5 years ago

Eastern Cape Business 2018 edition

  • Text
  • Mandela
  • Water
  • Electrical
  • Services
  • Financial
  • Municipal
  • Infrastructure
  • Water
  • Manufacturing
  • Sectors
  • Tourism
  • Energy
  • Development
  • Industrial
  • Business
  • Investment
  • Nedbank
  • Provincial
A unique guide to business and investment in the Eastern Cape. The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.


SPECIAL FEATURE Renewable energy is creating new opportunities The Eastern Cape is a wind power hot-spot. The Eastern Cape is home to two of the eight Renewable Energy Development Zones (REDZs) designated in a national programme. The Environmental Management Services unit within the Council for Scientific and Industrial Research (CSIR) was responsible for identifying suitable areas around the country. They had to meet three criteria: the presence of good wind or solar resources, good environmental conditions that could withstand the presence of solar panels or wind turbines and a high need for socio-economic development. Cookhouse and Stormberg are the two Eastern Cape areas that are REDZ and hopes are high that these concentrations of activity will lead to economic growth and the creation of jobs for local communities. There are already 12 wind farms in the Eastern Cape. Because of this concentration of facilities, the South African Wind Energy Association (SAWEA) chose the province for its first SAWEA Provincial Community Trust Workshop. With large amounts of money coming into communities, proper attention must be paid to who decides how that money is to be spent and some regional planning is needed. It does not make sense for each wind farm and its closest community to plan a school and a crèche if that is what the neighbouring community is also planning. Community trusts have been established as each of the independent power producers must involve communities living within a 50km radius of a wind farm. Brenda Martin, CEO of SAWEA, outlined some of the issues tackled at the workshops, “We explored a range of approaches that are applied when establishing the trusts for the benefit of local communities. Many of the initiatives are focused on education, health and the empowerment of women.” The National Department of Energy has a programme to attract private investment in renewable energy, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). According to figures released by the Department of Energy, the REIPPPP by 2016 had not only delivered multiple millions in investments, but also created more than 30 000 jobs and benefited local community development to the tune of R256-million. However, the national utility, Eskom, has created some uncertainty by refusing to sign new power purchase agreements. Although Eskom’s shareholder, the Minister of Energy, said that the REIPPPP was still government policy, it was not until 2017 that the process was started again, but this time with a limit imposed by the state on how much could be charged for energy in new contracts. Fully a quarter of the projects so far approved in this national programme have been allocated to the Eastern Cape with 91% of these being wind projects and the balance solar photo-voltaic. A vast new industry has been created in a very short space of time, and investors still have an appetite for more. If the power produced through the REIPPPP were consumed where it is made, the Eastern Cape would soon be producing 60% of its own needs (the power is in fact sent to the national grid for redistribution). The province consumed 8 358GWh electricity in 2015 or 3.7% of the national total. The average lead time in the projects that have so far been approved in the province is two years, with local content averaging out at about 47%. When the projects are complete, R142.9-billion will have been spent on procurement, R65.7-billion of which will be local. Wind projects in the province include Globeleq’s 138MW Jeffreys Bay facility, the 140MW EASTERN CAPE BUSINESS 2018 16

SPECIAL FEATURE Cookhouse project (African Clean Energy Developments) and two run by Cennergi at Tsitsikamma (94MW) and Bedford (134MW). Cennergi is a joint venture between South African resources company Exxaro and Indian company Tata Power. There are several other projects with capacities ranging from 20MW to 97MW. Scatec Solar has commissioned a plant in Burgersdorp. The 75MW plant has panels mounted on single axes, enabling them to track the sun and optimise electricity generation by a further 20%. The Coega IDZ is working on positioning itself as a renewable energy hub. The Department of Trade and Industry (dti) offers various green technology incentives. POWERX IS ROLLING OUT GREEN ENERGY POWERX has recently signed up with AKM Foods to supply power to all the KFC outlets in Nelson Mandela Bay. KFC, as the largest quick service restaurant in South Africa, has shown huge commitment to growing the green economy by making great strides in transforming the energy landscape in Nelson Mandela Bay. POWERX has also signed up with Mondelez to supply power to its head office and operations in Port Elizabeth. Mondelez as a global company has shown dedication to sustainability and reducing their carbon emissions by consuming power supplied by POWERX. POWERX now supplies over 40 national and local customers in Nelson Mandela Bay and its aim is to expand the number of customers supplied exponentially over the next several years. 17 EASTERN CAPE BUSINESS 2018

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