SA has ‘favourable framework conditions’ for PV development – German PV provider

8th February 2013

By: Samantha Herbst

Creamer Media Deputy Editor

  

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Germany-based solar systems producer Solon Energy plans to establish business roots in South Africa before rolling out its activities to the rest of Africa, as the country has “favourable framework conditions”, says power plants business development manager Vanessa Gombert.

South Africa’s decision-makers are interested in the realisation of large-scale photo- voltaic (PV) power plants, as 18 solar PV projects have already been approved – totalling more than 631 MW – for the first-bid window of the Renewable Energy Independent Power Producer Programme.

Gombert maintains that South Africa’s experience in solar power projects will help Solon expand throughout Africa, which she believes is a key future market for solar power, since it combines high insolation levels with a growing demand for electricity.

“Solon perceives the African market as one of the future markets for the PV energy industry. Paired with economic growth, Africa has become attractive for investment,” she says.

Gombert believes that the general outlook for Africa’s energy sector is positive for countries with increasing political and social stability.

“Sociopolitical stability is the foundation for economic growth and investment from international companies.

“Further, the rising wealth of Africa’s inhab- itants is leading to rising energy demand,” she says.

Solon will attend this year’s Africa Energy Indaba, which will run from February 19 to 21 at the Sandton Convention Centre, where it will showcase its PV products, present its services to the African market, open discussions on the advantages of sustainable and renewable-energy sources and meet potential local partners.

“As an experienced engineering, procurement and construction company, we know that successful projects require experienced local partners and components from local suppliers,” says Gombert.

She maintains that the company’s previous success in other parts of the world is the result of cooperation with strong local partners, which has led to healthy, fruitful and long-term business relationships.

“We see the Africa Energy Indaba as a great opportunity to network, build connections, access power plant projects and find sales channels for our products and services,” explains Gombert.

She believes that, for ecological and economic reasons, society no longer has a choice about how power producers generate energy.

“Owing to high solar irradiation and recent price developments [in Africa’s electricity sector], PV has become an attractive source of electricity,” Gombert says, explaining that PV technology reduces damage to the environment caused by carbon dioxide emissions, conserves raw materials and ensures a strong return on investment.

Gombert says access to electricity is one of the main drivers of fast and sustainable development, as PV technology can be scaled to meet varying demands – from small, off-grid installations to utility-scale power plants.

She tells Engineering News that Solon can cooperate with German development organisations like the German Society for International Communication (GIZ) to help secure financial support from State-owned banks to finance projects in Africa’s less developed regions.

Gombert adds that the decline in the price of PV technology in recent years has made it a viable way to generate electricity.

Further, she suggests that retail chains and logistics centres, for example, could use their rooftop areas, and mining companies their land plots, to secure low electricity expenses by generating their own electricity through PV installations.

“This reduces the peak loads during the day and increases grid stability,” she says, explaining that rising energy demands result in grid capacity problems and complications in terms of electricity distribution.

PV installations, however, make it possible to support grid operators on several levels. Large-scale installations, with implemented power-factor compensation, and decentralised generation, with storage systems, lead to increased grid stability by reducing the grid loads, especially during peak demand.

Solon Energy in Africa

Having installed power plants with a cumulative nominal power of more than 320 MW worldwide, and produced more than 1 GW of PV modules, Solon has the capacity to provide sustainable electricity solutions for Africa’s rising energy demands, says Gombert.

This year, the company will create awareness of PV technology and identify long-term cooperation partners in Africa. The company plans to build PV power plants in South Africa, before rolling out its services to other African countries, she tells Engineering News.

However, the distance between Solon’s head offices, in Berlin, and South Africa, as well as the obligation to ensure that the company’s PV technology complies with local standards and regulations pose a significant challenge.

“Cooperation with experienced local partners is, therefore, needed to have a local base and to gain quick insight into local business,” says Gombert.

 

Edited by Tracy Hancock
Creamer Media Contributing Editor

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