4 years ago

Free State Business 2019 edition

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Free State Business is a unique guide to business and investment in the Free State Province of South Africa. The Free State has several investment and business opportunities. The official launch of the Maluti-A-Phofung Special Economic Zone is a significant event for the economy of South Africa’s most centrally located province. Overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

FOCUS Why invest in

FOCUS Why invest in solar generation plants in South Africa • South Africa’s solar irradiation levels are among the best in the world (>2 000kWh/m²). • Transition to a cleaner energy mix (low carbon path). • Strong local content from government (glass, mirrors). • Strong, established local construction companies. • Experience in building power stations and mines. • Current steel and pipes production meeting CSP requirements. • A target to generate 45% of all new electricity from renewable sources by 2030. • The ongoing success of the renewables procurement programme and the growing interest of international developers and funders are helping South Africa to improve its ranking from nowhere to top 10 investment destinations in the world (Renewable Energy Country Attractiveness Index 2014). • South Africa is the region’s clear leader for clean energy development with record investments of over US-billion in 2012 and 2013. Drivers for PV and CSP investments • Environmental issues such as pollution and exploitation of natural resources. • Climate change due to CO2 emissions from fossil fuels. • Energy security through diversification of supply. • Sustainable development. FOREIGN INVESTMENTS IN THE FREE STATE POWER PLANT LOCATION DATE OF COMMISSION INSTALLED/ PLANNED CAPACITY STATUS OPERATOR INVESTMENT VALUE COUNTRY OF ORIGIN LETSATSI PV PROJECT PULIDA SOLAR PARK BOSHOFF SOLAR PARK XHARIEP SOLAR HUB BLACKWOOD ENERGY SOLAR PLANT EVEREST SOLAR PLANT Bloemfontein, Tokologo LM Jacobsdal, Letsemeng LM May 2014 64MW Operational Solar Reserve Aug 2016 82MW Under construction Enel Green Power 3.8-billion, 1-billion cost of financing 2.4-billion Tokologo LM Nov 2014 64MW Operational Sun Edison 1.8-billion USA Kopanong, Bethulie LM Planned 600MW Planned Concept develop ment and project design Tokologo LM Planned 75MW Planned Matjhabeng LM Planned 75MW Planned New development Korean Solar Power Consortium New development FRV Energy South Africa 16-billion TBC Project occupies 180ha of the Farm Beyers 186 (393ha) USA Italy Korea TBC TBC GROOTKOP SOLAR FACILITY Matjhabeng LM Planned 75MW Planned New development FRV Energy South Africa Project will occupy 180ha of the Farm Beyers 186 (393ha) TBC FREE STATE BUSINESS 2019 20

FOCUS SOLAR GENERATION PARKS The project aim is to recruit a private investor to set up a solar park in the Xhariep, Lejweleputswa and Mangaung regions, as these offer some of the best direct solar radiation (kWh/m²). Process Investors may participate in both off-grid and on-grid supply solutions. Off-grid is where the solar generation plant is directly supplying an independent user or seller, for example a mine or an industrial estate. On-grid is where investors participate in South Africa’s successful Renewable Energy Independent Power Producer Procurement (REIPPP) Programme managed by the Department of Energy (DOE) and finally supply the grid. Projects Location Xhariep District, Mangaung Metro as well as Lejwele putswa. Conversion Technologies Both photovoltaic modules and concentrated solar power (CSP) plant conversion technologies can be implemented. SOLAR WATER HEATERS A private investor is required to set up a solar water heaters manufacturing plant in Botshabelo Industrial Area. The manufacturing process may involve the following: • Fabrication of panel storage tanks. • Assembly of tank, panel coil and other components. • Inspection and commissioning. • Required raw materials for the manufacturing of solar water heaters are copper aluminium MS sheet, pipe, glass fibre, GI sheets, thermostat and insulation material. Why Solar Water Heaters • Eskom electricity demand management programme. • Strong local content on SWH procurement by DOE and Eskom. • Financial and technology capabilities to manufacture and supply locally produced systems. • Construction Sector Education Training Authority (CETA) and Energy Sector Education Training Authority offers accredited Level 4 plumbing qualification. • Availability of plumbing skills currently serv ing the mining, gas and petroleum industries. Location Botshabelo within the N8 Corridor. Investment Required To be determined at feasibility. To discuss these opportunities, contact Peterson Molukanelo (Acting) GM: Marketing, Trade and Investment Tel: + 27 51 4000 800 | Email: 21 FREE STATE BUSINESS 2019

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