at the Africa Energy Indaba, which will be held from February 18 to 20, in Johannesburg.


The REIPPPP has been hugely successful thus far, Whyte says, commenting that the Department of Energy has estimated that the first two rounds of the REIPPPP comprised investment of more than R70-billion in renewable-energy projects., .

“This confirms the importance of the REIPPPP to South Africa’s growing energy demands and the need to develop natural resources in an environmentally friendly and sustainable manner, while facilitating and steering the development of job creation and localisation in the South African energy sector.”

According to Whyte, other positive factors for the energy sector include the introduction of new technologies in the South African energy sector, foreign direct investment (FDI) and continued commitment to the REIPPPP shown by South African financial institutions.

“The programme has strict localisation and job creation requirements.  We may also see the introduction of alternate sources of financing, for example, export credit and debt capital financing in future rounds,” Whyte adds.

Citing the 2013 Renewables Global Status Report, compiled by the Renewable Energy Policy Network for the 21st Century, or REN21, which provides a yearly overview of the renewable-energy industry, market, investments and policy developments worldwide, Whyte notes that South Africa features among the top ten countries that invest in renewable energy.

South Africa is listed among renewable-energy leaders, which include China, the US, Germany, Japan, Italy, India, Brazil and France, all of which have invested billions of dollars in the renewable-energy sector.

“The continent holds the most global potential for renewable-energy project development and investment,” says Whyte, citing the report.

Although South Africa has a pioneering role on the African continent, with many renewable-energy projects across various technologies under way, other African countries are also likely to invest in renewable energy, says Whyte.

Of the other African countries that are turning to renewable energies, Morocco has invested $1.8-billion and Kenya $1.1-billion in 2012, while Kenya has led the way in geothermal capacity planning and implementation on the continent in 2012 and Ethiopia has led the way in wind energy.

Hydropower capacity on all scales is also increasing on the continent such as the Grand Inga hydroelectric project in the Democratic Republic of Congo, and the development of the Mphanda Nkuwa hydropower project in Mozambique.

The Grand Inga project comprises a series of hydroelectric dams at the Inga Falls and once all the phases have been completed, the project is expected to generate 44 000 MW of electricity, while the Mphanda Nkuwa project will consist of four 375 MW turbines, with Phase 1 estimated to cost about $2-billion and Phase 2 about $500-million.

The abundance of renewable solar resources offers great opportunities for the continent and assists in the development of the renewable-energy sector, adds Whyte, noting that Zimbabwe has announced its intention to build three solar power plants in December, at a cost of $540-million. Each plant will have a generating capacity of 100 MW.

However, non-renewable resources, such as oil, coal and natural gases, are “the best-performing sectors on the African continent” and “have reportedly created more than 24 000 jobs on the continent from 2009 to 2012” says Whyte, citing a report on FDI in Africa. The report states that, from 2009 to 2012, coal, oil and natural gas had the highest total and highest average FDI in Africa, at £9.65-billion overall, while the renewable-energy sector created 5362 jobs in Africa in the same period.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.085 0.139s - 179pq - 2rq
Subscribe Now