Renewable energy is in vogue

South Africa is fast becoming a preferred renewable energy investment destination for both private and public sector investors: good news for the country’s growing electricity demands, emerging clean energy sector and the economy.

The World Bank, which granted Eskom the R1.5-billion funding through its Clean Technology Fund, will finance a 100-megawatt solar power plant in Upington in the Northern Cape Province and a 100-megawatt wind power project north of Cape Town in the Western Cape.

Ebrahim Khan from Wesgro, the official investment and trade promotion agency for the Western Cape, welcomed the World Bank’s investment into the renewable energy sector. “These investments are a breath of fresh air, and it shows that South Africa is no longer just talking about renewable energy.

“The good news for South Africa is that there are serious ambitions to get our energy mix right and there are more renewable energy power projects in the pipeline that are to be funded by private investors,” he added.

Key investment areas

The Eastern Cape, Western Cape and Northern Cape have been identified as the main regions to establish renewable energy plants, particularly wind and solar.

“Many people don’t know that the northern part of the Western Cape has higher irradiation than the best locations in Spain and the State of California,” said Khan.

In the Western Cape, investment is primarily into wind and photovoltaic (PV) solar power. PV solar-power generation converts solar radiation to electricity by means of static panels. Khan insisted that photovoltaic is the main form of solar technology used widely on a commercial scale in other parts of the world.

The Northern Cape has been identified as the best area for concentrated solar power technology, which uses mirrors or lenses to concentrate a large area of sunlight or solar thermal energy on to a small area, usually with rotating panels.

Wesgro estimated about 40% to 50% of the 1 850 wind technology projects and 30% to 40% of the 1 450 PV projects will come to the Western Cape. Wind resources in the Western Cape are substantial and among the best in the country, said the agency.

“We are going for renewable energy in a big way,” said Khan.

He added that South Africa has the potential to become a major player in the clean energy sector, with significant interest being shown by investors in the past few months.

Wesgro has hosted many delegations that want to participate in the renewable energy sector. “Most of these companies are big players,” Khan noted.

Construction in 2012

Eskom is building and upgrading existing coal-fired power plants to meet South Africa’s immediate energy needs, but aims to diversify the energy mix toward clean energy.

Last year, the World Bank received criticism for approving a $3.75-billion (R29.3-billion) loan for the development of a coal-fired plant in South Africa, but Eskom said the project was necessary to address the country’s chronic power shortages.

It anticipates that the construction of the 100-megawatt wind power project north of Cape Town would start early in 2012.

Khan said there are good opportunities to establish a manufacturing sector focused on parts and components for the renewable energy sector.

Wind initiatives

In the wind energy sector, European companies already are looking for suitable sites to set up plants to manufacture components such as blades for wind turbines, as they are extremely cumbersome to transport.

Wind power company, Isivunguvungu Wind Energy Converter (I-WEC), has identified Cape Town as its base to manufacture Africa’s first multi-megawatt wind turbines.

Cape Business News reported that a large 42-tonne mould, which recently arrived at Table Bay Harbour from China, would be used to manufacture 50-metre long rotor blades for the 2.5-megawatt turbines. This exceeds the span of an Airbus wing.

The company plans to start production on its first turbine immediately, in time to set up the final product early next year in Saldanha, northwest of Cape Town.

According to I-WEC, the new 2.5-megawatt turbines are almost double the size and capacity of the 1.3-megawatt turbines currently used in South Africa. Each turbine can provide enough power to run about 2 000 average South African households for a year.

I-WEC is the first South African and African company that can manufacture the multi-megawatt wind turbines locally, using local labour.

Up to 70% of the turbines’ components will be manufactured in South Africa.

Staff reporter