GreenCape’s 2021 market intelligence reports (MIRs), produced in partnership with the Western Cape government’s Department of Economic Development and Tourism, are now available for download.

The reports highlight the investment opportunities in key sectors of the green economy in the province, which has been “working hard to ensure the province is an attractive destination for investors looking to start or expand their businesses”, says Western Cape Finance and Economic Opportunities Minister David Maynier.

He adds that the province is not only a “beautiful place to visit” but that it also offers “world-class infrastructure, a highly skilled talent pool and an enabling environment for businesses to thrive”.

GreenCape’s sector desks are in the unique position to gather current insights from businesses active in the green economy, as well as from other key role-players in each of the sectors. The MIRs are focused on highlighting opportunities in the Western Cape and also include relevant national insights and context.

The 2021 MIRs include updated investment opportunities and highlight the relevant legislation context and potential market barriers and risks in energy services, utility-scale renewable energy, electric vehicles and water.

GreenCape also publishes a Sustainable Agriculture MIR in partnership with the Western Cape Department of Agriculture and a Waste MIR in partnership with the City of Cape Town.

The Energy Services MIR provides potential investors in the small-scale embedded generation, energy storage and energy efficiency markets with a greater understanding of market opportunities in South Africa, taking into account the size of the opportunities, the level of risk involved and current barriers.

“In the 2021 Energy Services MIR, we unpack small-scale embedded generation opportunities pertaining to rooftop solar photovoltaic (PV) model diversification for the commercial and industrial sectors, solar power purchase agreements, solar PV for energy resellers and in-house capacity building,” says GreenCape energy analyst Argon Poorun.

He adds that, with 24 Western Cape municipalities that allow small-scale embedded generation and 19 municipalities that have regulator-approved feed-in tariffs, the province is home to a large portion of the more than 1.4 GW of rooftop solar PV that is installed on private and public buildings in South Africa.

“Behind-the-meter battery storage provides an emerging investment opportunity in the energy storage market and, in the energy efficiency market, we elaborate on opportunities for smart metering and demand side management, as well as aggregated interventions for commercial new builds and retrofits,” adds Poorun.

The 2021 Utility-Scale Renewable Energy MIR is compiled for foreign direct and local investors that are looking to invest directly in the South African green economy through project development, asset management, equity, debt, equipment manufacture, or support services.

It highlights market opportunities in the utility-scale renewable energy market in South Africa.

“In the 2021 MIR we highlight the investment opportunities that tap into the continuation of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) based on the Integrated Resource Plan (IRP) 2019 allocations, increased local manufacturing of renewable energy components and systems, distributed generation and utility-scale battery energy storage development and deployment,” says Greencape energy and utility sector desk analyst Mandisa Mkhize.

She adds that a big movement in the sector is the announcement of the opening of the REIPPPP Bid Window 5, which presents an opportunity for the industry to re-ignite some of the renewable energy value chain capabilities and investor confidence eroded during the delay periods.

It translates into an opportunity of 2 600 MW of new generation capacity, including 1 600 MW from onshore wind energy and 1 000 MW from solar PV power plants, she notes.

Over 60% of the project developers that have been successful in the REIPPPP rounds are based in Cape Town, and this ecosystem of skills makes the region particularly attractive to the professional skills associated with the renewable energy space.

The electric vehicles (EV) MIR, meanwhile, highlights investment opportunities relating to local manufacturing and electrification of public transport, local lithium-ion battery production, local passenger vehicle manufacturing, as well as EV use in construction, retail, and in underground mining.

The automotive sector is a key player in the country’s economic landscape, contributing 6.4% of gross domestic product (GDP) and 27.6% of manufacturing output.

Total revenue from this sector was more than R500-billion in 2019, with the industry employing up to 900 000 people directly and indirectly. As this market makes a marked shift towards sustainable mobility, specifically, EVs, the Western Cape Atlantis Special Economic Zone for Green Technologies can become a key hub for sustainable mobility in Africa, the report highlights.

The water-focused MIR goes into depth about opportunities in water conservation and water demand management; alternative sanitation; and resource recovery.

Reducing non-revenue water (NRW) losses is important for achieving water security and reliability of supply, as well as municipal revenue recovery for maintenance, and for offsetting future capital expenditure. Investing in NRW could realise savings of R7.3-billion a year in bulk water costs, says GreenCape water sector analyst Ashton Mpofu.

He adds that non-sewered sanitation systems can address the challenge of delivering sustainable sanitation services in new property developments, rural communities, and low-income and informal settlements, with the investment potential of R41.4-billion estimated in order to achieve universal access to safe sanitation.

“Beneficiation or alternative disposal solutions for wastewater sludges must be developed to the national ban on liquid wastes at landfills which was put in place in August 2019,” says Rudi Botha, water sector analyst at GreenCape.

“There are opportunities to transport and beneficiate sludge to the value of about R330-million a year across all metros, excluding Tshwane, with about R86-million in the Western Cape,” he adds.

Smart farming applications; undercover farming, which includes low-tech infrastructure such as shade netting and higher-tech controlled environment agriculture systems; regenerative agriculture; and renewable energy are discussed in the agriculture MIR.

The waste-focused MIR, meanwhile, looks to discuss opportunities within the organics, plastic and e-waste sectors, which have the potential to add up to R1.1-billion in value to the Cape Town economy, according to GreenCape waste sector analyst Sam Smout.

“According to the then Department of Environmental Affairs, the waste economy contributed about R24.3-billion to the South African GDP in 2016. It provided 36 000 formal jobs and supported about 80 000 informal jobs/livelihoods,” says Smout, who notes that an estimated R11.5-billion a year could be further unlocked by 2023 by diverting up to 20-million tonnes of waste from landfill.

The anticipated benefits could include 45 000 additional formal jobs and 82 000 indirect jobs, as well as the creation of 4 300 SMMEs,” he adds.

The 2021 MIRs are available for free at www.green-cape.co.za.