South Africa’s capacity to deliver on the envisaged Renewable Energy Inde- pendent Power Producers Programme (REIPPP) projects has been called into question by AEG Power Solutions 3W Power division MD Trevor de Vries.
The scale of the projects is large and expectations are high, but De Vries is concerned that some companies do not have the domestic infrastructure in place to deliver the requirements that have been placed on the independent power producers (IPPs).
There will be pressure on supply chain logistics, causing problems in the sourcing of components and creating lead-time issues when the projects are due to start.
“Once the installations are completed, the requirements for customising, servicing and maintaining them mean that having local people on site will be crucial,” he explains.
These concerns have been raised after the announcement of the successful bidding companies for the last round of the REIPPP, which anticipates the introduction of renewable energy into the energy mix in excess of 10 000 MW over the next 20 years.
The current REIPPP seeks to procure 3 725 MW of renewable-energy capacity by 2016 and will maximise the development of the local industry, while mitigating climate-change conditions.
Current policy envisions 30% of power generation to be supplied by IPPs. Power utility Eskom’s funding constraints make the target attainable and emphasis on locali- sation will result in skills development and capacities to enable local businesses to manufacture and supply, as well as provide maintenance and operation for components, plants and facilities.
De Vries says as renewable costs decrease, the use of renewable projects will continue, and government’s support for the sector is essential. Government plans to invest R13-billion in renewable energy in South Africa.
Despite the challenges, he says as the REIPPP reaches maturity, the renewables sector will go from strength to strength.
“The way to overcome logistical issues is to use local suppliers and service providers, as this will grow the entire market,” De Vries concludes.