Industry association the South African Photovoltaic Industry Association (SAPVIA) has welcomed the investment decision by Italy-based firm Enertronica Santerno to expand its manufacturing activities in South Africa. 

The Italian firm, which has been an active player in South Africa over the past  ten years, will be investing up to R17-million to enhance its capacity to manufacture inverters for solar photovoltaic (PV) applications, including storage solutions, with a maximum initial production capacity of more than 500 MW a year, gradually ramping up to higher capacity targets.

The inverters will achieve a designated local content value higher than 40%, therefore exceeding the minimum requirements for public procurement.

Activities to practically implement the plan are already in place and will be finalised in the next five months.

“This significant investment shows the massive potential for the solar PV market here in South Africa. The fact that we are attracting international investors shows the viability of our renewable energy sector both in terms of financial return, as well as the capability of our workforce to deliver best-in-class manufacturing.

“Post Covid-19, we will require foreign and local investment to drive the economic recovery and transform our energy infrastructure to meet current and future requirements. This investment will also contribute to South Africa realising the full, transformational potential of its solar PV market,” SAPVIA COO Niveshen Govender says.

Enertronica Santerno country manager Luigi Guerra says the group has already successfully established manufacturing activities in the country in various sectors associated with renewable energies.

In 2013, a production plant was built (and then successfully dismantled) for the manufacturing of supporting structures for PV panels which supplied steel works for about 400 MW of panels.

"Subsequently, inverter-based power stations for a total capacity of about 600 MW were locally built with a 58% local content, making Enertronica Santerno one of the leading local producers in South Africa in its own market sector,” he acclaims.

Govender emphasises that government must continue to act in the interest of South Africans and that SAPVIA awaits confirmation from the Department of Minerals Resources and Energy and the Department of Trade, Industry and Competition that legislation will be implemented to ensure that projects are able to meet the localisation requirements for Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme.

“After a period of decline, where investors felt hesitant to move forward with local manufacturing, due to the lack of certainty from government, we are now seeing the green shoots of a South African renewable energy manufacturing sector.

“With this confidence, we hope to see additional investment, local job creation and of course upskilling of local workers,” he notes.