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Western Cape Business 2024

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  • Renewables
  • Energy
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The 2024 edition of Western Cape Business is the 17th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature focuses on the meetings, incentives, conferences and exhibitions (MICE) sector in the Western Cape.

Energy Worcester has a

Energy Worcester has a Battery Energy Storage System. In November 2023 a new era in the Western Cape power sector was launched with the opening of the BESS (Battery Energy Storage Systems) at Worcester. The Eskom project, pictured, is part of the national government’s scheme to add 500MW to the grid via four such projects around the country. The City of Cape Town also intends deploying BESS. Although BESS only makes up a small part of the national energy plan (Integrated Resource Plan 2019), if combined with renewables, it could prove a useful complement to the city’s other plans. These include a R1.2-billion solar PV (photovoltaic) plant with battery storage at Paardevlei near Somerset West which is intended to produce 60MW. C40 City Finance Facility (CFF) will fund the project while the city will contribute R447-million towards the solar farm, drawn from the R2.3-billion budget allocated to bring loadshedding in the city to an end by 2026. At the launch of the 2022 Solar Power Africa Conference, Cape Town Mayor Geordin Hill-Lewis unveiled plans for the city to procure 300MW of power from independent power producers. It was estimated in 2021 that loadshedding cost the Western Cape economy R75-million per stage, per day. Tenders for the city have been opened and at provincial level, 24 municipalities have now been given the legal go-ahead to allow for private generation of solar PV energy. In addition, 19 of those municipalities allow private generators to be compensated for feeding back into the grid, a major breakthrough for the potential take-up by the public. SECTOR INSIGHT The City of Cape Town has secured funding for a solar farm. Provincial Premier Alan Winde has outlined other measures the provincial government is taking to tackle the energy crisis. These include: • Seven Western Cape municipalities are being supported to develop wheeling frameworks and wheeling tariffs, whereby private-sector entities can sell power over the grid to another business or facility • Developing standardised legal agreements for wheeling. The City of Cape Town and George Municipality are running wheeling pilots. • 21 municipalities are able to credit businesses and house- WESTERN CAPE BUSINESS 2024 26 PHOTO: Eskom

OVERVIEW holds for excess electricity that is fed into the municipal grid from small-scale embedded generation such as rooftop solar panels. • A new solar photovoltaic technician qualification pilot project has been launched at Technical Vocational Education and Training (TVET), including West Coast College and False Bay College. The early rounds of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) continue to produce regular dividends. The Paardekraal East Wind Farm, which is located about 80km north-east of Ceres, is in the Witzenberg Local Municipality. The 110MW project was constructed by the Concor and Conco Consortium, Siemens Gamesa Renewable Energy supplied and installed the wind turbines, the towers were built by GRI in Atlantis and Mainstream Asset Management South Africa will manage the operations. The support of two of South Africa’s biggest institutional investors, the Industrial Development Corporation (IDC) and the Public Investment Corporation (PIC), has been crucial in getting the renewable energy sector off the ground. They have also helped communities fund their participation in community trusts. Typically, a community trust is established to represent the interests of the local community. Alternative sources The Western Cape is lobbying for the national Department of Energy to allow Saldanha Bay to be a site for a gas-to-power plant. If a gas plant is built at Saldanha, then it could be a catalyst for the use of gas in many other sectors such as manufacturing and residential. Recent gas finds by TotalEnergies off the coast of Mossel Bay and off the west coast will accelerate the drive to switch to gas. The City of Cape Town has signed an agreement with the United States Agency for International Development and the Southern Africa Energy Programme to look for ways to make solar PV more accessible. High costs of installation often preclude residents from taking the solar PV option for their homes. The Western Cape is positioning itself as a green business hub and is working to find energy alternatives for households and businesses. Greater Cape Town is home to 70% of South ONLINE RESOURCES Atlantis Special Economic Zone: www.atlantissez.com GreenCape: www.greencape.co.za South African Renewable Energy Technology Centre: www.saretec.org.za South African Wind Energy Association: www.sawea.org.za Africa’s manufacturers of renewable components. GreenCape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. GreenCape states that nearly R700-million in green technology investments has already been attracted to the Atlantis Special Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated by 2030, which will add more than 3 000 new jobs. Spanish wind tower manufacturer Gestamp Renewable Industries was an early investor in the zone. A market intelligence report covering energy, renewable energy, water and waste was created by GreenCape to map the assets and challenges in these areas. In addition to trying to attract green investment into the province, the Western Cape is working for improved regulations related to small-scale embedded generation (SSEG). The Koeberg nuclear power station 30km north of Cape Town is South Africa’s, and Africa’s, only nuclear power station. It was commissioned in 1985. It seems increasingly likely that the country will get more nuclear power stations as provision has been made for such a power source in national energy plans. ■ 27 WESTERN CAPE BUSINESS 2024

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