The government and the private sector are investing billions of rand as South Africa makes the most of its abundance in renewable sources of energy and ultimately addresses erratic power supplies that are partly to blame for economic challenges.
The country has vast clean-energy sources such as sunlight, wind, biomass and geothermal heat, but a lack of investment has seen the country fail to exploit these.
But things are expected to change following a multi-billion-rand investment by the Industrial Development Corporation (IDC) and Public Investment Corporation in a 100 megawatt (MW) solar plant in Pofadder, 230km west of Upington in the Northern Cape.
The facility, set to become the continent’s largest renewable source of energy - ahead of a solar photovoltaic project in Jasper, also in the Northern Cape - feeds directly into Eskom’s national power grid.
The plant in Pofadder is one of more than 20 projects nationwide, worth R14 billion, with the financing set to result in creating thousands of much- needed job opportunities and ensuring surplus electricity supplies.
Such projects contribute to South Africa’s goals of achieving up to 17800MW of renewable energy by 2030, and reducing dependence on oil and natural gas.
Lizeka Matsheka, IDC divisional executive for agro, infrastructure and new industry, said South Africa required reliable sources of energy to attract more investment and create jobs.
“No economy can prosper without electricity. We can’t afford to ration energy industrially and residentially,” Matsheka told CAJ News Africa.
She said the electricity load shedding that peaked in 2014 highlighted the consequences of failure to invest in renewable energy.
“IDC facilitates creation of jobs through projects such as this (renewable energy investment),” Matsheka said of the latest facility.
Jeff Radebe, the Energy Minister, who officially commissioned the power plant, said the country, through its 2030 Vision, planned to invest $10.8bn (about R130bn) in renewable energy, which would drive down the spiralling costs of electricity.
He said the government, in partnership with private companies such as Abengoa Solar, would ensure Eskom supplied the nation without concerns of load shedding.
“Lack of energy contributed to low growth of the economy. Past energy shortfalls taught us to increase power generation. South Africa is rich in renewable energy,” Radebe said.
He said renewable energy also reduced carbon emissions.
Dominic Jose Goncalves, vice-president for business development at Abengoa, which installed the 300-hectare solar thermal plant, said about 95000 households were now benefiting from solar energy. About 1300 jobs had been created.
Local communities are also set to benefit through the transfer of skills. Abengoa Solar built the plant and carries out its operation and maintenance. The IDC, South Africa’s largest development finance institution, holds 29%. The local KaXu Community Trust holds 20%.
Northern Cape Premier Sylvia Lucas hailed the Pofadder project as a “game-changer” in electricity generation.
However, she bemoaned the poor state of roads in the province as a drawback to economic growth.
“This challenge is limiting economic growth,” Lucas said. - CAJ News