INVESTMENT OPPORTUNITY
INVESTMENT OPPORTUNITY І Renewable energy Vast resources of solar and wind power give the Northern Cape the edge in the race to generate renewable energy. For anyone who visits this windswept and sun-drenched region, it will come as no surprise that the Northern Cape is already home to more than 60% of South Africa’s renewable energy production. Now the region wants to transform its natural resources of wind, sun and mineral deposits into new possibilities for economic growth and shared prosperity. “With our vast solar potential, consistent wind corridors and rich mineral deposits, we have what it takes to diversify and future-proof our economy,” says Lorato Venus Blennies-Magage, Member of the Executive Council for Finance, Economic Development and Tourism. “Our strategic objective is to position the Northern Cape as a regional and global hub.” Together with world-class solar and wind resources, the province’s low population density makes it easy for developers to acquire land. With a supportive provincial government, permitting procedures are straightforward and returns on investment can be high. Global renewables leaders such as Scatec, Mainstream Renewable Power and EDF Renewables have all made major investments here, decarbonising the province’s electricity production and revitalising its inland economy with new sources of clean energy. Some of South Africa’s largest battery storage projects are also underway in the province. These state-of-the-art systems allow developers to continue injecting electricity from solar plants into the network even after the sun has set. Scatec’s 540MW facility in Kenhardt is one of the world’s largest hybrid solar and battery storage facilities. The R18-billion plant includes 225MW of battery storage and forms the largest single investment in the company’s history. In 2024, Scatec began construction of another 103MW battery storage project for an investment of R3.1-billion. Located near Kathu, the site will be one of Africa’s first and largest standalone battery energy storage systems. For its part, EDF Renewables is developing an
| +27 53 833 1503 .za | info@investsanc.co.za tsanc.co.za and green hydrogen orthern Cape: A Modern, Growing and Successful Province” 2022/23 2022/06/01 13:03 innovative hybrid project partly in the Northern Cape that will operate as an innovative virtual power plant. Combining solar, wind and battery capabilities spread across two sites 900km apart, including a 115MW solar power plant and 30MW of batteries at Avondale, the project will be able to deliver energy to the South African power grid at all times. Commissioning is planned for mid-2025. The province has long been a hotbed of renewable energy innovation. A 100MW concentrated solar thermal power (CSP) plant in Redstone is the first CSP project in Sub-Saharan Africa. The pioneering project, developed by ACWA Power of Saudi Arabia, concentrates sunlight onto receivers, which heat molten salt to produce steam, drive turbines and generate electricity. As with battery storage, the technology allows CSP plants to provide consistent energy even when the sun is not shining. Saudi Arabia is not the only country to seize the opportunities of renewable energy in the province. UAE-based Masdar, one of the leading forces in the global industry, operates wind farms across the Northern Cape, with three projects of 140MW each. Meanwhile, at the end of 2024, Chinese engineering firm PowerChina signed an engineering, procurement and construction contract with South Africa’s SolarAfrica Energy to build a 342MW solar power plant in the province. The project will be the largest single-unit solar power plant in South Africa and will supply clean energy to large data centres and commercial and industrial users across the country. “The Northern Cape is blessed with some of the most favourable conditions for renewable energy projects in the country, if not the world,” Blennies-Magage says. “These are not just theoretical PHOTO: SR Energy The Redstone Solar Thermal Power Plant located near Postmasburg is a 100MW concentrated solar power (CSP) facility with 12 hours of molten salt energy storage, capable of supplying electricity to approximately 200 000 homes. advantages, they are catalytic assets that have already begun attracting global attention and investment.” Green hydrogen strategy Moreover, the Northern Cape’s ambitions for harnessing its renewable energy resources extend well beyond clean power generation and storage. They are central to a broader economic transformation. Renewable energy initiatives in the Northern Cape have the capacity to transform even the most arid areas into major energy sources. In his 2025 State of the Nation Address, President Cyril Ramaphosa emphasised the province’s strategic role in South Africa’s green economy: “We are going to set up a Special Economic Zone in the Boegoebaai port to drive investment in green energy.” Under the government’s Green Hydrogen Strategy and Master Plan, the province plans to use its wind and solar resources to power electrolysers and produce hydrogen for export to industrial users. The hydrogen strategy aims to turn the Northern Cape’s abundant renewables into the driver of its global export ambitions. At the Boegoebaai Green Hydrogen Project, energy company Sasol is talking to international partners about building one of the world’s largest green hydrogen plants. Including a Special Economic Zone and a deepwater port, the venture could create more than 13 000 jobs in the 5GW first phase alone. With the right partners on board, the project has the potential to be scaled up to 40GW and ship hydrogen, ammonia and fertiliser to end-users around the world, especially in Asia and Europe. Supported by this infrastructure, Boegoebaai will also become one of South Africa’s leading hubs for lowcarbon manufacturing. ■ A total of 61 Siemens wind turbines were installed at the large wind power facility at Loeriesfontein. PHOTO: FairWind
